Swift Energy Company (NYSE:SFY) announced today earnings from continuing operations of $3.0 million for the second quarter of 2012, or $0.07 per diluted share, a decrease of 89% when compared to second quarter 2011 earnings from continuing operations of $26.7 million, or $0.61 per diluted share and a decrease of 15% when compared to earnings of $3.6 million in the first quarter of 2012.
Adjusted cash flow (cash flow before working capital changes, a non-GAAP measure - see page 7 for reconciliation to the GAAP measure) for the second quarter of 2012 decreased 31% to $72.7 million, or $1.69 per diluted share, compared to $105.5 million, or $2.47 per diluted share, for the second quarter 2011 and increased 5% when compared to adjusted cash flow of $69.1 million, or $1.61 per diluted share, for the first quarter of 2012.
Swift Energy produced 2.92 million barrels of oil equivalent (“MMBoe”) during the second quarter of 2012, an 11% increase over second quarter 2011 production of 2.64 MMBoe, and a 4% sequential increase compared to first quarter 2012 production of 2.80 MMBoe.
Terry Swift, CEO of Swift Energy commented, “As demonstrated by Swift Energy’s second quarter results, our focus on crude oil directed activity is becoming evident in our production volumes. In South Texas, we are drilling and completing more wells targeting crude oil, condensate and liquids rich natural gas production. Drilling times and completion efficiency are improving as we drill and complete more wells from multi-well pads, and we continue to optimize the full-scale development of our assets. We also continue to be encouraged by results in our Central Louisiana and Southeast Louisiana core areas.“As a result of improved drilling and completion efficiencies and times in South Texas, we now expect to drill more wells than previously budgeted in South Texas this year with the same complement of rigs. The drilling results at our Lake Washington field so far this year also support maintaining our one rig drilling program through the end of 2012. This additional activity will result in higher levels of spending this year than originally projected but will increase our operational momentum as measured by daily production rate. Also as a result of additional activity, we now expect year-end reserves levels to be 15-20% higher than at year-end 2011, up from our previous expectation of a 10-15% increase. These reserve additions will primarily be crude oil and natural gas liquids, which we expect to comprise approximately 40% of 2012 year-end total reserves and greater than 50% of year-end 2012 daily production.
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