Swift Energy Company (OTCQX:SWTF) (“Swift” or “the Company”) announced
today its 2017 capital budget and expected production.
2017 Capital Program Overview
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Capital budget of $85.0 – $95.0 million
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Significant hedge program to support 2017 expenditures
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Annual net production of approximately 47.5 – 49.5 Bcfe
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Gas volumes to account for approximately 85% of production
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Oro Grande well planned for 2Q17
Swift Energy’s net operational capital budget for 2017 is expected to be
in the range of $85.0 - $95.0 million. The Company plans to run one rig
in the Eagle Ford to complete twelve wells in 2017. Specifically, the
Company expects to complete nine wells (not including 3 wells drilled
and completed in late 2016) in its Fasken field in Webb County, drill
and complete two wells on its AWP acreage in McMullen County, and drill
and complete its first well in Oro Grande in LaSalle County. All
drilling activities will target the Lower Eagle Ford. The Company
expects to spud the Oro Grande appraisal well in the second quarter of
2017. The anticipated capital budget of $85.0 - $95.0 million is
inclusive of the aforementioned completions as well as associated
drilling activities, infrastructure, and other discretionary
expenditures.
The Company expects production for 2017 to be 47.5 - 49.5 Bcfe with gas
making up approximately 85% of total production. The 2017 capital budget
is expected to be funded primarily through internally generated cash
flows and, to a lesser extent, available borrowings on the credit
facility. The Company maintains a disciplined hedge program to provide
for predictable cash flows while still allowing for flexibility in
capturing increases in prices. As of January 20, 2017, the Company had
hedges in place for over 70% of expected natural gas and crude oil
production at average weighted prices of $3.10 and $48.10, respectively.
Guidance
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2017
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Low
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High
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Capital Budget ($MM)
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85.0
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95.0
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Production (Bcfe)
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47.5
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49.5
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% Natural Gas
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84%
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86%
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LOE/Mcfe ($/Mcfe)
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0.55
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0.57
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T&P/Mcfe ($/Mcfe)
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0.36
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0.38
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G&A/Mcfe ($/Mcfe)
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0.41
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0.43
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Production Taxes (as % of Revenue)
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4.5%
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5.5%
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Interim Chief Executive Officer Bob Banks commented, “Swift’s 2017 work
program and budget reflects the improved operating efficiencies we have
achieved over the past year. We completed the divestiture of virtually
all of our Louisiana non-core assets in 2016 in order to focus our
resources on our core Eagle Ford operating areas and to test a new area
in the play, Oro Grande, during the second quarter.”
Bob Banks commented further, “We recently priced a $40 million private
placement of common stock, which was a major objective for the Company
for early 2017. The Company now has approximately $160 million in
available liquidity under our credit facility and an extensive hedge
program in place to support our planned capital expenditures in 2017. We
are well on our way to solidly positioning the Company for continued and
focused growth into the future.”
In conjunction with the private equity raise, the Company committed to
list all common shares on the NYSE within a defined near term time
frame. The Company recently posted an updated corporate presentation,
which can be found, along with its up-to-date hedging position, on the
Investor Relations section of www.swiftenergy.com.
The Company’s updated corporate presentation includes the following
financial information for the year ended December 31, 2016: average
drilling cost per well of approximately $1.72 million, average
completion cost per well (excluding tubing) of approximately $3.16
million, average completion cost per stage (excluding tubing) of $104.0,
average drilling and completion cost per foot of $99.0, general and
administrative expense per Mcfe of production, net, of approximately
$0.59-$0.60, average South Texas lease operating expense per Mcfe of
approximately $0.54-$0.55 and average South Texas transportation and
processing expense per Mcfe of approximately $0.38-$0.39.
About Swift Energy Company
Swift Energy Company, founded in 1979 and headquartered in Houston,
engages in developing, exploring, acquiring and operating oil and gas
properties in the Eagle Ford trend of South Texas.
Forward-Looking Statements
This release includes “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. The opinions,
forecasts, projections, or other statements other than statements of
historical fact, are forward-looking statements. Although the Company
believes that the expectations reflected in such forward-looking
statements are reasonable, no assurances can be given that such
expectations will prove to have been correct. Certain risks and
uncertainties inherent in the company’s business are set forth in the
filings of Swift Energy Company with the Securities and Exchange
Commission.
Equivalent production based on energy equivalent of one barrel of oil to
6 Mcfe of natural gas.
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