Fourth quarter 2014 results compared, as applicable, to third quarter 2014 results were as follows:
As previously disclosed, production during the fourth quarter was 2.0 million barrels of oil equivalent (MMBOE), or 21,308 barrels of oil equivalent (BOE) per day (BOEPD), compared to 20,874 BOEPD, pro forma to exclude production from Mississippi properties sold in July 2014 and volumes associated with a settlement of litigation in the Mid-Continent.
During full-year 2014, pro forma total production increased 22% and oil production increased 35% over full-year 2013.
Realized oil, natural gas liquids (NGLs) and gas prices declined to $69.82 per barrel, $23.43 per barrel and $3.81 per thousand cubic feet (Mcf) from $95.19 per barrel, $31.76 per barrel and $4.17 per Mcf.
Including oil and gas derivatives, oil and gas prices were $77.99 per barrel and $4.03 per Mcf, compared to $89.08 per barrel and $4.19 per Mcf.
Product revenues from the sale of oil, NGLs and natural gas were $101.4 million, or $51.73 per barrel of oil equivalent (BOE), compared to $141.9 million, or $67.91 per BOE.
Including oil and gas derivatives, product revenues were $111.8 million, or $57.03 per BOE, compared to $134.3 million, or $64.29 per BOE.
Production costs, including lease operating expense, gathering, processing and transportation expenses and production and ad valorem taxes, decreased to $22.6 million, or $11.52 per BOE, from $27.8 million, or $13.35 per BOE.
Excluding production and ad valorem taxes, which decreased by $2.2 million due to lower commodity prices, other production costs were $8.72 per BOE, compared to $9.66 per BOE.
Operating loss, excluding impairments and net gains or losses on the sale of assets, was $14.6 million, compared to operating income of $28.5 million.
Adjusted EBITDAX, a non-GAAP (generally accepted accounting principles) measure, was $84.8 million, compared to $97.7 million.
Borrowing base under our revolving credit facility increased to $500 million during the fourth quarter, providing financial liquidity, including cash and equivalents, of $470 million at year-end 2014.
Leverage ratio was 3.0 times at year-end 2014.
Gas Equivalent Pressure Choke
Name Target (MMcf/d) (Boe/d) (psi) Setting
------- ----------------- -------- ---------- -------- -------
27H Webb -- Eagle Ford 20.4 3,392 4,855 30/64"
28H Webb -- Eagle Ford 21.1 3,523 3,946 36/64"
29H Webb -- Eagle Ford 20.6 3,437 4,821 30/64"
30H Webb -- Eagle Ford 21.1 3,518 3,820 36/64"
Terry Swift commented further, "We are pleased with our drilling and completion efforts in Fasken, as we have now drilled 14 consecutive wells with average initial production tests in excess of 20 MMcf/d. These results demonstrate that deploying customized, engineered completions in horizontal laterals drilled in precise target zones of the Eagle Ford shale improve the productivity of our wells."
Swift Energy Announces Revised 2015 Capital Budget and Updates Operations
Jan 13, 2015 07:00:00 (ET)
HOUSTON--(BUSINESS WIRE)--January 13, 2015--
Swift Energy Company (NYSE:SFY) today announced a revised 2015 capital budget range of $100 - $125 million in response to recent hydrocarbon price declines. This revised level of activity is projected to yield between 11.2 and 11.4 million barrels of oil equivalent ("MMBoe") of production.
Terry Swift, CEO of Swift Energy, commented, "Our revised budget, representing a 70-75% decrease in spending from 2014, reflects the lower commodity price environment we face in 2015 and demonstrates our response during this down cycle. We continue to work with our vendors and suppliers to reduce service costs and are taking steps to materially reduce field level operating and corporate overhead expenses."
Swift Energy also announced today that it has tested four new Eagle Ford wells in the Fasken area in Webb County, Texas. The Fasken 27H, 28H, 29H and 30H were all recently completed with an average initial production rate of 20.8 million cubic feet of gas per day.
mperial Capital reiterated an Outperform rating and raised his price target on Rentech Nitrogen Partners (NYSE: RNF) to $22.00 (from $15.00), suggesting 46% upside.
"Our price target implies a 2.5% yield on the common unit distribution of $0.55 in 2014 and a 7.2% yield on our higher common unit distribution estimate for 2015 of $1.59 (previously $1.18)," analyst Matthew Farwell said.
The firm said the strategic alternatives process could realize significant trapped value. "On 2/17/15, RNF announced that its Board had initiated a process to explore and evaluate strategic alternatives for the partnership, which may include a sale, merger, or asset sales," Farwell commented. "Such an effort could realize significant upside for the RNF common units, in our view."
Strategic alternatives include:The East Dubuque asset is a Nitrogen plant with a locational advantage in the Eastern Corn Belt which benefits from higher relative margins (products from the Gulf must be shipped north at a cost of up to $100/t) and inexpensive natural gas feedstock (natural gas cost is about 45% of EBITDA)Relatively high-cost debt ($21mn) and high partnership expenses ($8mn) could be mitigated if RNF were merged or acquired by a larger companyAn above- market marketing and distribution contract with Agrium ($5mn/year) could be eliminated and allowed to expire in April 2016Separating East Dubuque from Pasadena would mitigate the overhang of the underperforming Pasadena asset and unlock favorable ammonia exposure that Pasadena, due to its consumption of 150kt of ammonia as a feedstock, had neutralizedSale of Rentech Nitrogen GP, wholly-owned by RTK, would allow for a potential restructuring of the RNP partnership to introduce Incentive Distribution Rights (IDRs); this would require consent from and payments to LP unit-holders
the developments in the Middle East have boosted crude oil futures. WTI crude is currently higher by 4.5% at $51.41/bbl
Fourth Quarter Earnings Announcement Expected: Earnings will tentatively be announced 02/19/2015. With 4 analysts covering UAN, the consensus EPS estimate is $0.23, and the high and low estimates are $0.24 and $0.22, respectively.
Shorts Got Squeezed by Talisman Deal -- Market TalkFont size: A | A | A
11:22 AM ET 12/29/14 | Dow Jones
11:22 EST - Talk about bad timing. Repsol's (REP.MC) $8.3B deal to acquire Talisman (TLM), struck earlier this month, stung many bearish investors who had bet sinking oil prices would take their toll on TLM shares. New data out Monday show short interest in the Canadian energy producer jumped 59%between Nov. 28 and Dec. 15 as oil prices touched 5-year lows. The next day, TLM announced its buyout--done at a nearly 60% premium to its share price the prior month. It's hardly the first short to be squeezed by a surprise M&A deal, but painful all the same.