Swift Energy Company (NYSE:SFY) announced today earnings from continuing operations of $20.7 million for the fourth quarter of 2011, or $0.48 per diluted share, a 100% increase when compared to fourth quarter 2010 earnings from continuing operations of $10.3 million, or $0.25 per diluted share and an increase of 22% when compared to earnings of $17.0 million in the third quarter of 2011.
Adjusted cash flow (cash flow before working capital changes, a non-GAAP measure - see page 9 for reconciliation to the GAAP measure) for the fourth quarter of 2011 increased 50% to $99.4 million, or $2.33 per diluted share, compared to $66.3 million, or $1.65 per diluted share, for the fourth quarter 2010 and increased 10% when compared to adjusted cash flow of $90.0 million, or $2.11 per diluted share, for the third quarter of 2011.
Swift Energy produced 2.70 million barrels of oil equivalent (“MMBoe”) during the fourth quarter of 2011, a 24% increase over fourth quarter 2010 production, and a 6% sequential increase compared to third quarter 2011 production of 2.54 MMBoe.
Oil and gas proved reserve estimates at year-end 2011 of 159.6 MMBoe were 20.2% higher than 2010 year-end proved reserve estimates of 132.8 MMBoe, accomplished even after the reduction of approximately 16 MMBoe for proved reserves that were sold during the fourth quarter of 2011. This record level of year-end proved reserves for the Company is primarily due to the activity level and performance of its South Texas core area.
Terry Swift, CEO of Swift Energy, stated, “The Company delivered strong operational and financial results during the fourth quarter of 2011. With average daily production for the quarter of slightly more than 29,000 barrels of oil equivalent (“Boe”) and a year-end daily production rate of greater than 31,000 Boe, we’ve entered 2012 with strong operational momentum. Financially, our expected 2012 cash flows combined with over $250 million in cash at year-end provide ample liquidity to fully fund our 2012 capital program. This operational momentum and sound financial position are in place to drive record production and reserve results in 2012.