Swift Energy announces its 2014 results and anticipates 2015 by slashing spending by an astonishing 70%.
In its earnings call in late February, Swift Energy reported a net loss for the fourth quarter of 2014 of $10.9 million, compared to a net income of $4.7 million in the same quarter in 2013. The company also saw flat production between Q3 and Q4 with overall production numbers decreasing 3% from 2013 levels.
The bright spot for Swift in 2014 was what happened in the company’s Eagle Ford operations, which received approximately 85% of 2014 capital spending and saw a full year production increase of 32% from 2013. Additionally, Swift acquired another 12,635 acres of high quality, Eagle Ford gas acreage at in La Salle County.
“We believe our 2014 operation results clearly demonstrate our expertise in the Eagle Ford providing us with the multiple year drilling inventories at current commodity pricing and corresponding cost structures.”
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Looking to the new year, Swift plans for massive cuts in its capital spending while still focusing on the Eagle Ford.
“I want to be very clear that we’re very aware of the commodity environment and the various opportunities as well as threats of continued low oil and gas prices. We will manage and operate in such way as to seek the best outcomes for all of our stakeholders. First, we revised our capital budget to the range of 110 million to 125 million. This is roughly 70% below our 2014 capital spend and at these levels we’re targeting production to be down between 6% to 8%.”
Swift Energy is currently active in the following Eagle Ford counties: