Swift shares fall on production guidance cut
NEW YORK (AP) — Shares of Swift Energy Co. fell Wednesday, after the energy company cut its production guidance for the year, blaming lost production and damage stemming from Hurricane Isaac last month.
THE SPARK: Houston-based Swift said Wednesday that production had resumed at its Lake Washington and Bay de Chene fields in southern Louisiana, adding that the sites sustained only minor damage from the storm.
But Swift said that as a result of the production shutdowns, its full-year production will be about 225,000 barrels of oil equivalent lower than previously predicted. The company said in August that it expected 2012 production volumes to total 12 million to 12.6 million barrels of oil equivalent.
THE BIG PICTURE: Swift said that damage from Isaac was minor and won't result in significant costs, but prolonged poor weather delayed the resumption of full operations at the Lake Washington field.
Swift said that about 25 to 30 percent of its Lake Washington production has so far been brought back online, while the rest remains shut down until needed repairs are made. The company expects repairs to be finished in a week to 10 days and field-wide production to be restored to pre-storm levels shortly after that.
Third-quarter production is expected to be reduced by about 175,000 barrels of oil equivalent, with another 50,000 barrels pushed back from the fourth-quarter, resulting in a 225,000 barrel reduction for the year overall, Swift said.
THE SHARES: Down 82 cents, or 3.6 percent, to $22.04 in afternoon trading. Over the past 52 weeks the stock has traded between $14.62 and $35.60.
Since the beginning of this year, Swift shares have fallen about 23 percent.