Swift Energy Co. (OTCQX:SWTF) announced today its 2017 capital budget and expected production.
Swift Energy’s net operational capital budget for 2017 is expected to be in the range of $85.0 - $95.0 million. The company plans to run one rig in the Eagle Ford to complete twelve wells in 2017. Specifically, the company expects to complete nine wells (not including three wells drilled and completed in late 2016) in its Fasken field in Webb County, drill and complete two wells on its AWP acreage in McMullen County, and drill and complete its first well in Oro Grande in LaSalle County. All drilling activities will target the Lower Eagle Ford. Swift expects to spud the Oro Grande appraisal well in the second quarter of 2017. The anticipated capital budget of $85.0 - $95.0 million is inclusive of the aforementioned completions as well as associated drilling activities, infrastructure, and other discretionary expenditures.
The company expects production for 2017 to be 47.5 - 49.5 Bcfe with gas making up approximately 85% of total production. The 2017 capital budget is expected to be funded primarily through internally generated cash flows and, to a lesser extent, available borrowings on the credit facility. As of January 20, 2017, Swift had hedges in place for over 70% of expected natural gas and crude oil production at average weighted prices of $3.10 and $48.10, respectively.
Interim CEO Bob Banks commented, “We recently priced a $40 million private placement of common stock, which was a major objective for the company for early 2017. The company now has approximately $160 million in available liquidity under our credit facility and an extensive hedge program in place to support our planned capital expenditures in 2017. We are well on our way to solidly positioning the company for continued and focused growth into the future.”