Swift Energy (SFY) Stock Declines Today as 2015 Capital Budget CutBy twocents@thestreet (Tony Owusu) NEW YORK (TheStreet) -- Swift Energy shares are down 23.05% to $2.07 in trading on Wednesday after the Houston, TX-based oil exploration company announced that it was cutting its 2015 capital budget amid falling oil prices. The company said that itBy twocents@thestreet (Tony Owusu) NEW YORK (TheStreet) -- Swift Energy shares are down 23.05% to $2.07 in trading on Wednesday after the Houston, TX-based oil exploration company announced that it was cutting its 2015 capital budget amid falling oil prices. The company said that it was slashing its capital budget by as much as 70% to 75% as it invests between $100 million and $125 million on producing oil from its mining sites this year. We continue to work with our vendors and suppliers to reduce service costs and are taking steps to materially reduce field level operating and corporate overhead expenses, CEO Terry Swift said in a statement. Exclusive Report: Jim Cramers Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Oil prices have declined for seven consecutive weeks with oil hitting a six year low today as prices dipped below $46 a barrel. Oil prices have fallen 55% since June even as officials from Venezuela and Iran attempted to convince OPEC to cut production amid the drop in prices, according to the New York Times. We believe this bear market will likely be characterized by more of a U-shaped recovery in which markets take longer to recover and will likely rebound to far lower prices from where they sold off from,according to a note from Goldman Sachs analysts today. TheStreet Ratings team rates SWIFT ENERGY CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: We rate SWIFT ENERGY CO (SFY) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The companys weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Highlights from the analysis by TheStreet Ratings Team goes as follows: The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 66.4% when compared to the same quarter one year ago, falling from $7.36 million to $2.47 million. The companys current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, SWIFT ENERGY COs return on equity significantly trails that of both the industry average and the S&P 500. SFYs debt-to-equity ratio of 0.99 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the companys quick ratio of 0.41 is very low and demonstrates very weak liquidity. Despite any intermediate fluctuations, we have only bad news to report on this stocks performance over the last year: it has tumbled by 79.13%, worse than the S&P 500s performance. Consistent with the plunge in the stock price, the companys earnings per share are down 64.70% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stocks sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now. SWIFT ENERGY CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SWIFT ENERGY CO swung to a loss, reporting -$0.07 versus $0.48 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus -$0.07). You can view the full analysis from the report here: SFY Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Click to view a price quote on SFY. Click to research the Energy industry. ift.tt/1gB4pon
Posted on: Tue, 13 Jan 2015 20:55:45 +0000
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