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CALGARY, ALBERTA--(Marketwire
- May 15, 2009) - Enterra Energy Trust
("Enterra", "We",
"Our" or the "Trust") announces its financial and
operating results for the three months ended March 31, 2009.
"In the first quarter of 2009 we have been able to further
strengthen our balance sheet to the point that we find ourselves in a
stronger financial position than we've been in for sometime",
commented Don Klapko, Enterra's
Chief Executive Officer. "We believe that through our continued
efforts to live within our means and effectively balance debt reduction
with capital reinvestment, we were able to reduce our net debt by a
further 25 percent from the end of Q4 2008 to $39.1 million while funds
from operations for the quarter were $17.9 million or $0.29 per unit. The
Enterra team is committed to continuing with
a conservative, straightforward approach to identifying and exploiting
both internal and external strategic growth opportunities."
Q1 2009 Highlights
- Net debt was reduced to $39.1 million from $52.4 million at December
31, 2008. This represents a decrease of 25 percent.
- Total bank debt was decreased to $80.0 million, a reduction of $15.5
million from December 31, 2008.
- Production averaged 9,968 boe per day, a
decrease of 9 percent from Q1 2008 as a result of property dispositions
which took place in Q1 and Q2 2008.
- Funds from operations for Q1 2009 were $17.9 million, 26 percent
lower when compared to Q1 2008 of $24.3 million as a result of lower
commodity prices.
Enterra's bank borrowing of $80.0 million
represents less than 73 percent of its expected senior credit facility
of $110.0 million. The credit maximum is expected to decrease from
$135.0 million to $110.0 million after the Trust's Bank Syndicate
completes its borrowing base review in May 2009. The borrowing base
review is expected to result in Enterra's
reserves supporting a borrowing base of $110.0 million at this time
based on current commodity prices, which are significantly lower than
the prices used when the credit facility was first negotiated in May
2008. Year over year, Enterra has a much
improved balance sheet and management has confidence that the Trust has
sufficient cash and adequate availability in its debt facility to
manage through the current uncertain economic environment.
The Trust's complete unaudited consolidated financial statements,
accompanying notes and MD&A for the quarter are available on Enterra's website at www.enterraenergy.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.
Enterra will host a conference call and
webcast on Tuesday, May 19, 2009 at 9:00 a.m. MT (11:00 a.m. ET) to
discuss the Trust's Q1 2009 results. To access the call, please dial
1-866-225-0198 or 416-340-8018 in Toronto.
A live audio webcast of the conference call will be available on the
home page of Enterra's website at www.enterraenergy.com. A replay of the conference call will be available until 11:59
p.m. MT, May 26, 2009. The replay may be accessed on Enterra's website in the Investor Relations
section, or by dialing 800-408-3053 or
416-695-5800, followed by passcode 2424245#.
Q1 2009 Financial and Operations Summary (in thousands of Canadian dollars Three months ended Year ended except for volumes, percentages March 31 December 31 and per unit and boe amounts) 2009 2008 Change 2008 ---------------------------------------------------------------------------- FINANCIAL Revenue before mark-to-market adjustment (1) 41,889 60,314 (31%) 255,268 Funds from operations (1) 17,915 24,256 (26%) 107,345 Per unit - basic ($) 0.29 0.39 1.74 Per unit - diluted ($) 0.29 0.39 1.70 Net income (loss) (8,498) (1,907) 7,061 Per unit - basic ($) (0.14) (0.03) 0.11 Per unit - diluted ($) (0.14) (0.03) 0.11 Total assets 567,510 566,976 587,018 Net debt (2) 39,119 110,604 52,389 Convertible debentures 113,845 112,105 113,420 Unitholders' equity 298,040 228,597 294,416 ---------------------------------------------------------------------------- SHARES AND UNITS OUTSTANDING Weighted average units outstanding - basic (000s) 62,201 61,436 61,661 Weighted average units outstanding - diluted (000s) 62,201 61,436 63,012 Units outstanding at period end (000s) 62,218 61,436 62,159 ---------------------------------------------------------------------------- PRODUCTION Average daily production Oil and NGL (bbls per day) 4,208 4,023 5% 3,756 Gas (mcf per day) 34,557 41,227 (16%) 39,162 ---------------------------------------------------------------------------- Total (boe per day) 9,968 10,894 (9%) 10,283 ---------------------------------------------------------------------------- Exit production Oil and NGL (bbls per day) 3,891 3,876 0% 4,250 Gas (mcf per day) 34,198 40,118 (15%) 33,321 ---------------------------------------------------------------------------- Total (boe per day) 9,591 10,562 (9%) 9,804 ---------------------------------------------------------------------------- Average sales price Oil and NGL ($ per bbl) 40.22 84.61 (52%) 92.05 Gas ($ per mcf) 4.78 8.15 (41%) 8.98 ---------------------------------------------------------------------------- Cash flow netback (1) ($ per boe) Revenue (3) 46.69 60.84 (23%) 67.83 Royalties 7.25 13.22 (45%) 15.50 Production expenses 12.61 13.84 (9%) 14.80 Transportation expenses 0.54 0.46 17% 0.66 ---------------------------------------------------------------------------- Operating netback 26.29 33.32 (21%) 36.87 General and administrative 3.99 4.64 (14%) 4.21 Cash interest expense 2.34 4.16 (44%) 4.04 Other cash costs (0.01) 0.05 (120%) 0.10 ---------------------------------------------------------------------------- Cash flow netback 19.97 24.47 (18%) 28.52 ---------------------------------------------------------------------------- (1) Revenues before mark-to-market adjustment, funds from operations and cash flow netback are non-GAAP financial measures. (2) Net debt is a non-GAAP term and includes total bank debt, long-term receivables, current assets and current liabilities (excluding commodity contracts and future income taxes). (3) Price received excludes unrealized mark-to-market gain or loss.
About Enterra Energy Trust
Enterra is an exploration and production oil and gas trust based in
Calgary, Alberta, Canada with its United States operations office
located in Oklahoma City, Oklahoma. Enterra's trust units and
debentures are listed on the Toronto Stock Exchange under the symbols
(TSX:ENT.UN), (TSX:ENT.DB), (TSX:ENT.DB.A) and Enterra's trust units
are listed on the New York Stock Exchange under the symbol (NYSE:ENT). The
Trust portfolio of oil and gas properties is geographically diversified
with producing properties located principally in Alberta, British
Columbia, Saskatchewan and Oklahoma. Current production is comprised of
approximately 58 percent natural gas and 42 percent crude oil and
natural gas liquids.
Barrels of Oil Equivalent
Barrels of oil equivalent ("boe") may be misleading,
particularly if used in isolation. A boe conversion ratio of six
thousand cubic feet of natural gas to one barrel of oil is based on an
energy equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
Forward-Looking Statements
Certain information in this press release constitutes forward-looking
statements under applicable securities law. Any statements that are
contained in this press release that are not statements of historical
fact may be deemed to be forward-looking statements. Forward-looking
statements are often identified by terms such as "may,"
"should," "anticipate," "expects,"
"seeks" and similar expressions. Forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with oil and gas production; marketing and
transportation; loss of markets; volatility of commodity prices;
currency and interest rate fluctuations; imprecision of reserve
estimates; environmental risks; competition; incorrect assessment of
the value of acquisitions; failure to realize the anticipated benefits
of acquisitions or dispositions; inability to access sufficient capital
from internal and external sources; changes in legislation, including
but not limited to income tax, environmental laws and regulatory
matters. Readers are cautioned that the foregoing list of factors is
not exhaustive.
Readers are cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such information,
although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ
materially from those anticipated. Forward-looking statements contained
in this press release are expressly qualified by this cautionary
statement.
Additional information on these and other factors that could affect
Enterra's operations or financial results are included in Enterra's
reports on file with Canadian and U.S. securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com), the SEC's website (www.sec.gov), Enterra's website (www.enterraenergy.com) or by contacting Enterra. Furthermore, the forward looking
statements contained in this news release are made as of the date of
this news release, and Enterra does not undertake any obligation to
update publicly or to revise any of the included forward-looking
statements, whether as a result of new information, future events or
otherwise, except as expressly required by securities law.
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