Houston-based Swift Energy Co. reported Wednesday that production increased to 11.7 Bcfe in the third quarter of 2001, which marks an 11% increase from the third quarter of 2000. However, due to significantly lower oil and natural gas prices, the company reported earnings of $7.4 million, $0.29 per diluted share, down from $15.8 million, or $0.66 per diluted share, in the same quarter last year. Swift Energy said revenues in the third quarter were $41.2 million, down from $49.5 million, and cash flows from operations, before changes in working capital, declined 29% to $25.7 million ($1.04 per share) compared to $36.2 million ($1.69 per share) in the same quarter last year. The company said third quarter results include a gain of $1.6 million resulting from the company’s marking-to-market through earnings its oil and gas price derivatives. “Despite the current market prices, we are very optimistic about the outlook for the company’s future, and we believe that this environment can offer additional opportunities for growth,” said Terry Swift, CEO of Swift Energy. “The results of the 2001 exploration program both domestically and in New Zealand have been important to the company, resulting in additional prospects for growth in the coming year. We believe that we can further enhance these productivity gains through focused exploitation and acquisitions under the changing market environment.” During the quarter, the company said it participated in three operated and two non-operated exploratory wells. One of these operated wells is producing and another is drilling, while the third has been plugged and abandoned, as have both of the non-operated wells.

Southern Union Co. posted a first quarter net loss of $30,403,000 ($0.58 per average common share) for the three-month period ended Sept. 30, 2001, compared with a net loss of $13,974,000 ($0.27 per average common share) for the same period in 2000. Austin, TX-based Southern Union said the net loss for the quarter reflects a one-time corporate reorganization and restructuring charge of $20,277,000, after taxes. The company added that these restructuring charges were partially offset by gains realized from the close-out of several interest rate swaps generating after-tax profits of $10,664,000. Excluding the effect of these items, the net loss was $20,790,000 (or $0.40 per share) for the first quarter, compared with a net loss of $13,974,000 ($0.27 per average common share) for the same period in 2000. The increase in net loss, excluding the restructuring charge and gain realized on the interest rate swaps, reflects the acquisition and consolidation of the New England Division — created through the acquisitions of Valley Resources, Inc. (Sept. 20, 2000) and Providence Energy Corp. and Fall River Gas Co. (Sept. 28, 2000) — which contributed a net loss of $9,589,000, or $0.18 per average common share for the quarter. Southern Union said due to the seasonal nature of the gas utility business, the first quarter is typically a loss quarter for the company. “A renewed focus towards improving the results of our core natural gas business, an aggressive divestiture of non-core assets, debt management strategies aimed at lowering our cost of capital and a host of other commitments undertaken to increase cash flow from operations are expected to increase our profitability and strengthen our core business,” said Thomas F. Karam, Southern Union’s president. “We believe we are now positioned for the chief objective of our Cash Flow Improvement Plan: to increase annualized pre-tax cash flow from operations by at least $50 million by the end of fiscal year 2002.”

Parker Drilling Co. announced Wednesday net income of $4.5 million, or $0.05 per share, on unaudited revenue of $128.9 million for the third quarter of 2001 before relocation costs for the company’s move to Houston. Including relocation costs, unaudited net income was $3.0 million, or $0.03 per share. This compares to a net loss of $1.0 million, or $0.01 per share for the third quarter of 2000. “High dayrates and utilization in the Gulf of Mexico continued to drive our numbers for the quarter,” said Robert L. Parker Jr., CEO of parker Drilling. “A strong performance from our premium tool rental business, Quail Tools, also contributed to the improved results.” The company said average utilization for all classes of its Gulf of Mexico rigs was 76% in the third quarter 2001, as compared to 84% in the second quarter 2001. In spite of the decline in utilization, revenues from Gulf of Mexico drilling operations were only slightly lower in the third quarter due to the timing of contract expirations. Parker Drilling said since the end of the third quarter, jackup rig dayrates and utilizations have softened, as operators reduced their exploration and development activities in response to lower natural gas prices. As a result, Gulf of Mexico drilling revenues are anticipated to be lower in the fourth quarter.

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