Jefferies 2014 Global Energy Conference. November 12, 2014

Transcription

1 Jefferies 2014 Global Energy Conference November 12,

2 Forward Looking Statements The material included herein which is not historical fact constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These opinions, forecasts, scenarios and projections relate to, among other things, estimates of future capital expenditures, levels and costs of drilling activity, estimated production rates or forecasts of growth thereof, hydrocarbon reserve quantities and values, potential oil and gas reserves expressed as net resource potential, assumptions as to future hydrocarbon prices, liquidity, cash flows, operating results, availability of capital, internal rates of return, net asset values, drilling schedules and potential growth rates of reserves and production, all of which are forward-looking statements. These forward-looking statements are generally accompanied by words such as estimated, projected, potential, anticipated, forecasted or other words that convey the uncertainty of future events or outcomes. Although the Company believes that such forward-looking statements are reasonable, the matters addressed reflect management s current plans and assumptions, are subject to numerous risks and uncertainties, many of which are beyond the Company s control, and certain of which are set out in our most recent Form 10-K and Form 10-Q filed with the SEC. The Company can give no assurance that estimates and projections contained in such statements will prove to have been correct. For reconciliations of non-gaap financial measures, see our website at Cautionary Note Regarding Potential Reserves Disclosures Current SEC rules regarding oil and gas reserve information allow oil and gas companies to disclose not only proved reserves, but also probable and possible reserves that meet the SEC s definitions of such terms. In this presentation, we refer to estimates of resource potential or EUR (estimated ultimate recovery quantities) or IP (initial production rates) other descriptions of volumes potentially recoverable, which in addition to reserves generally classifiable as probable and possible include estimates of reserves that do not rise to the standards for possible reserves, and which SEC guidelines strictly prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and are subject to greater uncertainties, and accordingly the likelihood of recovering those reserves is subject to substantially greater risk. 2

3 A Leading Eagle Ford Shale Operator Operational Excellence Current drill & complete design delivers exceptional performance Completion optimization associated with Geofrac logging Quality of steering in Sweet Spot Enhanced frac designs (engineered vs geometric) Shallower declines and higher flowing pressures Incremental capital in drilling and completion optimization yields >100% IRR Execution Focused development program yielding substantial growth 1.3 Mboe/d in 2010 to 28.2 Mboe/d YTD 14 Transferrable, technological, competitive advantage Fasken, SMR/PCQ, and now Whitehurst Recently closed ~$175MM JV for 8,300 Webb Acres Larger IP s and greater recovery Recent Results Braken JV 13H: IP 3,468 Boe/d; 19% liquids Fasken AB EF 20H: IP 22.2 MMcf/d; 100% dry gas SMR EF 17H: IP 1,401 Boe/d; 93% liquids (1) Includes some probable and possible locations. Area County Acres Fasken Lower Eagle Ford Upper Eagle Ford Olmos AWP Oil Lower Eagle Ford Olmos AWP Condensate Lower Eagle Ford Olmos Webb 8,302 McMullen 15,987 McMullen 2,850 YE 2014 (1) AWP Lower EF Gas McMullen 5, Artesia Lower EF Oil La Salle 4, Artesia Lower EF Condensate La Salle 5,

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8 Benefits of Current Engineered Frac Design & Lateral Length Open hole logging of laterals Identifies optimal frac gradient and brittle zones Allows optimal grouping and perforating of frac intervals Enhanced Fracture Complexity Multi-well frac treatments Lighter gel loading Improved near wellbore stimulated reservoir volume (SRV) Geometric Frac Engineered Frac Increased fracture conductivity Added 50% proppant volume Aggressive proppant placement (1) Graphics are for presentation purposes only and do not depict all relevant geologic and engineering information. 8

9 AWP Eagle Ford Oil Overview AWP Eagle Ford Oil Overview Net Acres: 15,984 Well Spacing: ~50 Acres or 440 Remaining Locations at YE 2014: 95 (1) Avg Working Interest: 95% Avg Net Revenue Interest: 72% Performance Technical efficiencies maximizing returns 14.8 drilling days in SMR/17 in PCQ Enhanced toe-prep method saving ~$120k/well Generational improvements in pad drilling (see map) Recent Results SMR EF 17H: IP 1,401 Boe/d; 93% liquids PCQ EF 22H: IP 1,120 Boe/d; 74% liquids PCQ EF 23H: IP 1,180 Boe/d; 90% liquids (1) AWP Eagle Ford oil locations only. PCQ EF 15H Avg IP: 1,292 Boe/d PCQ EF 16H Avg IP: 1,042 Boe/d PCQ EF 1H Avg IP: 836 Boe/d PCQ EF 2H Avg IP: 698 Boe/d PCQ EF 3H Avg IP: 502 Boe/d Original Design Original Condensate PCQ EF 14H Avg IP: 1,302 Boe/d Enhanced Design Enhanced Condensate SMR EF 11H Avg IP: 1,608 Boe/d SMR EF 10H Avg IP: 1,562 Boe/d SMR EF 1H Avg IP: 1,000 Boe/d Whitehurst JV EF 3H Avg IP: 2,916 Boe/d Whitehurst JV EF 4H Avg IP: 3,185 Boe/d Whitehurst JV EF 2H Avg IP: 2,323 Boe/d 9

10 AWP Eagle Ford Oil Delivering Strong Results (1) Model assumptions based on PCQ area wells for Illustrative Purposes, Based on SFY internal calculations at $94/$4.50. (2) For presentation purposes, production history recorded after final production test. Represents wells drilled with enhanced design prior to 2Q14. 10

11 Fasken Lower Eagle Ford Fasken Lower Eagle Ford Overview Net Acres: 8,302 Well Spacing: ~114 acres or 660 Remaining Lower EF Locations at YE 2014: 45 Avg Working Interest: 64% Avg Net Revenue Interest: 51% Operational Excellence Increased IP s >100% since entry into the play (see map) 87% Increase in YE 12 to YE 13 Fasken per well reserve bookings Recent Results Fasken AB EF 20H: IP 22.2 MMcf/d Fasken AB EF 21H: IP 20.1 MMcf/d Fasken AB EF 23H: IP 20.5 MMcf/d Recently closed ~$175MM JV with Saka Fasken BD EF 14H Avg IP: 20.6 MMcf/d Fasken BD EF 15H Avg IP: 22.5 MMcf/d Fasken BD EF 16H Avg IP: 23.3 MMcf/d Fasken B EF 5H Avg IP: 8.3 MMcf/d Enhanced Design Original Design Mexico Dimmit Fasken B EF 2H Avg IP: 10.4 MMcf/d Fasken B EF 7H Avg IP: 7.6 MMcf/d Fasken B EF 6H Avg IP: 5.3 MMcf/d Webb Fasken A EF 6H Avg IP: 11.4 MMcf/d Fasken A EF 7H Avg IP: 9.1 MMcf/d Fasken C 17H Avg IP: 21.4 MMcf/d Fasken C 18H Avg IP: 20.2 MMcf/d Fasken C 19H Avg IP: 22.4 MMcf/d La Salle 11

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14 Swift Energy - Partner of Choice Saka Energi Indonesia participates in development of approximately 8,300 acres in Fasken Saka paid $175 MM in total cash consideration for 36% full participating interest, effective January 1, 2014 Consideration of $125mm in cash upfront and $50mm carry Carry of 18% of 8/8ths development costs to extend through 2016 Implied 8/8ths valuation of ~$500 MM for Fasken properties Partnership opens doors for other joint efforts in greater Eagle Ford area 14

15 Increased Fasken Capacity to Accommodate Growth Energy Transfer Fasken +85 MMcf/d (In Service November 5th) (1) Graphics are for presentation purposes only and do not depict all relevant information. 15

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18 Financial Overview 18

19 Pro Forma Capitalization $ in Millions Dec. 31, 2013 Actual $ in Millions June 30, 2014 Actual $ in Millions June 30, 2014 Pro-Forma (1) Cash $3 0% $1 0% $1 0% Bank Borrowings % % 154 7% 7 1/8 % Sr Notes due % % % 8 7/8 % Sr Notes due % % % 7 7/8 % Sr Notes due % % % Net Debt 1,139 52% 1,178 53% 1,031 49% Stockholders Equity 1,033 48% 1,054 47% 1,054 51% Capitalization $2, % $2, % 2, % Liquidity $188 $150 $265 Credit Statistics Net Debt/LTM EBITDA 3.0x 3.0x 2.6x Debt/Capitalization 52.5% 52.8% 49.5% Debt/YE Proved Reserves ($/Boe) $5.21 $5.38 $5.39 All Sr Notes rated B2/B, Corporate Rating B1/B+ (1) Pro Forma for the Fasken JV agreement closed on July 15,

20 2014 Guidance & CapEx Budget Production: Full-Year 2014 Guidance Range (1) Natural Gas (Bcf) Crude Oil (MMBbl) Natural Gas Liquids (MMBbl) Total Production Volumes (MMBoe) Oil & Gas Production Costs (per Boe): Lease Operating Costs $7.65 $7.75 Transportation & Processing $1.70 $1.75 Severance & Ad Valorem Taxes (% of rev) 7.0% 8.0% Other Costs (per Boe): General & Administrative $3.60 $3.70 Interest Expense $6.00 $6.10 DD&A $21.30 $ Forecast by Activity $390 MM-$400 MM (1) Prospect Costs/Seismic Facilities Discretionary Development (1) Based on Company guidance provided on November 6, 2014 press release. 20

21 Acreage of Choice, Operator of Choice Premier acreage position provides foundation for profitable development projects Extensive proved acreage position Excellent results across Eagle Ford portfolio Significant running room within existing inventory Advanced drill and completion design gives us a transferable, competitive advantage when exploiting the Eagle Ford shale Stage set for growth Potential to gain further acreage through bolt on acquisitions Partnership with Saka opens doors for other joint efforts in greater Eagle Ford area 21

22 Corporate Information Corporate Headquarters Swift Energy Company Northchase Dr, Suite 400 Houston, Texas (281) or (800) Contact Information Paul Vincent Director - Finance and Investor Relations (281) paul.vincent@swiftenergy.com Joanna Park, CFA Manager - Investor Relations (281) joanna.park@swiftenergy.com Doug Atkinson, CFA Manager - Investor Relations (281) doug.atkinson@swiftenergy.com 22