News Article | February 15, 2017
PLS' Capitalize™ sees 2017 pace picking up on rebounding commodity prices, surge in M&A activity HOUSTON, TX --(Marketwired - February 13, 2017) - PLS Inc., a leading Houston-based oil and gas research firm, announced that Capitalize™, its proprietary and comprehensive capital markets tracking platform, released a statistical review of capital markets activity for calendar year 2016 in which… In its tracking of the US oil and gas sector, Capitalize reported that the aggregate value of bond and equity issuances fell 5% in 2016 to $186 billion spanning 346 deals, compared with $196 billion from 322 deals in 2015 and $211 billion from 410 deals during the much higher-priced 2014 environment. Decreased liquidity in the bond markets was a result of investors becoming more risk-averse in a low commodity price environment. That affected profit margins and increased the credit risk of energy related companies, which had an impact on funds raised through bond offerings. This decrease was met with a healthy increase in equity issuances, a 36% surge in amount raised over that in 2015. Oil price accounts for much of the deal market volatility as it began descending from July 2014 highs of $100-plus per barrel and accelerated in November 2014 when OPEC decided to open the taps to gain market share. This resulted in prices plummeting to a low of $27 per barrel in February 2016. Two years after OPEC's attack on oil prices began, both OPEC and non-OPEC countries agreed to cut production beginning January 1, 2017 -- a decision that is expected to further boost oil prices this year. Deal counts for equity and bond offerings increased by 7% in 2016 to 346 deals versus 322 in 2015 but also fell shy of 2014's 410 deals. Note, these deal counts do not include at-the-market equity offerings. On the other hand, total deal amount decreased by 5% in 2016 to $186 billion from $196 billion in 2015 and $25 billion lower than 2014's $211 billion of bond and equity deal amount issued. The 2016 capital markets landscape was characterized by some interesting phenomena, as well. Capitalize saw Upstream companies coming out with multiple offerings in 2016, fueled substantially by the need to raise money to act upon opportunities to grab inexpensive assets. Some companies go years without doing even one secondary offering. Callon Petroleum raised about $1.3 billion across four raises last year. Parsley Energy and Synergy Resources issued equity three times. Matador Resources, Rice Energy (plus one for its midstream subsidiary), Resolute Energy, Gulfport Energy, PDC Energy, SM Energy and Ring Energy all had two offerings. Return of the SPAC -- after an absence from the US energy equity landscape, 2016 saw the IPOs of two blank-check companies willing to wait before pouncing on reasonably-priced oil assets. One of them, Silver Run Acquisition Corp., became Centennial Resource Development in September and the other, KLR Energy Acquisition Corp., combined with Tema Oil & Gas to form Rosehill Resources. This transaction is expected to close in the first half of 2017. Good execution on Chapter 11 Restructuring Support Agreements -- Most of the companies that filed for bankruptcy last year came to court with at least a preliminary restructuring support agreement in hand, enabling them to get through the process faster. Those that hadn't garnered strong support from creditors and other stakeholders from the onset, like Energy XXI, waited over eight months to get through the process. Swift Energy, like its name suggests, got through in just three months. Tender offers still hot -- Chesapeake Energy and Devon Energy undertook massive waterfall tender offers on several series of outstanding debt last year. Tender offer activity among overburdened oil companies was consistent throughout the year, continuing the momentum begun in 2015. Tendered debt was swapped for new debt, cash or a combination. Most everyone paid an early tender premium of $30 per each $1,000 of debt tendered. Many companies did equity or new debt raises for cash to pay for the tender offers. "We're spending within our means" -- More and more CEOs and CFOs uttered these words or something similar in more press releases and on more conference calls this year, beating out "rightsizing" and "headwinds" for the most overused energy capital phrase of the year. Many companies used 2016 as an experiment to ratchet capex down below expected cash flow rather than borrow more to fund capex. 2016 equity offerings -- The increase in 2016 equity offerings was mainly the result of the large increase in deal amount raised by companies in the Upstream, Midstream, and Services sectors which helped keep 2016 equity deal amount raised close to the levels seen in 2015. Largest equity issuance increases over 2015 were in the Upstream and Services sectors at 69% and 342% respectively. Lead equity bookrunners -- JP Morgan was the most active bookrunner in the Upstream sector for equity offerings with deal amount share of $6.1 billion or 19% of total Upstream deals. Barclays took the lead in Midstream with a share of $3.2 billion (24% of Midstream). Wells Fargo was the most active in Downstream at a share of $0.4 billion (27% of Downstream). Morgan Stanley took the lead in the Services sector with $1.2 billion or 27%. 2016 bond issuances -- Low commodity prices at the start of 2016 tightened liquidity in the bond markets. As a result 2016 deal amount decreased by 15% to $133 billion in 2016 from $156 billion in 2015. Upstream bond issuances saw a minor uptick of 1% in deal amount raised over 2015 to $46 billion. Largest increase in bond issuances was seen in the Downstream sector, increasing over 2015 amount by 67% to $16 billion. Midstream, Integrated and Services sectors saw decreases ranging from 22% to 49% over levels in 2015. Lead bond bookrunners -- JP Morgan took the lead allocation in the bond arena, capturing the largest market share in 3 out of the 5 energy sectors PLS covers; this was in Upstream, Midstream and the Integrated sectors. On average, the bank captured a 13% market share in each of those sectors. Bank of America Merrill Lynch captured the largest market share in Downstream at 8%. Morgan Stanley replicated its success in equity offerings in the Services sector by capturing the largest bond share in that sector at 12%. The oil and gas deal markets are well supplied with inventory, and capital is available for the right deal. At the beginning of 2016, over $100 billion of dry powder private equity capital was available. Much of this remains available a year later, supplemented by a receptive Wall Street quickly supporting overnight secondary equity raises to fund the largest deals. PLS anticipates additional capital to come to the forefront as the IPO markets open up. As drilling and oil prices pick up in the US, PLS expects capital markets to pick up pace in 2017. Already we have seen 2 IPOs, 17 follow-on offerings and 13 bond offerings in the beginning of 2017. An expected rise in oil prices, increased U.S. M&A activity and private equity funds looking to monetize unrealized investments, the outlook for energy capital markets activity in 2017 looks promising. Capitalize is a comprehensive data platform of oil and gas debt and equity offerings. The database tracks bank leads, syndicates, client relationships and associated fees. The database is essential for both bankers and borrowers needing transparency on the capital-intensive oil and gas markets. PLS Inc. is a leading Houston-based oil and gas information and advisory firm that specializes in insightful real-time research for a global client base of both industry and investment professionals. Flagship products include the Global M&A Database, docFinder and Capitalize along with specialty industry reports. PLS Inc., through its PLS Energy Advisory Group, is also a leading transaction firm and in 2016 closed over 35 oil and gas deals across the globe.
News Article | February 28, 2017
HOUSTON--(BUSINESS WIRE)--Swift Energy Company (OTCQX: SWTF) (the “Company”) announced today its Board of Directors has appointed Sean Woolverton as Chief Executive Officer of the Company effective March 1, 2017. He will also serve as a member of the Board of Directors. Mr. Woolverton succeeds the Company’s current Interim Chief Executive Officer, Bob Banks, who will continue to serve as Chief Operating Officer for the Company. Swift Energy’s Chairman of the Board Marc Rowland commented, “After a thorough and extensive selection process, the Board of Directors is pleased to welcome Sean to the Swift Management team. Sean is an exceptional hire for the Company. His deep understanding of the upstream industry, broad leadership capacity, and proven track record in business development and project execution positions him well to advance the strategic priorities and value creation initiatives already underway at the Company.” “I look forward to working alongside Marc Rowland, the Board of Directors, and the skilled and dedicated workforce that have helped Swift become a best in class operator,” said Sean Woolverton. “The Company is well capitalized with a valuable portfolio of assets and competitive cost structure, which uniquely positions us to pursue a strategy of profitable growth in the Eagle Ford for the benefit of all our stakeholders.” Marc Rowland added, “The Board also wants to thank Bob Banks for his dual leadership role, during the search process, as a number of very strategic and impactful initiatives were successfully executed during this critical time frame.” Mr. Woolverton was previously the Chief Operating Officer of Samson Resources Company, where he joined in November 2013. From 2007 to 2013, Mr. Woolverton held a series of positions of increasing responsibility at Chesapeake Energy Corporation, a public independent exploration and development oil and natural gas company, including Vice President of its Southern Appalachia business unit. Prior to joining Chesapeake Energy Corporation, Mr. Woolverton worked for Encana Corporation, a North American oil and natural gas producer, where he oversaw its Fort Worth Basin development and shale exploration teams in North Texas. Earlier in his career, Mr. Woolverton worked for Burlington Resources in multiple engineering and management roles. Mr. Woolverton received his Bachelor of Science degree in Petroleum Engineering from Montana Tech. Swift Energy Company, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties in the Eagle Ford trend of South Texas. This release includes “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. The opinions, forecasts, projections, or other statements other than statements of historical fact, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurances can be given that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the company’s business are set forth in the filings of Swift Energy Company with the Securities and Exchange Commission.
News Article | February 28, 2017
HOUSTON--(BUSINESS WIRE)--Swift Energy Company (OTCQX: SWTF) announced today it had filed its year-end 2016 Form 10-K, which can be found in the Investor Relations section of the Company’s website. Additionally, the Company announced today (in a preceding news release) the appointment of Sean Woolverton as Chief Executive Officer, effective March 1, 2017. Swift Energy’s year-end 2016 estimate of proved reserves were 124.0 MMBoe, of which approximately 84% were natural gas and 51% proved developed. The Company reported total proved reserves in its Fasken field in Webb County of 74.9 MMBoe, of which 100% were natural gas and 38.5 MMBoe were proved developed. The Company completed 11 wells in Fasken in 2016 with four drilled but uncompleted wells as of December 31, 2016. In its AWP field in McMullen County, the Company reported total proved reserves of 36.5 MMBoe, of which approximately 65% were natural gas and 19.4 MMBoe were proved developed. The Company completed four wells in AWP in 2016. Total year-end 2016 proved reserves had a PV-10 Value of $442.0 million and a Standardized Measure of $407 million. For a reconciliation of PV-10 (non-GAAP) to Standardized Measure (GAAP), please see the Company’s Form 10-K. Pricing for 2016 reserves, PV-10, and Standardized Measure calculations (using the required twelve month look back prices) was $2.43 per Mcf for natural gas, $41.07 per barrel for crude oil, and $16.13 per barrel of NGL. Following the Company’s Private Placement of Common Stock which closed on January 26, 2017, the Company elected to terminate the $70 million non-conforming tranche of its $320 million borrowing base, leaving only the conforming tranche of $250 million. The Company anticipates meaningful interest savings as the result of the lower interest rate associated with eliminating the non-conforming tranche. As of February 27, 2017, the Company had $172.0 million outstanding on its credit facility. Swift Energy produced 12.3 billion cubic feet of gas equivalent (“Bcfe”) during the fourth quarter of 2016, compared to 14.8 Bcfe in the third quarter of 2016. Production for the quarter was 77% gas, 12% oil, and 11% NGLs. Fourth quarter production was impacted by the Louisiana divestitures, which closed in early December 2016. Total revenues of $30.3 million for the fourth quarter of 2016 decreased compared to the $50.6 million reported in the third quarter primarily due to a $12.6 million non-cash mark-to-market loss on derivatives held for hedging purposes. Oil and gas sales for the fourth quarter were $42.8 million compared to $48.0 million in the third quarter due to lower volumes, partially offset by higher average realized prices. For the fourth quarter 2016, average realized natural gas prices were $2.86 per thousand cubic feet (“Mcf”), up 5% from the $2.71 per Mcf average price realized in the third quarter of 2016. For the same period, average crude oil prices increased 9% to $47.10 per barrel from $43.27 per barrel realized in the third quarter of 2016. Prices for NGLs averaged $18.84 per barrel in the 2016 fourth quarter, a 15% increase from third quarter 2016 NGL prices of $16.38 per barrel. The Company thus realized an aggregate average hydrocarbon price of $3.47 per Mcfe during the quarter, as compared to $3.24 realized in the third quarter of the 2016. Lease operating costs of $8.5 million in the fourth quarter of 2016 compared favorably to the $9.5 million reported in the third quarter primarily due to the Louisiana divestitures as well as the benefits of field level initiatives undertaken to lower the Company’s operating cost structure. Transportation and processing expense in the fourth quarter of $4.0 million was less than the $4.9 million reported in the third quarter primarily due to natural declines in production. Severance and ad valorem taxes were 5.1% of oil and gas revenues in the fourth quarter of 2016, compared to 5.6% in the third quarter. General and administrative expenses of $6.6 million in the fourth quarter were 43.4% lower than third quarter levels. Third quarter 2016 general and administrative expense included the recording of executive severance for the retirement of the Company’s Chief Executive Officer and Chief Financial Officer announced in the third quarter. In January 2017, the Company announced a Reduction in Force that will result in a charge of $2.25 million in severance costs and approximately $1 million in non-cash acceleration of incentive equity during the first quarter of 2017. Interest expense decreased 12.0% sequentially to $5.2 million in the fourth quarter primarily due to lower borrowings on the Company’s credit facility. For more information regarding the Company’s 2016 results, please see the Form 10-K filing and the new investor presentation, both of which can be found on the Investor Relations section of the Company’s website at www.swiftenergy.com. This release includes “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. The opinions, forecasts, projections, or other statements other than statements of historical fact, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurances can be given that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the company’s business are set forth in the filings of Swift Energy Company with the Securities and Exchange Commission.
News Article | February 28, 2017
Sean Woolverton has been appointed chief executive officer of Swift Energy Co., Houston, effective Mar. 1.
News Article | November 28, 2016
NEW YORK, Nov. 28, 2016 /PRNewswire/ -- MCAP LLC, a SEC registered and FINRA member Broker Dealer, is pleased to announce that its client, Swift Energy Company (OTCQX: SWTF), an independent oil and gas company engaged in developing, exploring, and operating oil and gas properties, has...
Agency: GTR | Branch: Innovate UK | Program: | Phase: Collaborative Research & Development | Award Amount: 421.95K | Year: 2016
Conventionally designed wind turbines only operate efficiently in steady, uninterrupted air. For this reason, most sites are away from customers to take advantage of areas with constant clean wind. Our commercial partner ( autarkE) reports that many customers want to site turbines close to light industrial operations. However, they advise them not to, because conventional designs do not work efficiently with the swirling, variable nature of wind at such sites. We present a radical re-design of vertical axis wind turbine, with key technological improvements that will allow efficient operation in small-footprint, urban sites. Such sites have the added advantage that they are close to consumers, minimising transmission losses. WindSurf is a vertical axis, active pitching wind turbine. Our patented control technology uses servomotors to continually alter blade pitch. This allows self-starting in windspeeds as low as 3m/s. We seek funding to build a 16.4kW prototype, certify our design and device, establish a production facility and launch it commercially.
News Article | December 8, 2016
HOUSTON--(BUSINESS WIRE)--Swift Energy Company (OTCQX: SWTF) (the “Company”) announced today that it has sold its remaining 25% interest in the Burr Ferry and South Bearhead Creek Fields in Central Louisiana. The net proceeds received by Swift Energy ($8.0 million, less customary closing adjustments) will be used to reduce the amount of borrowings under the Company’s credit facility which was approximately $212 million prior to receipt of these funds. Interim Chief Executive Officer Bob Banks commented, “We set out this year to redefine the Company and reposition our portfolio through a series of non-core divestitures. We achieved our objective as this transaction effectively concludes our Louisiana divestiture process. These transactions to date have simplified our business model, as our cost structure is now more representative of our Eagle Ford development program. This will allow us to realize greater efficiencies and scale within our operational footprint.” The Company also announced it has recently increased its gas hedge position for 2017 and initiated a hedging program for 2018. Specifically for 2018, the Company completed approximately 4.4 Bcf of natural gas swaps at an average price of $3.47 for the first quarter of 2018. For more information regarding the Company’s current complete oil and gas hedge position, please see the Hedges section within the Investor Relations page on the Company’s website at www.swiftenergy.com. Swift Energy Company, founded in 1979 and headquartered in Houston, engages in developing, exploring, acquiring and operating oil and gas properties, with a focus on the Eagle Ford trend of South Texas. This release includes “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. The opinions, forecasts, projections, or other statements other than statements of historical fact, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurances can be given that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the company’s business are set forth in the filings of Swift Energy Company with the Securities and Exchange Commission.
News Article | December 1, 2016
HOUSTON--(BUSINESS WIRE)--Swift Energy Company (OTCQX: SWTF) (the “Company”) announced today that it closed its previously announced divestment of the Lake Washington field in South East Louisiana. The net proceeds received by Swift Energy ($40.0 million, less customary closing adjustments) will be used to reduce the amount of borrowings under the Company’s credit facility which was approximately $245 million prior to receipt of these funds. About Swift Energy Company Swift Energy Company, foun
News Article | November 21, 2016
HOUSTON--(BUSINESS WIRE)--Swift Energy Company (OTCQX:SWTF) (the “Company”) announced today that it had entered into a purchase and sale agreement providing for the Company to sell its Lake Washington field in South East Louisiana. This strategic divestiture is a significant step in achieving the Company’s goal of becoming a more focused Eagle Ford player, where it has identified over 400 high-quality drilling locations. Transaction Highlights: Cash consideration of $40.0 million upon closing,
News Article | April 26, 2016
Swift Energy Co. has completed financial restructuring and emerged from voluntary bankruptcy after completing the sale of 75% of its interests in South Bearhead Creek and Burr Ferry oil fields in central Louisiana.