<PAGE>

                       Securities and Exchange Commission
                             Washington, D.C. 20549

                                    FORM 10-K

             [ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                   For the fiscal year ended December 31, 1996
                                       OR
            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from _______________________ to _____________________

                       Commission File number 33-11773-01

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.
                    (Exact name of registrant as specified in
                    its Certificate of Limited Partnership)

         TEXAS                                          76-0226425
(State of Organization)                    (I.R.S. Employer Identification No.)


                         16825 Northchase Dr., Suite 400
                              Houston, Texas 77060
                                 (281) 874-2700
          (Address and telephone number of principal executive offices)


           Securities registered pursuant to Section 12(b) of the Act:
                                      None

           Securities registered pursuant to Section 12(g) of the Act:
                      260,255.25 Limited Partnership Units


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such shorter  periods that the  registrant  was
required),  and (2) has been subject to such filing requirements for the past 90
days.
                                  Yes X  No
                                    ----    ----
Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ X ]

Registrant does not have an aggregate  market value for its Limited  Partnership
Interests.

                       Documents Incorporated by Reference

Document                                             Incorporated as to

    Registration Statement No. 33-11773                Items 1 and 13
     on Form S-1


<PAGE>

                                TABLE OF CONTENTS

                             Form 10-K Annual Report
                     For the Period Ended December 31, 1996

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.

<TABLE>
<CAPTION>
ITEM NO.                                    PART I                                               PAGE
  <S>                      <C>                                                                  <C>
   1                       Business                                                               I-1
   2                       Properties                                                             I-4
   3                       Legal Proceedings                                                      I-7
   4                       Submission of Matters to a Vote of
                             Security Holders                                                     I-7


                                            PART II

   5                       Market Price of and Distributions on the
                             Registrant's Units and Related Limited
                             Partner Matters                                                     II-1
   6                       Selected Financial Data                                               II-2
   7                       Management's Discussion and Analysis of
                             Financial Condition and Results of Operations                       II-2
   8                       Financial Statements and Supplementary Data                           II-3
   9                       Disagreements on Accounting and Financial
                             Disclosure                                                          II-3


                                            PART III

  10                       Directors and Executive Officers of the
                             Registrant                                                         III-1
  11                       Executive Compensation                                               III-2
  12                       Security Ownership of Certain Beneficial   
                              Owners and Management                                             III-2
  13                       Certain Relationships and Related Transactions                       III-2

                                            PART IV

  14                       Exhibits, Financial Statement Schedules
                             and Reports on Form 8-K                                             IV-1


                                            OTHER

                           Signatures
</TABLE>


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.

                                     PART I


Item 1.  Business

General Description of Partnership

         Swift Energy Income Partners 1987-B,  Ltd., a Texas limited partnership
(the "Partnership" or the "Registrant"),  is a partnership formed under a public
serial limited partnership offering denominated Swift Energy Income Partners III
(Registration  Statement No. 33-11773 on Form S-1, originally declared effective
March 19, 1987,  and amended  effective  March 28, 1988,  May 4, 1989 and May 1,
1990 [the "Registration Statement"]).  The Partnership was formed effective July
23, 1987 under a Limited Partnership  Agreement dated July 21, 1987. The initial
3,177 limited partners made capital contributions of $26,025,525.

         The  Partnership is  principally  engaged in the business of acquiring,
developing and, when  appropriate,  disposing of working interests in proven oil
and gas properties  within the continental  United States.  The Partnership does
not  engage  in  exploratory  drilling.   Each  working  interest  held  by  the
Partnership entitles the Partnership to receive, in kind or in value, a share of
the  production  of oil and gas from the producing  property,  and obligates the
Partnership  to  participate  in the  operation  of the property and to bear its
proportionate share of all operating costs associated therewith. The Partnership
typically  holds  less  than  the  entire  working  interest  in  its  producing
properties.

         At December  31,  1996,  the  Partnership  had expended or committed to
expend 100% of the limited  partners' net commitments  (i.e.,  limited partners'
commitments available to the Partnership for property acquisitions after payment
of  organization  fees and  expenses)  in the  acquisition  and  development  of
producing properties, which properties are described under Item 2, "Properties,"
below. The  Partnership's  revenues and profits are derived almost entirely from
the  sale of oil and gas  produced  from  its  properties  and  from the sale of
acquired  oil  and  gas  properties,   when  the  sale  of  such  properties  is
economically preferable to continued operation.

         The  Partnership's  business and affairs are  conducted by its Managing
General  Partner,  Swift Energy  Company,  a Texas  corporation  ("Swift").  The
Partnership's Special General Partner, VJM Corporation, a California corporation
("VJM"),  consults with and advises Swift as to certain financial matters. Swift
is the designated  operator of many of the  properties in which the  Partnership
owns  interests.  The remaining  properties  are operated by industry  operators
designated by the owners of a majority of the working interest in each property.

         The  general  manner  in  which  the  Partnership   acquires  producing
properties  and  otherwise  conducts  its business is described in detail in the
Registration Statement under "Proposed Activities," which is incorporated herein
by reference.

Competition, Markets and Regulations

         Competition

         The oil and gas industry is highly  competitive in all its phases.  The
Partnership encounters strong competition from many other oil and gas producers,
many of which possess substantial financial resources, in acquiring economically
desirable Producing Properties.

         Markets

         The amounts of and price  obtainable  for oil and gas  production  from
Partnership  Properties will be affected by market factors beyond the control of
the  Partnership.  Such factors include the extent of domestic  production,  the
level of imports of foreign oil and gas, the general level of market demand on a
regional, national and worldwide basis, domestic and foreign economic conditions
that  determine  levels of industrial  production,  political  events in foreign
oil-producing  regions, and variations in governmental  regulations and tax laws
and  the  imposition  of new  governmental  requirements  upon  the  oil and gas
industry. There can be no assurance that oil and gas prices will not decrease in
the future, thereby decreasing net Revenues from Partnership Properties.


                                      I-1


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.


         From time to time,  there may exist a  surplus  of  natural  gas or oil
supplies,  the effect of which may be to reduce the amount of hydrocarbons  that
the  Partnerships may produce and sell while such oversupply  exists.  In recent
years,  initial steps have been taken to provide  additional gas  transportation
lines from Canada to the United States. If additional Canadian gas is brought to
the United States market, it could create downward pressure on United States gas
prices.

         Regulations

         Environmental Regulation

         The federal  government  and various state and local  governments  have
adopted  laws and  regulations  regarding  the control of  contamination  of the
environment.  These laws and regulations may require the acquisition of a permit
by Operators before drilling commences,  prohibit drilling activities on certain
lands  lying  within  wilderness  areas or where  pollution  arises  and  impose
substantial  liabilities for pollution  resulting from operations,  particularly
operations near or in onshore and offshore waters or on submerged  lands.  These
laws and  regulations  may also  increase  the  costs of  routine  drilling  and
operation of wells.  Because these laws and regulations change  frequently,  the
costs to the  Partnership of compliance  with existing and future  environmental
regulations cannot be predicted.  However, the Managing Partner does not believe
that the  Partnership is affected in a significantly  different  manner by these
regulations than are its competitors in the oil and gas industry.

         Federal Regulation of Natural Gas

         The  transportation  and sale of natural gas in interstate  commerce is
heavily  regulated  by  agencies  of  the  federal  government.   The  following
discussion is intended only as a summary of the principal statutes,  regulations
and  orders  that  may  affect  the  production  and  sale of  natural  gas from
Partnership  Properties.  This  summary  should not be relied upon as a complete
review of applicable natural gas regulatory provisions.

         FERC Orders

         Several major  regulatory  changes have been implemented by the Federal
Energy Regulatory  Commission  ("FERC") from 1985 to the present that affect the
economics of natural gas production,  transportation and sales. In addition, the
FERC  continues  to  promulgate  revisions  to various  aspects of the rules and
regulations  affecting  those  segments of the natural gas industry  that remain
subject to the FERC's jurisdiction. In April 1992, the FERC issued Order No. 636
pertaining to pipeline restructuring. This rule requires interstate pipelines to
unbundle  transportation  and sales services by separately  stating the price of
each service and by providing  customers  only the particular  service  desired,
without  regard to the source for  purchase of the gas.  The rule also  requires
pipelines to (i) provide  nondiscriminatory  "no-notice"  service  allowing firm
commitment  shippers to receive  delivery of gas on demand up to certain  limits
without  penalties,  (ii) establish a basis for release and reallocation of firm
upstream  pipeline  capacity  and  (iii)  provide  non-discriminatory  access to
capacity by firm  transportation  shippers on a  downstream  pipeline.  The rule
requires interstate  pipelines to use a straight fixed variable rate design. The
rule imposes these same requirements upon storage facilities.

         FERC Order No. 500  affects the  transportation  and  marketability  of
natural gas.  Traditionally,  natural gas has been sold by producers to pipeline
companies,  which then  resold the gas to  end-users.  FERC Order No. 500 alters
this market structure by requiring  interstate  pipelines that transport gas for
others to provide  transportation  service to  producers,  distributors  and all
other shippers of natural gas on a nondiscriminatory, "first-come, first-served"
basis ("open access  transportation"),  so that producers and other shippers can
sell natural gas directly to end-users.  FERC Order No. 500 contains  additional
provisions intended to promote greater competition in natural gas markets.

         It is not anticipated  that the  marketability  of and price obtainable
for natural gas production from  Partnership  Properties  will be  significantly
affected  by FERC  Order No.  500.  Gas  produced  from  Partnership  Properties
normally  will be sold to  intermediaries  who have entered into  transportation
arrangements with pipeline companies.  These  intermediaries will accumulate gas
purchased from a number of producers and sell the gas to end-users  through open
access pipeline transportation.


                                      I-2


<PAGE>

                   SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.


         State Regulations

         Production  of any oil  and gas  from  Partnership  Properties  will be
affected  to some  degree  by  state  regulations.  Many  states  in  which  the
Partnership will operate have statutory provisions regulating the production and
sale  of oil  and  gas,  including  provisions  regarding  deliverability.  Such
statutes, and the regulations promulgated in connection therewith, are generally
intended to prevent  waste of oil and gas and to protect  correlative  rights to
produce  oil and  gas  between  owners  of a  common  reservoir.  Certain  state
regulatory  authorities  also  regulate  the amount of oil and gas  produced  by
assigning allowable rates of production to each well or proration unit.

         Federal Leases

         Some of the Partnership's properties are located on federal oil and gas
leases  administered by various federal  agencies,  including the Bureau of Land
Management.   Various  regulations  and  orders  affect  the  terms  of  leases,
exploration and development plans, methods of operation and related matters.

Employees

         The  Partnership  has no  employees.  Swift,  however,  has a staff  of
geologists,   geophysicists,   petroleum  engineers,   landmen,  and  accounting
personnel who  administer  the  operations of Swift and the  Partnership.  As of
December 31, 1996, Swift had 191 employees.  Swift's administrative and overhead
expenses  attributable  to  the  Partnership's   operations  are  borne  by  the
Partnership.


                                      I-3


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.


Item 2.  Properties

         As of December  31, 1996,  the  Partnership  has acquired  interests in
producing oil and gas properties which are generally described below.

Principal Oil and Gas Producing Properties

         The most  valuable  fields  in the  Partnership,  based  upon  year-end
engineering  estimates of discounted  future net revenues using constant pricing
and costs, are described below.

         1.  Approximately 48% of the  Partnership's  value is from the Giddings
Field in Fayette  and  Burleson  Counties,  Texas (NRG  acquisition).  The wells
produce from the Austin Chalk and Edwards zones.

         2.  Approximately  18% of the Partnership's value is from the AWP Field
in  McMullen  County,  Texas  (Bracken acquisition).  The wells produce from the
Olmos formation.

         The remaining  value in the  Partnership  is  attributable  to numerous
properties  none of which equals or exceeds 15 percent of the total  Partnership
value.

Title to Properties

         Title to  substantially  all  significant  producing  properties of the
Partnership has been examined. The properties are subject to royalty, overriding
royalty and other  interests  customary in the  industry.  The Managing  General
Partner does not believe any of these burdens  materially detract from the value
of the properties or will materially detract from the value of the properties or
materially  interfere  with their use in the  operation  of the  business of the
Partnership.

Production and Sales Price

         The following table  summarizes the sales volumes of the  Partnership's
net oil and gas  production  expressed  in  MCFs  of oil.  Equivalent  MCFs  are
obtained by converting oil to gas on the basis of their relative energy content;
one barrel equals 6,000 cubic feet of gas.

<TABLE>
<CAPTION>
                                                    Net Production
                                      ------------------------------------------
                                                 For the Years Ended
                                                     December 31,
                                      ------------------------------------------
                                        1996            1995              1994
                                      -------         -------          ---------
<S>                                   <C>             <C>              <C>      
Net Volumes (Equivalent MCFs)         676,534         891,082          1,131,998

Average Sales Price
   per Equivalent MCF                 $2.51           $1.87            $2.06

Average Production Cost
   per Equivalent MCF
   (includes production taxes)        $0.85           $0.87            $0.70
</TABLE>


                                      I-4


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.


Net Proved Oil and Gas Reserves

         Presented below are the estimates of the Partnership's  proved reserves
as of December 31, 1996, 1995 and 1994. All of the Partnership's proved reserves
are located in the United States.

<TABLE>
<CAPTION>
                                                                    December 31,
                                   -------------------------------------------------------------------------------
                                          1996                           1995                          1994
                                   ----------------------      -----------------------      ----------------------
                                                  Natural                      Natural                     Natural
                                     Oil           Gas           Oil            Gas           Oil             Gas
                                   --------      --------      --------        -------      --------       -------
                                    BBLS)         (MMCF)        (BBLS)         (MMCF)        (BBLS)         (MMCF)
<S>                                 <C>            <C>         <C>               <C>         <C>             <C>  
Proved developed
   reserves at end of year          185,252         4,148       301,002          5,379       454,206         5,696
                                    -------         -----       -------          -----       -------        ------
Proved reserves
   Balance at beginning
     of year                        327,219         5,850       490,638          6,612       530,952         7,797

   Extensions, discoveries
      and other additions               --             --           449              3           828             1

   Revisions of previous
     estimates                        8,677           888      (120,535)          (125)       27,192          (286)

   Sales of minerals in
     place                          (88,018)       (1,254)         (697)            (5)      (14,151)          (93)

   Production                       (28,517)         (505)      (42,636)          (635)      (54,183)         (807)
                                    -------         -----       -------          -----       -------        ------

   Balance at end of year           219,361         4,979       327,219          5,850       490,638         6,612
                                    -------         -----       -------          -----       -------        ------
</TABLE>

         Revisions  of  previous  quantity  estimates  are  related to upward or
downward  variations  based on current  engineering  information  for production
rates,  volumetrics and reservoir  pressure.  Additionally,  changes in quantity
estimates  are the result of the  increase  or decrease in crude oil and natural
gas prices at each year end which have the effect of adding or  reducing  proved
reserves on marginal properties due to economic limitations.


                                      I-5


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.


         The following table summarizes by acquisition the Registrant's reserves
and gross and net  interests in  producing  oil and gas wells as of December 31,
1996:

<TABLE>
<CAPTION>
                                                                 Reserves
                                                             December 31, 1996
                                                           ---------------------

                                                                        Natural                  Wells
                                                      Oil                 Gas            -----------------------
Acquisition                State(s)                 (BBLS)              (MMCF)            Gross            Net
-----------                --------                 ------              -------          ------          -------
<S>                        <C>                      <C>                 <C>                <C>            <C>  
Reata                      TX                        38,153                30               11             2.578
Kaiser-Francis II          KS, LA, OK, TX             5,879             1,070                9             1.158
Majestic                   TX                        14,794                57               10             0.730
Pitco I & II               OK                            --                 3                1             0.017
Texas Drlg.
   (Scott Oil)             TX                            54               246                2             0.250
Wainoco                    LA, MI, OK, TX                --               131                6             1.032
NRG                        TX                        96,161             1,988               74             4.777
Presidio                   CO, LA, ND,
                           NM, OK, TX,
                           WY                            32               111              220            22.849
Sue Ann                    TX                         1,530               153                2             0.838
Kimbrel & Cook             TX                        17,356                --                9             4.050
Broyles I & II,
   Inverness Homes         LA                            --               298               13             1.764
Bracken                    TX                        41,025               887               45             1.674
Norcen Explorer            WY                         4,377                 5               29             0.067
                                                    -------            ------             ----            ------
                                                    219,361             4,979              431            41.784
                                                    -------            ------             ----            ------
</TABLE>

         There are numerous  uncertainties  inherent in estimating quantities of
proved  reserves and in projecting  the future rates of  production,  timing and
plan of  development.  Oil and gas reserve  engineering  must be recognized as a
subjective process of estimating  underground  accumulations of oil and gas that
cannot be measured  in an exact way,  and  estimates  of other  engineers  might
differ  from  those  above,  audited  by H. J.  Gruy and  Associates,  Inc.,  an
independent petroleum consulting firm. The accuracy of any reserve estimate is a
function of the quality of  available  data and of  engineering  and  geological
interpretation  and  judgment.  Results  of  drilling,  testing  and  production
subsequent  to the date of the estimate may justify  revision of such  estimate,
and, as a general rule,  reserve  estimates based upon  volumetric  analysis are
inherently  less  reliable  than  those  based on  lengthy  production  history.
Accordingly,  reserve  estimates are often  different from the quantities of oil
and gas that are ultimately recovered.

         In estimating  the oil and natural gas  reserves,  the  Registrant,  in
accordance with criteria  prescribed by the Securities and Exchange  Commission,
has used prices received as of December 31, 1996 without  escalation,  except in
those instances where fixed and determinable  gas price  escalations are covered
by  contracts,  limited  to the  price the  Partnership  reasonably  expects  to
receive.  The  Registrant  does not believe that any  favorable or adverse event
causing a significant  change in the estimated  quantity of proved  reserves has
occurred between December 31, 1996 and the date of this report.

         Future prices received for the sale of the  Partnership's  products may
be higher or lower than the prices used in the evaluation  described  above; the
operating  costs relating to such  production may also increase or decrease from
existing  levels.  The estimates  presented  above are in accordance  with rules
adopted by the Securities and Exchange Commission.


                                      I-6


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.


Item 3. Legal Proceedings

         The Partnership is not aware of any material pending legal  proceedings
to which it is a party or of which any of its property is the subject.

Item 4. Submission of Matters to a Vote of Security Holders

         No matters  were  submitted  to a vote of limited  partners  during the
fourth quarter of the fiscal year covered by this report.


                                      I-7


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.

                                     PART II


Item 5.  Market Price of and Distributions on the Registrant's Units and Related
         Limited Partner Matters

Market Information

         Units in the  Partnership  were  initially  sold at a price of $100 per
Unit.  Units are not traded on any exchange and there is no  established  public
trading  market for the Units.  Swift is aware of negotiated  transfers of Units
between  unrelated  parties;  however,  these  transfers  have been  limited and
sporadic.  Due to the  nature of these  transactions,  Swift  has no  verifiable
information regarding prices at which Units have been transferred.

Holders

         As of December  31, 1996,  there were 3,177  Limited  Partners  holding
Units in the Partnership.

Distributions

         The Partnership  generally makes distributions to Limited Partners on a
quarterly  basis,   subject  to  the  restrictions  set  forth  in  the  Limited
Partnership  Agreement.  In the fiscal years ending  December 31, 1995 and 1996,
the Partnership distributed a total of $487,900 and $396,900,  respectively,  to
holders of its Units.  Cash  distributions  constitute net proceeds from sale of
oil and gas  production  after  payment of lease  operating  expenses  and other
partnership expenses.  Some or all of such amounts or any proceeds from the sale
of partnership  properties  could be deemed to constitute a return of investors'
capital.

         Oil and gas  investments  involve a high risk of loss, and no assurance
can be given that any particular  level of distributions to holders of Units can
be  achieved  or  maintained.   Although  it  is   anticipated   that  quarterly
distributions  will continue to be made through 1997, the Partnership's  ability
to make distributions  could be diminished by any event adversely  affecting the
oil and gas properties in which the Partnership  owns interests or the amount of
revenues received by the Partnership therefrom.

         The  Partnership's   Limited  Partnership  Agreement  contains  various
provisions  which might serve to delay,  defer or prevent a change in control of
the Partnership,  such as the requirement of a vote of Limited Partners in order
to  sell  all  or  substantially  all  of the  Partnership's  properties  or the
requirement of consent by the Managing  General  Partner to transfers of limited
partnership interests.


                                      II-1


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.


Item 6. Selected Financial Data

         The following  selected  financial  data,  prepared in accordance  with
generally  accepted  accounting  principles as of December 31, 1996, 1995, 1994,
1993 and  1992,  should be read in  conjunction  with the  financial  statements
included in Item 8:

<TABLE>
<CAPTION>
                                1996               1995               1994             1993              1992
                           -------------      -------------      --------------    ------------     -------------
<S>                        <C>                <C>                <C>               <C>              <C>          
Revenues                   $      95,900      $   1,751,110      $    2,403,877    $  2,739,790     $   3,009,506
Income (Loss)              $     424,660      $    (788,796)     $      380,984    $    410,517     $  (1,389,052)
Total Assets               $   4,964,271      $   5,727,598      $    7,064,687    $  7,832,101     $   8,801,735
Cash Distributions         $     485,357      $     553,384      $      959,619    $  1,199,325     $   1,440,086
</TABLE>


Item 7. Management's Discussion and Analysis of Financial Condition and
         Results of Operations

Liquidity and Capital Resources

         The  Partnership  has expended  all of the  partners'  net  commitments
available for property  acquisitions  ("net  commitments")  and  development  by
acquiring producing oil and gas properties. The partnership invests primarily in
proved  producing  properties with nominal levels of future costs of development
for  proven  but  undeveloped  reserves.  Significant  purchases  of  additional
reserves  or  extensive  drilling  activity  are  not  anticipated.  Oil and gas
reserves  are  depleting  assets  and  therefore  often  experience  significant
production  declines each year from the date of  acquisition  through the end of
the life of the  property.  The primary  source of liquidity to the  Partnership
comes almost  entirely  from the income  generated  from the sale of oil and gas
produced  from  ownership  interests in oil and gas  properties.  This source of
liquidity and the related  results of operations  will decline in future periods
as the oil and gas produced from these properties also declines.

         Subject to 1997 market conditions  remaining  comparable with 1996, the
Managing General Partner ("MGP")  anticipates an increase in liquidity  provided
that certain development work scheduled in 1997 is completed  successfully.  The
Partnership  plans to spend in the next  two  years an  estimated  $542,000  for
capital  expenditures  needed for this  development  work and the enhancement of
proved oil and gas reserves.  The MGP anticipates that the Partnership will have
adequate liquidity from income from continuing  operations to satisfy any future
capital  expenditure  requirements.  Funds  generated  from bank  borrowings and
proceeds from the sale of oil and gas properties will be used to supplement this
effort if deemed necessary.

Results of Operations

         Oil and gas sales  increased 9 percent in 1996 vs.  1995.  Increases in
both 1996 gas and oil prices were major contributors to the increased  revenues.
The Partnership  experienced an increase in gas prices of 48 percent or $.74/MCF
and an increase  in oil prices of 18 percent or  $2.96/BBL.  The  average  sales
price per  equivalent  MCF  increased  34  percent in 1996.  Production  volumes
decreased  24  percent  due to a 20 percent  gas  production  decrease  and a 33
percent oil production  decline.  The production  declines  partially offset the
effect of increased oil and gas prices impacting partnership performance.

         Production cost per equivalent MCF decreased 2 percent in 1996 compared
to 1995 and total production costs decreased 25 percent in 1996.

         Associated  depreciation  expense  decreased  19  percent  in 1996 when
compared to 1995.


                                      II-2


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.


         Oil and gas sales  decreased  28 percent in 1995 vs.  1994.  Production
volumes  decreased 21 percent due to a 21 percent gas production  decrease and a
21 percent oil  production  decline.  Since the  Partnership's  reserves  are 75
percent gas,  the  decrease in gas  production,  due to  accelerated  production
declines on mature  wells,  had a major  impact on  partnership  performance.  A
decline in the 1995 gas prices of 18 percent or $.35/MCF further  contributed to
the Partnership's decreased revenues. The average sales price per equivalent MCF
decreased 9 percent in 1995.

         Production cost  per  equivalent  MCF  increased  24  percent  in  1995
compared to 1994;  however,  total production costs decreased 3 percent in 1995.

         Associated  depreciation  expense  decreased  20  percent  in 1995 when
compared to 1994.

         The  Partnership  recorded an  additional  provision  in  depreciation,
depletion and  amortization in 1996 and 1995 when the present value,  discounted
at ten percent,  of estimated  future net revenues from oil and gas  properties,
using the guidelines of the Securities  and Exchange  Commission,  was below the
fair  market  value  paid for oil and gas  properties  resulting  in a full cost
ceiling impairment.

         During 1997,  Partnership revenues and costs will be shared between the
limited and general  partners in a 90:10 ratio,  based on the annualized rate of
cash  distributions by the Partnership during a certain period prior to December
31,  1996.  Based on current oil and gas prices,  current  levels of oil and gas
production and expected cash distributions during 1997, the MGP anticipates that
the Partnership sharing ratio will continue to be 90:10.

Item 8. Financial Statements and Supplementary Data

         See Part IV, Item 14(a) for index to financial statements.

Item 9. Disagreements on Accounting and Financial Disclosure

         None.


                                      II-3


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.

                                    PART III


Item 10.  Directors and Executive Officers of the Registrant

         As a limited partnership,  the Registrant has no directors or executive
officers.  The  business and affairs of the  Registrant  are managed by Swift as
Managing General Partner. Set forth below is certain information as of March 17,
1997 regarding the directors and executive officers of Swift.

<TABLE>
<CAPTION>
                                                  Position(s) with
         Name           Age                  Swift and Other Companies
         ----           ---                  -------------------------
<S>                     <C>         <C>
                                    DIRECTORS

A. Earl Swift           63          President, Chief Executive Officer and
                                    Chairman of the Board

Virgil N. Swift         68          Executive Vice President - Business
                                    Development, Vice Chairman of the Board

G. Robert Evans         65          Director of Swift; Chairman of the Board,
                                    Material Sciences Corporation;
                                    Director, Consolidated Freightways, Inc.,
                                    Fibreboard Corporation, Elco Industries, and
                                    Old Second Bancorp

Raymond O. Loen         72          Director of Swift; President, R. O. Loen
                                    Company

Henry C. Montgomery     61          Director of Swift; Chairman of the Board,
                                    Montgomery Financial Services Corporation;
                                    Director, Southwall Technology Corporation

Clyde W. Smith, Jr.     48          Director of Swift; President, Somerset
                                    Properties, Inc.

Harold J. Withrow       69          Director of Swift

                                    EXECUTIVE OFFICERS

Terry E. Swift          41          Executive Vice President, Chief
                                    Operating Officer

John R. Alden           51          Senior Vice President - Finance,
                                    Chief Financial Officer and Secretary

Bruce H. Vincent        49          Senior Vice President - Funds Management

James M. Kitterman      52          Senior Vice President - Operations

Alton D. Heckaman, Jr.  39          Vice President - Finance and Controller
</TABLE>


                                     III-1


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.


         From time to time, Swift as Managing General Partner of the Partnership
purchases Units in the  Partnership  from investors who offer the Units pursuant
to their right of  presentment,  which  purchases are made pursuant to terms set
out in the  Partnership's  original Limited  Partnership  Agreement.  Due to the
frequency  and  large  number  of  these   transactions,   Swift  reports  these
transactions  under  Section  16 of the  Securities  Exchange  Act of 1934 on an
annual  rather than a monthly  basis.  In some cases such annual  reporting  may
constitute a late filing of the required Section 16 reports under the applicable
Section 16 rules.

Item 11.  Executive Compensation

         As  noted  in  Item  10,  "Directors  and  Executive  Officers  of  the
Registrant,"  above,  the Partnership has no executive  officers.  The executive
officers of Swift and VJM are not compensated by the Partnership.

         Certain fees and  allowances  contemplated  by the Limited  Partnership
Agreement  have been paid by the  Partnership  to Swift and VJM. See Note (4) in
Notes  To  Financial   Statements   (Related-Party   Transactions)  for  further
discussion.

Item 12.  Security Ownership of Certain Beneficial Owners and Management

         Swift Energy Company,  the Managing General  Partner,  located at 16825
Northchase  Drive,  Suite  400,  Houston,   Texas  77060,  owns  20,274  Limited
Partnership Units, which is 7.79 percent of all outstanding  Limited Partnership
Units. All Limited Partnership Units owned by Swift were acquired from investors
who  offered  the  Limited   Partnership   Units  pursuant  to  their  right  of
presentment.  As the Managing General Partner, Swift is not permitted generally,
under the Limited Partnership Agreement,  to vote its Limited Partnership Units.
Swift also owns a general  partnership  interest of 9 percent of all partnership
interests in the Partnership.

         Swift and VJM are not aware of any arrangement,  the operation of which
may at a subsequent date result in a change in control of the Partnership.

Item 13.  Certain Relationships and Related Transactions

         As  noted  in  Item  10,  "Directors  and  Executive  Officers  of  the
Registrant," above, the Partnership has no executive officers or directors,  and
thus has not  engaged  in any  transactions  in which  any  such  person  had an
interest.  The Partnership is permitted to engage in certain  transactions  with
Swift as Managing General Partner and VJM as Special General Partner, subject to
extensive  guidelines and restrictions  described in the "Conflicts of Interest"
section of the Amended Prospectus contained in the Registration Statement, which
is incorporated herein by reference.

         Summarized  below are the  principal  transactions  that have  occurred
between the Partnership and Swift, VJM and their affiliates.

         1. The oil and gas properties acquired by the Partnership, as described
in Item 2, "Properties"  above, were typically  acquired initially by Swift from
the  seller  thereof  and  subsequently  transferred  to the  Partnership.  Such
transfers  were made by Swift at its Property  Acquisition  Costs (as defined in
the  Limited  Partnership  Agreement),  less any amounts  received  from sale of
production  between the time of acquisition by Swift and the time of sale to the
Partnership.

         2.  Swift  acts  as  operator  for  many  of the  wells  in  which  the
Partnership  has  acquired  interests  and has  received  compensation  for such
activities in accordance with standard industry operating agreements.

         3.  The Partnership paid to Swift and VJM certain fees as  contemplated
by  the  Limited  Partnership  Agreement. See  Note (4) in  Notes  To  Financial
Statements (Related-Party Transactions) for further discussion.


                                     III-2


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.

                                     PART IV

<TABLE>
<CAPTION>
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K

      a(1)     FINANCIAL STATEMENTS                                     PAGE NO.
                                                                        --------
               <S>                                                        <C>
               Report of independent Public Accountants                   IV-2

               Balance Sheets as of December 31, 1996 and 1995            IV-3

               Statements of Operations for the years ended
                  December 31, 1996, 1995 and 1994                        IV-4

               Statements of Partners' Capital for the years ended
                  December 31, 1996, 1995 and 1994                        IV-5

               Statements of Cash Flows for the years ended
                  December 31, 1996, 1995 and 1994                        IV-6

               Notes to Financial Statements                              IV-7
</TABLE>

       a(2)    FINANCIAL STATEMENT SCHEDULES

               All schedules required by the SEC are either  inapplicable or the
               required information is included in the Financial Statements, the
               Notes thereto, or in other information included elsewhere in this
               report.

       a(3)    EXHIBITS

               3.1    Certificate of Limited  Partnership of Swift Energy Income
                      Partners  1987-B,   Ltd.  (including  Limited  Partnership
                      Agreement of Swift Energy Income  Partners  1987-B,  Ltd.,
                      dated July 21,  1987),  as filed July 23,  1987,  with the
                      Texas  Secretary  of  State  (excluding  list  of  limited
                      partners  filed as part of  Certificate.)  (Form  10-K for
                      year ended December 31, 1988, Exhibit 3.1).

               99.1   A copy of the following  section of the  Prospectus  dated
                      March 19, 1987, contained in Pre-Effective Amendment No. 1
                      to  Registration  Statement  No.  33-11773 on Form S-1 for
                      Swift Energy  Income  Partners  III, as filed on March 19,
                      1987,  which have been  incorporated  herein by reference:
                      "Proposed  Activities"  (pp  30 - 36)  and  "Conflicts  of
                      Interest"  (pp.  70 -  78).  (Form  10-K  for  year  ended
                      December 31, 1989, Exhibit 28.1).

       b(1)    REPORTS ON FORM 8-K

               No reports on Form 8-K have been filed  during the quarter  ended
December 31, 1996.


                                      IV-1


<PAGE>

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS



To Swift Energy Income Partners 1987-B, Ltd.:

         We have audited the accompanying  balance sheets of Swift Energy Income
Partners 1987-B, Ltd., (a Texas limited partnership) as of December 31, 1996 and
1995, and the related statements of operations, partners' capital and cash flows
for the years ended December 31, 1996, 1995 and 1994. These financial statements
are the responsibility of the general partner's  management.  Our responsibility
is to express an opinion on these financial statements based on our audits.

         We conducted our audits in accordance with generally  accepted auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

         In our opinion,  the  financial  statements  referred to above  present
fairly, in all material respects,  the financial position of Swift Energy Income
Partners 1987-B,  Ltd., as of December 31, 1996 and 1995, and the results of its
operations  and its cash flows for the years ended  December 31, 1996,  1995 and
1994, in conformity with generally accepted accounting principles.






                               ARTHUR ANDERSEN LLP




Houston, Texas
February 10, 1997


                                      IV-2


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.
                                 BALANCE SHEETS
                           DECEMBER 31, 1996 AND 1995

<TABLE>
<CAPTION>
                                                                                             1996                 1995
                                                                                       --------------       --------------
         <S>                                                                           <C>                  <C>           
         ASSETS:

         Current Assets:
              Cash and cash equivalents                                                $      107,525       $        1,039
              Oil and gas sales receivable                                                    442,490              460,307
              Receivable due to property disposition                                          108,997                   --
                                                                                       --------------       --------------
                   Total Current Assets                                                       659,012              461,346
                                                                                       --------------       --------------

         Gas Imbalance Receivable                                                                  --                5,085
                                                                                       --------------       --------------

         Oil and Gas Properties, using full cost
              accounting                                                                   24,669,072           25,068,651
         Less-Accumulated depreciation, depletion
              and amortization                                                            (20,363,813)         (19,807,484)
                                                                                       --------------       --------------
                                                                                            4,305,259            5,261,167
                                                                                       --------------      ---------------
                                                                                       $    4,964,271       $    5,727,598
                                                                                       ==============       ==============

         LIABILITIES AND PARTNERS' CAPITAL:

         Current Liabilities:
              Accounts payable and accrued liabilities                                 $      200,096       $      832,159
              Current portion of note payable                                                      --               42,669
                                                                                       --------------       --------------
                   Total Current Liabilities                                                  200,096              874,828
                                                                                       --------------       --------------

         Deferred Revenues                                                                    220,394              248,292

         Partners' Capital                                                                  4,543,781            4,604,478
                                                                                       --------------       --------------
                                                                                       $    4,964,271       $    5,727,598
                                                                                       ==============       ==============
</TABLE>


                 See accompanying notes to financial statements.

                                      IV-3


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.
                            STATEMENTS OF OPERATIONS
              FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994


<TABLE>
<CAPTION>
                                                                       1996            1995              1994
                                                               ----------------  ---------------   ---------------
<S>                                                             <C>              <C>               <C>            
REVENUES:
   Oil and gas sales                                            $     1,865,841   $    1,715,654   $     2,377,940
   Interest income                                                        2,039            5,534                50
   Other                                                                 28,020           29,922            25,887
                                                                ---------------   --------------   ---------------
                                                                      1,895,900        1,751,110         2,403,877
                                                                ---------------   --------------   ---------------

COSTS AND EXPENSES:
   Lease operating                                                      489,649          677,019           667,221
   Production taxes                                                      88,698           94,111           130,767
   Depreciation, depletion
     and amortization -
        Normal provision                                                551,679          681,097           848,951
        Additional provision                                              4,650          773,758                --
   General and administrative                                           326,998          252,670           325,024
   Interest expense                                                       9,566           61,251            50,930
                                                                ---------------  ---------------   ---------------
                                                                      1,471,240        2,539,906         2,022,893
                                                                ---------------  ---------------   ---------------
INCOME (LOSS)                                                   $       424,660  $      (788,796)  $       380,984
                                                                ===============  ===============   ===============
</TABLE>


                 See accompanying notes to financial statements.

                                      IV-4


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.
                         STATEMENTS OF PARTNERS' CAPITAL
              FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994


<TABLE>
<CAPTION>
                                                  Limited           General        Combining
                                                  Partners          Partners       Adjustment             Total
                                              ---------------   ---------------  ---------------     --------------
<S>                                           <C>               <C>              <C>                 <C>           
Balance,
    December 31, 1993                         $     5,714,129   $       161,674  $       649,490     $    6,525,293

Income (Loss)                                         329,202           110,102          (58,320)           380,984

Cash Distributions                                   (845,800)         (113,819)              --           (959,619)
                                              ---------------   ---------------  ---------------     --------------
Balance,
    December 31, 1994                               5,197,531           157,957          591,170          5,946,658
                                              ---------------   ---------------  ---------------     --------------

Income (Loss)                                        (672,346)           55,327         (171,777)          (788,796)

Cash Distributions                                   (487,900)          (65,484)              --           (553,384)
                                              ---------------   ---------------  ---------------     --------------
Balance,
    December 31, 1995                               4,037,285           147,800          419,393          4,604,478
                                              ---------------   ---------------  ---------------     --------------

Income (Loss)                                         383,492            82,803          (41,635)           424,660

Cash Distributions                                   (396,900)          (88,457)              --           (485,357)
                                              ---------------   ---------------  ---------------     --------------
Balance,
    December 31, 1996                         $     4,023,877   $       142,146  $       377,758     $    4,543,781
                                              ===============   ===============  ===============     ==============



Limited Partners' net income (loss)
    per unit

      1994                                    $          1.26
                                              ===============
      1995                                    $         (2.58)
                                              ===============
      1996                                    $          1.47
                                              ===============
</TABLE>


                 See accompanying notes to financial statements.

                                      IV-5


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.
                            STATEMENTS OF CASH FLOWS
              FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994


<TABLE>
<CAPTION>
                                                                                        1996             1995              1994
                                                                                 ---------------    --------------   --------------
<S>                                                                              <C>                <C>              <C>           
CASH FLOWS FROM OPERATING ACTIVITIES:
    Income (Loss)                                                                $       424,660    $     (788,796)  $      380,984
    Adjustments to reconcile income (loss) to
      net cash provided by operations:
      Depreciation, depletion and amortization                                           556,329         1,454,855          848,951
      Change in gas imbalance receivable
          and deferred revenues                                                          (22,813)             (941)          11,373
      Change in assets and liabilities:
        (Increase) decrease in oil and gas sales receivable                               17,817            76,050           56,790
        (Increase) decrease in receivable due to property disposition                   (108,997)               --               --
        Increase (decrease) in accounts payable
          and accrued liabilities                                                       (632,063)          171,621          (29,478)
                                                                                 ---------------    --------------   --------------
                  Net cash provided by (used in) operating activities                    234,933           912,789        1,268,620
                                                                                 ---------------    --------------   --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Additions to oil and gas properties                                                 (123,283)         (210,980)        (192,659)
    Proceeds from sales of oil and gas properties                                        522,862            21,836           54,554
                                                                                 ---------------    --------------   --------------
                  Net cash provided by (used in) investing activities                    399,579          (189,144)        (138,105)
                                                                                 ---------------    --------------   --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Cash distributions to partners                                                      (485,357)         (553,384)        (959,619)
    Payments on note payable                                                             (42,669)         (170,674)        (170,674)
                                                                                 ---------------    --------------   --------------
                  Net cash provided by (used in) financing activities                   (528,026)         (724,058)      (1,130,293)
                                                                                 ---------------    --------------   --------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                     106,486              (413)             222
                                                                                 ---------------    --------------   --------------
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                             1,039             1,452            1,230
                                                                                 ---------------    --------------   --------------
CASH AND CASH EQUIVALENTS AT END OF YEAR                                         $       107,525    $        1,039   $        1,452
                                                                                 ===============    ==============   ==============
Supplemental disclosure of cash flow information:
    Cash paid during the year for interest                                       $        10,637    $       34,829   $       24,853
                                                                                 ===============    ==============   ==============
</TABLE>


                 See accompanying notes to financial statements.

                                      IV-6


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.
                          NOTES TO FINANCIAL STATEMENTS


(1) Organization and Terms of Partnership Agreement -

         Swift Energy Income Partners 1987-B,  Ltd., a Texas limited partnership
(the  Partnership),  was formed on July 23, 1987,  for the purpose of purchasing
and operating  producing oil and gas properties  within the  continental  United
States. Swift Energy Company ("Swift"), a Texas corporation, and VJM Corporation
("VJM"), a California corporation, serve as Managing General Partner and Special
General  Partner of the  Partnership,  respectively.  The general  partners  are
required to contribute up to 1/99th of limited  partner net  contributions.  The
3,177 limited partners made total capital contributions of $26,025,525.

         Property  acquisition costs and the management fee are borne 99 percent
by the limited  partners and one percent by the general  partners.  Organization
and syndication costs were borne solely by the limited partners.

         Initially, all continuing costs (including development costs, operating
costs,  general  and  administrative  reimbursements  and direct  expenses)  and
revenues are allocated 90 percent to the limited partners and ten percent to the
general partners. If prior to partnership payout, as defined,  however, the cash
distribution rate for a certain period equals or exceeds 17.5 percent,  then for
the  following  calendar  year,  these  continuing  costs and  revenues  will be
allocated  85  percent to the  limited  partners  and 15 percent to the  general
partners. After partnership payout, continuing costs and revenues will be shared
85 percent by the limited partners, and 15 percent by the general partners, even
if the cash distribution rate is less than 17.5 percent. Payout had not occurred
as of December 31, 1996.

(2) Significant Accounting Policies -

Use of Estimates --

         The  preparation of financial  statements in conformity  with generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  that affect the reported  amounts of assets and  liabilities at the
date of the  financial  statements  and the  reported  amounts of  revenues  and
expenses  during  the  reporting  period.   Actual  results  could  differ  from
estimates.

Oil and Gas Properties --

         For  financial   reporting   purposes,   the  Partnership  follows  the
"full-cost"  method of  accounting  for oil and gas property  costs.  Under this
method of accounting,  all productive  and  nonproductive  costs incurred in the
acquisition and development of oil and gas reserves are capitalized.  Such costs
include lease  acquisitions,  geological  and  geophysical  services,  drilling,
completion,  equipment and certain  general and  administrative  costs  directly
associated   with   acquisition   and   development   activities.   General  and
administrative  costs related to production and general overhead are expensed as
incurred.  No general and administrative costs were capitalized during the years
ended December 31, 1996, 1995 and 1994.

         Future  development,  site  restoration,  dismantlement and abandonment
costs,  net of salvage  values,  are estimated on a  property-by-property  basis
based on  current  economic  conditions  and are  amortized  to  expense  as the
Partnership's capitalized oil and gas property costs are amortized.

         The  unamortized  cost of oil  and gas  properties  is  limited  to the
"ceiling  limitation",  (calculated  separately  for  the  Partnership,  limited
partners,  and general  partners).  The "ceiling  limitation" is calculated on a
quarterly  basis and  represents  the estimated  future net revenues from proved
properties  using current  prices,  discounted at ten percent,  and the lower of
cost or fair value of unproved properties. Proceeds from the sale or disposition
of oil and gas  properties  are treated as a reduction  of oil and gas  property
costs  with  no  gains  or  losses  being   recognized   except  in  significant
transactions.


                                      IV-7


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


         The Partnership computes the provision for depreciation,  depletion and
amortization of oil and gas properties on the units-of-production  method. Under
this method,  the provision is calculated by multiplying  the total  unamortized
cost of oil and gas properties,  including future development, site restoration,
dismantlement  and abandonment  costs, by an overall  amortization  rate that is
determined  by dividing  the physical  units of oil and gas produced  during the
period  by the  total  estimated  units of proved  oil and gas  reserves  at the
beginning of the period.

         The  calculation  of the "ceiling  limitation"  and the  provision  for
depreciation,  depletion,  and  amortization  is based on  estimates  of  proved
reserves.  There are numerous uncertainties inherent in estimating quantities of
proved  reserves and in projecting  the future rates of  production,  timing and
plan of development.  The accuracy of any reserve  estimate is a function of the
quality of available data and of engineering and geological  interpretation  and
judgment.  Results of drilling, testing and production subsequent to the date of
the  estimate  may  justify  revision  of such  estimate.  Accordingly,  reserve
estimates  are  often  different  from  the  quantities  of oil and gas that are
ultimately recovered.

Statements of Cash Flows --

         Highly liquid debt instruments with an initial maturity of three months
or less are considered to be cash equivalents.

(3) Oil and Gas Capitalized Costs -

         The  following  table sets forth  capital  expenditures  related to the
Partnership's oil and gas operations:

<TABLE>
<CAPTION>
                                                Year Ended December 31,
                                       -----------------------------------------
                                         1996              1995           1994
                                       ---------        ---------       --------
         <S>                           <C>              <C>            <C>      
         Acquisition of
           proved properties           $      --        $      --      $      --

         Development                     123,283          210,980        192,659
                                       ---------         --------       --------
                                       $ 123,283        $ 210,980      $ 192,659
                                       ---------        ---------      ---------
</TABLE>


         All oil and gas  property  acquisitions  are made by Swift on behalf of
the Partnership. The costs of the properties include the purchase price plus any
costs incurred by Swift in the evaluation and acquisition of properties.

         Interest   expense,   presented  in  the  accompanying   statements  of
operations,  includes  amortization  of the discount  recorded on gas  imbalance
liabilities  assumed in  property  acquisitions  ($30,391 in 1995 and $28,053 in
1994).

         During  1996  and  1995,  the  Partnership's  unamortized  oil  and gas
property costs exceeded the quarterly  calculations of the "ceiling  limitation"
resulting in additional provisions for depreciation,  depletion and amortization
of $4,650 and  $773,758,  respectively.  In computing  the  Partnership's  third
quarter 1994 "ceiling  limitation",  the Partnership utilized the product prices
in effect at the date of the  filing of the  Partnership's  report on Form 10-Q.
Utilizing  these  subsequent   prices,   no  write  down  was  required  by  the
Partnership.  The write down would have been $298,948  using  product  prices in
effect at September 30, 1994.


                                      IV-8


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


         In addition,  the limited  partners'  share of unamortized  oil and gas
property  costs exceeded  their  "ceiling  limitation"  in 1995,  resulting in a
valuation  allowance of $646,310.  This amount is included in the income  (loss)
attributable to the limited partners shown in the statement of partners' capital
together with a "combining  adjustment"  for the difference  between the limited
partners' valuation  allowance and the Partnership's  valuation  allowance.  The
"combining   adjustment"   changes   quarterly   as  the   Partnership's   total
depreciation,  depletion  and  amortization  provision  is more or less than the
combined  depreciation,  depletion and  amortization  provision  attributable to
general and limited partners.

(4) Related-Party Transactions -

         An  affiliate  of the  Special  General  Partner,  as  Dealer  Manager,
received   $650,638  for  managing  and   overseeing  the  offering  of  limited
partnership units.

         A  one-time  management  fee of  $650,638  was  paid  Swift in 1987 for
services  performed  for the  Partnership.  During  1996,  1995  and  1994,  the
Partnership paid Swift $223,455, $143,378 and $207,186, respectively, as general
and administrative overhead allowances.

<TABLE>
<CAPTION>
(5)  Note Payable to a Bank -

         Note payable to a bank at December 31, 1996 and 1995 follows:

                                                             1996        1995
                                                           --------    --------
         <S>                                               <C>         <C>  
         Date of current note:   December 29, 1992

         Note payable at 1.25% above the bank's base
          rate (9.75% at December 31, 1995), principal 
          payable in quarterly  installments of $42,669, 
          with the balance due at maturity (January 1, 
          1996), collateralized by partnership assets      $    --     $ 42,669

         Less:   Current portion                                --      (42,669)
                                                           --------    --------

         Long-term portion                                 $    --     $     --
                                                           --------    --------
</TABLE>


         Note was  paid in full at  maturity.  As  provided  by the  Partnership
Agreement,  the note  payable was  obtained  to fund  development  wells.  As of
December 31, 1996, the Partnership had no outstanding note payable to a Bank.

(6) Federal Income Taxes -

         The Partnership is not a tax-paying entity. No provision is made in the
accounts of the Partnership for federal or state income taxes,  since such taxes
are liabilities of the individual partners,  and the amounts thereof depend upon
their respective tax situations.


                                      IV-9


<PAGE>

                    SWIFT ENERGY INCOME PARTNERS 1987-B, LTD.
                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)


         The tax returns and the amount of distributable  Partnership income are
subject to  examination  by the federal  and state  taxing  authorities.  If the
Partnership's  ordinary  income for federal  income tax  purposes is  ultimately
changed by the taxing  authorities,  the tax  liability of the limited  partners
could be changed  accordingly.  Ordinary  income  reported on the  Partnership's
federal  return of income for the years ended  December 31, 1996,  1995 and 1994
was $962,546,  $677,386 and  $1,076,658,  respectively.  The difference  between
ordinary income for federal income tax purposes  reported by the Partnership and
net income or loss  reported  herein  primarily  results  from the  exclusion of
depletion  (as  described   below)  from   ordinary   income   reported  in  the
Partnership's federal return of income.

         For federal  income tax purposes,  depletion with respect to production
of  oil  and  gas  is  computed  separately  by  the  partners  and  not  by the
Partnership.  Since the amount of depletion on the  production of oil and gas is
not  computed  at  the  Partnership  level,  depletion  is not  included  in the
Partnership's  income for federal income tax purposes but is charged directly to
the  partners'  capital  accounts  to the  extent  of the cost of the  leasehold
interests, and thus is treated as a separate item on the partners' Schedule K-1.
Depletion  for  federal  income tax  purposes  may vary from that  computed  for
financial reporting purposes in cases where a ceiling adjustment is recorded, as
such amount is not recognized for tax purposes.

(7) Gas Imbalances -

         The gas imbalance receivable and deferred revenues represent imbalances
assumed as part of property  acquisitions.  The  imbalances are accounted for on
the entitlements  method,  whereby the Partnership records its share of revenue,
based on its entitled amount.  Any amounts over or under the entitled amount are
recorded as an increase or decrease to the gas imbalance  receivable or deferred
revenues as applicable.

(8) Vulnerability Due to Certain Concentrations -

         The Partnership's revenues are primarily the result of sales of its oil
and natural gas  production.  Market prices of oil and natural gas may fluctuate
and adversely affect operating results.

         The Partnership  extends credit to various companies in the oil and gas
industry which results in a concentration of credit risk. This  concentration of
credit risk may be affected by changes in economic or other  conditions  and may
accordingly impact the Partnership's  overall credit risk. However, the Managing
General Partner believes that the risk is mitigated by the size, reputation, and
nature of the companies to which the Partnership  extends  credit.  In addition,
the  Partnership  generally  does not require  collateral  or other  security to
support customer receivables.

(9) Fair Value of Financial Instruments -

         The  Partnership's  financial  instruments  consist  of cash  and  cash
equivalents  and  short-term  receivables  and  payables.  The carrying  amounts
approximate  fair  value  due to the  highly  liquid  nature  of the  short-term
instruments.


                                     IV-10


<PAGE>

                     SWIFT ENERGY INCOME PARTNER 1987-B, LTD

                                   SIGNATURES



Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Registrant  has duly  caused  this report to be signed on its
behalf by the undersigned thereunto duly authorized.


                                             SWIFT ENERGY INCOME
                                             PARTNERS 1987-B, LTD.
                                             (Registrant)

                                    By:      SWIFT ENERGY COMPANY
                                             General Partner

Date:      March 17, 1997           By:      s/b A. Earl Swift
           --------------                    -----------------------------------
                                             A. Earl Swift
                                             President

Date:      March 17, 1997           By:      s/b John R. Alden
           --------------                    -----------------------------------
                                             John R. Alden
                                             Principal Financial Officer

Date:      March 17, 1997           By:      s/b Alton D. Heckaman, Jr.
           --------------                    -----------------------------------
                                             Alton D. Heckaman, Jr.
                                             Principal Accounting Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of the  Registrant and
in the capacities and on the dates indicated.

                                             SWIFT ENERGY INCOME
                                             PARTNERS 1987-B, LTD.
                                             (Registrant)

                                    By:      SWIFT ENERGY COMPANY
                                             General Partner

Date:      March 17, 1997           By:      s/b A. Earl Swift
           --------------                    -----------------------------------
                                             A. Earl Swift
                                             Director and Principal
                                             Executive Officer

Date:      March 17, 1997           By:      s/b Virgil N. Swift
           --------------                    -----------------------------------
                                             Virgil N. Swift
                                             Director and Executive
                                             Vice President - Business
                                             Development


                                     IV-11


<PAGE>

                     SWIFT ENERGY INCOME PARTNER 1987-B, LTD



Date:      March 17, 1997           By:      s/b G. Robert Evans
           --------------                    -----------------------------------
                                             G. Robert Evans
                                             Director
Date:      March 17, 1997           By:      s/b Raymond O. Loen
           --------------                    -----------------------------------
                                             Raymond O. Loen
                                             Director

Date:      March 17, 1997           By:      s/b Henry C. Montgomery
           --------------                    -----------------------------------
                                             Henry C. Montgomery
                                             Director

Date:      March 17, 1997           By:      s/b Clyde W. Smith, Jr.
           --------------                    -----------------------------------
                                             Clyde W. Smith, Jr.
                                             Director

Date:      March 17, 1997           By:      s/b Harold J. Withrow
           --------------                    -----------------------------------
                                             Harold J. Withrow
                                             Director


                                     IV-12