Swift Energy Company (NYSE:SFY) announced today earnings from continuing operations of $3.6 million for the first quarter of 2012, or $0.08 per diluted share, a decrease of 82% when compared to first quarter 2011 earnings from continuing operations of $20.2 million, or $0.47 per diluted share and a decrease of 83% when compared to earnings of $20.7 million in the fourth quarter of 2011.
Adjusted cash flow (cash flow before working capital changes, a non-GAAP measure - see page 7 for reconciliation to the GAAP measure) for the first quarter of 2012 decreased 13% to $69.1 million, or $1.61 per diluted share, compared to $79.2 million, or $1.86 per diluted share, for the first quarter 2011 and decreased 30% when compared to adjusted cash flow of $99.4 million, or $2.33 per diluted share, for the fourth quarter of 2011.
Swift Energy produced 2.80 million barrels of oil equivalent (“MMBoe”) during the first quarter of 2012, a 6% increase over first quarter 2011 production of 2.65 MMBoe, and a 4% sequential increase compared to fourth quarter 2011 production of 2.70 MMBoe.
“Swift Energy continued to increase crude oil and liquids focused activity levels across all three of our operating areas with minimal operational delays or outages during the first quarter,” commented Terry Swift, CEO of Swift Energy. “Our operational momentum delivered production volumes at the high end of our targeted production range in the first quarter, and we remain on track to reach our full year targeted production growth range of 14% - 20%. We also expect crude oil and natural gas liquid production to grow throughout the year and anticipate these products will account for approximately 55% of our daily production mix by the end of 2012.
“We focused on improving operational efficiencies and reducing costs during the first quarter and have extended, for one year, our dedicated fracture stimulation agreement with our existing service provider. The terms of this agreement are favorable and will help further reduce the per stage cost of our completion activities. We are also in the final stages of securing firm transportation and processing capacity for natural gas production in LaSalle County, TX, which further enhances the value of our production from this area.”