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Penn West Energy Trust

Published : August 08th, 2008

announces its results for the second quarter ended June 30, 2008

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Penn West announces its results for the second quarter ended June 30, 2008

is pleased to announce record funds flow for the second quarter ended June 30,

     Business Strategy

     -   In 2008, Penn West successfully continued its strategy of acquiring
         high quality conventional assets weighted to light oil with potential
         for future exploitation using new completions technology and enhanced
         oil recovery. Including the Petrofund acquisition in June 2006 and
         the Vault and Canetic acquisitions in January 2008, Penn West
         acquired in excess of 424 million barrels of proved plus probable
         reserves weighted approximately 60 percent to light oil for
         $9.6 billion, of which over 70 percent was funded by the issue of
         equity. The economics of these acquisitions were considered using
         benchmark average WTI oil prices of approximately US$70.00 per barrel
         and average AECO natural gas prices of approximately $6.50 per GJ. In
         part to protect the economics associated with these transactions,
         hedges on oil and natural gas prices were entered on a portion of
         production. This strategy, coupled with the substantial increases in
         oil and natural gas prices to date in 2008, has led to record funds
         flow(1) and substantial increases to Penn West's net asset value(1).
         Approximately 60 percent of our second half 2008 production,
         75 percent of our 2009 production and 95 percent of our 2010
         production remains unhedged.

     Business Environment

     -   Crude oil prices remained strong throughout the second quarter of
         2008. NYMEX WTI crude oil prices increased in the second quarter to
         average US$124.00 per barrel compared to US$97.95 per barrel in the
         first quarter of 2008 and US$65.02 per barrel in the second quarter
         of 2007. Energy demand in the Middle East, Russia and Asia remains
         high and it is expected that the demand growth over the next few
         years will be at rates higher than the growth in supply.
     -   Natural gas prices also increased significantly in the first six
         months of 2008. The AECO Monthly Index averaged $8.86 per GJ in the
         second quarter compared to $6.75 per GJ in the first quarter of this
         year and $6.99 per GJ in the second quarter of last year. Increases
         in demand in both Europe and Asia resulted in reduced LNG exports to
         the U.S. which reduced supply. Offsetting this was high drilling
         activity in several large unconventional shale gas plays and new
         production predominately from the U.S. Rockies.


     -   Record funds flow of $753 million in the second quarter of 2008 was
         131 percent higher than the $326 million realized in the second
         quarter of 2007. On a per unit-basis(1) funds flow increased to
         $2.00 per unit-basic in the second quarter of 2008, an increase of
         46 percent from $1.37 per unit-basic in the second quarter of 2007.
     -   The net loss in the second quarter of 2008 was $323 million ($0.86
         per unit-basic) compared to a net loss of $186 million ($0.77 per
         unit-basic) in the second quarter of 2007 due to non-cash charges
         related to risk management activities in the 2008 period of
         $837 million and the non-cash charge of $326 million related to the
         enactment of the SIFT tax in the 2007 period. Penn West hedged a
         portion of its production to protect our balance sheet as well as
         planned distribution and capital programs.
     -   The netback(1) of $47.84 per boe(2) in the second quarter of 2008
         was 52 percent higher than the second quarter of 2007.

     (1) The terms "funds flow", "funds flow per unit-basic", "net asset
         value" and "netbacks" are non-GAAP measures. Please see "Non-GAAP
         Measures Advisory" and "Calculation of Funds Flow" below.
     (2) Please see "Oil and Gas Information Advisory" below for information
         regarding the term "boe".


     -   Production averaged 190,515 boe per day in the second quarter of 2008
         compared to 126,599 boe per day reported in the second quarter of
         2007. Production in the quarter was negatively impacted by
         approximately 8,000 boe per day due to the Spectra McMahon
         turnaround, other processing facility turnarounds and interruptions
         of a temporary nature.
     -   Reported crude oil and NGL production averaged 109,417 barrels per
         day and natural gas production averaged approximately 487 mmcf per
         day in the second quarter of 2008.
     -   Capital expenditures were $247 million in the second quarter of 2008
         including $16 million of net asset acquisitions. A total of 23 net
         wells were drilled with a success rate of 91 percent.


     -   Penn West's Board of Directors recently resolved to keep the Trust's
         distribution level at $0.34 per unit per month for the months of
         August, September and October subject to maintenance of current
         forecasts of commodity prices, production levels and planned capital

     Endev Acquisition

     -   On July 22, 2008, Penn West announced the closing of the acquisition
         of Endev Energy Inc. ("Endev"). The acquisition is expected to add
         approximately 3,500 boe per day weighted approximately 78 percent to
         natural gas and 22 percent to liquids. The assets acquired enhance
         existing Penn West operations, most notably in southeast Alberta, and
         also add approximately 100,000 net undeveloped acres of land.

     Regulatory Update

     -   The new royalty framework continues to be under review with the
         objective of avoiding "unintended consequences" of the plan. In June
         2008, the Government of Alberta discussed the possibility of further
         changes to the royalty framework, however, no specific items were
         identified and no timeframe for future changes was announced.
     -   In July 2008, the Alberta government announced that it will create a
         $2 billion fund to advance carbon capture and storage (CCS) projects
         in the province. Alberta has issued a request for expressions of
         interest in CCS projects. The intent of the request is to identify
         projects with the greatest potential of being built quickly and
         capable of having a significant impact on reducing greenhouse gas


     -   On May 29, 2008, Penn West Petroleum Ltd. (the "Company") closed the
         issuance of US$480 million and CAD$30 million of senior unsecured
         notes on a private placement basis, primarily in the United States,
         maturing in eight to 12 years and bearing interest at 6.12 percent to
         6.40 percent with an average rate of approximately 6.25 percent. The
         Company used the proceeds to repay advances on its bank facilities.
     -   In June 2008, the Company completed all requirements to enable the
         sale of trust units by way of "at-the-market distributions" on both
         the TSX and the NYSE. Penn West may issue and sell up to 20,000,000
         trust units at its discretion during a period of up to 25 months. The
         net proceeds from the sale of trust units issued under the facility,
         if any, will be used to repay debt or fund future growth
         opportunities. To date, no trust units have been issued under the
     -   On July 31, 2008, the Company issued 57 million pounds sterling of
         senior unsecured notes, through a private placement in the United
         Kingdom, maturing in 2018 and bearing interest of 7.78 percent. In
         conjunction with the issue of the notes, the Company entered into
         contracts to swap the principal of the placement to approximately
         $114 million bearing interest in Canadian dollars at 6.95 percent.
         The Company used the proceeds to repay advances on its bank


     -   At Penn West's Annual General Meeting on June 2, 2008, our
         unitholders approved resolutions including the addition of Jack
         Schanck as a director. Mr. Schanck, a geologist, brings to Penn
         West's Board over 30 years of U.S. and Canadian oil and gas
         experience including roles as President, Executive VP of Worldwide
         Exploration and other executive positions at Unocal and other

                               Three months ended            Six months ended
                                    June 30                       June 30
                                              %                          %
                            2008      2007  change     2008      2007  change
      (millions, except
       per unit amounts)

     Gross revenues(1)   $ 1,312   $   608    116   $ 2,448   $ 1,190    106
     Funds flow              753       326    131     1,385       637    117
       Basic per unit       2.00      1.37     46      3.77      2.68     41
       Diluted per unit     1.98      1.35     47      3.74      2.65     41
     Net loss               (323)     (186)   (74)     (245)      (90)  (172)
       Basic per unit      (0.86)    (0.77)   (12)    (0.67)    (0.37)   (81)
       Diluted per unit    (0.86)    (0.77)   (12)    (0.67)    (0.37)   (81)
     Capital expenditures,
      net(2)                 247       484    (49)      525       700    (25)
     Long-term debt at
      period-end           3,683     1,823    102     3,683     1,823    102
      debentures(3)          334         -    100       334         -    100
      paid(4)            $   383   $   243     58   $   720   $   485     48


     Daily production
       Natural gas
        (mmcf/d)             487       334     46       493       337     46
       Light oil and
        NGL (bbls/d)      81,957    49,635     65    81,818    49,372     66
       Heavy oil
        (bbls/d)          27,460    21,288     29    27,399    21,945     25
     Total production
      (boe/d)            190,515   126,599     50   191,403   127,518     50
     Average sales
       Natural gas
        (per mcf)        $ 10.20   $  7.55     35   $  9.08   $  7.57     20
       Light oil and
        NGL (per bbl)     111.88     65.24     71    100.34     62.39     61
       Heavy oil
        (per bbl)          93.12     42.45    119     79.91     41.73     91

     Netback per boe
       Sales price       $ 87.60   $ 52.63     66   $ 77.71   $ 51.35     51
       Risk management
        (loss) gain       (12.01)     0.03   (100)    (7.69)     0.16   (100)
       Net sales price     75.59     52.66     44     70.02     51.51     36
       Royalties           15.35      9.82     56     13.79      9.72     42
       Operating expenses  11.91     10.94      9     11.77     10.82      9
       Transportation       0.49      0.52     (6)     0.49      0.53     (8)
       Netback           $ 47.84   $ 31.38     52   $ 43.97   $ 30.44     44

     (1) Gross revenues include realized gains and losses on commodity
     (2) Excludes business combinations.
     (3) Assumed on the Canetic and Vault acquisitions at period-end.
     (4) Includes distributions paid prior to those reinvested in trust units
         under the distribution reinvestment plan.


                               Three months ended           Six months ended
                                    June 30                     June 30
                              2008          2007           2008          2007
                       Gross   Net   Gross   Net   Gross    Net   Gross   Net
     Natural gas          24    10       5     3     105     52      54    25
     Oil                  26    10      24     8     104     56      77    44
     Dry                   2     2       1     1       6      6       5     4
                          52    22      30    12     215    114     136    73
      and service          3     1       4     1      26     24      19    15
     Total                55    23      34    13     241    138     155    88
     Success rate(1)           91%           92%            95%           95%
     (1) Success rate is calculated excluding stratigraphic and service wells.


                                                                As at June 30
                                                   2008       2007   % change
     Gross acres (000s)                           4,466      3,969         13
     Net acres (000s)                             3,612      3,470          4
     Average working interest                       81%        87%         (7)


                                     Three months ended      Six months ended
                                           June 30                June 30
                                        2008       2007       2008       2007
     Wells drilled on farm-out
      lands(1)                            46         16         79        106
     (1) Wells drilled on Penn West lands, including re-completions and re-
         entries, by independent operators pursuant to farm-out agreements.


                             Net wells drilled for           Undeveloped land
                              the six months ended        as at June 30, 2008
     Core Area                       June 30, 2008    (thousands of net acres)
     Gas                                        42                      1,682
     Light oil                                  34                        754
     Heavy oil                                  62                      1,176
                                               138                      3,612


                               Three months ended            Six months ended
                                    June 30                       June 30
                                              %                          %
     (millions of units)    2008      2007  change     2008      2007  change
     Weighted average
       Basic               376.2     239.0      57    367.9     238.0      55
       Diluted             380.2     241.5      57    370.7     240.3      54
     Outstanding as at
      June 30                                         377.6     239.2      58

     On January 11, 2008, Penn West issued approximately 124.3 million trust
units on the closing of the Canetic acquisition and on January 10, 2008, Penn
West issued approximately 5.6 million trust units on the closing of the Vault

                           Letter to our Unitholders

     During the second quarter of 2008, Penn West's efforts focused on the
successful execution of our 2008 capital exploration and development program,
the integration of the Canetic Resources assets into Penn West, and the
advancement of a number of our resource plays and enhanced oil recovery
projects. We believe that Penn West has an excellent inventory of projects
that will add significant value in the future.
     Penn West recorded the highest funds flow in its history in the second
quarter of 2008 at $753 million (or $2.00 per unit-basic). Second quarter
funds flow was up 131 percent over the second quarter of 2007 when funds flow
totaled $326 million ($1.37 per unit-basic). For the full-year, we forecast
funds flow between $2.8 billion and $3.0 billion ($7.40 to $7.90 per
unit-basic) with forecasted pro forma production unchanged at between 195,000
and 205,000 barrels of oil equivalent (boe) per day. Subject to this forecast
funds flow and capital expenditures, our Board of Directors recently resolved
to maintain our distributions at $0.34 per unit per month for the next three
months. We believe that the current pricing environment presents Penn West
with the opportunity to reduce a portion of the debt which was assumed in the
Canetic and Petrofund acquisitions. This strategy of prudent debt management
will provide improved future capability to expand our project inventory
through timely and selective strategic initiatives, including the development
of new play areas, acquisitions and the application of new technologies.
     As part of our balance sheet maintenance, we've taken steps to diversify
our capital structure. This was achieved through the issuance of the
previously announced US$480 million and CAD$30 million unsecured notes with
fixed terms ranging from eight to 12 years. Subsequent to the close of the
quarter we successfully closed an additional offering of CAD$114 million of
privately placed 10-year term unsecured notes in the United Kingdom. The
proceeds of these notes were used to repay a portion of Penn West's
outstanding bank debt under its credit facilities. Also during the second
quarter, Penn West completed all regulatory requirements to enable the sale of
trust units by way of "at-the-market distributions" on both the TSX and the
NYSE. This provides Penn West additional financing flexibility for the next
two years by allowing us to raise limited amounts of equity in the markets at
timing favourable to the Trust.
     Our corporate netbacks rose in the second quarter to $47.84 per boe, an
increase of more than 52 percent over the second quarter of 2007 and
18 percent over the first quarter of 2008. While realized hedging losses were
$12.01 per boe for the second quarter of 2008 compared to a slight gain in the
comparative 2007 period, we remain 60 percent unhedged through the end of
2008. This provides us with significant exposure to spot market pricing on an
ongoing basis. We believe an active hedging program plays an important role in
the overall financial management of Penn West and that these contracts provide
us greater certainty with respect to future distributions, capital spending
and acquisition economics. Accordingly, we will continue to manage our
exposure to downside commodity price risk through the purchase of financial
contracts while also positioning to retain upside price potential on a
majority of our production.
     Production volumes during the second quarter averaged 190,515 boe per day
compared to 192,291 boe per day in the first quarter of 2008 and 126,599 boe
per day in the second quarter of 2007. The difference in production volumes
from the first quarter of 2008 is due primarily to maintenance and turnaround
outages which normally peak for our industry in the second quarter. Penn West
remains on target to achieve our full-year average pro forma production target
of between 195,000 and 205,000 boe per day.
     Penn West's capital program is on track to invest approximately
$1 billion in 2008. In the second quarter, we spent $247 million on a variety
of exploration, development and enhanced recovery projects. Through the second
quarter 23 net wells (138 net wells year-to-date 2008) were drilled with
approximately half of the wells being oil and half natural gas with a drilling
success rate of 91 percent. We spent $98 million to date in 2008 acquiring
select acreage as part of our broader resource play strategy. Penn West had
approximately 3.6 million net acres of undeveloped land at the end of the
second quarter. As part of being a responsible steward of the environment, we
spent $37 million on environmental clean-up and reclamation initiatives in the
first six months of 2008. We have successfully executed on our development
plans despite earlier wet weather slowdowns and we are very encouraged by our
results to date. We maintain our strategy of selectively evaluating
acquisitions which we feel will add both near and long-term value for
unitholders while we continue to evaluate our portfolio of properties and look
to rationalize our extensive asset base.
     In July 2008, we closed the acquisition of Endev Energy Inc. adding
approximately 3,500 boe per day of mostly natural gas-weighted assets and some
100,000 net acres of undeveloped land to our portfolio of producing oil and
natural gas properties. The deal was valued at approximately $160 million and
provides additional consolidation of assets for Penn West in our Plains
natural gas area.
     Recently the Government of Alberta announced their commitment of
$2 billion to assist in the funding of carbon capture and storage (CCS)
projects as part of a broader mandate to address greenhouse gas emissions. The
Alberta Carbon Capture and Storage Development Council was formed earlier this
year and is a joint committee representing industry, academia and government.
The mandate of this council is to develop Alberta's implementation plan to
move ahead with CCS projects in Alberta by the fall of 2008. Penn West is
represented on this council by Penn West's Chief Executive Officer, Bill
Andrew. Penn West is an industry leader in CO(2) enhanced oil recovery (EOR)
technology across Western Canada. Our industry-leading CO(2) EOR technology
combined with our dominant position in large legacy oil fields plus our
financial capacity to execute these projects makes us a natural partner for
emitters and the government to develop large-scale commercial CCS projects.
During the second quarter, we began injecting CO(2) at our South Swan Hills
CO (2) pilot; additionally, we began production from our two horizontal wells
at our expanded Pembina CO(2) project. Discussions are ongoing with several
emitters and provincial governments in both Saskatchewan and Alberta as we
continue to seek a long-term CO(2) source for our portfolio of proposed
commercial EOR projects.
     In the volatile North American capital markets, we continue to see a
significant disconnect between the inherent value represented in Penn West
units and the value of our units in the market. The markets continue to
experience weakness resulting from general cynicism over the state of the U.S.
economy, weak results in the financial sector and continued fallout from the
decline in the U.S. housing market. The malaise has spread to a wider market
presence evidenced by weakness in sectors showing strong results, such as the
oil and gas industry. We are confident that our efforts both near and
long-term will be recognized by the markets.
     We believe Penn West is well-positioned to reduce debt, push forward with
an expanding suite of conventional development, resource plays and enhanced
oil recovery projects. Our financial position remains strong and we are well
on our way to achieving another successful year in 2008.
     On a final note, we wish to welcome Mr. Jeff Collins to the role of Vice
President, Corporate Development and Strategic Planning; Ms. Wendy Henkelman,
Vice President, Treasury and Compliance; and Mr. Jeff Curran, Vice President,
Accounting and Reporting. All these individuals bring extensive senior
management experience to Penn West. We look forward to the positive impacts
which Mr. Collins, Ms. Henkelman, and Mr. Curran will bring to our Penn West

     On behalf of the Board of Directors,

     (signed) "William E. Andrew"         (signed) "Murray R. Nunns"

     William E. Andrew                    Murray R. Nunns
     Chief Executive Officer and          President and Chief Operating
     Director                             Officer

     Calgary, Alberta
     August 6, 2008


     This outlook section is included to provide unitholders with information
as to management's expectations as at August 6, 2008 for production, funds
flow and net capital expenditures for 2008 and readers are cautioned that the
information may not be appropriate for any other purpose. This information
constitutes forward-looking information. Readers should note the assumptions,
risks and disclaimers under "Forward-Looking Statements".
     Oil prices reached record levels during the second quarter of 2008 and
the outlook for natural gas prices remains positive resulting in high
forecasted prices throughout 2008 for both commodities. We continue to expect
a strong Canadian dollar compared to the U.S. dollar for the remainder of
     Including the Canetic, Vault and Endev acquisitions, Penn West continues
to forecast pro forma production between 195,000 boe per day and 205,000 boe
per day for 2008. Based on a 2008 average forecast WTI oil price of US$118.43
per barrel, a 2008 average natural gas price at AECO of $8.43 per GJ and an
average CAD/USD exchange rate of par for 2008, our funds flow forecast for
2008, as at August 6, 2008, is between $2.8 billion and $3.0 billion ($7.40 to
$7.90 per unit-basic). Excluding corporate acquisitions, our forecast 2008
capital expenditures are unchanged at approximately $1.0 billion. In addition,
other components of funds flow have been modestly adjusted to reflect
experience gained to date in 2008.
     Our prior forecast, released on May 6, 2008 with our first quarter 2008
results and filed on SEDAR at, was also based on 2008 capital
expenditures (excluding corporate acquisitions) of approximately $1.0 billion
and pro forma production between 195,000 boe per day and 205,000 boe per day.
At that time, we forecasted a 2008 oil price of WTI US$107.00 per barrel, an
AECO natural gas price of $8.50 per GJ and a CAD/USD exchange rate of par.
Based on these assumptions, we forecasted funds flow between $2.7 billion and
$2.9 billion ($7.15 to $7.70 per unit-basic).

     Financial Exposure to SemGroup, L.P. Creditor Protection Program

     Penn West had contracts to deliver a small portion of its oil production
to subsidiary companies of SemGroup L.P. who recently announced (on July 22,
2008) they are seeking creditor protection in both Canada and the U.S. Penn
West estimates its maximum exposure to the financial difficulties of these
companies to be $16 million for the June 1, 2008 to July 22, 2008 period. The
collectability of these amounts is uncertain however the amount is not
material to Penn West's financial position. Deliveries in Canada subsequent to
July 22, 2008 and in the U.S. subsequent to August 1, 2008 will be on prepaid

     Non-GAAP Measures Advisory

     The above information includes non-GAAP measures not defined under
generally accepted accounting principles ("GAAP"), including funds flow,
netback, net asset value and payout ratio. Non-GAAP measures do not have any
standardized meaning prescribed by GAAP and are therefore unlikely to be
comparable to similar measures presented by other issuers. Funds flow is cash
flow from operating activities before changes in non-cash working capital and
asset retirement expenditures. Funds flow is used to assess the ability to
fund distributions and planned capital programs. Netback or netbacks is a
per-unit-of-production measure of operating margin used in capital allocation
decisions. Operating margin is calculated as revenue less royalties and
operating costs. Net asset value is defined as discounted future reserve value
less any outstanding debt. Payout ratio represents distributions divided by
funds flow and is used to assess the adequacy of funds flow remaining to fund
capital programs.

     Calculation of Funds Flow

                                      Three months ended     Six months ended
                                            June 30               June 30
     (millions, except per
      unit amounts)                     2008       2007       2008       2007
     Cash flow from operating
      activities                    $    671   $    318   $  1,038   $    614
     Increase in non-cash
      working capital                     59          -        310          5
     Asset retirement expenditures        23          8         37         18
     Funds flow                     $    753   $    326   $  1,385   $    637

     Basic per unit                 $   2.00   $   1.37   $   3.77   $   2.68
     Diluted per unit               $   1.98   $   1.35   $   3.74   $   2.65

     Oil and Gas Information Advisory

     Barrels of oil equivalent (boe) are based on six mcf of natural gas
equalling one barrel of oil (6:1). This could be misleading if used in
isolation as it is based on an energy equivalency conversion method primarily
applied at the burner tip and does not represent a value equivalency at the

     Forward-Looking Statements

     Certain statements contained in this document constitute forward-looking
statements or information (collectively "forward-looking statements") within
the meaning of the "safe harbour" provisions of applicable securities
legislation. Forward-looking statements are typically identified by words such
as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will",
"project", "could", "plan", "intend", "should", "believe", "outlook",
"potential", "target" and similar words suggesting future events or future
performance. In addition, statements relating to "reserves" or "resources" are
deemed to be forward-looking statements as they involve the implied
assessment, based on certain estimates and assumptions, that the reserves and
resources described exist in the quantities predicted or estimated and can be
profitably produced in the future. In particular, this document contains
forward-looking statements pertaining to, without limitation, the following:
future distribution levels; the benefits anticipated to be derived from the
acquisition of Endev; the quality of our project inventory and our ability to
add value exploiting that inventory; the information set forth under the
heading "Outlook" and elsewhere herein regarding management's current
expectations as to commodity prices, U.S./Canadian dollar exchange rates,
production volumes, funds flow and net capital expenditures for 2008; our
intention to reduce our debt levels and the benefits anticipated to be derived
therefrom; our commodity hedging strategy and the benefits anticipated to be
derived therefrom; our business strategy as it relates to acquisitions and the
rationalization of our asset base; our intention to pursue CCS projects; the
recognition by the markets of our near and long-term activities; the nature
and quality of our assets and our ability to successfully develop those
assets; the long-term exploration, development and enhanced oil recovery
potential of our conventional and unconventional projects; and the extent of
our financial exposure to losses as a result of SemGroup, L.P. entering into
creditor protection.
     With respect to forward-looking statements contained in this document, we
have made assumptions regarding, among other things: future oil and natural
gas prices and differentials between light, medium and heavy oil prices;
future capital expenditure levels; future oil and natural gas production
levels; future exchange rates; the amount of future cash distributions that we
intend to pay; the cost of expanding our property holdings; our ability to
obtain equipment in a timely manner to carry out development activities; our
ability to market our oil and natural gas successfully to current and new
customers; the impact of increasing competition; our ability to obtain
financing on acceptable terms; and our ability to maintain existing production
levels and add production and reserves through our development and
exploitation activities.
     Although Penn West believes that the expectations reflected in the
forward-looking statements contained in this document, and the assumptions on
which such forward-looking statements are made, are reasonable, there can be
no assurance that such expectations will prove to be correct. Readers are
cautioned not to place undue reliance on forward-looking statements included
in this document, as there can be no assurance that the plans, intentions or
expectations upon which the forward-looking statements are based will occur.
By their nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties that contribute to the possibility
that the predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause Penn West's actual performance and
financial results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include, among other
things: volatility in market prices for oil and natural gas; the impact of
weather conditions on seasonal demand and ability to execute capital programs;
risks inherent in oil and natural gas operations; uncertainties associated
with estimating reserves and resources; competition for, among other things,
capital, acquisitions of reserves, resources, undeveloped lands and skilled
personnel; incorrect assessments of the value of acquisitions; geological,
technical, drilling and processing problems; general economic conditions in
Canada, the U.S. and globally; industry conditions, including fluctuations in
the price of oil and natural gas; royalties payable in respect of our oil and
natural gas production; changes in government regulation of the oil and
natural gas industry, including environmental regulation; fluctuations in
foreign exchange or interest rates; unanticipated operating events that can
reduce production or cause production to be shut-in or delayed; failure to
obtain industry partner and other third-party consents and approvals when
required; stock market volatility and market valuations; OPEC's ability to
control production and balance global supply and demand of crude oil at
desired price levels; political uncertainty, including the risks of
hostilities, in the petroleum producing regions of the world; the need to
obtain required approvals from regulatory authorities from time to time;
failure to realize the anticipated benefits of acquisitions, including the
acquisition of Vault Energy Trust, Canetic Resources Trust and Endev Energy
Inc.; changes in tax laws; changes in the Alberta royalty framework;
uncertainty of obtaining required approvals for acquisitions and mergers; and
the other factors described in Penn West's public filings (including our
Annual Information Form) available in Canada at and in the
United States at Readers are cautioned that this list of risk
factors should not be construed as exhaustive.
     The forward-looking statements contained in this document speak only as
of the date of this document. Except as expressly required by applicable
securities laws, Penn West does not undertake any obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. The forward-looking statements
contained in this document are expressly qualified by this cautionary

                            Penn West Energy Trust
                          Consolidated Balance Sheets

     (CAD millions, unaudited)            June 30, 2008     December 31, 2007

       Accounts receivable                $         686     $             277
       Future income taxes                          238                    45
       Other                                         71                    46
                                                    995                   368
     Property, plant and equipment               12,497                 7,413
     Goodwill                                     1,999                   652
                                                 14,496                 8,065
                                          $      15,491     $           8,433

     Liabilities and unitholders' equity
       Accounts payable and accrued
        liabilities                       $         707     $             359
       Distributions payable                        128                    82
       Risk management                              930                   148
       Convertible debentures                         5                     -
                                                  1,770                   589
     Long-term debt                               3,683                 1,943
     Convertible debentures                         329                     -
     Risk management                                308                     -
     Asset retirement obligations                   614                   413
     Future income taxes                          1,344                   918
                                                  8,048                 3,863
     Unitholders' equity
     Unitholders' capital                         7,743                 3,877
     Contributed surplus                             53                    35
     Retained earnings (deficit)                   (353)                  658
                                                  7,443                 4,570
                                          $      15,491     $           8,433

                            Penn West Energy Trust
     Consolidated Statements of Operations and Retained Earnings (Deficit)

                                     Three months ended      Six months ended
                                           June 30               June 30
     (CAD millions, except per
      unit amounts, unaudited)          2008       2007       2008       2007

       Oil and natural gas          $  1,520   $    608   $  2,716   $  1,187
       Royalties                        (267)      (113)      (481)      (224)
                                       1,253        495      2,235        963

       Risk management (loss) gain
         Realized                       (208)         -       (268)         3
         Unrealized                     (837)         5     (1,030)       (30)
                                         208        500        937        936

       Operating                         210        127        415        252
       Transportation                      9          6         17         12
       General and administrative         36         16         71         34
       Financing                          48         25        100         41
       Depletion, depreciation and
        accretion                        394        218        790        433
       Risk management (gain) loss
        - unrealized                       -         (1)        (7)         3
       Unrealized foreign exchange
        loss (gain)                       10         (4)        27         (4)
                                         707        387      1,413        771
     Income (loss) before taxes         (499)       113       (476)       165

       Future income tax (reduction)
        expense                         (176)       299       (231)       255
                                        (176)       299       (231)       255

     Net loss and comprehensive
      loss                          $   (323)  $   (186)  $   (245)  $    (90)

     Retained earnings, beginning
      of period                     $    354   $  1,314   $    658   $  1,460
       Distributions declared           (384)      (243)      (766)      (485)
     Retained earnings (deficit),
      end of period                 $   (353)  $    885   $   (353)  $    885

     Net loss per unit
       Basic                        $  (0.86)  $  (0.77)  $  (0.67)  $  (0.37)
       Diluted                      $  (0.86)  $  (0.77)  $  (0.67)  $  (0.37)
     Weighted average units
      outstanding (millions)
       Basic                           376.2      239.0      367.9      238.0
       Diluted                         376.2      239.0      367.9      238.0

                            Penn West Energy Trust
                     Consolidated Statements of Cash Flows

                                     Three months ended      Six months ended
                                           June 30               June 30
     (CAD millions, unaudited)          2008       2007       2008       2007

     Operating activities
       Net loss                     $   (323)  $   (186)  $   (245)  $    (90)
       Depletion, depreciation and
        accretion                        394        218        790        433
       Future income tax (reduction)
        expense                         (176)       299       (231)       255
       Unit-based compensation            11          5         21         10
       Risk management                   837         (6)     1,023         33
       Unrealized foreign exchange
        loss (gain)                       10         (4)        27         (4)
       Asset retirement expenditures     (23)        (8)       (37)       (18)
       Change in non-cash working
        capital                          (59)         -       (310)        (5)
                                         671        318      1,038        614

     Investing activities
       Acquisition of property,
        plant and equipment              (16)      (360)       (17)      (416)
       Disposition of property,
        plant and equipment                -          9          5         48
       Additions to property, plant
        and equipment                   (231)      (133)      (513)      (332)
       Canetic and Vault acquisition
        costs                              -          -        (28)         -
       Change in non-cash working
        capital                         (147)       (52)       (27)       (36)
                                        (394)      (536)      (580)      (736)

     Financing activities
       Proceeds from issuance of
        notes                            505        509        505        509
       Redemption of convertible
        debentures                         -          -        (24)         -
       Repayment of Canetic and
        Vault credit facilities            -          -     (1,557)         -
       (Decrease) increase in bank
        loan                            (471)       (84)     1,208         33
       Issue of equity                    24         12         37         18
       Distributions paid               (335)      (219)      (627)      (438)
                                        (277)       218       (458)       122

     Change in cash                        -          -          -          -
     Cash, beginning of period             -          -          -          -
     Cash, end of period            $      -   $      -   $      -   $      -

     Interest paid                  $     66   $     25   $     92   $     38
     Income taxes paid              $      5   $      5   $      6   $      5

                              Investor Information

     Penn West trust units and debentures are listed on the Toronto Stock
Exchange under the symbols PWT.UN, PWT.DB.A, PWT.DB.B, PWT.DB.C, PWT.DB.D,
PWT.DB.E and PWT.DB.F and Penn West trust units are listed on the New York
Stock Exchange under the symbol PWE.

     A conference call will be held to discuss Penn West's results at
9:00 a.m. Mountain Daylight Time, 11:00 a.m. Eastern Daylight Time, on
August 8, 2008. The North American conference call number is 800-731-5774
toll-free or 416-644-3419 in the Toronto area. A taped recording will be
available until August 15, 2008 by dialing 877-289-8525 or 416-640-1917 and
entering pass code 21276122 followed by the pound sign. This call will be
broadcast live on the Internet and may be accessed directly on the Penn West
website or at the following URL:

     Penn West expects to file its Management's Discussion and Analysis and
unaudited interim consolidated financial statements on SEDAR and EDGAR

     %SEDAR: 00022266E
     %CIK: 0001334388
For further information: PENN WEST ENERGY TRUST, Suite 200, 207 - Ninth Avenue
S.W., Calgary, Alberta, T2P 1K3, Phone: (403) 777-2500, Fax: (403) 777-2699,
Toll Free: 1-866-693-2707, Website:; Investor Relations: Toll
Free: 1-888-770-2633, E-mail:; William
Andrew, CEO, Phone: (403) 777-2502, E-mail:; Jason
Fleury, Manager, Investor Relations, Phone: (403) 539-6343, E-mail:

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Penn West Energy Trust

ISIN : CA7078871059
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Projects & res.
Asset profile
Contact Cpy

Penn West Energy Trust is a and oil producing company based in Canada.

Penn West Energy Trust holds various exploration projects in Canada.

Its main exploration property is SWAN HILLS in Canada.

Penn West Energy Trust is listed in United States of America. Its market capitalisation is US$ 80.7 millions as of today (€ 73.8 millions).

Its stock quote reached its highest recent level on May 29, 2009 at US$ 9.98, and its lowest recent point on April 01, 2020 at US$ 0.15.

Penn West Energy Trust has 504 340 988 shares outstanding.

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Financings of Penn West Energy Trust
12/1/2011confirms closing of its private placement of notes and provi...
7/16/2008announces the pricing of a proposed private placement of Not...
5/30/2008Confirms the Closing Of Its Private Placement of Notes
6/1/2007confirms the closing of the private placement of notes
Nominations of Penn West Energy Trust
6/5/2013announces appointment of new President and Chief Executive O...
Financials of Penn West Energy Trust
5/16/2016Announces its Financial and Operational Results for the Firs...
11/5/2015Announces its Financial and Operational Results for the Thir...
7/30/2015Announces Its Financial And Operational Results For The Seco...
1/21/2014Provides Fourth Quarter, 2013 Operational Update and Announc...
11/6/2013Announces its Financial Results for the Third Quarter Ended ...
11/5/2009Announces Its Results for the Third Quarter Ended September ...
8/12/2009Results for the Second Quarter Ended June 30, 2009
2/19/2009announces its results for the fourth quarter ended December ...
1/29/2009announces an executive appointment and provides a fourth qua...
8/8/2008announces its results for the second quarter ended June 30, ...
5/13/2008Files its 2008 First Quarter Financial Statements
5/7/2008Announces its results for the first quarter ended March 31, ...
2/22/2008announces fourth quarter and year end results
5/7/2007announces first quarter results
Project news of Penn West Energy Trust
4/18/2016Announces the Closing of the Sale of Slave Point and Non-cor...
10/1/20156:32 am Penn West Energy agrees to sell its non-operated 9.5...
9/3/2013Exploration to Participate in Upcoming Conferences
8/23/2013Exploration Announces Employee Reductions
6/24/2013Exploration Issues Statement Regarding Produced Water Releas...
6/6/2013Exploration Announces Voting Results from the 2013 Annual an...
5/6/2013Exploration announces the appointments of Mr. Rick George as...
3/14/2013Exploration Confirms Filing of its 2012 Year End Disclosure ...
1/10/2013Exploration announces its 2013 capital budget
10/17/2012s Asset Dispositions and Results of Contingent Resources Stu...
6/15/2012Exploration Announces Renewal of Its Bank Facility
3/16/2012Exploration Confirms Filing of its 2011 Year End Documents
Corporate news of Penn West Energy Trust
7/27/2016Penn West Announces Conference Call Details to Discuss its R...
7/4/2016Regains Compliance with the New York Stock Exchange's Contin...
7/4/2016Penn West Regains Compliance with the New York Stock Exchang...
6/24/2016Penn West Announces the Closing of the Sale of Its Saskatche...
6/23/2016Penn West Announces Voting Results From the 2016 Annual and ...
6/21/2016Penn West Announces Competition Act Clearance to Complete Sa...
6/16/2016Penn West Announces Annual and Special Meeting of Shareholde...
6/10/2016Penn West Announces $1.1 Billion In Asset Sales, Including T...
5/16/2016Penn West Announces its Financial and Operational Results fo...
5/16/2016Penn West reports 1Q loss
5/3/2016Penn West Announces Conference Call Details To Discuss Its R...
4/18/2016Penn West Announces the Closing of the Sale of Slave Point a...
3/21/2016Penn West Announces the Sale of Slave Point and Non-core Ass...
3/10/2016Penn West reports 4Q loss
1/28/2016Penn West Announces Operational Update, 2016 Capital Budget ...
1/5/2016Penn West Receives Continued Listing Standard Notification F...
1/5/20166:32 am Penn West Energy receives non-compliance notice from...
12/23/2015Where Opportunity is Found - Research Reports on Xueda Educa...
11/28/2015Investors Are Losing Confidence In Black Box Corporation (BB...
11/25/2015Is Credit Suisse High Yield Bond Fund (ETF) (DHY) A Good Sto...
11/5/2015Penn West reports 3Q loss
11/5/2015Penn West says asset sales will help maintain debt covenant
11/5/20156:43 am Penn West Energy beats by $0.26, beats on revs
11/5/2015Penn West Announces its Financial and Operational Results fo...
10/1/2015Penn West Announces The Sale Of Its Non-Operated 9.5% Workin...
9/15/2015Penn West announces sale of Mitsue properties for $192.5 mil...
9/10/2015SolarEdge Technologies, Compania de Minas Buenaventura, Cres...
9/9/2015Caught by Oil's Steep Fall, Canadian Producers Cut Dividend
9/8/2015Penn West Receives Continued Listing Standard Notification F...
9/1/2015Penn West, ConocoPhillips cut combined 900 jobs in Canada
9/1/2015Penn West Petroleum lowers capex, suspends dividend, to cut ...
9/1/2015Penn West Announces Further Actions In Response To Current C...
7/30/2015Penn West Announces 2015 Third Quarter Dividend
7/30/2015Penn West Announces Its Financial And Operational Results Fo...
7/30/2015Penn West reports 2Q loss
7/23/2015Penn West Announces Conference Call Details To Discuss Its R...
4/22/2015Penn West Announces Conference Call Details To Discuss Its R...
4/15/2015Canada Stocks to Watch: Penn West, Freehold, Ballard and mor...
4/14/2015Canada's Penn West to sell land, royalties to Freehold for C...
4/14/2015Penn West Announces $321 Million Sale of Royalties
4/2/2015NYSE stocks posting largest percentage increases
3/17/2015Baupost Group Added Stake in Bellatrix Exploration
3/15/2015Penn West Announces its Financial and Operational Results fo...
3/12/2015Penn West Confirms Filing of its 2014 Year End Disclosure Do...
3/12/2015Penn West Announces 2015 First Quarter Dividend
3/12/2015Penn West Announces its Financial and Operational Results fo...
3/10/2015Penn West Announces Conference Call Details to Discuss its R...
1/19/2015Penn West to present at CIBC Whistler Institutional Investor...
12/17/2014Penn West Announces A Reduction in its 2015 Capital Budget a...
12/1/2014Penn West Announces the Closing of the $355 Million Non-Core...
11/17/2014Penn West Announces Details of its 2015 Capital Budget and L...
11/10/2014Penn West Announces Conference Call Details to Discuss its 2...
11/5/2014Penn West Announces 2014 Fourth Quarter Dividend
11/5/2014Penn West Announces its Financial Results for the Third Quar...
10/29/2014Penn West Announces Appointment of Mr. Raymond D. Crossley t...
10/28/2014Penn West Announces Conference Call Details to Discuss its R...
10/23/2014Penn West Announces $355 Million Non-Core Asset Disposition
7/30/2014Twitter and DreamWorks are big market movers
4/24/2014Penn West Announces Conference Call Details to Discuss its R...
12/20/2013Announces the Closing of $486 million of Non-Core Asset Dive...
11/6/2013Announces 2013 Fourth Quarter Dividend
11/6/2013Announces the Results of its Board Strategic Review Process,...
8/8/2013Exploration Announces its Financial Results for the Second Q...
8/8/2013Exploration Announces 2013 Third Quarter Dividend
8/8/2013Exploration Announces Results of Contingent Resources Studie...
7/5/2013Exploration announces the resignation of Mr. Allan Markin
5/2/2013Exploration announces its financial results for the first qu...
5/2/2013Exploration Announces 2013 Second Quarter Dividend
2/14/2013Exploration Announces 2013 First Quarter Dividend
2/14/2013Exploration Announces its Financial Results for the Fourth Q...
11/6/2012Announces Changes in Senior Management
11/2/2012Exploration Announces Its Financial Results for the Third Qu...
10/19/2012Provides 2012 Investor Day Webcast Playback
8/10/2012Exploration Announces its Financial Results for the Second Q...
5/4/2012Exploration announces its financial results for the first qu...
2/16/2012Exploration Announces its Financial Results for the Fourth Q...
1/30/2012North American Oil and Gas Boom Benefits Linn Energy and Pen...
5/26/2011Exploration ("Penn West") Provides Update on Wildfires in No...
4/30/2010 Announces The Renewal of Its Bank Facility
2/19/2010Confirms February Cash Distribution
12/21/2009Confirms December Cash Distribution
11/20/2009 Confirms November Cash Distribution
9/18/2009 Confirms September Cash Distribution
5/21/2009Confirms May Cash Distribution
3/10/2009enters into an arrangement agreement to acquire Reece Energy...
2/19/2009confirms February cash distribution
2/12/2009provides 2008 income tax information to Penn West unitholder...
1/15/2009announces 2009 capital program guidance and January cash dis...
12/17/2008confirms December cash distribution, provides spending guida...
11/18/2008confirms its November cash distribution
9/19/2008confirms its September cash distribution
8/27/2008announces disposition offering of non-core properties
8/20/2008confirms its August cash distribution and announces receipt ...
7/22/2008and Endev Energy Inc. Announce the Completion of Previously ...
6/19/2008Files Prospectus Supplement
5/26/2008Announces Proposed Clarifying Amendments to Long Term Incent...
5/21/2008enters into an Arrangement Agreement to acquire Endev Energy...
5/21/2008Confirms its May Cash Distribution
5/1/2008Penn West Energy Trust
4/18/2008 Confirms its April Cash Distribution
3/28/2008 Files 2007 Year End Disclosure Documents
3/20/2008Confirms its March Cash Distribution
3/6/2008 Announces Closing of Offer to Purchase 7.2 Percent and 8.0 ...
2/26/2008provides 2007 income tax information for former Vault unitho...
2/22/2008Confirms its February cash distribution and updates on hedgi...
2/8/2008Announces Changes to its Senior Management Team
2/1/2008provides 2007 income tax information for former Canetic unit...
1/29/2008Announces Offers to Purchase 7.2 percent and 8.0 percent Con...
1/22/2008Confirms its January Cash Distribution
1/10/2008Announce the Closing of Penn West's Acquisition of Vau
1/10/2008 Announce Vault Unitholder and Court Approval of Acquis
10/31/2007 and Canetic to merge and create Canada's flagship energy tr...
10/22/2007 confirms its October cash distribution and updates on hedgi...
9/19/2007provides an update on the acquisition of C1 Energy Ltd. and ...
9/7/2007announces further extension of offer for shares of C1 Energy...
8/21/2007Trust announces August cash distribution
8/10/2007Announces the extension of the Distribution Reinvestment Pla...
7/23/2007Announces Acquisition of 79.6% of C1 Energy Ltd. Common Shar...
7/18/2007announces July cash distribution
6/21/2007Announces June Cash Distribution
6/9/2007resumes partial production at its Wildboy property
6/1/2007and C1 Energy Ltd. announce a take-over bid for C1 Energy Lt...
5/23/2007announces May cash distribution
5/15/2007Responds to a Fire at its Northern British Columbia Gas Plan...
4/20/2007announces April cash distribution and 2008 crude oil hedges
3/19/2007announces March cash distribution
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