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Swift Energy Upped to Strong Buy

Zacks Equity Research

On Oct 4, Zacks Investment Research upgraded Swift Energy Co. (SFY) to a Zacks #1 Rank (Strong Buy).

Why the Upgrade?

Swift Energy witnessed a year-over-year 122% increase in earnings during the second quarter on the back of higher natural gas prices in 2013 as well as higher oil and NGL production volumes. The company’s enhanced guidance for fiscal 2013 further emphasizes its future growth plans. Moreover, this well-known oil and gas company delivered positive earnings surprises in 3 of the last 4 quarters with an average beat of 62.6%. The long-term expected earnings growth rate for this stock is 11.4%    

Swift Energy reported fiscal second-quarter (ended Jun 30) results on Aug 1. Adjusted earnings per share came in at 15 cents, surpassing the Zacks Consensus Estimate of 8 cents and year-ago earnings of 7 cents by 87.5% and 114.3%, respectively.

Earnings were primarily aided by top-line growth of about 6.0% and 4% decrease in general and administrative expense.   

Based on its progress, the company is aiming at production growth of 3%, while reserves are expected to increase in the range of 7–12%, over fiscal 2012.

The Zacks Consensus Estimate for fiscal 2013 increased 32.6% to 64 cents per share as all the estimates were revised higher over the last 60 days. For fiscal 2014 also all the estimates were revised higher over the same time frame, lifting the Zacks Consensus Estimate by 6.5% to 68 cents per share.

Other Stocks to Consider

Other stocks with favorable Zacks Rank in the same industry are - Pioneer Energy Services Corp. (PES), TransGlobe Energy Corp. (TGA)  and Enbridge Energy Management LLC (EEQ) - all carrying Zacks Rank #1 (Strong Buy).

Read the Full Research Report on EEQ
Read the Full Research Report on TGA
Read the Full Research Report on SFY
Read the Full Research Report on PES

Zacks Investment Research