November 16, 2012 / 10:26 PM / 5 years ago

TEXT-S&P revises Swift Energy recovery rating to '4' from '3'

Nov 16 - Standard & Poor's Ratings Services said today that it revised its
recovery rating on Houston-based Swift Energy Co.'s senior unsecured
debt to '4', indicating our expectation of average (30% to 50%) recovery in the
event of a payment default, from '3'. The issue-level rating on Swift's
unsecured debt remains 'B+' (same as the corporate credit rating).

The lower recovery expectation reflects the company's increased borrowing base 
and commitment amounts, which were raised in October 2012 to $450 million and 
$450 million, respectively, from $375 million and $300 million. The recovery 
analysis also incorporates an updated PV10 valuation of proved reserves based 
on our revised recovery price deck assumptions of $50 per barrel (bbl) for 
West Texas Intermediate crude oil and $3.50 per million British thermal unit 
(mmBtu) for Henry Hub natural gas (previously $45/bbl and $4/mmBtu, 

The 'B+' corporate credit rating and stable outlook on Swift incorporate the 
company's small and geographically concentrated reserve base with a high 
proportion of proved undeveloped reserves (65%), along with above-average 
finding and development costs.  Our ratings also reflect Swift's balanced 
production mix between natural gas and oil/natural gas liquids, long proved 
reserve life, and moderate debt leverage for the rating category.  

     -- Revised Assumptions For Assigning Recovery Ratings To The Debt Of Oil 
And Gas Exploration And Production Companies, Sept. 14, 2012
     -- Recovery Price Deck For Exploration And Production Companies Revised, 
Sept. 14, 2012

Temporary telephone contact information: Carin Dehne-Kiley (917) 496-8208; 
Vishal Merani (347) 844-2274

Swift Energy Co.
 Corporate credit rating   B+/Stable/--

Recovery Rating Revised
                           To                   From
 Senior unsecured debt     B+                   B+
   Recovery rating         4                    3

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at Use the Ratings search box located in the left 
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