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Penn West Energy Trust

Published : November 05th, 2009

Announces Its Results for the Third Quarter Ended September 30, 2009

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Penn West Energy Trust

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November 5, 2009

Penn West Announces Its Results for the Third Quarter Ended September 30, 2009

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.

 

CONTACT INFORMATION:

Penn West Energy Trust
Suite 200, 207 - Ninth Avenue S.W.
Calgary, Alberta T2P 1K3
(403) 777-2500
Fax: (403) 777-2699
Toll Free: 1-866-693-2707
www.pennwest.com

or

Investor Relations:
Toll Free: 1-888-770-2633
investor_relations@pennwest.com

or

William Andrew
CEO
(403) 777-2502
bill.andrew@pennwest.com

or

Jason Fleury
Manager, Investor Relations
(403) 539-6343
jason.fleury@pennwest.com

INDUSTRY: Energy and Utilities - Oil and Gas

 

 

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Penn West Energy Trust

CODE : PWE
ISIN : CA7078871059
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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...
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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...
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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...
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6/23/2016Penn West Announces Voting Results From the 2016 Annual and ...
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6/16/2016Penn West Announces Annual and Special Meeting of Shareholde...
6/10/2016Penn West Announces $1.1 Billion In Asset Sales, Including T...
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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...
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9/1/2015Penn West, ConocoPhillips cut combined 900 jobs in Canada
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3/12/2015Penn West Confirms Filing of its 2014 Year End Disclosure Do...
3/12/2015Penn West Announces 2015 First Quarter Dividend
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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
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10/29/2014Penn West Announces Appointment of Mr. Raymond D. Crossley t...
10/28/2014Penn West Announces Conference Call Details to Discuss its R...
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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
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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
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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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NYSE (PWE)
0.160-5.88%
NYSE
US$ 0.160
04/01 15:59 -0.010
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Year l/h YTD var.
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