EX-12 4 ratioofearnings.htm SFY RATIO OF EARNINGS TO FIXED CHARGES ratioofearnings.htm
Exhibit 12
  
                               
                               
SWIFT ENERGY COMPANY
  
RATIO OF EARNINGS TO FIXED CHARGES (in thousands)
  
                               
                               
   
2006
    
2007
    
2008
    
2009
    
2010
  
                               
GROSS G&A
     62,876       73,453       86,212       69,987       73,268  
NET G&A
     27,634       34,182       38,673       34,046       36,359  
INTEREST EXPENSE, NET
     23,582       28,082       31,079       30,663       33,437  
RENTAL & LEASE EXPENSE
     2,567       2,952       2,947       3,973       5,181  
INCOME FROM CONTINUING OPERATIONS, BEFORE INCOME
                                        
TAXES AND CHANGE IN ACCOUNTING PRINCIPLE
     248,308       244,556       (412,758 )     (64,617 )     74,308  
CAPITALIZED INTEREST
     9,211       9,545       8,037       6,107       7,408  
                                         
                                         
 CALCULATED DATA
                                        
                                         
EXPENSED OR NON-CAPITAL G&A (%)
     43.95 %     46.54 %     44.86 %     48.65 %     49.62 %
NON-CAPITAL RENT EXPENSE
     1,128       1,374       1,322       1,933       2,571  
1/3 NON-CAPITAL RENT EXPENSE
     376       458       441       644       857  
FIXED CHARGES
     33,169       38,085       39,557       37,414       41,702  
EARNINGS
     272,266       273,096       (381,238 )     (33,310 )     108,602  
                                         
                                         
RATIO OF EARNINGS TO FIXED CHARGES
     8.21       7.17       (9.64 )     (0.89 )     2.60  
                                         
                                         
Amount needed for a "break-even" ratio earnings
                             70,724       (66,900 )
 
 

 
For purposes of calculating the ratio of earnings to fixed charges, fixed charges include interest expense, capitalized interest, amortization of debt issuance costs and discounts, and that portion of non-capitalized rental expense deemed to be the equivalent of interest. Earnings represents income before income taxes and cumulative effect of change in accounting principle before interest expense, net, and that portion of rental expense deemed to be the equivalent of interest. Due to the $754.3 million non-cash charge incurred in the fourth quarter of 2008, and the $79.3 million non-cash charge incurred in the first quarter of 2009, both caused by a write-down in the carrying value of oil and gas properties, 2008 earnings were insufficient by $93.5 million, to cover fixed charges in these periods. If the $754.3 million non-cash charge is excluded, the ratio of earnings to fixed charges would have been 9.43 for 2008. If the $79.3 million non-cash charge is excluded, the ratio of earnings to fixed charges would have still been insufficient by $11.4 million.