|
CALGARY,
ALBERTA--(Marketwire - Nov. 5, 2009) - PENN WEST ENERGY TRUST
(TSX:PWT.UN) (NYSE:PWE) is pleased to announce its results for the
third quarter ended September 30, 2009
Corporate Strategy
- Penn West continued to focus on positioning the company to move from
a trust to a corporate model prior to the end of 2011. In the future we
will primarily use a combination of organic growth and dividends to
provide a return on capital that will position us with the other senior
independent North American oil and gas producers. Prior to the
conversion to an exploration and production corporation, we will
continue our focus on the advancement of our large scale resource plays
within our existing suite of assets. As our results to date are promising, we
will allocate a greater portion of our 2010 capital budget to drilling
horizontal multi-stage frac wells within our oil resource plays. Our
aim is to apply this technology to increase production and reserves
from these large resources with a particular near-term emphasis on
those plays that focus on crude oil, such as Waskada, Dodsland, Pembina
and Leitchville. This will greatly expand our inventory of locations
with a focus on reducing risk, while providing the type of scale
necessary to move the company forward.
Operations
- Third quarter production averaged 178,124 (1) boe per day and was
weighted 59 percent to oil and natural gas liquids.
- Production for the first nine months of 2009 averaged 179,600 boe per
day which is at the higher end of our guidance of approximately 175,000
to 180,000 boe per day. During the first nine months of 2009, Penn West
had net dispositions of approximately 3,000 boe per day.
- Crude oil and NGL production averaged 104,583 barrels per day and
natural gas production averaged approximately 441 mmcf per day in the
third quarter of 2009.
- Development capital expenditures were $171 million in the third
quarter of 2009 or $142 million net of $29 million of net asset
dispositions. In the quarter, we drilled a total of 36 net wells,
including 29 horizontal multi-stage frac wells, with a success rate of
100 percent.
Financial Results
- Funds flow (2) of $349 million in the third quarter of 2009 was 19 percent
lower than the $430 million in the second quarter of 2009 and 47
percent lower than the $662 million realized in the third quarter of
2008. On a per-unit-basis (2) basic funds flow was $0.84 per unit in
the third quarter of 2009 compared to $1.05 per unit in the second
quarter of 2009 and $1.73 per unit in the third quarter of 2008. The
decline in funds flow from the second quarter of 2009 was due to $75
million of realized gains in the second quarter as a result of
monetizing foreign exchange forward contracts.
- Net income was $7 million ($0.02 per unit-basic) in the third quarter
of 2009 compared to a net loss of $41 million ($0.10 per unit-basic) in
the second quarter of 2009 and net income of $1,062 million ($2.78 per
unit-basic) in the third quarter of 2008. The significantly higher
income in the prior year was primarily due to unrealized risk
management gains on our oil and natural gas collars.
- The netback (2) of $25.91 per boe in the third quarter of 2009 was
one percent higher than the second quarter of 2009 and 40 percent lower
than the third quarter of 2008. The decline from 2008 was primarily due
to lower commodity prices.
- In the first nine months of 2009, Penn West's net debt (2) was
reduced by approximately $600 million (3).
(1) Please refer to the "Oil and Gas Information Advisory"
section below for information regarding the term "boe".
(2) The terms "funds flow", "funds flow per
unit-basic", "netback" and "net debt" are
non-GAAP measures. Please refer to the "Calculation of Funds Flow"
and "Non-GAAP Measures Advisory" sections below. Funds flow
for the first nine months of 2009 includes $75 million of gains
realized from foreign exchange contracts, including monetizing the
remainder of the 2009 contracts entered to hedge the currency risk on
US Dollar denominated oil prices, which occurred in June 2009.
(3) Consists of the change in long-term debt, convertible debentures
and working capital (excluding future income taxes and risk
management), per the Consolidated Balance Sheets.
Business Environment
- Oil prices in the third quarter of 2009 averaged WTI US$68.29 per
barrel and appreciated from an average of WTI US$59.62 per barrel in
the second quarter of 2009. The price of crude oil increased throughout
2009 due to optimism the economic recovery is continuing. In the third
quarter of 2008, oil prices averaged WTI US$118.13 per barrel. The year
over year decline in the benchmark WTI oil price was primarily due to
decreased demand for distillate products.
- The AECO Monthly Index averaged $2.87 per GJ in the third quarter of
2009 compared to $8.78 per GJ for the same period in 2008 and $3.47 per
GJ in the second quarter of 2009. The price for natural gas continues
to be impacted by lower industrial demand and high inventory levels.
- Subsequent to September 30, 2009, spot crude oil prices have
recovered to a year to date high above WTI US$81.00 per barrel and spot
natural gas prices to approximately $5.00 per GJ at AECO.
Financing
- As at September 30, 2009, Penn West had $1.8 billion of unused credit
capacity on our bank facility.
- On November 4, 2009, the Board of Directors approved the cancellation
of tranche two of the bank facility. This revolving tranche totals $750
million and is non-extendible. Penn West's unused credit capacity after
this cancellation will be approximately $1.0 billion.
- Subsequent to the end of the third quarter, Penn West entered into
additional crude oil collars for 2010 on 5,000 barrels per day with an
average floor of US$75.00 per barrel and an average ceiling of US$90.86
per barrel.
Distributions
- Penn West's Board of Directors resolved to maintain the Trust's
distribution level at $0.15 per unit, per month, subject to maintenance
of current forecasts of commodity prices, production levels and finalization
of the 2010 capital budget.
Quarterly Financial Summary (millions, except per unit and production amounts) Sep. 30, June 30, Mar. 31, Dec. 31, Three months ended 2009 2009 2009 2008 ---------------------------------------------------------------------------- Gross revenues (1) $ 800 $ 791 $ 781 $ 968 Funds flow 349 430 348 490 Basic per unit 0.84 1.05 0.87 1.27 Diluted per unit 0.83 1.05 0.87 1.26 Net income (loss) 7 (41) (98) 404 Basic per unit 0.02 (0.10) (0.25) 1.05 Diluted per unit 0.02 (0.10) (0.25) 1.04 Distributions declared 188 188 276 393 Per unit $ 0.45 $ 0.45 $ 0.69 $ 1.02 Production Liquids (bbls/d) (2) 104,583 104,070 105,643 105,644 Natural gas (mmcf/d) 441 459 447 476 ---------------------------------------------------------------------------- Total (boe/d) 178,124 180,601 180,096 184,908 ---------------------------------------------------------------------------- (1) Gross revenues include realized gains and losses on commodity contracts. (2) Includes crude oil and natural gas liquids. HIGHLIGHTS Three months ended Nine months ended September 30 September 30 ------------------------------------------------ % % 2009 2008 change 2009 2008 change ---------------------------------------------------------------------------- Financial (millions, except per unit amounts) Gross revenues (1) $ 800 $ 1,235 (35) $ 2,372 $ 3,683 (36) Funds flow 349 662 (47) 1,127 2,047 (45) Basic per unit 0.84 1.73 (51) 2.75 5.49 (50) Diluted per unit 0.83 1.71 (51) 2.74 5.41 (49) Net income (loss) 7 1,062 (99) (132) 817 (100) Basic per unit 0.02 2.78 (99) (0.32) 2.19 (100) Diluted per unit 0.02 2.73 (99) (0.32) 2.17 (100) Capital expenditures, net (2) 142 232 (39) 319 757 (58) Long-term debt at period-end 3,559 3,679 (3) 3,559 3,679 (3) Convertible debentures 273 328 (17) 273 328 (17) Distributions paid(3) $ 188 $ 388 (52) $ 721 $ 1,108 (35) Payout ratio (4) 54% 59% (5) 64% 54% 10 Operations Daily production Light oil and NGL (bbls/d) 77,513 78,762 (2) 78,141 80,792 (3) Heavy oil (bbls/d) 27,070 28,136 (4) 26,621 27,646 (4) Natural gas (mmcf/d) 441 500 (12) 449 495 (9) ---------------------------------------------------------------------------- Total production (boe/d) 178,124 190,177 (6) 179,600 190,991 (6) ---------------------------------------------------------------------------- Average sales price Light oil and NGL (per bbl) $ 64.15 $ 110.45 (42) $ 55.58 $ 103.65 (46) Heavy oil (per bbl) 58.72 98.07 (40) 50.94 86.12 (41) Natural gas (per mcf) 3.13 8.49 (63) 4.05 8.88 (54) Netback per boe Sales price $ 44.58 $ 83.23 (46) $ 41.85 $ 79.73 (48) Risk management gain (loss) 4.17 (11.69) 100 6.41 (9.03) 100 ---------------------------------------------------------------------------- Net sales price 48.75 71.54 (32) 48.26 70.70 (32) Royalties (7.41) (15.23) (51) (7.12) (14.27) (50) Operating expenses (14.90) (12.49) 19 (14.87) (12.01) 24 Transportation (0.53) (0.49) 8 (0.52) (0.49) 6 ---------------------------------------------------------------------------- Netback $ 25.91 $ 43.33 (40) $ 25.75 $ 43.93 (41) ---------------------------------------------------------------------------- (1) Gross revenues include realized gains and losses on commodity contracts. (2) Excludes business combinations and includes net proceeds on property acquisitions/dispositions. (3) Includes distributions paid prior to those reinvested in trust units under the distribution reinvestment plan. (4) Payout ratio is calculated as distributions paid divided by funds flow. DRILLING PROGRAM Three months ended Nine months ended September 30 September 30 ---------------------------------------------------- 2009 2008 2009 2008 ---------------------------------------------------- Gross Net Gross Net Gross Net Gross Net ---------------------------------------------------------------------------- Oil 33 27 85 46 69 49 189 102 Natural gas 11 4 97 40 32 12 202 92 Dry - - 2 2 1 1 8 8 ---------------------------------------------------------------------------- 44 31 184 88 102 62 399 202 Stratigraphic and service 5 5 10 10 8 7 36 34 ---------------------------------------------------------------------------- Total 49 36 194 98 110 69 435 236 ---------------------------------------------------------------------------- Success rate (1) 100% 98% 99% 96% ---------------------------------------------------------------------------- (1) Success rate is calculated excluding stratigraphic and service wells.
In response to the decline in commodity
prices due to financial market turmoil, Penn West reduced its 2009
development programs compared to 2008 and successfully focused its
efforts on less capital intensive production restoration and
optimization activities to maintain its production. Penn West continues
to work on advancing many of our resource plays and, subject to
commodity prices and other factors, intends to increase capital
allocations to its oil focused resource plays in 2010.
The high reported success rate in the current quarter reflects Penn
West's transition from drilling programs in the past which were
approximately 90 percent vertical wells to drilling programs which now
include approximately 80 percent horizontal multi-stage frac wells.
LAND As at September 30, 2009 -------------------------------------------------- Producing Non-producing -------------------------------------------------- 2009 2008 % change 2009 2008 % change ---------------------------------------------------------------------------- Gross acres (000s) 6,203 6,377 (3) 3,192 4,337 (26) Net acres (000s) 4,124 4,182 (1) 2,490 3,494 (29) Average working interest 66% 66% - 78% 81% (3) ---------------------------------------------------------------------------- The decline in net acres from the prior year was the result of expirations of lands in non-core areas and property dispositions. CORE AREA ACTIVITY Net wells drilled Non-producing land for the nine month period as at September 30, 2009 Core Area ended September 30, 2009 (thousands of net acres) ---------------------------------------------------------------------------- Central 11 263 Eastern 12 261 Northern 2 734 North West Alberta 2 482 Southern 42 750 ---------------------------------------------------------------------------- 69 2,490 ---------------------------------------------------------------------------- TRUST UNIT DATA Three months ended Nine months ended September 30 September 30 --------------------------------------------- (millions of units) 2009 2008 % change 2009 2008 % change ---------------------------------------------------------------------------- Weighted average Basic 418.0 381.5 10 410.3 372.5 10 Diluted 419.6 389.9 8 410.3 380.1 8 Outstanding as at September 30 419.4 383.5 9 ----------------------------------------------------------------------------
In February 2009, Penn West issued
approximately 17.7 million trust units on a bought deal basis with a
syndicate of underwriters. On April 30, 2009, Penn West issued an
additional 4.7 million trust units on the closing of the Reece Energy
Exploration Corp. acquisition.
Letter to our Unitholders
With a series of quarters of consistent
strong operational performance, and as we continue to unlock the
potential of our assets with new technologies; our outlook for Penn
West remains highly optimistic. In the third quarter of 2009, we
maintained our strong production base, continued to strengthen our
balance sheet, and advanced our inventory of short and long-term
projects. Production remains at the upper end of our full-year guidance
of 175,000 to 180,000 boe per day. Our capital program showed continued
success with more than 80 percent of our spending going into oil
projects with consistent strong returns, despite a soft commodity-price
environment. Our development teams continue to test the extent to which
new and evolving technologies can be applied to opportunities within
our existing asset base. We are encouraged by the results on many of
our development projects and we are eagerly planning our next steps in
these plays. Based on our strong operational results to-date and our
continually expanding list of low risk, high return oil drilling
locations, we expect increases to our development capital budgets in
future years.
Funds flow for the quarter was $349 million, consistent with the second
quarter of 2009 (excluding one time gains) but lower than the third
quarter of 2008 due to the year-over-year drop in commodity prices. The
AECO Monthly Index averaged $2.87 per GJ in the third quarter of 2009,
significantly less than the $8.78 per GJ realized in the same period
only one year ago. Crude oil prices continued to strengthen in the
third quarter, averaging US$68.29 per barrel, lower than the US$118.13
per barrel seen in the same period one year ago; however exceeding the
US$59.62 per barrel seen in the previous quarter. Both crude oil and
natural gas prices have continued their rise after the end of the third
quarter of 2009.
During the third quarter of 2009, Penn West averaged a netback of
$25.91 per boe, including realized hedging gains. Our remaining 2009
crude oil production is 31 percent hedged with floors averaging
US$80.00 per barrel and 15 percent of our remaining 2009 natural gas
production hedged with floors averaging $6.50 per GJ. Penn West
continues to prudently hedge future production as part of our ongoing
risk management program.
Penn West's net debt, including working capital, has been reduced by
approximately $600 million in the first nine months of 2009. Debt
reduction and diversification remain a priority as we believe a
stronger balance sheet will better position us for growth in our core
areas.
We are currently in the process of finalizing our capital spending
budget for 2010. It is anticipated that we will go forward with a
drilling program with even greater focus on horizontal multi-stage frac
technology applications on crude oil opportunities. In 2010, we
anticipate a capital spending program between $800 and $900 million,
and production guidance of 170,000 to 180,000 boe per day, prior to
acquisitions and dispositions.
At our recent Investor Day on October 21, 2009, we outlined a number of
our growth plays and commented on our plans to convert from an income
trust model to a conventional exploration and production corporation
within the next two years. While a specific transition date has not
been determined, we have developed certain strategies including
detailed plans to increase capital spending on our suite of producing
assets to support growth. Both through our transition period and later
as a corporation, we will be targeting a business model which returns a
combination of share price growth and dividends to our shareholders. We
are firm in our belief that our asset base is of the size and quality
to provide a platform for future growth, while still providing an
attractive stream of dividend income.
On behalf of the Board of Directors,
William E. Andrew
Chief Executive Officer
Murray R. Nunns
President and Chief Operating Officer
Calgary, Alberta, November 4, 2009
Outlook
This outlook section is included to provide unitholders with
information as to our expectations as at November 4, 2009 for
production and net capital expenditures for 2009 and 2010 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".
Our forecast 2009 development capital expenditures are expected to be
in the range of approximately $650 to $700 million. The 2009 capital
program was reduced compared to 2008 due to lower commodity prices. The
remaining 2009 capital program will continue to be focused on programs
that add production at very strong efficiency measures through
optimization and recompletion programs, combined with development
efforts focused on the advancement of certain of our resource plays and
enhanced oil recovery projects. Based on this level of capital
expenditures, our forecast 2009 average production remains in the range
of approximately 175,000 to 180,000 boe per day.
Our prior forecast, released on August 11, 2009 with our 2009 second
quarter results and filed on SEDAR at www.sedar.com, was based on 2009 development
capital expenditures between $600 million and $825 million with the
expectation that spending would be closer to the lower end of the range
and average production would be approximately 175,000 to 180,000 boe
per day for 2009.
As we move into 2010, the outlook for crude oil prices looks to be
positive; however the outlook for natural gas prices is mixed. We have
developed a preliminary 2010 capital budget of approximately $800
million to $900 million, excluding acquisition and disposition
activities. Based on this level of capital spending, production is
estimated to be approximately 170,000 to 180,000 boe per day, prior to
acquisitions and dispositions, for 2010.
Non-GAAP Measures Advisory
The above information includes non-GAAP measures not defined under
generally accepted accounting principles ("GAAP"), including
funds flow, funds flow per unit-basic, netback, payout ratio and net
debt. 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 our ability to
fund distributions and planned capital programs. Netback is a
per-unit-of-production measure of operating margin used in capital
allocation decisions. Operating margin is calculated as revenue less
royalties, operating costs and transportation. Payout ratio is
distributions paid divided by funds flow and we use it to assess the
adequacy of funds flow to fund capital programs. Net debt is the change
in long term debt, convertible debentures and working capital
(excluding risk management and future income taxes) and is used to
assess our leverage and hence our distribution and capital investment
levels.
Calculation of Funds Flow
Three months ended Nine months ended September 30 September 30 ---------------------------------------- (millions, except per unit amounts) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Cash flow from operating activities $ 386 $ 616 $ 963 $ 1,654 Increase (decrease) in non-cash working capital (50) 30 115 340 Asset retirement expenditures 13 16 49 53 ---------------------------------------------------------------------------- Funds flow $ 349 $ 662 $ 1,127 $ 2,047 ---------------------------------------------------------------------------- Basic per unit $ 0.84 $ 1.73 $ 2.75 $ 5.49 Diluted per unit $ 0.83 $ 1.71 $ 2.74 $ 5.41 ----------------------------------------------------------------------------
Funds flow for the nine months ended
September 30, 2009 includes realized gains of $75 million (2008 - $nil)
on foreign exchange forward contracts of which $57 million was realized
from monetizing our 2009 foreign exchange contracts put in place to fix
Canadian dollar sales proceeds on oil volumes that were collared for
the second half of 2009.
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 wellhead.
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: our corporate
strategy, including our intention to convert to a hybrid corporate
model that combines an element of growth with a dividend, our intention
to continue our focus on the advancement of our inventory of
profitable, scalable, repeatable and demonstrable resource plays, our
intention to allocate a greater portion of our 2010 capital budget to
drilling horizontal multi-stage frac wells within our oil resource
plays with a view to increasing production and reserves from these
resources, with a particular 2010 focus on oil plays (including
Waskada, Dodsland, Pembina and Leitchville); our expectations regarding
North American and global supply and demand factors and pricing for
crude oil and natural gas in 2009 and beyond; our anticipated per unit
distribution level and the factors that may affect such distribution
level; our intention to continue to work on advancing many of our
resource plays and to increase capital allocations to our oil focused
resource plays in 2010; our intention and ability to continue to unlock
the potential of our assets with new technologies; our view of our
future prospects; our intention to increase our development capital
budgets in future years; our intention to hedge future production to
manage risk; our intention to reduce and diversify our debt structure;
the ability of a strong balance sheet to position us for growth in our
core areas; our intention to focus our 2010 drilling program on
horizontal multi-stage frac technology applications on crude oil
opportunities; our plan to convert into a conventional exploration and
production corporation within the next two years; our plan to increase
capital spending on our suite of producing assets; our intention and
ability to target a business model that returns a combination of share
price growth and dividends to our shareholders; and, the disclosure
contained under the headings "Letter to our Unitholders" and
"Outlook", which among other things set forth management's
expectations as to the outlook for commodity prices in 2010, our
capital expenditures for 2009 and the intended focus of such
expenditures, our forecast average daily production for 2009, and our
expectations as to our capital expenditures and forecast average daily
production for 2010.
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 and interest rates; the
amount of future cash distributions that we intend to pay; 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. In addition, many
of the forward-looking statements contained in this document are
located proximate to assumptions that are specific to those
forward-looking statements, and such assumptions should be taken into
account when reading such forward-looking statements: see in particular
the assumptions identified under the headings "Distributions"
and "Outlook".
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: 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, including the completed acquisitions
discussed herein; 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 and changes thereto; 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
completed acquisitions discussed herein; changes in tax laws that
affect us and our security holders; changes in government royalty
frameworks; uncertainty of obtaining required approvals for
acquisitions and mergers; and the other factors described in Penn
West's public filings (including our Revised Annual Information Form)
available in Canada at www.sedar.com
and in the United States at www.sec.gov. 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 statement.
Penn West Energy Trust Consolidated Balance Sheets (CAD millions, unaudited) September 30, December 31, 2009 2008 ---------------------------------------------------------------------------- Assets Current Accounts receivable $ 397 $ 386 Risk management - 448 Future income taxes 2 - Other 140 106 ---------------------------------------------------------------------------- 539 940 ---------------------------------------------------------------------------- Property, plant and equipment 11,726 12,452 Goodwill 2,020 2,020 ---------------------------------------------------------------------------- 13,746 14,472 ---------------------------------------------------------------------------- $ 14,285 $ 15,412 ---------------------------------------------------------------------------- Liabilities and unitholders' equity Current Accounts payable and accrued liabilities $ 462 $ 630 Distributions payable 63 132 Convertible debentures 18 7 Future income taxes - 132 Risk management 7 - ---------------------------------------------------------------------------- 550 901 Long-term debt 3,559 3,854 Convertible debentures 255 289 Risk management 39 6 Asset retirement obligations 596 614 Future income taxes 1,216 1,368 ---------------------------------------------------------------------------- 6,215 7,032 ---------------------------------------------------------------------------- Unitholders' equity Unitholders' capital 8,414 7,976 Contributed surplus 111 75 Retained earnings (deficit) (455) 329 ---------------------------------------------------------------------------- 8,070 8,380 ---------------------------------------------------------------------------- $ 14,285 $ 15,412 ---------------------------------------------------------------------------- Penn West Energy Trust Consolidated Statements of Operations and Retained Earnings (Deficit) Three months ended Nine months ended September 30 September 30 -------------------------------------- (CAD millions, except per unit amounts, unaudited) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Revenues Oil and natural gas $ 732 $ 1,439 $ 2,058 $ 4,155 Royalties (122) (265) (349) (746) ---------------------------------------------------------------------------- 610 1,174 1,709 3,409 Risk management gain (loss) Realized 68 (204) 314 (472) Unrealized (58) 1,109 (447) 79 ---------------------------------------------------------------------------- 620 2,079 1,576 3,016 ---------------------------------------------------------------------------- Expenses Operating 248 221 739 636 Transportation 9 9 26 26 General and administrative 43 39 125 110 Financing 43 51 120 151 Depletion, depreciation and accretion 404 404 1,189 1,194 Unrealized risk management loss 45 7 41 - Unrealized foreign exchange loss (gain) (118) 37 (161) 64 Gain on currency contracts - - (75) - ---------------------------------------------------------------------------- 674 768 2,004 2,181 ---------------------------------------------------------------------------- Income (loss) before taxes (54) 1,311 (428) 835 ---------------------------------------------------------------------------- Taxes Future income tax (recovery) expense (61) 249 (296) 18 ---------------------------------------------------------------------------- Net and comprehensive income (loss) $ 7 $ 1,062 $ (132) $ 817 Retained earnings (deficit), beginning of period $ (274) $ (353) $ 329 $ 658 Distributions declared (188) (391) (652) (1,157) ---------------------------------------------------------------------------- Retained earnings (deficit), end of period $ (455) $ 318 $ (455) $ 318 ---------------------------------------------------------------------------- Net income (loss) per unit Basic $ 0.02 $ 2.78 $ (0.32) $ 2.19 Diluted $ 0.02 $ 2.73 $ (0.32) $ 2.17 Weighted average units outstanding (millions) Basic 418.0 381.5 410.3 372.5 Diluted 419.6 389.9 410.3 380.1 ---------------------------------------------------------------------------- Penn West Energy Trust Consolidated Statements of Cash Flows Three months ended Nine months ended September 30 September 30 ------------------------------------- (CAD millions, unaudited) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Operating activities Net income (loss) $ 7 $ 1,062 $ (132) $ 817 Depletion, depreciation and accretion 404 404 1,189 1,194 Future income tax (recovery) expense (61) 249 (296) 18 Unit-based compensation 14 12 39 33 Unrealized risk management loss (gain) 103 (1,102) 488 (79) Unrealized foreign exchange loss (gain) (118) 37 (161) 64 Asset retirement expenditures (13) (16) (49) (53) Change in non-cash working capital 50 (30) (115) (340) ---------------------------------------------------------------------------- 386 616 963 1,654 ---------------------------------------------------------------------------- Investing activities Acquisition of property, plant and equipment (24) - (31) (17) Disposition of property, plant and equipment 53 6 204 11 Additions to property, plant and equipment (171) (238) (492) (751) Acquisition costs - (1) - (29) Change in non-cash working capital 11 31 (109) 4 ---------------------------------------------------------------------------- (131) (202) (428) (782) ---------------------------------------------------------------------------- Financing activities Proceeds from issuance of notes - 114 238 619 Redemption / maturity of convertible debentures - (5) (4) (29) Repayment of acquired credit facilities - (43) (31) (1,600) Increase (decrease) in bank loan (101) (155) (372) 1,053 Issue of equity 12 12 270 49 Distributions paid (166) (337) (636) (964) ---------------------------------------------------------------------------- (255) (414) (535) (872) ---------------------------------------------------------------------------- Change in cash - - - - Cash, beginning of period - - - - ---------------------------------------------------------------------------- Cash, end of period $ - $ - $ - $ - ---------------------------------------------------------------------------- Interest paid $ 34 $ 35 $ 104 $ 127 Income taxes paid (received) $ - $ - $ (3) $ 6 ----------------------------------------------------------------------------
Investor
Information
Penn West trust units and debentures are listed on the Toronto Stock
Exchange under the symbols PWT.UN, 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 10:00
a.m. Mountain Standard Time (12:00 p.m. Eastern Standard Time) on
November 5, 2009.
To listen to the conference call, please call one of the following:
416-340-8061 (Toronto)
866-225-0198 (North American toll-free)
This call will be broadcast live on the Internet and may be accessed
directly on the Penn West website at www.pennwest.com or at the following URL: http://events.digitalmedia.telus.com/pennwest/111209/index.php.
A taped recording will be available until November 12, 2009 by dialing
416-695-5800 (Toronto) or 800-408-3053 (North American toll-free) and
entering pass code 2024822.
Penn West expects to file its Management's Discussion and Analysis and
unaudited interim consolidated financial statements on SEDAR and EDGAR
shortly.
|