Swift Energy Company (Swift Energy) is an independent energy company engaged in the exploration, development, production and acquisition of crude oil and natural gas prospects, primarily in the US, including onshore areas of Texas and Louisiana and also beside the inland waters of Louisiana. The company was founded in 1979 and is headquartered in Houston, Texas. Swift Energy’s core development and exploration activities can be segmented into three geographic areas that include South Texas, Southeast Louisiana, and Central Louisiana. Its major fields are AWP Eagle Ford, AWP Olmos, Artesia Wells and Fasken, in South Texas; Lake Washington and Bay De Chene, in Southeast Louisiana; and South Bearhead Creek, Masters Creek, Brookeland and Burr Ferry, in Central Louisiana. It also holds acreage in Southwestern Colorado. It handles some of its operations through Swift Energy Operating, a wholly owned indirect subsidiary.
Swift Energy holds 167,736 acres of net developed leasehold acreage and 162,880 acres of net undeveloped leasehold acreage. It has a large acreage position in South Texas, at the Eagle Ford Shale and Olmos tight sand formations, and is one of the major crude oil producers in Louisiana.
Key Highlights: This section provides detailed analysis on the company’s overall oil and gas value chain, new projects, growth opportunities, new ventures, assets performance, Capex funding, geographical results of oil and gas operations.
Goals and Strategies: This section provides the upcoming goals and strategies of the company. The section mainly goals and strategies followed by the company in order to meet its upcoming goals.
SWOT: The report’s SWOT section provides the internal strength, weakness, opportunities and threats of company to reflect its strategic positions in the market.
Production and Development Overview: This section highlights the company’s crude oil and natural gas production forecast from its legacy and upcoming assets by region and commodity mix for next five years. The report also covers the detailed information and analysis on the company’s producing and development assets.
Exploration: This section includes detailed explanation and analysis on the company’s exploration assets resulted due to new discoveries, new drilling and other activities.
M&A trends: This section mainly provides information and analysis on the company’s recent assets transactions, joint ventures, acquisition, and divestment activities during the last one year. This section highlights the company’s status as a buyer or seller during the analyzed period.
Financial Forecast and Valuation: This section highlights the detailed financial statement forecast for next five years. With the financial statement forecast, this section also provides intrinsic value of the company by using Net Asset Valuation method.
Peer Group Analysis: This section compares the company’s performance with its peer group on the basis of share prices, financial ratios, operational and financial parameters and other related parameters.
Financial and Operational Metrics: This section covers the company’s historical performance on several financial and operational parameters such as Production and Reserves, Reserves Replacement, Costs Incurred, Acreage, Wells, F&D Costs, Oil and Gas Revenue and Expenses etc.
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Persisted Focus on Development of SouthTexas Assets to Drive Future Growth
Improved Operational Efficiency in SouthTexas: Swift Energy Company (Swift Energy)continued the development of its high-yieldingassets in South Texas. Most of its drilling activitytook place in the Eagle Ford Shale. By usingadvanced technology in its operational activitiesand successfully implementing completion andproduction optimization programs, Swift Energyimproved its results in this shale, reporting higherInitial Production Rates (IPR), larger EstimatedUltimate Recovery (EUR) and lower costs. Itachieved a XX% increase in IPR and EUR in 2013,while its drilling and completion costs werereduced by XX%. It plans to spend more than XX%of its budgeted capital expenditure (capex) for2014 in South Texas.
Constant Growth in Reserve Base throughBalanced Growth Approach: Between 2009 and2013, Swift Energy’s total proved reservesincreased at a compound annual growth rate(CAGR) of XX%, from XX million barrels of oilequivalent (mmboe) to XX mmboe. Swift Energyfollows a balanced growth strategy for reserveadditions by maintaining the balance betweenorganic and inorganic growth methods. Over thepast three years, it has focused on organic reserveadditions and has not been involved in any majorinorganic additions. It increased its provedreserves by XX% in 2013, mainly throughadditional drilling in South Texas, particularly in theFasken natural gas field, in the Eagle Ford Shale.It improved its reserve replacement ratio from XX%to XX%, between 2009 and 2013.
Calibrating Capital Expenditure to MatchInternally Generated Cash Flow fromOperations: Swift Energy’s primary objective for2014 is strengthening its balance sheet. Its netdebt increased from US$XX million to US$XXbillion, between 2009 and 2013. As a result, its netdebt-to-equity ratio increased from XX% to XX% inthis period. It is analyzing various ways to improveits liquidity and fine-tune its balance sheet. Itreduced its capital budget for 2014 to US$XX–XXmillion, from US$XX million in 2013, in order tobring it in line with its cash flow from operations(CFO). It intends to divest its Central Louisianaassets, to fund its capex. This will allow it toenhance its focus on its high-yielding South Texascore area. The company also seeks for partnershipto jointly develop some of its assets in Eagle FordShale. In connection with this, the companyfinalized a joint venture agreement with PT SakaEnergi Indonesia (Saka) in May 2014, for thedevelopment of Fasken properties. Under theagreement, Saka will acquire a XX% fullparticipating interest in Fasken properties for apurchase consideration of US$XX million.Following the agreement, Swift Energy will remainas operator of the project. The transaction isexpected to close on or about June 30, 2014.
2014 Update: During Q1 2014, Swift Energyproduced XX mmboe, increased by XX% over Q12013 production of XX mmboe, and declined XX%compared with Q4 2013 production of XX mmboe.In March 2014, Swift Energy tested three newwells in the Fasken area. All three had an averageIPR of XX million cubic feet per day (mmcfd) andmaintained gross production rates above XXmmcfd of gas over their first 60 days of production.