Swift Energy Implements Holding Company Structure
Swift Energy reports that effective December 28, 2005, it plans to implement a holding company structure pursuant to Texas law in a manner that does not require action by Swift Energy shareholders and is a nontaxable transaction. No exchange of Swift Energy Company stock certificates will take place. The new parent holding company will assume the Swift Energy Company name and continue to be traded on the New York Stock Exchange under the same ticker symbol "SFY" and its CUSIP number will remain the same. The purposes of this new holding company structure are to separate Swift Energy's domestic and international operations to better reflect management practices, to improve its economics, and to provide greater administrative and organizational flexibility.
Under the new organizational structure, four new subsidiaries will
have been formed with the Texas parent holding company wholly owning
three Delaware subsidiaries, which in turn will wholly own Swift
Energy's operating subsidiaries. Swift Energy Operating, LLC will be
the operator of record for Swift Energy's domestic properties. Swift
Energy's name, charter, bylaws, officers, board of directors,
authorized shares and shares outstanding will remain substantially
identical. The Company's international operations will continue to be
conducted through Swift Energy International, Inc. Swift Energy will
be making amendments to its bank credit agreement, debt indentures and
various other plans and documents to accommodate the internal
reorganization, but the Company's day-to-day conduct of business will
not be impacted.