Swift Energy Company (NYSE: SFY) announced today earnings of $6.7 million for the second quarter of 2013, or $0.15 per diluted share, an increase of 122% when compared to second quarter 2012 earnings of $3.0 million, or $0.07 per diluted share, and a decrease of 7% when compared to earnings of $7.2 million in the first quarter of 2013.
Adjusted cash flow (cash flow before working capital changes, a non-GAAP measure - see page 6 for reconciliation to the GAAP measure) for the second quarter of 2013 was $72.8 million, or $1.67 per diluted share, virtually unchanged when compared to $72.7 million, or $1.69 per diluted share, for the second quarter 2012, and $72.6 million, or $1.67 per diluted share, for the first quarter of 2013.
Swift Energy produced 2.78 million barrels of oil equivalent (“MMBoe”) during the second quarter of 2013, a 5% decrease from second quarter 2012 production of 2.92 MMBoe, and down 1% compared to first quarter 2013 production of 2.82 MMBoe.
Terry Swift, CEO of Swift Energy commented, “Our performance in the prolific Eagle Ford shale trend in South Texas continues to improve according to our plans. When compared to 2012, our 2013 South Texas well results have delivered higher initial production rates, larger estimated ultimate recoveries (“EURs”) and lower costs. Additionally, during July our average daily production rate in our South Texas core area was approximately 10% higher than our second quarter 2013 average production rate. Based on this performance, and following an extensive asset review, we plan to sell our Central Louisiana assets to increase our focus and build upon the operational success of our more predictable assets in South Texas. We expect a disposition of these assets to occur within the next 6-12 months.
“In conjunction with these asset sales, we’ve also recently committed to accelerating our activity in South Texas during the second half of 2013 and now expect to keep two drilling rigs active and maintain the momentum we have established.