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CALGARY, ALBERTA--(Marketwire
- Aug. 14, 2009) - Enterra Energy Trust
("Enterra", "We",
"Our" or the "Trust") announces its financial and
operating results for the three and six months ended June 30, 2009.
"During the second quarter of 2009 we have continued to strengthen
our balance sheet and also further reduced operational and overhead
costs as we remained focused on living within our means",
commented Don Klapko, Enterra's
Chief Executive Officer. "We also purchased additional production
of approximately 270 boe per day in our
existing Hunton development operation in Oklahoma
together with higher working interest in future drilling in the area
which will further improve the solid economics in the area for
us."
Q2 2009 Highlights
- Net debt was decreased 30% to $36.8 million at June 30, 2009 from
$52.4 million at December 31, 2008 and decreased 6% from $39.1 million
at March 31, 2009.
- Total bank debt decreased 18% to $78.3 million at June 30, 2009 from
$95.5 million at December 31, 2008 and decreased 2% from $80.0 million
at March 31, 2009.
- Production was essentially steady at 10,059 boe
per day in Q2 2009 compared to 9,968 boe per
day in Q1 2009. Of the Q2 2009 production of 10,059 boe
per day, 48 percent, or more than 4,800 bbl per day, was oil and NGL
increasing over last year as a result of our new marketing contracts
that recognize more value for the NGL in the production stream.
- On July 28, 2009, Enterra acquired
additional working interest in certain wells in the Oklahoma area from joint venture
partners, other than Petroflow Energy Ltd. The
acquired working interest produced approximately 270 boe per day upon acquisition.
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 be hosting a conference call and
webcast on Friday, August 14, 2009 at 9:00 a.m. MT (11:00 a.m. ET) to
discuss the Trust's Q2 2009 results. To access the call, please dial
1-866-223-7781 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, August 21, 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 4470187#.
---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Q2 2009 Financial and Operations Three months ended Six months ended Year ended Summary June 30 June 30 Dec. 31 (in thousands except for volumes, percentages and per unit and boe amounts) 2009 2008 Change 2009 2008 Change 2008 ---------------------------------------------------------------------------- FINANCIAL Revenue before mark-to-market adjustment(1) 31,208 71,004 (56%) 73,097 131,319 (44%) 255,268 Funds from operations(1) 8,561 31,588 (73%) 26,476 55,844 (53%) 107,345 Per unit - basic ($) 0.14 0.51 0.43 0.91 1.74 Per unit - diluted ($) 0.14 0.51 0.43 0.91 1.70 Net income (loss) (14,383) (11,855) (22,881) (13,762) 7,061 Per unit - basic ($) (0.23) (0.19) (0.37) (0.22) 0.11 Per unit - diluted ($) (0.23) (0.19) (0.37) (0.22) 0.11 Total assets 508,588 572,738 508,588 572,738 587,018 Net debt (2) 36,784 78,822 36,784 78,822 52,389 Convertible debentures 114,315 112,529 114,315 112,529 113,420 Unitholders' equity 259,595 216,456 259,595 216,456 294,416 ---------------------------------------------------------------------------- SHARES AND UNITS OUTSTANDING Weighted average units outstanding - basic (000s) 62,280 61,480 62,209 61,458 61,661 Weighted average units outstanding - diluted (000s) 62,280 61,480 62,209 61,458 63,012 Units outstanding at period end (000s) 62,525 61,552 62,525 61,552 62,159 ---------------------------------------------------------------------------- OPERATIONS Average daily production Oil and NGL (bbls per day) 4,824 3,688 31% 4,519 3,855 17% 3,756 Gas (mcf per day) 31,407 38,465 (18%) 32,972 39,846 (17%) 39,162 ---------------------------------------------------------------------------- Total (boe per day) 10,059 10,099 0% 10,014 10,496 5% 10,283 ---------------------------------------------------------------------------- Exit production Oil and NGL (bbls per day) 5,138 3,665 40% 5,138 3,665 40% 4,250 Gas (mcf per day) 29,232 37,269 (22%) 29,232 37,269 (22%) 33,321 ---------------------------------------------------------------------------- Total (boe per day) 10,010 9,877 1% 10,010 9,877 1% 9,804 ---------------------------------------------------------------------------- Average sales price Oil and NGL ($ per bbl) 48.76 99.02 (51%) 48.80 88.26 (45%) 92.05 Gas ($ per mcf) 3.43 10.85 (68%) 5.56 9.57 (42%) 8.98 ---------------------------------------------------------------------------- Cash flow netback (1) ($ per boe) Revenue (3) 34.09 77.48 (56%) 40.33 68.74 (41%) 67.83 Royalties 5.92 18.72 (68%) 6.58 15.87 (59%) 15.50 Production expenses 12.19 12.87 (5%) 12.34 13.23 (7%) 14.80 Transportation expenses 0.78 1.15 (32%) 0.71 0.93 (24%) 0.66 ---------------------------------------------------------------------------- Operating netback 15.20 44.74 (66%) 20.70 38.71 (47%) 36.87 General and administrative 3.61 5.12 (29%) 3.80 4.87 (22%) 4.21 Cash interest expense 2.24 4.84 (54%) 2.29 4.48 (49%) 4.04 Other cash costs - 0.52 (100%) - 0.13 (100%) 0.10 ---------------------------------------------------------------------------- Cash flow netback 9.35 34.37 (73%) 14.61 29.23 (50%) 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 55 percent natural gas
and 45 percent crude oil and natural gas liquids. Enterra has compiled
a multi-year drilling inventory for its properties.
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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