Swift Energy: No issues with borrowing base, but will curtail capex

By Lisa Kerner

Charlotte, N.C., April 16 - Swift Energy Co. doesn't expect "any issues" when the company's $325 million borrowing base comes up for review on May 1, president Bruce Vincent said during a presentation at the IPAA Oil & Gas Investment Symposium in New York on Monday.

The company has $552 million of liquidity and reported $252 million of cash on the balance sheet and $468 million of net debt at Dec. 31.

Vincent said Swift Energy's debt is "well laddered" and its coverage ratio is in "good shape."

Debt maturities are in 2017, 2020 and 2022, and the coverage ratio is 1.4 times.

Vincent noted that eventually capital expenditures will outpace cash flow and said the Houston-based oil and gas company needs to get its spending down to get closer to cash flow neutral by next year.

Capital expenditures for 2012 are expected to total between $575 million and $625 million, with most of the spending going toward development and primarily in south Texas.

Vincent said Swift Energy is able to execute on its strategy without having to look over its shoulder and worry about the balance sheet.

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