Swift Energy Announces: 122% Increase in Second Quarter 2013 Earnings to $6.7 Million, or $0.15 Per

Swift Energy Announces: 122% Increase in SecondQuarter 2013 Earnings to $6.7 Million, or $0.15 Per Diluted Share

Plans to Accelerate Eagle Ford Development and Divest Central Louisiana Assets

HOUSTON--(BUSINESS WIRE)-- Swift Energy Company (NYS: SFY) announced today earnings of $6.7 million for the second quarter of 2013, or $0.15 per diluted share, an increase of 122% when compared to second quarter 2012 earnings of $3.0 million, or $0.07 per diluted share, and a decrease of 7% when compared to earnings of $7.2 million in the first quarter of 2013.

Adjusted cash flow (cash flow before working capital changes, a non-GAAP measure - see page 6 for reconciliation to the GAAP measure) for the second quarter of 2013 was $72.8 million, or $1.67 per diluted share, virtually unchanged when compared to $72.7 million, or $1.69 per diluted share, for the second quarter 2012, and $72.6 million, or $1.67 per diluted share, for the first quarter of 2013.

Swift Energy produced 2.78 million barrels of oil equivalent ("MMBoe") during the second quarter of 2013, a 5% decrease from second quarter 2012 production of 2.92 MMBoe, and down 1% compared to first quarter 2013 production of 2.82 MMBoe.

Terry Swift, CEO of Swift Energy commented, "Our performance in the prolific Eagle Ford shale trend in South Texas continues to improve according to our plans. When compared to 2012, our 2013 South Texas well results have delivered higher initial production rates, larger estimated ultimate recoveries ("EURs") and lower costs. Additionally, during July our average daily production rate in our South Texas core area was approximately 10% higher than our second quarter 2013 average production rate. Based on this performance, and following an extensive asset review, we plan to sell our Central Louisiana assets to increase our focus and build upon the operational success of our more predictable assets in South Texas. We expect a disposition of these assets to occur within the next 6-12 months.

"In conjunction with these asset sales, we've also recently committed to accelerating our activity in South Texas during the second half of 2013 and now expect to keep two drilling rigs active and maintain the momentum we have established.

"This will increase our expected 2013 South Texas capital expenditures by approximately $50 million which will be funded initially through our credit facility. We expect this additional spending to afford more consistent levels of production and predictable production growth in 2014."

Second Quarter Revenues and Expenses

Total revenues for the second quarter of 2013 increased 6% to $142.5 million from the $134.8 million generated in the second quarter of 2012. This increase is primarily attributable to significantly higher natural gas prices in the 2013 period, as well as higher oil and NGL production volumes.

Depreciation, depletion and amortization expense ("DD&A") of $21.40 per barrel of oil equivalent ("Boe") in the second quarter of 2013 increased 2% from $21.00 per Boe in the comparable period in 2012 due to a higher depletable base partially offset by the addition of reserves.

Lease operating expenses, excluding transportation and processing expense and before severance and ad valorem taxes, were $9.70 per Boe in the second quarter 2013, a 14% increase when compared to $8.48 per Boe in the same period of 2012, primarily related to higher costs in South Texas for chemical treating, compliance costs, and surface maintenance costs, partially offset by lower salt water disposal costs than in the 2012 period.

Severance and ad valorem taxes decreased to $3.78 per Boe in the second quarter 2013 from $4.18 per Boe in the second quarter of 2012 primarily due to the shift of our revenues to Texas, with lower relative severance tax rates and associated tax credits earned.

General and administrative expenses decreased to $4.03 per Boe during the second quarter of 2013, down from $4.18 per Boe in the same period in 2012 as a result of lower overall compensation costs. Interest expense increased to $6.12 per Boe in the second quarter of 2013 compared to $4.56 per Boe for the same period in 2012 due to the additional long term debt issued during the fourth quarter of 2012.

Second Quarter Pricing

The Company realized an aggregate average price of $50.71 per Boe during the quarter, an increase from the $45.22 per Boe average price received in the second quarter of 2012.

In the second quarter of 2013, Swift Energy's average crude oil prices decreased 5% to $103.15 per barrel from $108.02 per barrel realized in the same period in 2012. For the same periods, average natural gas prices were $3.86 per thousand cubic feet ("Mcf"), up 93% from the $2.01 per Mcf average price realized a year earlier. Prices for NGLs averaged $29.74 per barrel in the 2013 second quarter, a 16% decrease from second quarter 2012 NGL prices of $35.25 per barrel.

Second Quarter Drilling Activity

In the second quarter of 2013, Swift Energy drilled fourteen operated development wells. In the Company's South Texas core area, all horizontal wells were drilled to the Eagle Ford shale, which included six wells in LaSalle County, four wells in McMullen County and two well in Webb County.

In Swift Energy's Southeast Louisiana core area, one well was drilled in the Lake Washington field. In the Company's Central Louisiana/East Texas core area, one operated well targeting the Wilcox was drilled in the South Bearhead Creek.

There are currently three operated rigs drilling in the Company's South Texas core area.

Operations Update:

South Texas Operations

In the Company's South Texas core area, sixteen operated wells were completed during the second quarter. In McMullen County, two Eagle Ford wells and one Olmos well were completed. In LaSalle County, eleven Eagle Ford wells were completed. In Webb County, two Eagle Ford wells were completed.

The Company had previously announced that it was contemplating joint ventures or strategic partnerships in South Texas. After a strategic review of all the Company's assets as well as evaluating potential partners interested in developing the Company's acreage while experiencing continual improvement of the performance of these assets, it has been determined that a joint venture is not the most attractive option for financing the development of the Company's South Texas operations. Instead, the Company believes that the disposition of its Central Louisiana assets is the preferable course of action in order to fund the acceleration of this development.

Southeast Louisiana

In the Lake Washington field in Plaquemines Parish, LA, the Company continued its ongoing recompletion and production optimization program, performing 2 recompletions and 24 production optimization projects during the quarter.

Also in Lake Washington, the LL&E #6 (Jelly Bowl prospect) well encountered more complex geologic conditions than expected during drilling operations. As a result, this well was temporarily abandoned and additional data will be collected to assess the potential to re-enter or re-drill the well at a later date. The expected 2013 production contribution of this well was approximately 110,000 barrels of oil equivalent.

Central Louisiana

In South Bearhead Creek, the Company drilled its first upper Wilcox test well during the second quarter. The James O Dolby H1 was drilled to a total depth of 15,147 feet with a horizontal length of 3,387 feet. This well has successfully proven that horizontal drilling in this field can be utilized to access the Wilcox formation. As a result of lower than expected production levels due to a mechanical failure experienced while running the completion assembly, this well is currently only capable of producing 100 - 200 barrels of oil per day. This result has reduced the Company's expected production from this well by approximately 110,000 barrels of oil equivalent in 2013.

In the Burr Ferry field in Vernon Parish, Louisiana, the Indigo 17-1 was recently drilled by the Company's partner. This well will be brought into production during the third quarter and will be the last well drilled in the Austin Chalk by the Company's Joint Venture Partner this year.

Price Risk Management

In the third quarter, Swift Energy has entered into hedging transactions covering approximately 40% of expected third quarter natural gas production and approximately 20% of expected third quarter crude oil production. The company has also entered into hedging transactions for the fourth quarter of 2013 covering 1,190,000 MMBtu per month of natural gas production and 130,000 barrels per month of crude oil production. On an ongoing basis, details of Swift Energy's complete price risk management activities can be found on the Company's website (www.swiftenergy.com).

Earnings Conference Call

Swift Energy will conduct a live conference call today, August 1, at 10:00 a.m. EDT to discuss second quarter 2013 financial results. To participate in this conference call, dial 973-339-3086 five to ten minutes before the scheduled start time and indicate your intention to participate in the Swift Energy conference call. A digital replay of the call will be available later on August 1 until August 7, by dialing 855-859-2056 and using Conference ID # 99322755. Additionally, the conference call will be available over the Internet by accessing the Company's website at www.swiftenergy.com and by clicking on the event hyperlink. This webcast will be available online and archived at the Company's website.

About Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections, guidance or other statements contained herein, other than statements of historical fact, are forward-looking statements, including targets for 2013 production and reserves growth, estimates of 2013 capital expenditures And guidance estimates for the third quarter of 2013 and full-year 2013. These statements are based upon assumptions that are subject to change and to risks, especially the uncertainty and costs of finding, replacing, developing and acquiring reserves, availability and cost of capital, labor, services, supplies and facility capacity, hurricanes or tropical storms disrupting operations, and, volatility in oil or gas prices, uncertainty and costs of finding, replacing, developing or acquiring reserves, and disruption of operations Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Certain risks and uncertainties inherent in the Company's business are set forth in the filings of the Company with the Securities and Exchange Commission. Estimates of future financial or operating performance provided by the Company are based on existing market conditions and engineering and geologic information available at this time. Actual financial and operating performance may be higher or lower. Future performance is dependent upon oil and gas prices, exploratory and development drilling results, engineering and geologic information and changes in market conditions.