<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM ________ TO ________
COMMISSION FILE NUMBER 33-11773-02
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
(Exact name of registrant as specified in
its certificate of limited partnership)
TEXAS 76-0235236
(State of Organization) (I.R.S. Employer Identification No.)
16825 Northchase Dr., Suite 400
Houston, Texas 77060
(713) 874-2700
(Address and telephone number of principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
191,567.87 Limited Partnership Units
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 periods that the
registrant was required), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ X ]
Registrant does not have an aggregate market value for its Limited
Partnership Interests.
Documents Incorporated by Reference
DOCUMENT INCORPORATED AS TO
Registration Statement No. 33-11773 Items 1 and 13
on Form S-1
<PAGE>
TABLE OF CONTENTS
FORM 10-K ANNUAL REPORT
FOR THE PERIOD ENDED DECEMBER 31, 1995
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
ITEM NO. PART I PAGE
- -------- ------ ----
1 Business I-1
2 Properties I-4
3 Legal Proceedings I-7
4 Submission of Matters to a Vote of
Security Holders I-7
PART II
-------
5 Market Price of and Distributions on the
Registrant's Units and Related Limited
Partner Matters II-1
6 Selected Financial Data II-2
7 Management's Discussion and Analysis of
Financial Condition and Results of Operations II-2
8 Financial Statements and Supplementary Data II-3
9 Disagreements on Accounting and Financial
Disclosure II-3
PART III
--------
10 Directors and Executive Officers of the
Registrant III-1
11 Executive Compensation III-2
12 Security Ownership of Certain Beneficial
Owners and Management III-2
13 Certain Relationships and Related Transactions III-2
PART IV
-------
14 Exhibits, Financial Statement Schedules
and Reports on Form 8-K IV-1
OTHER
-----
Signatures
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
PART I
ITEM 1. BUSINESS
GENERAL DESCRIPTION OF PARTNERSHIP
Swift Energy Income Partners 1987-C, Ltd., a Texas limited
partnership (the "Partnership" or the "Registrant"), is a partnership formed
under a public serial limited partnership offering denominated Swift Energy
Income Partners III (Registration Statement No. 33-11773 on Form S-1,
originally declared effective March 19, 1987, and amended effective March 28,
1988, May 4, 1989 and May 1, 1990 [the "Registration Statement"]). The
Partnership was formed effective October 29, 1987 under a Limited Partnership
Agreement dated October 27, 1987. The initial 2,114 limited partners made
capital contributions of $19,156,787.
The Partnership is principally engaged in the business of acquiring,
developing and, when appropriate, disposing of working interests in proven
oil and gas properties within the continental United States. The Partnership
does not engage in exploratory drilling. Each working interest held by the
Partnership entitles the Partnership to receive, in kind or in value, a share
of the production of oil and gas from the producing property, and obligates
the Partnership to participate in the operation of the property and to bear
its proportionate share of all operating costs associated therewith. The
Partnership typically holds less than the entire working interest in its
producing properties.
At December 31, 1995, the Partnership had expended or committed to
expend 100% of the limited partners' net commitments (I.E., limited partners'
commitments available to the Partnership for property acquisitions after
payment of organization fees and expenses) in the acquisition and development
of producing properties, which properties are described under Item 2,
"Properties," below. The Partnership's revenues and profits are derived
almost entirely from the sale of oil and gas produced from its properties and
from the sale of acquired oil and gas properties, when the sale of such
properties is economically preferable to continued operation.
The Partnership's business and affairs are conducted by its Managing
General Partner, Swift Energy Company, a Texas corporation ("Swift"). The
Partnership's Special General Partner, VJM Corporation, a California
corporation ("VJM"), consults with and advises Swift as to certain financial
matters. Swift is the designated operator of many of the properties in which
the Partnership owns interests. The remaining properties are operated by
industry operators designated by the owners of a majority of the working
interest in each property.
The general manner in which the Partnership acquires producing
properties and otherwise conducts its business is described in detail in the
Registration Statement under "Proposed Activities," which is incorporated
herein by reference.
COMPETITION, MARKETS AND REGULATIONS
COMPETITION
The oil and gas industry is highly competitive in all its phases.
The Partnership encounters strong competition from many other oil and gas
producers, many of which possess substantial financial resources, in
acquiring economically desirable Producing Properties.
MARKETS
The amounts of and price obtainable for oil and gas production from
Partnership Properties will be affected by market factors beyond the control
of the Partnership. Such factors include the extent of domestic production,
the level of imports of foreign oil and gas, the general level of market
demand on a regional, national and worldwide basis, domestic and foreign
economic conditions that determine levels of industrial production, political
events in foreign oil-producing regions, and variations in governmental
regulations and tax laws and the imposition of new governmental requirements
upon the oil and gas industry. There can be no assurance that oil and gas
prices will not decrease in the future, thereby decreasing net Revenues from
Partnership Properties.
I-1
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
From time to time, there may exist a surplus of natural gas or oil
supplies, the effect of which may be to reduce the amount of hydrocarbons
that the Partnerships may produce and sell while such oversupply exists. In
recent years, initial steps have been taken to provide additional gas
transportation lines from Canada to the United States. If additional
Canadian gas is brought to the United States market, it could create downward
pressure on United States gas prices.
REGULATIONS
ENVIRONMENTAL REGULATION
The federal government and various state and local governments have
adopted laws and regulations regarding the control of contamination of the
environment. These laws and regulations may require the acquisition of a
permit by Operators before drilling commences, prohibit drilling activities
on certain lands lying within wilderness areas or where pollution arises and
impose substantial liabilities for pollution resulting from operations,
particularly operations near or in onshore and offshore waters or on
submerged lands. These laws and regulations may also increase the costs of
routine drilling and operation of wells. Because these laws and regulations
change frequently, the costs to the Partnership of compliance with existing
and future environmental regulations cannot be predicted. However, the
Managing Partner does not believe that the Partnership is affected in a
significantly different manner by these regulations than are its competitors
in the oil and gas industry.
FEDERAL REGULATION OF NATURAL GAS
The transportation and sale of natural gas in interstate commerce is
heavily regulated by agencies of the federal government. The following
discussion is intended only as a summary of the principal statutes,
regulations and orders that may affect the production and sale of natural gas
from Partnership Properties. This summary should not be relied upon as a
complete review of applicable natural gas regulatory provisions.
PRICE CONTROLS - Prior to January 1, 1993, the sale of natural gas
production was subject to regulation under the Natural Gas Act and the
Natural Gas Policy Act of 1978 ("NGPA"). Under the Natural Gas Wellhead
Decontrol Act of 1989, however, all price regulation under the NGPA and
Natural Gas Act rate, certificate and abandonment requirements were phased
out effective as of January 1, 1993.
FERC ORDERS
Several major regulatory changes have been implemented by the Federal
Energy Regulatory Commission ("FERC") from 1985 to the present that affect
the economics of natural gas production, transportation and sales. In
addition, the FERC continues to promulgate revisions to various aspects of
the rules and regulations affecting those segments of the natural gas
industry that remain subject to the FERC's jurisdiction. In April 1992, the
FERC issued Order No. 636 pertaining to pipeline restructuring. This rule
requires interstate pipelines to unbundle transportation and sales services
by separately stating the price of each service and by providing customers
only the particular service desired, without regard to the source for
purchase of the gas. The rule also requires pipelines to (i) provide
nondiscriminatory "no-notice" service allowing firm commitment shippers to
receive delivery of gas on demand up to certain limits without penalties,
(ii) establish a basis for release and reallocation of firm upstream pipeline
capacity, and (iii) provide non-discriminatory access to capacity by firm
transportation shippers on a downstream pipeline. The rule requires
interstate pipelines to use a straight fixed variable rate design. The rule
imposes these same requirements upon storage facilities.
FERC Order No. 500 affects the transportation and marketability of
natural gas. Traditionally, natural gas had been sold by producers to
pipeline companies, which then resold the gas to end-users. FERC Order No.
500 altered this market structure by requiring interstate pipelines that
transport gas for others to provide transportation service to producers,
distributors and all other shippers of natural gas on a nondiscriminatory,
"first-come, first-served" basis (open access transportation"), so that
producers and other shippers can sell natural gas directly to end-users.
FERC Order No. 500 contains additional provisions intended to promote greater
competition in natural gas markets.
It is not anticipated that the marketability of and price obtainable
for natural gas production from Partnership Properties will be significantly
affected by FERC Order No. 500. Gas produced from Partnership Properties
normally will be sold to intermediaries who have entered into transportation
arrangements with pipeline companies. These intermediaries will accumulate
gas purchased from a number of producers and sell the gas to end-users
through open access pipeline transportation.
I-2
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
STATE REGULATIONS
Production of any oil and gas from Partnership Properties will be
affected to some degree by state regulations. Many states in which the
Partnership will operate have statutory provisions regulating the production
and sale of oil and gas, including provisions regarding deliverability. Such
statutes, and the regulations promulgated in connection therewith, are
generally intended to prevent waste of oil and gas and to protect correlative
rights to produce oil and gas between owners of a common reservoir. Certain
state regulatory authorities also regulate the amount of oil and gas produced
by assigning allowable rates of production to each well or proration unit.
FEDERAL LEASES
Some of the Partnership's properties are located on federal oil and
gas leases administered by various federal agencies, including the Bureau of
Land Management. Various regulations and orders affect the terms of leases,
exploration and development plans, methods of operation and related matters.
EMPLOYEES
The Partnership has no employees. Swift, however, has a staff of
geologists, geophysicists, petroleum engineers, landmen, and accounting
personnel who administer the operations of Swift and the Partnership. As of
December 31, 1995, Swift had 176 employees. Swift's administrative and
overhead expenses attributable to the Partnership's operations are borne by
the Partnership.
I-3
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
ITEM 2. PROPERTIES
As of December 31, 1995, the Partnership has acquired interests in
producing oil and gas properties which are generally described below.
PRINCIPAL OIL AND GAS PRODUCING PROPERTIES
The most valuable fields in the Partnership, based upon year-end
engineering estimates of discounted future net revenues using constant
pricing and costs, are described below.
1. Approximately 21% of the Partnership's value is from the
Giddings Field in Fayette and Burleson Counties, Texas (NRG acquisition).
The wells produce from the Austin chalk and Edwards zones.
The remaining value in the Partnership is attributable to numerous
properties none of which equals or exceeds 15 percent of the total
Partnership value.
TITLE TO PROPERTIES
Title to substantially all significant producing properties of the
Partnership has been examined. The properties are subject to royalty,
overriding royalty and other interests customary in the industry. The
Managing General Partner does not believe any of these burdens materially
detract from the value of the properties or will materially detract from the
value of the properties or materially interfere with their use in the
operation of the business of the Partnership.
PRODUCTION AND SALES PRICE
The following table summarizes the sales volumes of the Partnership's
net oil and gas production expressed in MCFs. Equivalent MCFs are obtained
by converting oil to gas on the basis of their relative energy content; one
barrel equals 6,000 cubic feet of gas.
<TABLE>
<CAPTION>
NET PRODUCTION
--------------------------------------
FOR THE YEARS ENDED
DECEMBER 31,
--------------------------------------
1995 1994 1993
------- ------- -------
<S> <C> <C> <C>
Net Volumes (Equivalent MCFs) 588,880 764,336 886,795
Average Sales Price
per Equivalent MCF $1.86 $2.04 $2.13
Average Production Cost
per Equivalent MCF
(includes production taxes) $0.85 $0.66 $0.74
</TABLE>
I-4
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
NET PROVED OIL AND GAS RESERVES
Presented below are the estimates of the Partnership's proved
reserves as of December 31, 1995, 1994 and 1993. All of the Partnership's
proved reserves are located in the United States.
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------------------------------------
1995 1994 1993
------------------- ------------------- -----------------
NATURAL NATURAL NATURAL
OIL GAS OIL GAS OIL GAS
------- ------- ------- ------- ------- ------
(BBLS) (MMCF) (BBLS) (MMCF) (BBLS) (MMCF)
<S> <C> <C> <C> <C> <C> <C>
PROVED DEVELOPED
RESERVES AT END OF YEAR 198,699 3,688 238,790 3,972 243,551 4,907
------- ----- ------- ----- ------- -----
------- ----- ------- ----- ------- -----
PROVED RESERVES
Balance at beginning
of year 254,635 4,495 260,548 5,333 262,832 6,145
Extensions, discoveries
and other additions 345 3 360 -- 5,803 56
Revisions of previous
estimates (13,645) (135) 39,245 (255) 28,642 (199)
Sales of minerals in
place (536) (4) (7,776) (45) (91) (2)
Production (28,524) (418) (37,742) (538) (36,638) (667)
------- ----- ------- ----- ------- -----
Balance at end of year 212,275 3,941 254,635 4,495 260,548 5,333
------- ----- ------- ----- ------- -----
------- ----- ------- ----- ------- -----
</TABLE>
Revisions of previous quantity estimates are related to upward or
downward variations based on current engineering information for production
rates, volumetrics and reservoir pressure. Additionally, changes in quantity
estimates are the result of the increase or decrease in crude oil and natural
gas prices at each year end which have the effect of adding or reducing
proved reserves on marginal properties due to economic limitations.
I-5
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
The following table summarizes by acquisition the Registrant's
reserves and gross and net interests in producing oil and gas wells as of
December 31, 1995:
<TABLE>
<CAPTION>
RESERVES
DECEMBER 31, 1995
--------------------------
NATURAL WELLS
OIL GAS ---------------------
ACQUISITION STATE(S) (BBLS) (MMCF) GROSS NET
- ----------- -------------- ------- -------- ----- -----
<S> <C> <C> <C> <C> <C>
Kaiser-Francis I AR, OK 153 115 7 0.427
Kaiser-Francis II KS, LA, OK, TX 3,774 725 9 0.793
Majestic TX 5,074 19 10 0.506
Pitco I & II OK 18 7 1 0.012
IR Energy MT, UT 8,215 23 4 0.979
Wells Tucker TX 35,257 -- 5 0.516
Texas Drlg.
(Scott Oil) TX 52 251 2 0.250
Golden Buckeye WY 360 -- 2 0.027
Wainoco LA, MI, OK, TX -- 53 6 1.032
NRG TX 87,535 1,857 74 3.675
Sue Ann TX 1,504 150 2 0.837
Kimbrel & Cook TX 47,607 -- 9 3.150
Broyles I & II,
Inverness Homes LA -- 291 13 1.460
Bracken TX 22,726 450 45 0.728
------- ----- --- ------
212,275 3,941 189 14.392
------- ----- --- ------
------- ----- --- ------
</TABLE>
There are numerous uncertainties inherent in estimating quantities of
proved reserves and in projecting the future rates of production, timing and
plan of development. Oil and gas reserve engineering must be recognized as a
subjective process of estimating underground accumulations of oil and gas
that cannot be measured in an exact way, and estimates of other engineers
might differ from those above, audited by H. J. Gruy and Associates, Inc., an
independent petroleum consulting firm. The accuracy of any reserve estimate
is a function of the quality of available data and of engineering and
geological interpretation and judgement. Results of drilling, testing and
production subsequent to the date of the estimate may justify revision of
such estimate, and, as a general rule, reserve estimates based upon
volumetric analysis are inherently less reliable than those based on lengthy
production history. Accordingly, reserve estimates are often different from
the quantities of oil and gas that are ultimately recovered.
In estimating the oil and natural gas reserves, the Registrant, in
accordance with criteria prescribed by the Securities and Exchange
Commission, has used prices received as of December 31, 1995 without
escalation, except in those instances where fixed and determinable gas price
escalations are covered by contracts, limited to the price the Partnership
reasonably expects to receive. The Registrant does not believe that any
favorable or adverse event causing a significant change in the estimated
quantity of proved reserves has occurred between December 31, 1995 and the
date of this report.
Future prices received for the sale of the Partnership's products may
be higher or lower than the prices used in the evaluation described above;
the operating costs relating to such production may also increase or decrease
from existing levels. The estimates presented above are in accordance with
rules adopted by the Securities and Exchange Commission.
I-6
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
ITEM 3. LEGAL PROCEEDINGS
The Partnership is not aware of any material pending legal
proceedings to which it is a party or of which any of its property is the
subject.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of limited partners during the
fourth quarter of the fiscal year covered by this report.
I-7
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
PART II
ITEM 5. MARKET PRICE OF AND DISTRIBUTIONS ON THE REGISTRANT'S UNITS AND RELATED
LIMITED PARTNER MATTERS
MARKET INFORMATION
Units in the Partnership were initially sold at a price of $100 per
Unit. Units are not traded on any exchange and there is no established
public trading market for the Units. Swift is aware of negotiated transfers
of Units between unrelated parties; however, these transfers have been
limited and sporadic. Due to the nature of these transactions, Swift has no
verifiable information regarding prices at which Units have been transferred.
HOLDERS
As of December 31, 1995, there were 2,114 Limited Partners holding
Units in the Partnership.
DISTRIBUTIONS
The Partnership generally makes distributions to Limited Partners on
a quarterly basis, subject to the restrictions set forth in the Limited
Partnership Agreement. In the fiscal years ending December 31, 1994 and
1995, the Partnership distributed a total of $670,600 and $407,100,
respectively, to holders of its Units. Cash distributions constitute net
proceeds from sale of oil and gas production after payment of lease operating
expenses and other partnership expenses. Some or all of such amounts or any
proceeds from the sale of partnership properties could be deemed to
constitute a return of investors' capital.
Oil and gas investments involve a high risk of loss, and no assurance
can be given that any particular level of distributions to holders of Units
can be achieved or maintained. Although it is anticipated that quarterly
distributions will continue to be made through 1996, the Partnership's
ability to make distributions could be diminished by any event adversely
affecting the oil and gas properties in which the Partnership owns interests
or the amount of revenues received by the Partnership therefrom.
The Partnership's Limited Partnership Agreement contains various
provisions which might serve to delay, defer or prevent a change in control
of the Partnership, such as the requirement of a vote of Limited Partners in
order to sell all or substantially all of the Partnership's properties or the
requirement of consent by the Managing General Partner to transfers of
limited partnership interests.
II-1
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
ITEM 6. SELECTED FINANCIAL DATA
The following selected financial data, prepared in accordance with
generally accepted accounting principles as of December 31, 1995, 1994, 1993,
1992, and 1991, should be read in conjunction with the financial statements
included in Item 8:
<TABLE>
<CAPTION>
1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Revenues $1,162,064 $1,624,445 $1,921,534 $2,189,502 $ 2,856,269
Income (Loss) $ (372,501) $ 288,477 $ 322,274 $ (771,104) $(2,563,354)
Total Assets $3,670,113 $4,516,238 $5,078,528 $5,832,838 $ 7,710,768
Cash Distributions $ 455,487 $ 757,197 $ 786,225 $1,008,897 $ 1,845,943
</TABLE>
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has expended all of the partners' net commitments
available for property acquisitions ("net commitments") and development by
acquiring producing oil and gas properties. The partnership invests
primarily in proved producing properties with nominal levels of future costs
of development for proven but undeveloped reserves. Significant purchases of
additional reserves or extensive drilling activity are not anticipated. Oil
and gas reserves are depleting assets and therefore often experience
significant production declines each year from the date of acquisition
through the end of the life of the property. The primary source of liquidity
to the Partnership comes almost entirely from the income generated from the
sale of oil and gas produced from ownership interests in oil and gas
properties. This source of liquidity and the related results of operations
will decline in future periods as the oil and gas produced from these
properties also declines.
Subject to 1996 market conditions remaining comparable with 1995, the
Managing General Partner ("MGP") anticipates an increase in liquidity
provided that certain development work scheduled in 1996 is completed
successfully. The Partnership plans to spend in the next two years an
estimated $323,000 for capital expenditures needed for this development work
and the enhancement of proved oil and gas reserves. The MGP anticipates that
the Partnership will have adequate liquidity from income from continuing
operations to satisfy any future capital expenditure requirements. Funds
generated from bank borrowings and proceeds from the sale of oil and gas
properties will be used to supplement this effort if deemed necessary.
RESULTS OF OPERATIONS
Oil and gas sales decreased 29 percent in 1995 vs. 1994. Production
volumes decreased 23 percent due to a 22 percent gas production decrease and
a 24 percent oil production decline. Since the Partnership's reserves are 76
percent gas, the decrease in gas production, due to accelerated production
declines on mature wells, had a major impact on partnership performance. A
decline in the 1995 gas prices of 18 percent or $.34/MCF further contributed
to the Partnership's decreased revenues. The average sales price per
equivalent MCF decreased 9 percent in 1995.
Production cost per equivalent MCF increased 29 percent in 1995
compared to 1994; however, total production costs decreased a slight 1
percent in 1995.
Associated depreciation expense decreased 22 percent in 1995 when
compared to 1994.
Oil and gas sales decreased 16 percent in 1994 vs. 1993. Production
volumes decreased 14 percent due to a 19 percent gas production decrease.
Since the partnership's reserves are 75 percent gas, the decrease in gas
production, due to accelerated production declines on mature wells and
production curtailments due to declining prices, had a major impact on
partnership performance. Declines in both 1994 gas and oil prices further
contributed to the decreased revenues. The Partnership experienced a decline
in gas prices of 4 percent or $.07/MCF and a decline in oil prices of 9
percent or $1.47/BBL. The average sales price per equivalent MCF decreased 4
percent in 1994.
II-2
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
Production cost per equivalent MCF decreased 11 percent in 1994
compared to 1993 and total production costs decreased 23 percent in 1994.
Associated depreciation expense decreased 12 percent in 1994 when
compared to 1993.
The Partnership recorded an additional provision in depreciation,
depletion and amortization in 1995 when the present value, discounted at ten
percent, of estimated future net revenues from oil and gas properties, using
the guidelines of the Securities and Exchange Commission, was below the fair
market value paid for oil and gas properties resulting in a full cost ceiling
impairment.
During 1996, Partnership revenues and costs will be shared between
the limited and general partners in a 90:10 ratio, based on the annualized
rate of cash distributions by the Partnership during a certain period prior
to December 31, 1995. Based on current oil and gas prices, current levels of
oil and gas production and expected cash distributions during 1996, the MGP
anticipates that the Partnership sharing ratio will continue to be 90:10.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
See Part IV, Item 14(a) for index to financial statements.
ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
II-3
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
As a limited partnership, the Registrant has no directors or
executive officers. The business and affairs of the Registrant are managed
by Swift as Managing General Partner. Set forth below is certain information
as of March 15, 1996 regarding the directors and executive officers of Swift.
<TABLE>
<CAPTION>
POSITION(S) WITH
NAME AGE SWIFT AND OTHER COMPANIES
---- --- -------------------------
<S> <C> <C>
DIRECTORS
---------
A. Earl Swift 62 President, Chief Executive Officer and
Chairman of the Board
Virgil N. Swift 67 Executive Vice President - Business
Development, Vice Chairman of the Board
G. Robert Evans 64 Director of Swift; Chairman of the Board,
Material Sciences Corporation;
Director, Consolidated Freightways, Inc.,
Fibreboard Corporation, Elco Industries, and
Old Second Bancorp
Raymond O. Loen 71 Director of Swift; President, R. O. Loen
Company
Henry C. Montgomery 60 Director of Swift; Chairman of the Board,
Montgomery Financial Services Corporation;
Director, Southwall Technology Corporation
Clyde W. Smith, Jr. 47 Director of Swift; President, Somerset
Properties, Inc.
Harold J. Withrow 68 Director of Swift
EXECUTIVE OFFICERS
------------------
Terry E. Swift 40 Executive Vice President, Chief
Operating Officer
John R. Alden 50 Senior Vice President - Finance,
Chief Financial Officer and Secretary
Bruce H. Vincent 48 Senior Vice President - Funds Management
James M. Kitterman 51 Senior Vice President - Operations
Alton D. Heckaman, Jr. 38 Vice President - Finance and
Controller
</TABLE>
III-1
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
From time to time, Swift as Managing General Partner of the
Partnership purchases Units in the Partnership from investors who offer the
Units pursuant to their right of presentment, which purchases are made
pursuant to terms set out in the Partnership's original Limited Partnership
Agreement. Due to the frequency and large number of these transactions,
Swift reports these transactions under Section 16 of the Securities Exchange
Act of 1934 on an annual rather than a monthly basis. In some cases such
annual reporting may constitute a late filing of the required Section 16
reports under the applicable Section 16 rules.
ITEM 11. EXECUTIVE COMPENSATION
As noted in Item 10, "Directors and Executive Officers of the
Registrant," above, the Partnership has no executive officers. The executive
officers of Swift and VJM are not compensated by the Partnership.
Certain fees and allowances contemplated by the Limited Partnership
Agreement have been paid by the Partnership to Swift and VJM. See Note (4)
in Notes To Financial Statements (Related-Party Transactions) for further
discussion.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
No single limited partner is known to the Partnership to be the
beneficial owner of more than five percent of the Partnership's Units.
Swift and VJM are not aware of any arrangement, the operation of
which may at a subsequent date result in a change in control of the
Partnership.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
As noted in Item 10, "Directors and Executive Officers of the
Registrant," above, the Partnership has no executive officers or directors,
and thus has not engaged in any transactions in which any such person had an
interest. The Partnership is permitted to engage in certain transactions
with Swift as Managing General Partner and VJM as Special General Partner,
subject to extensive guidelines and restrictions described in the "Conflicts
of Interest" section of the Amended Prospectus contained in the Registration
Statement, which is incorporated herein by reference.
Summarized below are the principal transactions that have occurred
between the Partnership and Swift, VJM and their affiliates.
1. The oil and gas properties acquired by the Partnership, as
described in Item 2, "Properties" above, were typically acquired initially by
Swift from the seller thereof and subsequently transferred to the
Partnership. Such transfers were made by Swift at its Property Acquisition
Costs (as defined in the Limited Partnership Agreement), less any amounts
received from sale of production between the time of acquisition by Swift and
the time of sale to the Partnership.
2. Swift acts as operator for many of the wells in which the
Partnership has acquired interests and has received compensation for such
activities in accordance with standard industry operating agreements.
3. The Partnership paid to Swift and VJM certain fees as
contemplated by the Limited Partnership Agreement. See Note (4) in Notes To
Financial Statements (Related-Party Transactions) for further discussion.
III-2
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
a(1) FINANCIAL STATEMENTS PAGE NO.
-------------------- --------
Report of Independent Public Accountants IV-2
Balance Sheets as of December 31, 1995 and 1994 IV-3
Statements of Operations for the years ended
December 31, 1995, 1994 and 1993 IV-4
Statements of Partners' Capital for the years ended
December 31, 1995, 1994 and 1993 IV-5
Statements of Cash Flows for the years ended
December 31, 1995, 1994 and 1993 IV-6
Notes to Financial Statements IV-7
a(2) FINANCIAL STATEMENT SCHEDULES
-----------------------------
All schedules required by the SEC are either inapplicable or the
required information is included in the Financial Statements,
the Notes thereto, or in other information included elsewhere in
this report.
a(3) EXHIBITS
--------
3.1 Limited Partnership Agreement of Swift Energy Income
Partners 1987-C, Ltd., dated October 27, 1987.
(Form 10-K for year ended December 31, 1988, Exhibit 3.1).
3.2 Certificate of Limited Partnership of Swift Energy Income
Partners 1987-C, Ltd., as filed October 29, 1987, with the
Texas Secretary of State. (Form 10-K for year ended
December 31, 1988, Exhibit 3.2).
99.1 A copy of the following section of the Prospectus dated
March 19, 1987, contained in Pre-Effective Amendment No. 1
to Registration Statement No. 33-11773 on Form S-1 for
Swift Energy Income Partners III, as filed on March 19,
1987, which have been incorporated herein by reference:
"Proposed Activities" (pp 30-36) and "Conflicts of Interest
(pp 70-78). (Form 10-K for year ended December 31, 1989,
Exhibit 28.1).
b(1) REPORTS ON FORM 8-K
-------------------
No reports on Form 8-K have been filed during the quarter ended
December 31, 1995.
IV-1
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Swift Energy Income Partners 1987-C, Ltd.:
We have audited the accompanying balance sheets of Swift Energy
Income Partners 1987-C, Ltd., (a Texas limited partnership) as of December
31, 1995 and 1994, and the related statements of operations, partners'
capital and cash flows for the years ended December 31, 1995, 1994 and 1993.
These financial statements are the responsibility of the general partner's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Swift Energy
Income Partners 1987-C, Ltd., as of December 31, 1995 and 1994, and the
results of its operations and its cash flows for the years ended December 31,
1995, 1994 and 1993, in conformity with generally accepted accounting
principles.
ARTHUR ANDERSEN LLP
Houston, Texas
February 19, 1996
IV-2
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
BALANCE SHEETS
DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
1995 1994
------------ ------------
<S> <C> <C>
ASSETS:
Current Assets:
Cash and cash equivalents $ 1,816 $ 1,401
Oil and gas sales receivable 308,130 373,111
------------ ------------
Total Current Assets 309,946 374,512
------------ ------------
Gas Imbalance Receivable 330 --
Oil and Gas Properties, using full cost
accounting 18,313,905 18,263,806
Less-Accumulated depreciation, depletion
and amortization (14,954,068) (14,122,080)
------------ ------------
3,359,837 4,141,726
------------ ------------
$ 3,670,113 $ 4,516,238
------------ ------------
------------ ------------
LIABILITIES AND PARTNERS' CAPITAL:
Current Liabilities:
Accounts payable and accrued liabilities $ 253,937 $ 172,192
Current portion of note payable 25,157 100,626
------------ ------------
Total Current Liabilities 279,094 272,818
------------ ------------
Note payable to a Bank, net
of current portion -- 25,157
Deferred Revenues 160,709 159,965
Partners' Capital 3,230,310 4,058,298
------------ ------------
$ 3,670,113 $ 4,516,238
------------ ------------
------------ ------------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
IV-3
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
---------- ---------- ----------
<S> <C> <C> <C>
REVENUES:
Oil and gas sales $1,139,140 $1,608,191 $1,911,677
Interest income 3,807 49 39
Other 19,117 16,205 9,818
---------- ---------- ----------
1,162,064 1,624,445 1,921,534
---------- ---------- ----------
COSTS AND EXPENSES:
Lease operating 439,395 416,688 553,608
Production taxes 61,621 87,649 102,280
Depreciation, depletion
and amortization -
Normal provision 448,054 571,502 651,330
Additional provision 383,934 -- --
General and administrative 174,414 227,427 253,698
Interest expense 27,147 32,702 38,344
---------- ---------- ----------
1,534,565 1,335,968 1,599,260
---------- ---------- ----------
INCOME (LOSS) $ (372,501) $ 288,477 $ 322,274
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
IV-4
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
STATEMENTS OF PARTNERS' CAPITAL
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
LIMITED GENERAL COMBINING
PARTNERS PARTNERS ADJUSTMENT TOTAL
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
BALANCE,
DECEMBER 31, 1992 $4,551,319 $ 109,662 $329,988 $4,990,969
INCOME (LOSS) 281,984 89,106 (48,816) 322,274
CASH DISTRIBUTIONS (675,200) (111,025) -- (786,225)
---------- --------- -------- ----------
BALANCE,
DECEMBER 31, 1993 4,158,103 87,743 281,172 4,527,018
---------- --------- -------- ----------
INCOME (LOSS) 251,771 77,730 (41,024) 288,477
CASH DISTRIBUTIONS (670,600) (86,597) -- (757,197)
---------- --------- -------- ----------
BALANCE,
DECEMBER 31, 1994 3,739,274 78,876 240,148 4,058,298
---------- --------- -------- ----------
INCOME (LOSS) (323,208) 38,279 (87,572) (372,501)
CASH DISTRIBUTIONS (407,100) (48,387) -- (455,487)
---------- --------- -------- ----------
BALANCE,
DECEMBER 31, 1995 $3,008,966 $ 68,768 $152,576 $3,230,310
---------- --------- -------- ----------
---------- --------- -------- ----------
LIMITED PARTNERS' NET INCOME (LOSS)
PER UNIT
1993 $ 1.47
---------
---------
1994 $ 1.31
---------
---------
1995 $ (1.69)
---------
---------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
IV-5
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
--------- --------- ---------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Income (Loss) $(372,501) $ 288,477 $ 322,274
Adjustments to reconcile income (loss) to
net cash provided by operations:
Depreciation, depletion and amortization 831,988 571,502 651,330
Change in gas imbalance receivable
and deferred revenues 414 14,923 15,917
Change in assets and liabilities:
(Increase) decrease in oil and gas sales receivable 64,981 35,096 190,700
Increase (decrease) in accounts payable
and accrued liabilities 81,745 (7,867) (230,807)
--------- --------- ---------
Net cash provided by (used in) operating activities 606,627 902,131 949,414
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties (69,027) (80,891) (109,862)
Proceeds from sales of oil and gas properties 18,928 36,754 22,336
--------- --------- ---------
Net cash provided by (used in) investing activities (50,099) (44,137) (87,526)
--------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions to partners (455,487) (757,197) (786,225)
Payments on note payable (100,626) (100,626) (75,469)
--------- --------- ---------
Net cash provided by (used in) financing activities (556,113) (857,823) (861,694)
--------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 415 171 194
--------- --------- ---------
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,401 1,230 1,036
--------- --------- ---------
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 1,816 $ 1,401 $ 1,230
--------- --------- ---------
--------- --------- ---------
Supplemental disclosure of cash flow information:
Cash paid during the year for interest $ 8,672 $ 14,653 $ 16,325
--------- --------- ---------
--------- --------- ---------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
IV-6
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION AND TERMS OF PARTNERSHIP AGREEMENT -
Swift Energy Income Partners 1987-C, Ltd., a Texas limited
partnership (the Partnership), was formed on October 29, 1987, for the
purpose of purchasing and operating producing oil and gas properties within
the continental United States. Swift Energy Company ("Swift"), a Texas
corporation, and VJM Corporation ("VJM"), a California corporation, serve as
Managing General Partner and Special General Partner of the Partnership,
respectively. The general partners are required to contribute up to 1/99th
of limited partner net contributions. The 2,114 limited partners made total
capital contributions of $19,156,787.
Property acquisition costs and the management fee are borne 99
percent by the limited partners and one percent by the general partners.
Organization and syndication costs were borne solely by the limited partners.
Initially, all continuing costs (including development costs,
operating costs, general and administrative reimbursements and direct
expenses) and revenues are allocated 90 percent to the limited partners and
ten percent to the general partners. If prior to partnership payout, as
defined, however, the cash distribution rate for a certain period equals or
exceeds 17.5 percent, then for the following calendar year, these continuing
costs and revenues will be allocated 85 percent to the limited partners and
15 percent to the general partners. After partnership payout, continuing
costs and revenues will be shared 85 percent by the limited partners, and 15
percent by the general partners, even if the cash distribution rate is less
than 17.5 percent. Payout had not occurred as of December 31, 1995.
(2) SIGNIFICANT ACCOUNTING POLICIES -
USE OF ESTIMATES -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
estimates.
OIL AND GAS PROPERTIES -
For financial reporting purposes, the Partnership follows the
"full-cost" method of accounting for oil and gas property costs. Under this
method of accounting, all productive and nonproductive costs incurred in the
acquisition 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 and development activities. General and
administrative costs related to production and general overhead are expensed
as incurred. No general and administrative costs were capitalized during the
years ended December 31, 1995, 1994 and 1993.
Future development, site restoration, 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
Partnership's capitalized oil and gas property costs are amortized.
The unamortized cost of oil and gas properties is limited to the
"ceiling limitation", (calculated separately for the Partnership, limited
partners, and general partners). The "ceiling limitation" is calculated on a
quarterly basis and represents the estimated future net revenues from proved
properties using current prices, discounted at ten percent, and the lower of
cost or fair value of unproved properties. Proceeds from the sale or
disposition of oil and gas properties are treated as a reduction of oil and
gas property costs with no gains or losses being recognized except in
significant transactions.
IV-7
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Partnership computes the provision for depreciation, depletion
and amortization of oil and gas properties on the units-of-production method.
Under this method, the provision is calculated by multiplying the total
unamortized cost of oil and gas properties, including future development,
site restoration, dismantlement and abandonment costs, by an overall
amortization rate that is 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 at the beginning of the period.
The calculation of the "ceiling limitation" and the provision for
depreciation, depletion, and amortization is based on estimates of proved
reserves. There are numerous uncertainties inherent in estimating quantities
of proved reserves and in projecting the future rates of production, timing
and plan of development. The accuracy of any reserve estimate is a function
of the quality of available data and of engineering and geological
interpretation and judgment. Results of drilling, testing and production
subsequent to the date of the estimate may justify revision of such estimate.
Accordingly, reserve estimates are often different from the quantities of oil
and gas that are ultimately recovered.
STATEMENTS OF CASH FLOWS -
Highly liquid debt instruments with an initial maturity of three
months or less are considered to be cash equivalents.
(3) OIL AND GAS CAPITALIZED COSTS -
The following table sets forth capital expenditures related to the
Partnership's oil and gas operations:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1995 1994 1993
------- ------- --------
<S> <C> <C> <C>
Acquisition of
proved properties $ -- $ -- $ --
Development 69,027 80,891 109,862
------- ------- --------
$69,027 $80,891 $109,862
------- ------- --------
------- ------- --------
</TABLE>
All oil and gas property acquisitions are made by Swift on behalf of
the Partnership. The costs of the properties include the purchase price plus
any costs incurred by Swift in the evaluation and acquisition of properties.
Interest expense, presented in the accompanying statements of
operations, includes amortization of the discount recorded on gas imbalance
liabilities assumed in property acquisitions ($20,816 in 1995, $19,214 in
1994 and $19,214 in 1993).
During 1995, the Partnership's unamortized oil and gas property costs
exceeded the quarterly calculations of the "ceiling limitation" resulting in
additional provision for depreciation, depletion and amortization of
$383,934. In computing the Partnership's third quarter 1994 "ceiling
limitation", the Partnership utilized the product prices in effect at the
date of the filing of the Partnership's report on Form 10-Q. Utilizing these
subsequent prices, no write down was required by the Partnership. The write
down would have been $157,415 using product prices in effect at September 30,
1994.
IV-8
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
In addition, the limited partners' share of unamortized oil and gas
property costs exceeded their "ceiling limitation" in 1995, resulting in a
valuation allowance of $326,694. This amount was included in the income
(loss) attributable to the limited partners shown in the statement of
partners' capital together with a "combining adjustment" for the difference
between the limited partners' valuation allowance and the Partnership's
valuation allowance. The "combining adjustment" changes quarterly as the
Partnership's total depreciation, depletion and amortization provision is
more or less than the combined depreciation, depletion and amortization
provision attributable to general and limited partners.
(4) RELATED-PARTY TRANSACTIONS -
An affiliate of the Special General Partner, as Dealer Manager,
received $478,920 for managing and overseeing the offering of limited
partnership units.
A one-time management fee of $478,920 was paid to Swift in 1987 for
services performed for the Partnership. During 1995, 1994 and 1993, the
Partnership paid Swift $96,737, $142,660 and $178,120, respectively, as
general and administrative overhead allowances.
(5) NOTE PAYABLE TO A BANK -
Note payable to a bank at December 31, 1995 and 1994 follows:
<TABLE>
<CAPTION>
1995 1994
-------- ---------
<S> <C> <C>
Date of current note: December 29, 1992
Note payable at 1.25% above the bank's base
rate (9.75% at December 31, 1995 and
December 31, 1994), principal payable in
quarterly installments of $25,157, with the
balance due at maturity (January 1, 1996)
collateralized by partnership assets $ 25,157 $ 125,783
Less: Current portion (25,157) (100,626)
-------- ---------
Long-term portion $ -- $ 25,157
-------- ---------
-------- ---------
</TABLE>
As provided by the Partnership Agreement, the note payable was
obtained to fund development wells.
(6) FEDERAL INCOME TAXES -
The Partnership is not a tax-paying entity. No provision is made in
the accounts of the Partnership for federal or state income taxes, since such
taxes are liabilities of the individual partners, and the amounts thereof
depend upon their respective tax situations.
IV-9
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The tax returns and the amount of distributable Partnership income
are subject to examination by the federal and state taxing authorities. If
the Partnership's ordinary income for federal income tax purposes is
ultimately changed by the taxing authorities, the tax liability of the
limited partners could be changed accordingly. Ordinary income reported on
the Partnership's federal return of income for the years ended December 31,
1995, 1994 and 1993 was $495,500, $757,689 and $811,143, respectively. The
difference between ordinary income for federal income tax purposes reported
by the Partnership and net income or loss reported herein primarily results
from the exclusion of depletion (as described below) from ordinary income
reported in the Partnership's federal return of income.
For federal income tax purposes, depletion with respect to production
of oil and gas is computed separately by the partners and not by the
Partnership. Since the amount of depletion on the production of oil and gas
is not computed at the Partnership level, depletion is not included in the
Partnership's income for federal income tax purposes but is charged directly
to the partners' capital accounts to the extent of the cost of the leasehold
interests, and thus is treated as a separate item on the partners' Schedule
K-1. Depletion for federal income tax purposes may vary from that computed
for financial reporting purposes in cases where a ceiling adjustment is
recorded, as such amount is not recognized for tax purposes.
(7) GAS IMBALANCES -
The gas imbalance receivable and deferred revenues represent
imbalances assumed as part of property acquisitions. The imbalances are
accounted for on the entitlements method, whereby the Partnership records its
share of revenue, based on its entitled amount. Any amounts over or under
the entitled amount are recorded as an increase or decrease to the gas
imbalance receivable or deferred revenues as applicable.
(8) VULNERABILITY DUE TO CERTAIN CONCENTRATIONS -
The Partnership'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.
The Partnership extends credit to various companies in the oil and
gas industry which results in a concentration of credit risk. This
concentration of credit risk may be affected by changes in economic or other
conditions and may accordingly impact the Partnership's overall credit risk.
However, the Managing General Partner believes that the risk is mitigated by
the size, reputation, and nature of the companies to which the Partnership
extends credit. In addition, the Partnership generally does not require
collateral or other security to support customer receivables.
(9) FAIR VALUE OF FINANCIAL INSTRUMENTS -
The Partnership's financial instruments consist of cash and cash
equivalents and short-term receivables and payables. The carrying amounts
approximate fair value due to the highly liquid nature of the short-term
instruments.
IV-10
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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 INCOME
PARTNERS 1987-C, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
General Partner
Date: March 15, 1996 By: s/b A. Earl Swift
----------------------- ----------------------------
A. Earl Swift
President
Date: March 15, 1996 By: s/b John R. Alden
----------------------- -----------------------------
John R. Alden
Principal Financial Officer
Date: March 15, 1996 By: s/b Alton D. Heckaman, Jr.
----------------------- -----------------------------
Alton D. Heckaman, Jr.
Principal Accounting Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
SWIFT ENERGY INCOME
PARTNERS 1987-C, LTD.
(Registrant)
By: SWIFT ENERGY COMPANY
General Partner
Date: March 15, 1996 By: s/b A. Earl Swift
----------------------- -----------------------------
A. Earl Swift
Director and Principal
Executive Officer
Date: March 15, 1996 By: s/b Virgil N. Swift
----------------------- -----------------------------
Virgil N. Swift
Director and Executive
Vice President - Business
Development
IV-11
<PAGE>
SWIFT ENERGY INCOME PARTNERS 1987-C, LTD.
Date: March 15, 1996 By: s/b G. Robert Evans
----------------------- -----------------------------
G. Robert Evans
Director
Date: March 15, 1996 By: s/b Raymond O. Loen
----------------------- -----------------------------
Raymond O. Loen
Director
Date: March 15, 1996 By: s/b Henry C. Montgomery
----------------------- -----------------------------
Henry C. Montgomery
Director
Date: March 15, 1996 By: s/b Clyde W. Smith, Jr.
----------------------- -----------------------------
Clyde W. Smith, Jr.
Director
Date: March 15, 1996 By: s/b Harold J. Withrow
----------------------- -----------------------------
Harold J. Withrow
Director
IV-12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Swift
Energy Income Partners 1987-C, LTD.'s balance sheet and statement of
operations contained in its Form 10-K for the year ended December 31, 1995
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 1,816
<SECURITIES> 0
<RECEIVABLES> 308,130
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 309,946
<PP&E> 18,313,905
<DEPRECIATION> (14,954,068)
<TOTAL-ASSETS> 3,670,113
<CURRENT-LIABILITIES> 279,094
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,230,310
<TOTAL-LIABILITY-AND-EQUITY> 3,670,113
<SALES> 1,139,140
<TOTAL-REVENUES> 1,162,064
<CGS> 0
<TOTAL-COSTS> 1,333,004<F1>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 27,147
<INCOME-PRETAX> (372,501)
<INCOME-TAX> 0
<INCOME-CONTINUING> (372,501)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (372,501)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Includes lease operating expense, production taxes, and depreciation, depletion
and amortization expense. Excludes general and administrative and interest
expense.
</FN>
</TABLE>
