Swift Energy Jumps on the Oil Driller Bankruptcy Bandwagon

by San Antonio Attorney

In the succeeding events that a multitude of oil drillers have filed for bankruptcy, Swift Energy Co.  is the most recent company to join the bandwagon.

The North American driller, which was established in 1979, was not spared from the drop in crude prices and recently sought Chapter 11 bankruptcy.

The Houston based driller filed for bankruptcy last Thursday.  The company is marked as the 40th company that succumbed into financial trouble due to Russian and Saudi Arabian exporters lowering down crude prices.  Swift Energy is also the 20th driller based in Texas to file for bankruptcy in the past year.

For the past 19 months, Swift Energy has tried to compensate for the 68 percent weakening of crude prices.  This was done through capital budget trimming by 60 percent, layoff of 20% of its employees and intentionally reduced its office space.

Dean Swick, the company’s chief restructuring officer and also a consultant at Alvarez & Marsal stated that this has been the most severe case on record as the recent prices on oil are collapsing.

Swick added that independent exploration and production companies such as Swift will the first to be affected by the plummeting prices since they depend on oil and gas sales for revenue.

The company’s oil drilling site is located in the Eagle Ford Shale in South Texas and Louisiana fields.  Swift has listed about $1 billion in assets and $1.35 billion in debt.

Swift’s third quarter revenues dipped down to 55 percent in 2014 and reported a $354.6 million net loss from July to September.  This happened due to writing down the value of its oil and gas properties.

In November, lenders cut $45 million from Swift’s $375 million borrowing base.  The company stated that it has 228 employees remaining.

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