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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended JUNE 30, 1996
Commission File Number 1-8754
SWIFT ENERGY COMPANY
(Exact Name of Registrant as Specified in its Charter)
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TEXAS 74-2073055
(State of Incorporation) (I.R.S. Employer Identification No.)
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16825 Northchase Dr., Suite 400
Houston, Texas 77060
(713) 874-2700
(Address and telephone number of principal executive offices)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
---- ----
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date.
Common Stock 15,059,029 Shares
($.01 Par Value) (Outstanding at August 9, 1996)
(Class of Stock)
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SWIFT ENERGY COMPANY
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1996
INDEX
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PART I. FINANCIAL INFORMATION PAGE
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets
- June 30, 1996 and December 31, 1995 3
Condensed Consolidated Statements of Income
- For the Three-month and Six-month periods
ended June 30, 1996 and 1995 5
Condensed Consolidated Statements of
Stockholders' Equity
- June 30, 1996 and December 31, 1995 6
Condensed Consolidated Statements of Cash Flows
- For the Three-month and Six-month periods
ended June 30, 1996 and 1995 7
Notes to Condensed Consolidated Financial
Statements 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 16
PART II. OTHER INFORMATION
Items 1-3. None 26
Item 4. Submission of Matters to a Vote of
Security Holders 26
Items 5-6. None 26
SIGNATURES 27
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SWIFT ENERGY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
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<CAPTION>
June 30, December 31,
1996 1995
------------- -------------
(Unaudited) (Note 1)
<S> <C> <C>
ASSETS
- ------
Current Assets:
Cash and cash equivalents $ 1,329,439 $ 7,574,512
Accounts receivable -
Oil and gas sales 6,557,541 14,765,336
Associated limited partnerships
and joint ventures 7,804,902 16,108,298
Joint interest owners 4,018,571 4,044,817
Other current assets 565,359 887,491
------------- -------------
Total Current Assets 20,275,812 43,380,454
------------- -------------
Property and Equipment:
Oil and gas, using full-cost accounting
Proved properties being amortized 155,393,073 132,673,707
Unproved properties not being amortized 25,783,462 20,652,151
------------- -------------
181,176,535 153,325,858
Furniture, fixtures, and other equipment 5,432,891 4,367,719
------------- -------------
186,609,426 157,693,577
Less-Accumulated depreciation, depletion,
and amortization (36,983,303) (30,169,303)
------------- -------------
149,626,123 127,524,274
------------- -------------
Other Assets:
Receivables from associated limited partnerships,
net of current portion 2,211,824 2,332,355
Limited partnership formation and
marketing costs 1,706,530 858,559
Deferred charges 1,097,551 1,157,065
------------- -------------
5,015,905 4,347,979
------------- -------------
$ 174,917,840 $ 175,252,707
============= =============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
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SWIFT ENERGY COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------------- ---------------
(Unaudited) (Note 1)
<S> <C> <C>
Liabilities and Stockholders' Equity
- ------------------------------------
Current Liabilities:
Accounts payable and accrued liabilities $ 7,154,263 $ 23,075,982
Payable to associated limited partnerships 2,642,931 16,983
Undistributed oil and gas revenues 4,503,554 17,040,304
-------------- ---------------
Total Current Liabilities 14,300,748 40,133,269
-------------- ---------------
Long-Term Debt 28,750,000 28,750,000
Bank Borrowings 15,210,000 ---
Deferred Revenues 5,225,065 6,063,467
Deferred Income Taxes 9,737,725 6,960,006
Commitments and Contingencies
Stockholders' Equity:
Preferred stock $.01 par value, 5,000,000
shares authorized, none outstanding --- ---
Common stock, $.01 par value, 35,000,000
shares authorized, 12,687,886 and 12,509,700
shares issued and outstanding, respectively 126,879 125,097
Additional paid-in capital 72,719,837 71,133,979
Retained earnings 28,847,586 22,086,889
-------------- ---------------
101,694,302 93,345,965
-------------- ---------------
$ 174,917,840 $ 175,252,707
============== ===============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
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SWIFT ENERGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three months ended June 30, Six months ended June 30,
-------------------------------- -------------------------------
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Oil and gas sales $ 10,814,618 $ 4,866,432 $ 20,506,580 $ 9,742,473
Fees from limited partnerships and
joint ventures 90,403 134,653 160,326 248,083
Supervision fees 1,095,777 959,937 2,126,982 1,864,476
Interest income 17,651 11,126 26,087 18,610
Other, net 539,442 592,762 926,763 949,856
------------ ------------ ------------ ------------
12,557,891 6,564,910 23,746,738 12,823,498
------------ ------------ ------------ ------------
Costs and Expenses:
General and administrative,
net of reimbursement 1,414,226 1,445,297 2,851,734 2,752,062
Depreciation, depletion and
amortization 3,630,387 1,834,209 6,899,922 4,002,438
Oil and gas production 1,810,545 1,707,413 3,658,708 3,336,792
Interest expense, net 221,789 612,543 293,907 1,090,324
------------ ------------ ------------ ------------
7,076,947 5,599,462 13,704,271 11,181,616
------------ ------------ ------------ ------------
Income before Income Taxes 5,480,944 965,448 10,042,467 1,641,882
Provision for Income Taxes 1,802,628 234,173 3,281,770 386,007
------------ ------------ ------------ ------------
Net Income $ 3,678,316 $ 731,275 $ 6,760,697 $ 1,255,875
============ ============ ============ ============
Per share amounts -
Primary: $ 0.29 $ 0.11 $ 0.54 $ 0.19
============ ============ ============ ============
Fully diluted: $ 0.25 $ 0.11 $ 0.47 $ 0.19
============ ============ ============ ============
Weighted Average Shares Outstanding 12,631,461 6,723,635 12,585,921 6,706,492
============ ============ ============ ============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
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SWIFT ENERGY COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
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<CAPTION>
Additional
Common Paid-In Retained
Stock (1) Capital Earnings Total
----------------------------------------------------
<S> <C> <C> <C> <C>
Balance, December 31, 1994 $ 66,851 $24,885,903 $17,174,377 $ 42,127,131
Stock issued for benefit plans (31,113 shares) 311 283,463 --- 283,774
Stock options exercised (5,761 shares) 58 33,736 --- 33,794
Employee stock purchase plan (37,689 shares) 377 289,465 --- 289,842
Stock issued in public offering -
(5,750,000 shares) 57,500 45,641,412 --- 45,698,912
Net Income --- --- 4,912,512 4,912,512
-----------------------------------------------------
Balance, December 31, 1995 $125,097 $71,133,979 $22,086,889 $ 93,345,965
Stock issued for benefit plans (30,014 shares)(2) 300 358,109 --- 358,409
Stock options exercised (111,785 shares)(2) 1,118 955,571 --- 956,689
Employee stock purchase plan (36,387 shares)(2) 364 272,178 --- 272,542
Net income(2) --- --- 6,760,697 6,760,697
-----------------------------------------------------
Balance, June 30, 1996(2) $126,879 $72,719,837 $28,847,586 $101,694,302
=====================================================
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(1) $.01 Par Value
(2) Unaudited
See accompanying notes to condensed consolidated financial statements.
6
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SWIFT ENERGY COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
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<CAPTION>
Six Months ended June 30,
--------------------------------
1996 1995
------------- --------------
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Cash Flows from Operating Activities:
Net income $ 6,760,697 $ 1,255,875
Adjustments to reconcile net income to net cash provided
by operating activities -
Depreciation, depletion, and amortization 6,899,922 4,002,438
Deferred income taxes 2,731,551 307,032
Deferred revenue amortization related to production
payment (849,187) (910,532)
Other 59,514 55,446
Change in assets and liabilities -
(Increase) decrease in accounts receivable (841,577) 24,074
Increase (decrease) in accounts payable and accrued
liabilities, excluding income taxes payable (345,144) 36,416
Increase in income taxes payable 487,988 39,182
------------- -----------
Net Cash Provided by Operating Activities 14,903,764 4,809,931
------------- -----------
Cash Flows From Investing Activities:
Additions to property and equipment (29,968,034) (12,572,148)
Proceeds from the sale of property and equipment 1,052,185 ---
Net cash received (distributed) as operator
of oil and gas properties (16,411,758) (2,788,663)
Property acquisition costs (incurred on behalf of)
reimbursed by partnerships and joint ventures 8,423,927 6,818,529
Limited partnership formation and marketing costs (847,971) ---
Prepaid drilling costs (119,688) (70,233)
Other (75,138) 2,380
-------------- ------------
Net Cash Used in Investing Activities (37,946,477) (8,610,135)
------------- -----------
Cash Flows From Financing Activities:
Net proceeds from bank borrowings 15,210,000 4,071,000
Net proceeds from issuance's of common stock 1,587,640 592,570
------------- -----------
Net Cash Provided by Financing Activities 16,797,640 4,663,570
------------- -----------
Net Increase (Decrease) in Cash and Cash Equivalents $ (6,245,073) $ 863,366
Cash and Cash Equivalents at Beginning of Period 7,574,512 985,498
------------- -----------
Cash and Cash Equivalents at End of Period $ 1,329,439 $ 1,848,864
============= ===========
Supplemental disclosures of cash flow information:
- --------------------------------------------------
Cash paid during period for interest, net of amounts
capitalized $ 234,392 $ 1,035,012
Cash paid during period for income taxes $ 78,873 $ 49,793
</TABLE>
See accompanying notes to condensed consolidated financial statements.
7
<PAGE> 8
SWIFT ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995
(1) General Information -
The condensed consolidated financial statements included
herein have been prepared by Swift Energy Company (the "Company") and
are unaudited, except for the balance sheet at December 31, 1995 which
has been prepared from the audited financial statements at that date.
The financial statements reflect necessary adjustments, all of which
were of a recurring nature, and are in the opinion of management,
necessary for a fair presentation. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
omitted pursuant to the rules and regulations of the Securities and
Exchange Commission (SEC). The Company believes that the disclosures
presented are adequate to allow the information presented not to be
misleading. The condensed consolidated financial statements should be
read in conjunction with the audited financial statements and the
notes thereto included in the latest Form 10-K and Annual Report.
Certain reclassifications have been made to the prior year
balances to conform to current year presentation.
(2) Summary of Significant Accounting Policies -
Oil and Gas Properties
For financial reporting purposes, the Company follows the
"full-cost" method of accounting for oil and gas property and
equipment costs. Under this method of accounting, all productive and
nonproductive costs incurred in the acquisition, exploration, and
development of oil and gas reserves are capitalized. Such costs
include lease acquisitions, geological and geophysical services,
drilling, completion, equipment, and certain general and
administrative costs directly associated with acquisition,
exploration, and development activities. General and administrative
costs related to production and general overhead are expensed as
incurred.
No gains or losses are recognized upon the sale or disposition
of oil and gas properties, except in transactions that involve a
significant amount of reserves. The proceeds from the sale of oil and
gas properties are generally treated as a reduction of oil and gas
property costs. Fees from associated oil and gas exploration and
development limited partnerships are credited to oil and gas property
costs to the extent they do not represent reimbursement of general and
administrative expenses currently charged to expense.
8
<PAGE> 9
SWIFT ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995
Future development, site restoration, and dismantlement and
abandonment costs, net of salvage values, are estimated on a
property-by-property basis based on current economic conditions and
are amortized to expense as the Company's capitalized oil and gas
property costs are amortized. The Company's properties are all
onshore and historically the salvage value of the tangible equipment
offsets the Company's site restoration and dismantlement and
abandonment costs. The Company expects this relationship will
continue.
The Company computes the provision for depreciation,
depletion, and amortization of oil and gas properties on the
unit-of-production method. Under this method, the Company computes
the provision by multiplying the total unamortized cost of oil and gas
properties - including future development, site restoration, and
dismantlement and abandonment costs but excluding costs of unproved
properties - by an overall rate determined by dividing the physical
units of oil and gas produced during the period by the total estimated
units of proved oil and gas reserves. The cost of unproved properties
not being amortized is assessed quarterly to determine whether the
value has been impaired below the capitalized cost. Any impairment
assessed is added to the cost of proved properties being amortized.
At the end of each quarterly reporting period, the unamortized
cost of oil and gas properties, net of related deferred income taxes,
is limited to the sum of the estimated future net revenues from proved
properties using current prices, discounted at 10%, and the lower
of cost or fair value of unproved properties, adjusted for related
income tax effects.
Deferred Charges
Legal and accounting fees, underwriting fees, printing costs,
and other direct expenses associated with the issuance of the
Company's Convertible Subordinated Debentures (the "Debentures") in
June 1993 have been capitalized and through this period were being
amortized over the life of the Debentures, which matured on June 30,
2003. Due to the conversion of the Debentures to common stock in
August 1996, as discussed below, related unamortized costs will be
transferred to the Company's appropriate capital accounts in the third
quarter of 1996. At June 30, 1996, the balance of these unamortized
costs, net of accumulated amortization, was $1,097,551.
Hedging Activities
The Company's revenues are primarily the result of sales of
its oil and natural gas production. Market prices of oil and natural
gas may fluctuate and adversely affect operating results. To mitigate
some of this risk, the Company does engage periodically in certain
limited hedging activities, but only to the extent of
9
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SWIFT ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995
buying protection price floors for portions of its and the limited
partnerships' oil and gas production. Costs and/or benefits derived
from these price floors are accordingly recorded as a reduction or
increase in oil and gas sales revenue and was not significant for any
period presented.
Deferred Revenues
In May 1992, the Company purchased interests in certain wells
from the Manville Corporation for $13.8 million using funds provided
by the Company's sale of a volumetric production payment in these
properties to a subsidiary of Enron Corp. Under the terms of the
production payment agreement, the Company continues to own the
properties purchased but is required to deliver a minimum quantity of
hydrocarbons produced from the properties (meeting certain quality and
heating equivalent requirements) over specified periods through
October 2000. Since entering into this agreement, the Company has met
all scheduled deliveries. Volumes remaining to be delivered under the
volumetric production payment (approximately 3.6 Bcf) are not included
in the Company's proved reserves. Net proceeds from the sale of the
production payment were recorded as deferred revenues. Deliveries
under the production payment are recorded as oil and gas sales
revenues and a corresponding reduction of deferred revenues.
Hydrocarbons produced in excess of the amount required to be delivered
are sold by the Company for it's own account.
Limited Partnerships and Joint Ventures
Between 1991 and 1995, the Company formed limited partnerships
and joint ventures for the purpose of acquiring interests in producing
oil and gas properties and, since 1993, partnerships engaged in
drilling for oil and gas reserves. The Company serves as managing
general partner or manager of these entities. The Company's
investments in associated oil and gas partnerships and its joint
ventures are accounted for using the proportionate consolidation
method, whereby the Company's proportionate share of each entity's
assets, liabilities, revenues and expenses is included in the
appropriate classifications in the consolidated financial statements.
Because the Company serves as the general partners of these entities,
under state partnership law it is contingently liable for the
liabilities of these partnerships, which liabilities are not material
for any of the periods presented in relation to the partnerships'
respective assets. These partnerships' liabilities generally consist
of third party borrowings from time to time to fund capital
expenditures for development of oil and gas properties, which
borrowings are to be repaid from oil and gas sales proceeds of the
partnerships in future periods.
10
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SWIFT ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995
Under the Swift Depositary Interests limited partnership
offering ("SDI Offering") which commenced in March 1991 and concluded
in December 1995, the Company received a reimbursement of certain
costs and a fee, both payable out of revenues. The Company bore all
front-end costs of the offering and partnership formations for which
it received an interest in the partnerships. Upon the Company's
decision to conclude the SDI offering at the end of 1995, the
remaining limited partnership formation and marketing costs related to
the SDI offering (approximately $1,750,000) were accordingly
transferred to the oil and gas properties account.
Commencing September 15, 1993, the Company began offering, on
a private placement basis, general and limited partnership interests
in limited partnerships to be formed to drill for oil and gas. As
managing general partner, the Company pays for all front-end costs
incurred in connection with these offerings, for which the Company
receives an interest in the partnerships. Through June 30, 1996,
approximately $19,900,000 had been raised in five partnerships, one
closed in each of 1993 and 1994, and three of which were formed in
1995. In July 1996, the Company closed the sixth partnership with
total subscriptions of approximately $4,900,000. Costs of
syndication, registration, and qualification of these limited
partnerships incurred by the Company have been deferred. Under the
current private limited partnership offerings, selling and formation
costs borne by the Company serve as the Company's general partner
contribution to such partnerships.
Income Taxes
The Company accounts for income taxes using Statement of
Financial Accounting Standards (SFAS) No. 109, "Accounting for Income
Taxes." SFAS No. 109 utilizes the liability method and deferred taxes
are determined based on the estimated future tax effects of
differences between the financial statement and tax bases of assets
and liabilities given the provisions of the enacted tax laws.
Income taxes for the interim periods have been provided using
the estimated annualized effective tax rate.
Income Per Share
Primary income per share has been computed using the weighted
average number of common shares outstanding during the respective
periods. Stock options and warrants outstanding do not have a
dilutive effect on primary income per share. The Company's
Convertible Subordinated Debentures are not common stock equivalents
for the purpose of computing primary income per share.
11
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SWIFT ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995
The calculation of fully diluted income per share assumes
conversion of the Company's Convertible Subordinated Debentures as of
the beginning of the period and the elimination of the related
after-tax interest expense and assumes, as of the beginning of the
period, exercise (using the treasury stock method) of stock options
and warrants. The weighted average number of shares used in the
computation of fully diluted per share amounts were 15,314,530 and
15,360,070 for the respective six-month and three-month periods ended
June 30, 1996. During the first half of 1995, such amounts were
antidilutive. Due to the August 1996 conversion of these Convertible
Subordinated Debentures into 2.34 million shares of common stock, as
described below, the effect of such conversion will be included in
primary income per share in future periods.
(3) Bank Borrowings
The Company has available through a two bank-group, a
revolving line of credit. Effective April 30, 1996, this credit
agreement was restated. The facility was increased to $100,000,000
and is now unsecured. The available borrowing base currently remains
unchanged at $35,000,000 and will be redetermined periodically.
Depending on the level of outstanding debt, the interest rate
currently will be either the bank's base rate or the bank's base rate
plus 0.25% (8.25% at June 30, 1996). This facility also allows, at
the Company's option, draws which bear interest for specific periods
at the London Interbank Offered Rate ("LIBOR"). The LIBOR option will
now vary from plus 1% to plus 1.5%. There was no outstanding balance
under this line of credit at December 31, 1995. At June 30, 1996,
$9,000,000 was outstanding under this line, all bearing interest at
the LIBOR rates ($7,000,000 at the rate of 6.4375% and $2,000,000 at
the rate of 6.5313%). The outstanding amount under this facility at
June 30, 1996 was borrowed primarily to fund the Company's working
capital and capital expenditures needs. The restated revolving line
of credit extends through September 30, 1999, and accordingly is
classified on the balance sheet as a long-term liability.
The terms of the revolving line of credit include, among other
restrictions, a limitation on the level of cash dividends (not to
exceed $2,000,000 in any fiscal year), requirements as to maintenance
of certain minimum financial ratios (principally pertaining to working
capital, debt, and equity ratios) and limitations on incurring other
debt. Since inception, no cash dividends have been declared on the
Company's common stock. The Company presently intends to continue a
policy of using retained earnings for expansion of its business. As
of June 30, 1996 and December 31, 1995, the Company was in compliance
with the provisions of these agreements.
12
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SWIFT ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -(CONTINUED)
JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995
The Company's other credit facility, which is the Company's
only secured facility, is an amended and restated revolving line of
credit with the lead bank of the two bank-group, secured by certain
Company receivables. This facility, effective April 30, 1996, was
amended to $7,000,000 (from $5,000,000), with interest at the bank's
base rate less 0.25% (8% at June 30, 1996). At June 30, 1996,
$6,210,000 was outstanding under this facility. There was no
outstanding amount on this facility at December 31, 1995. This
restated credit facility extends through September 30, 1999, and is
also recorded as a long-term liability.
In addition to interest on these credit facilities, the
Company pays a commitment fee to compensate the banks for making funds
available. The fee on the revolving line of credit is calculated on
the average daily remainder, if any, of the commitment amount less the
aggregate principal amounts outstanding plus the amount of all
outstanding letters of credit during the period. The aggregate
amounts of commitment fees paid by the Company were $102,000 for the
first six months of 1996 and $154,000 for the twelve-month period in
1995.
(4) Long-Term Debt
In the periods covered by this report, the Company's long-term
debt consisted of $28,750,000 of 6.5% Convertible Subordinated
Debentures ("Debentures"). The Debentures were issued on June 30,
1993, with a maturity date of June 30, 2003 under terms making them
convertible into common stock of the Company by the holders at any
time prior to maturity at a conversion price of $12.27 per share,
subject to adjustment upon the occurrence of certain events. Interest
on the Debentures has been payable semiannually on June 30 and
December 31, commencing with the payment made at December 31, 1993.
The Debentures become redeemable for cash at the option of the Company
after June 30, 1996 at 104.55% of principal, declining to 100.65% in
2002.
On July 1, 1996, the Company announced the redemption on
August 5, 1996 of all the Debentures at 104.55% of their face amount,
plus accrued interest since June 30, 1996. The Debentures continued
to be convertible into shares of common stock at $12.27 per share
through August 5, 1996. Prior to the redemption date, all the
debenture holders elected to convert their Debentures into shares of
common stock, resulting in the Company issuing 2.34 million shares of
its common stock in August 1996.
Due to the Debentures being converted to common stock, the
approximate $27,650,000 net carrying amount of the debt (the face
amount less any unamortized deferred charges) will be transferred to
the Company's appropriate capital accounts during the third quarter of
1996.
13
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SWIFT ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995
Interest expense on the Debentures, including amortization of
debt issuance costs, totaled $993,890 for the six-month period ending
June 30, 1996, and $1,981,639 for the twelve-month period ending
December 31, 1995.
(5) Stockholders' Equity
During the third quarter of 1995, the Company closed the sale
to the public of 5,750,000 shares of common stock at a price of $8.50
per share. Net proceeds from this offering were $45,698,912 and were
used to repay outstanding indebtedness, with the remaining proceeds
being used to finance the Company's exploration and development
activities, and to acquire producing oil and gas properties, including
limited partnership interests.
In August 1996, the holders of the Company's Convertible
Subordinated Debentures converted such Debentures into 2.34 million
shares of the Company's common stock, which will result in a third
quarter 1996 increase in the Company's capital accounts of
approximately $27,650,000.
(6) Foreign Activities
Russia
On September 3, 1993, the Company signed a Participation
Agreement with Senega, a Russian Federation joint stock company (in
which the Company has an indirect interest of less than 1%), to assist
in the development and production of reserves from two fields in
Western Siberia, providing the Company with a minimum 5% net profits
interest from the sale of hydrocarbon products from the fields for
providing managerial, technical and financial support to Senega.
Additionally, the Company purchased a 1% net profits interest from
Senega for $300,000. In May 1995, the Company executed a Management
Agreement with Senega, under which, in return for undertaking to
obtain financing for development of these fields, Swift is entitled to
receive a 49% interest in production income derived by Senega from
this project after repayment of costs. At June 30, 1996, the
Company's investment in Russia was approximately $8,565,000 and is
included in the unproved properties portion of oil and gas properties.
14
<PAGE> 15
SWIFT ENERGY COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995
On July 12, 1996, the Company entered into a partnership
agreement with two other industry partners which provides for the
Company to contribute its rights under the Participation and
Management Agreement to the partnership and the other partners to
provide equity funding to the partnership, with revenues and costs to
be shared equally. Upon fulfillment of certain conditions, the
partnership is to be funded through the contributions of the three
partners, and the partnership will then succeed to the Company's
rights and obligations, which include pursuing initial testing and
development of hydrocarbon production in the Samburg Field and
collectively arranging for funding and management of the License
Areas, all in conjunction with Senega.
Venezuela
The Company formed a wholly-owned subsidiary, Swift Energy de
Venezuela, C.A., for the purpose of submitting a bid on August 5,
1993, under the Venezuelan Marginal Oil Field Reactivation Program.
The Company did not win the bid; however, other fields and
opportunities are continuing to be evaluated in Venezuela. At June
30, 1996, the Company's investment in Venezuela was approximately
$1,295,000 and is included in the unproved properties portion of oil
and gas properties net of impairments of $45,668.
New Zealand
On October 12, 1995, the Company was approved for the grant of
Petroleum Exploration Permit by the New Zealand Minister of Energy and
the acceptance of which was approved by the Company's board of
directors on November 7, 1995. This permit (PEP 38717) covers
approximately 65,000 acres in the Onshore Taranaki Basin region. This
permit primarily requires the Company to : (a) post a $175,000 bond
(which was done by the Company on December 22, 1995) before January
11, 1996; (b) before December 31, 1997, analyze and interpret
approximately 460 kilometers of existing seismic data and acquire
approximately 100 kilometers of new seismic data; (c) commence
drilling one well prior to July 31, 1998; (d) review results prior to
July 31, 1999, and (e) prior to July 31, 2000, drill a development
well or acquire additional seismic data. At June 30, 1996, the
Company's investment in New Zealand was approximately $400,000 and is
included in the unproved properties portion of oil and gas properties.
15
<PAGE> 16
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with
the Company's Condensed Consolidated Financial Statements and Notes
thereto.
General
The Company's efforts began in 1991 to re-emphasize the
addition of reserves through increased drilling on internally
generated exploration and development prospects which has led to
additions of increasing quantities of reserves in each of 1994, 1995,
and the first half of 1996. Prior to that time, the Company had
financed most of its growth with capital raised through limited
partnership financing, having raised approximately $463 million
through limited partnership financing from 1979 through 1995.
The statements contained in this Quarterly Report on Form 10-Q
("Quarterly Report") that are not historical facts, are
forward-looking statements as that term is defined in Section 21E of
the Securities and Exchange Act of 1934, as amended, that involve a
number of risks and uncertainties. The actual results of the future
events described in such forward-looking statements in this Quarterly
Report including those regarding the Company's financial results,
levels of oil and gas production or revenue, capital expenditures, and
capital resource activities could differ materially. Among the
factors that could cause actual results to differ materially are:
general economic conditions, competition and government regulations,
and fluctuations in oil and natural gas prices, as well as the risks
and uncertainties set forth from time to time in the Company's other
public reports, filings, and public statements. Also, because of the
volatility in oil and gas prices and other factors, interim results
are not necessarily indicative of those for a full year.
LIQUIDITY AND CAPITAL RESOURCES
During the first half of 1996, the Company has relied upon
internally generated cash flows and bank borrowings in equal amounts.
In 1995, the equity offering during the third quarter provided capital
resources during the last half of the year and enabled the Company to
repay its bank financing, while during the first half of 1995, the
Company used a combination of bank financing, internally generated
cash flow and partnership financing to fund its operations. Described
below are the major elements of the Company's liquidity and capital
resources:
16
<PAGE> 17
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -(CONTINUED)
Net Cash From Operations
For the six-month period ended June 30, 1996, cash flows from
operating activities increased significantly (210%) to $14,903,764 as
compared to $4,809,931 during the first six months of 1995. The 1996
increase of $10,093,833 was due to an increase in cash flows from oil
and gas sales, which increased $10,825,452 (123%), exclusive of the
non-cash amortization of deferred revenues associated with the
Company's volumetric production payment. This increase in oil and gas
sales was primarily the result of the Company's recent increase in
drilling activity as described below.
1995 Equity Offering
During the third quarter of 1995, the Company sold 5,750,000
shares of common stock in a public offering at $8.50 per share, with
net proceeds of $45,698,912. Consequently, the Company's
stockholders' equity at June 30, 1996, has grown to over $101 million.
Net proceeds from the offering were used to repay outstanding
indebtedness, and the remainder of the proceeds have been used to
finance the Company's exploration and development activities and to
acquire producing oil and gas properties, including limited
partnership interests.
Other Financing Activities
Convertible Subordinated Debentures. On June 30, 1993, the
Company issued $28,750,000 of Convertible Subordinated Debentures
(Debentures) due June 30, 2003, in a public offering. Proceeds of the
offering were used primarily to acquire producing oil and gas
properties and to finance the Company's expanding exploration and
development programs. As described in Note 4 to the Company's
condensed consolidated financial statements included herein, in August
1996 the holders of these Debentures converted the Debentures into
2.34 million shares of the Company's common stock following the
Company's July 1996 announcement that the Debentures would be redeemed
in August 1996 unless earlier converted.
17
<PAGE> 18
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -(CONTINUED)
The following table is a proforma presentation of the
Company's balance sheet accounts as of August 6, 1996, solely to show
the effect of the conversion of the Company's Convertible Subordinated
Debentures:
<TABLE>
<CAPTION>
August 6, 1996
June 30, 1996 Proforma
------------- --------------
<S> <C> <C>
Assets:
Deferred Charges $ 1,097,551 $ ---
Total Assets $ 174,917,840 $ 173,820,289
Liabilities and Stockholders'
Equity:
Long-Term Debt $ 28,750,000 $ ---
Common Stock $ 126,879 $ 150,310
Additional Paid-in Capital $ 72,719,837 $ 100,348,855
Total Stockholders' Equity $ 101,694,302 $ 129,346,751
Total Liabilities and Stockholders'
Equity $ 174,917,840 $ 173,820,289
</TABLE>
Drilling Partnerships. Between 1991 and 1995, the Company
offered interests in oil and gas production partnerships under its
Swift Depositary Interests (SDI) offering, and since late 1993 has
offered private partnerships formed to drill for oil and gas. The SDI
program concluded at the end of 1995. Four SDI partnerships were
formed during 1995, with total subscriptions of approximately
$12,400,000. During 1995, the Company closed three drilling
partnerships with a total of $15,900,000 of subscriptions. The
Company anticipates that it will continue to offer the drilling
partnerships for the foreseeable future. The first 1996 drilling
partnership was formed on July 26, 1996, with total subscriptions of
approximately $4,900,000.
At June 30, 1996, limited partnership formation and marketing
costs (which under the current drilling partnership offerings are
borne by the Company as part of the Company's general partner
contribution) amounted to $1,706,530, an increase of $847,971, when
compared with the December 31, 1995, balance. However, upon the
formation of the most recent drilling partnership in July 1996, this
balance is to be reduced approximately $366,000. Upon the Company's
decision to conclude the SDI offering, the remaining limited
partnership formation and marketing costs related to the SDI offering
(approximately $1,750,000) were accordingly transferred to the oil and
gas properties account in December 1995.
18
<PAGE> 19
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -(CONTINUED)
Credit Facilities
The Company has established credit facilities which formerly
were used principally to finance the Company's purchase of producing
oil and gas properties on an interim basis pending transfer of the
properties to newly formed partnerships and joint ventures, and to
provide working capital. More recently, the Company's credit
facilities have been used to fund a portion of the Company's
exploration and development activities. The principal terms and
restrictions of these credit facilities are described in Note 3 to the
Company's condensed consolidated financial statements included herein.
At June 30, 1996, the Company had $15,210,000 outstanding
under these borrowing arrangements used, along with internally
generated cash flows of $14,904,000, principally to fund the Company's
capital expenditures in the first six months of 1996, and to a lesser
extent, to provide working capital. At December 31, 1995, the Company
had no outstanding balances under these borrowing arrangements, since
these borrowings were repaid with proceeds from the Company's 1995
stock offering.
Working Capital
The Company's working capital has increased over the last six
months, from working capital of $3,247,185 at December 31, 1995, to
working capital of $5,975,064 at June 30, 1996. Effective April 30,
1996, the Company's credit agreements with its banks were restated.
Such bank borrowings under the new agreements are long-term
liabilities as opposed to current liabilities under the expired
agreements.
During the second quarter of 1996, the Company's receivable
account from the limited partnerships decreased significantly due to
(a) receipt of approximately $7,100,000 generated from property sales
proceeds realized by these partnerships, and (b) an increase in oil
and gas prices received by these partnerships. Both increased the
cash flow of these partnerships, thus allowing them to reduce their
balances owed to the Company.
Due to the nature of the Company's business highlighted above,
the individual components of working capital fluctuate considerably
from period to period. The Company incurs significant working capital
requirements in connection with its role as operator of approximately
810 wells, its accelerated drilling program, and the management of
affiliated partnerships. In this capacity, the Company is responsible
for certain day-to-day cash management, including the collection and
disbursement of oil and gas revenues and related expenses.
19
<PAGE> 20
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -(CONTINUED)
Capital Expenditures
Additions to property, plant, and equipment during the first
six months of 1996 were $29,968,034. These capital expenditures
include: (a) $20,500,000 of drilling costs, both exploratory and
developmental; (b) $6,200,000 of prospect costs (principally prospect
leasehold, seismic and geological costs of unproved prospects for the
Company's account); (c) $2,100,000 invested in foreign business
opportunities in Russia (approximately $1,700,000), in Venezuela
(approximately $200,000), and in New Zealand (approximately $200,000),
as described in Note 6 to the Company's condensed consolidated
financial statements included herein and (d)$1,100,000 spent for
furniture and fixtures. In the remaining six months of 1996, the
Company expects capital expenditures to be approximately $35,000,000,
including investments in all areas in which investments were made
during the first half of the year as described above, with a
particular focus on exploration and development drilling. The Company
currently plans to participate in the drilling of 145 gross wells this
year, compared to 76 wells in 1995. Through June 30, 1996, the
Company had participated in drilling 5 exploratory and 61 development
wells with 3 exploratory successes and 58 development successes. The
steady growth in the Company's unproved property which is not being
amortized is indicative of the shift to a focus on drilling activity,
as the Company acquires prospect acreage. During the first half of
1996, this account also reflects the capital expenditures made in
relation to the Company's foreign business opportunities, as described
above.
The Company believes that anticipated internally generated
cash flows for 1996 (expected to increase as the Company's production
base increases as a result of its accelerated drilling program) and
its existing credit facilities, will be sufficient to finance the
costs associated with its currently budgeted capital expenditures at
least through 1996. Further liquidity needs may also be met by
additional availability under its credit facilities based upon the
value of the Company's proved reserves, as management continually
evaluates future use of debt and/or equity to finance its capital
needs.
20
<PAGE> 21
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -(CONTINUED)
RESULTS OF OPERATIONS-
Six Months Ended June 30, 1996 and 1995
Net income of $6,760,697 and earnings per share of $0.54 for
the first half of 1996 were 438% and 187% higher, respectively than
net income of $1,255,875 and earnings per share of $0.19 in the same
period for 1995. This increase in net income primarily reflected the
effect of a 110% increase in oil and gas sales revenues as a result of
a 93% increase in natural gas production, a 21% increase in crude oil
production, and product price improvements. The lower percentage
increase in earnings per share reflects an 88% increase in weighted
average shares outstanding for the period, as a result of the sale of
5,750,000 shares of common stock in the third quarter of 1995.
Revenues
Oil and Gas Sales. Oil and gas sales increased 110% to
$20,506,580 in the first half of 1996, compared to $9,742,473 for the
comparative period in 1995. The 93% increase in natural gas
production and the 21% increase in oil production were primarily the
result of production from recent drilling activity, most notably from
the Company's two primary development areas, the AWP Olmos and
Giddings fields. The Company's net sales volume (including the
volumetric production payment) in the first six months of 1996
increased by 71% or 3,538,403 Mcfe (thousand cubic feet equivalent)
over volumes in the comparable 1995 period. Oil and gas sales were
also aided by a 14% and 36% increase in prices received for oil and
gas, respectively, between the two periods.
Revenues from oil and gas sales comprised 86% and 76%,
respectively, of total revenues for the first six months of 1996 and
1995. The majority of these revenues were derived from the sale of
the Company's gas production. The Company expects oil and gas sales
to continue to increase as a direct consequence of the addition of oil
and gas reserves through the Company's active drilling programs.
21
<PAGE> 22
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -(CONTINUED)
The following table provides additional information regarding
the Company's oil and gas sales.
<TABLE>
<CAPTION>
NET SALES VOLUME AVERAGE SALES PRICE
------------------- -------------------
Oil(Bbl) Gas(Mcf) Oil(Bbl) Gas(Mcf)
-------- -------- -------- --------
<S> <C> <C> <C> <C>
1995:
----
3 MONTHS
ENDED 3/31/95 134,626 1,702,658 $15.61 $1.63
3 MONTHS
ENDED 6/30/95 121,551 1,751,375 $16.36 $1.64
------- ---------
6 MONTHS
ENDED 6/30/95 256,177 3,454,033 $15.97 $1.64
======= =========
1996:
----
3 MONTHS
ENDED 3/31/96 159,155 3,172,399 $17.78 $2.16
3 MONTHS
ENDED 6/30/96 150,124 3,501,426 $18.73 $2.29
------- ---------
6 MONTHS
ENDED 6/30/96 309,279 6,673,825 $18.24 $2.23
======= =========
</TABLE>
Supervision Fees. Supervision fees increased 14%, having
grown from $1,864,476 in the first half of 1995 to $2,126,982 in the
first half of 1996. This increase is primarily due to the annual
escalation in April in well overhead rates, and the increase in
drilling activity by the Company, which in turn increases the drilling
well overhead portion of such fees.
Expenses
General and administrative expenses for the first six
months of 1996 increased approximately $100,000 or 4% when compared to
the same period in 1995. However, the Company's general and
administrative expenses per Mcfe produced decreased from $0.55 per
Mcfe produced for the first half of 1995 to $0.33 per Mcfe produced
for the same period in 1996. Also, if the Company's supervision fees
were treated as a reduction of its general and administrative
expenses, these expenses net of supervision fees would have decreased
from $0.18 per Mcfe produced for the first half of 1995 to $0.08 per
Mcfe produced for the same period in 1996.
22
<PAGE> 23
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -(CONTINUED)
Depreciation, depletion, and amortization ("DD&A") increased
72% (approximately $2,900,000), primarily due to the increase in the
Company's producing properties and the related sale of increased
quantities of oil and gas therefrom. The Company's DD&A rate per Mcfe
of production has increased slightly from $0.80 per Mcfe produced in
the 1995 period to $0.81 per Mcfe produced in the 1996 period,
reflecting variations in the per unit cost of property additions and
changes in the mix of reserves.
The Company's production costs per Mcfe of production
decreased from $0.67 per Mcfe produced in the 1995 period to $0.43 per
Mcfe produced in the 1996 period. However, due to the increase in
production volumes, oil and gas production costs increased 10%
(approximately $320,000) in the first six months of 1996 when compared
to the first six months of 1995. As discussed above, the Company's
increase in production is primarily through its drilling activities in
the AWP Olmos and Giddings fields where the Company already has an
established operating base. Also, both of these fields qualify for a
severance tax abatement on the gas production under a program offered
by the state of Texas. Therefore, the increase in drilling activity
and production has not been accompanied by a proportionate increase in
operating costs.
Interest expense in the first half of 1996 on the Debentures,
including amortization of debt issuance costs, totaled $993,890
($989,820 in the 1995 period), while interest expense on the credit
facilities, including commitment fees, totaled $477,399 ($1,309,284 in
the 1995 period) for a total of $1,471,289 (of which $1,177,382 was
capitalized). In the first half of 1995 these costs totaled
$2,299,104 (of which $1,208,780 was capitalized). The Company
capitalizes that portion of interest related to its exploration,
partnership, and foreign business development activities. The
decrease in interest expense in 1996 is attributable to the decrease
in the average balance under the Company's credit lines necessary to
finance the Company's capital expenditures as discussed above. The
Company expects interest expense on the credit facilities to increase
for the remainder of the year as a larger portion of the Company's
capital expenditures will be financed through the use of its credit
lines. However, additional interest expense will not be incurred on
the Debentures in future periods, as they were converted into shares
of the Company's common stock in August 1996.
23
<PAGE> 24
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -(CONTINUED)
RESULTS OF OPERATIONS-
Three Months Ended June 30, 1996 and 1995
Net income of $3,678,316 and earnings per share of $0.29 in
the second quarter of 1996 increased 403% and 164%, respectively, when
compared to net income of $731,275 and earnings per share of $0.11 in
the same period for 1995. The increase in net income was primarily
due to the 122% increase in oil and gas sales revenues as a result of
a 100% increase in natural gas production, a 24% increase in crude oil
production, and product price improvements. The lower percent
increase in earnings per share reflects an 88% increase in the
weighted average shares outstanding for the period, as a result of the
sale of 5,750,000 shares of common stock in the third quarter of 1995.
Revenues
Oil and Gas Sales. Oil and gas sales increased 122% to
$10,814,618 in the second quarter of 1996, compared to $4,866,432 for
the comparative period in 1995. The 100% increase in gas production
and the 24% increase in oil production were primarily the result of
production from recent drilling activity, most notably from the
Company's two primary development areas, the AWP Olmos and Giddings
fields. The Company's net sales volume (including the volumetric
production payment) in the second quarter of 1996 increased by 77%
(1,921,489 Mcfe) over volumes in the comparable 1995 period. Oil and
gas sales were also aided by 15% higher oil prices received and by 40%
higher gas prices received.
Supervision Fees. Supervision fees increased 14% in the
second quarter of 1996 when compared to the same period in 1995,
primarily due to the annual escalation in April in well overhead
rates, and the increase in drilling activity between the periods,
which resulted in a increase in the drilling overhead component of
supervision fees.
Expenses
General and administrative expenses for the second quarter of
1996 decreased $31,071 or 2% when compared to the same period in 1995.
The Company's general and administrative expenses decreased from $0.58
per Mcfe produced for the second quarter of 1995 to $0.32 per Mcfe
produced for the same period in 1996. Also, if the Company's
supervision fees were treated as a reduction of its general and
administrative expenses, these expenses net of supervision fees would
have decreased from $0.20 per Mcfe produced for the second quarter of
1995 to $0.07 per Mcfe produced for the same period in 1996.
24
<PAGE> 25
SWIFT ENERGY COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS -(CONTINUED)
Depreciation, depletion and amortization increased 98%
(approximately $1,800,000), primarily due to the increase in the
Company's production volumes. DD&A increased from $0.74 per Mcfe
produced in the 1995 period to $0.82 per Mcfe produced in the 1996
period, reflecting variations in the per unit cost of property
additions and changes in the mix of reserves.
The Company's production costs per Mcfe of production
decreased from $0.69 per Mcfe produced in the 1995 period to $0.41 per
Mcfe produced in the 1996 period. However, oil and gas production
costs increased 6% (approximately $100,000) in the second quarter of
1996 when compared to the second quarter of 1995, due to the growth in
the Company's production volumes. As described above, this reflects
the Company's economies of scale in the AWP Olmos and Giddings fields,
and the gas production severance tax abatement these fields receive.
Interest expense for the second quarter of 1996 on the
Debentures, including amortization of debt issuance costs, totaled
$496,945 ($494,910 in 1995), while interest expense on the credit
facilities, including commitment fees, totaled $273,437 ($655,583 in
1995) for a total of $770,382 (of which $548,593 was capitalized). The
second quarter 1995 total was $1,150,493 (of which $537,950 was
capitalized). This second quarter decrease in interest expense in
1996 is attributable to the decrease in the average balance under the
Company's credit lines necessary to finance the Company's capital
expenditures. The Company expects interest expense on the credit
facilities to increase for the remainder of the year, as a larger
portion of the Company's capital expenditures will be financed through
the use of its credit lines. However, additional interest expense
will not be incurred on the Debentures in future periods, as they were
converted into shares of the Company's common stock in August 1996.
25
<PAGE> 26
SWIFT ENERGY COMPANY
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings - N/A
Item 2. Changes in Securities - N/A
Item 3. Defaults Upon Senior Securities - N/A
Item 4. Submission of Matters to a Vote of Security Holders -
A. The Company's annual meeting of shareholders was held on May 14,1996.
At the record date, 12,559,537 shares of Common Stock were issued and
outstanding and entitled to one vote per share upon all matters
submitted at the meeting. At the annual meeting all seven nominees
were elected to serve as Directors of the Company until the next annual
meeting of shareholders. No other matters were submitted to or voted
upon at the meeting. The results of the vote were as follows:
<TABLE>
<CAPTION>
NOMINEES FOR DIRECTORS FOR AGAINST ABSTENTIONS
- ---------------------- --- ------- -----------
<S> <C> <C> <C>
A. Earl Swift 10,376,076 34,430 2,149,031
Virgil N. Swift 10,376,076 34,430 2,149,031
Raymond O. Loen 10,376,076 34,430 2,149,031
Henry C. Montgomery 10,376,076 34,430 2,149,031
Clyde W. Smith, Jr. 10,376,076 34,430 2,149,031
Harold J. Withrow 10,376,076 34,430 2,149,031
G. Robert Evans 10,376,076 34,430 2,149,031
</TABLE>
Item 5. Other Information - N/A
Item 6. Exhibits & Reports on Form 8K - None
26
<PAGE> 27
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SWIFT ENERGY COMPANY
(Registrant)
Date: August 13, 1996 By:(Original Signed By)
--------------- ------------------
John R. Alden
Sr. Vice President, Secretary/
Principal Financial Officer
Date: August 13, 1996 By:(Original Signed By)
--------------- ------------------
Alton D. Heckaman, Jr.
Vice President,
Controller and Principal
Accounting Officer
27
<PAGE> 28
Index to Exhibits
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
registrant's financial statements contained in its quarterly report on
Form 10-Q for the period ended June 30, 1996.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 1,329,439
<SECURITIES> 0
<RECEIVABLES> 20,592,838
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 20,275,812
<PP&E> 186,609,426
<DEPRECIATION> 36,983,303
<TOTAL-ASSETS> 174,917,840
<CURRENT-LIABILITIES> 14,300,748
<BONDS> 0
<COMMON> 126,879
0
0
<OTHER-SE> 101,567,423
<TOTAL-LIABILITY-AND-EQUITY> 174,917,840
<SALES> 20,506,580
<TOTAL-REVENUES> 23,746,738
<CGS> 0
<TOTAL-COSTS> 10,558,630<F1>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 293,907
<INCOME-PRETAX> 10,042,467
<INCOME-TAX> 3,281,770
<INCOME-CONTINUING> 6,760,697
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,760,697
<EPS-PRIMARY> 0.54
<EPS-DILUTED> 0.47
<FN>
<F1>Includes depreciation, depletion and amortization and oil and gas production
costs. Excludes general and administrative and interest expense.
</FN>
</TABLE>
