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Swift Energy Company Reports Operating Results (10-Q)

November 04, 2010 | About:
10qk

10qk

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Swift Energy Company (SFY) filed Quarterly Report for the period ended 2010-09-30.

Swift Energy Company has a market cap of $1.21 billion; its shares were traded at around $32.04 with a P/E ratio of 25 and P/S ratio of 3.2. Swift Energy Company had an annual average earning growth of 11.4% over the past 10 years.SFY is in the portfolios of Private Capital of Private Capital Management, Louis Moore Bacon of Moore Capital Management, LP, Kenneth Fisher of Fisher Asset Management, LLC, Chuck Royce of Royce& Associates, George Soros of Soros Fund Management LLC.

Highlight of Business Operations:

Oil and gas sales for the third quarter of 2010 increased by 8%, or $7.9 million, from the level of those revenues for the comparable 2009 period, and our net production volumes in the third quarter of 2010 decreased by 7%, or 0.1 MMBoe, compared to net production volumes in the third quarter of 2009. Average prices for oil increased to $76.39 per Bbl in the third quarter of 2010 from $68.15 per Bbl in the third quarter of 2009. Average natural gas prices increased to $3.87 per Mcf in the third quarter of 2010 from $2.84 per Mcf in the third quarter of 2009. Average NGL prices increased to $39.88 per Bbl in the third quarter of 2010 from $35.09 per Bbl in the third quarter of 2009.

During the third quarter of 2010, we recorded a net loss of $0.2 million related to our derivative activities, while during the third quarter of 2009 we recorded a net loss of $1.3 million from these activities. This activity is recorded in “Price-risk management and other, net” on the accompanying condensed statements of operations. Had these losses been recognized in the oil and gas sales account, our average oil price would have been $76.44 and $66.97 for the third quarters of 2010 and 2009, respectively, and our average natural gas price would have been $3.81 and $2.84 for the third quarters of 2010 and 2009, respectively.

Our third quarter 2010 general and administrative expenses, net, decreased $0.1 million, or 1%, from the level of such expenses in the same 2009 period. For the third quarters of 2010 and 2009, our capitalized general and administrative costs totaled $5.9 million and $6.0 million, respectively. Our net general and administrative expenses per Boe produced increased to $4.21 per Boe in the third quarter of 2010 from $3.98 per Boe in the third quarter of 2009. The portion of supervision fees recorded as a reduction to general and administrative expenses was $3.2 million and $2.7 million for three month periods ended September 30, 2010 and 2009, respectively.

Oil and gas sales for the first nine months of 2010 increased by 25%, or $63.7 million, from the level of those revenues for the comparable 2009 period, and our net production volumes in the first nine months of 2010 decreased by 10%, or 0.7 MMBoe, compared to net production volumes in the first nine months of 2009. Average prices for oil increased to $77.42 per Bbl in the first nine months of 2010 from $54.77 per Bbl in the first nine months of 2009. Average natural gas prices increased to $4.11 per Mcf in the first nine months of 2010 from $3.40 per Mcf in the first nine months of 2009. Average NGL prices increased to $42.31 per Bbl in the first nine months of 2010 from $28.42 per Bbl in the first nine months of 2009.

During the first nine months of 2010, we recorded a net gain of $0.8 million related to our derivative activities. During the first nine months of 2009 we recorded a net loss of $1.3 million. This activity is recorded in “Price-risk management and other, net” on the accompanying condensed consolidated statements of operations. Had these gains (losses) been recognized in the oil and gas sales account, our average oil price would have been $77.53 and $54.37 for the first nine months of 2010 and 2009, respectively, and our average natural gas price would have been $4.15 and $3.40 for the first nine months of 2010 and 2009, respectively.

Our first nine months 2010 general and administrative expenses, net, increased $1.2 million, or 5%, from the level of such expenses in the same 2009 period primarily due to higher office rent. For the first nine months of 2010 and 2009, our capitalized general and administrative costs totaled $17.5 million and $18.1 million, respectively. Our net general and administrative expenses per Boe produced increased to $4.23 per Boe in the first nine months of 2010 from $3.63 per Boe in the first nine months of 2009. The portion of supervision fees recorded as a reduction to general and administrative expenses was $9.2 million and $8.4 million for three month periods ended September 30, 2010 and 2009, respectively.

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