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Cash-flush Swift eyes spending boost


Wire services

US oil and gas explorer Swift Energy expects to rake in record revenues this year thanks to high prices and may boost its capital spending from its previous target, its president has said.

Revenues were seen rising to as high as $760 million in 2008 from $654 million in 2007, Swift Energy president Bruce Vincent said yesterday at the Howard Weil Energy Conference in New Orleans.

Earnings before interest, taxes, depreciation and amortization (EBITDA) also were seen jumping to a record $530 million from $463 million, he added.

"We are already looking at record revenues and EBITDA," Vincent told analysts at the conference, Reuters reported.

Swift Energy looks to grow its oil and gas reserves from 5% to 9% from between 142 million to 146 million barrels of oil equivalent, Vincent told the analysts.

The company is also aiming to boost annual production between 10% and 15% to a range of 11.7 million to 12.3 million boe this year, Vincent added.

As in previous years, Houston-based Swift Energy may increase 2008 capital spending from a previously targeted range of $425 million to $475 million to increase output and fund any possible acquisitions, he added.

Swift Energy's 2007 capital spending ended up being much higher last year than previously envisaged, close to $700 million, due to acquisitions, which are not budgeted by the company, Vincent noted.

"Don't be surprised if we increase that spending level. We have not done that yet, but we are thinking about it. We have a wealth of inventory to do with the drill bit," Vincent said.

"In the past two years, we have increased our spending via acquisitions. We don't budget acquisitions, but we are very optimistic that, with the right ones, we will do the right move to try to get a hold of them."

Earlier yesterday, Swift Energy shares closed 0.76% higher at $49.03, compared with year highs and lows at $50.67 and $34.56, respectively.


Thursday, 10 April, 2008, 00:02 GMT  | last updated: Thursday, 10 April, 2008, 00:42 GMT

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