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CALGARY, ALBERTA--(Marketwire - Aug. 12,
2009) - PENN WEST ENERGY TRUST (TSX:PWT.UN) (NYSE:PWE) is pleased to
announce its results for the second quarter ended June 30, 2009.
Operations
- Second quarter production averaged 180,601 (1) boe per day and was
weighted 58 percent to oil and natural gas liquids. This production
level again exceeded our guidance of 180,000 boe per day before net
dispositions or an average of approximately 177,000 boe per day after
net dispositions that were completed in the first two quarters of 2009.
- Crude oil and NGL production averaged 104,070 barrels per day and
natural gas production averaged approximately 459 mmcf per day in the
second quarter of 2009.
- Development capital expenditures were $140 million in the second
quarter of 2009 before $4 million of net asset dispositions, resulting
in capital expenditures of $136 million prior to business combinations.
In the quarter, we drilled a total of 12 net wells with a success rate
of 100 percent.
Financial Results
- Funds flow (2) of $430 million in the second quarter of 2009 was 43
percent lower than the $753 million realized in the second quarter of
2008. On a per-unit-basis (2) basic funds flow was $1.05 per unit in
the second quarter of 2009 compared to $2.00 per unit in the second
quarter of 2008.
- Net loss of $41 million ($0.10 per unit-basic) in the second quarter
of 2009 compared to net loss of $323 million ($0.86 per unit-basic) in
the second quarter of 2008.
- The netback (2) of $25.64 per boe in the second quarter of 2009 was
46 percent lower than the second quarter of 2008 due primarily to lower
commodity prices.
- Net debt (2) reduction, including working capital, was approximately
$349 million (3) in the first half of 2009.
Business Environment
- WTI averaged US$59.62 per barrel in the second quarter of 2009
compared to US$124.00 per barrel for the same period in 2008. The
decline in the benchmark WTI oil price was primarily due to the
recession, which decreased demand most notably for distillate products.
Partially offsetting the year over year decline in oil price was a
weakening Canadian dollar against the US dollar. WTI appreciated from
an average of US$43.21 per barrel in the first quarter of 2009 to an
average of $59.62 per barrel in the second quarter.
- The AECO Monthly Index averaged $3.47 per GJ in the second quarter of
2009 compared to $8.86 per GJ for the same period in 2008. The decline
in natural gas prices was the result of the lower industrial demand due
to the economic downturn. Additionally, significant drilling activity
prior to the recession, primarily in the U.S. targeting
unconventional natural gas, contributed to high production levels
relative to demand. The AECO Monthly Index declined from an average of
$5.34 per GJ in the first quarter to an average of $3.47 per GJ in the
second quarter, reflecting the continued weakness in demand.
(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 second quarter of 2009 includes $75 million of gains realized from foreign exchange contracts including monetizing the remainder of the 2009 contracts entered to hedge oil prices. (3) Consists of $64 million long-term debt reduction and an increase of non-cash operating and investing working capital of $165 million and $120 million, respectively, per the Consolidated Statement of Cash Flows.
Financing
- During the second quarter of 2009, Penn West continued to strengthen
its debt portfolio and risk management program.
- In May 2009, Penn West closed the private placement of senior
unsecured notes (the "2009 Notes") with an aggregate
principal amount of approximately $238 million. The 2009 Notes have
terms of five years to 10 years and bear an average fixed interest rate
of approximately 8.9 percent. The proceeds of the issue were used to
reduce bank debt.
- During the second quarter of 2009, Penn West entered into additional
crude oil collars on 15,000 barrels per day of crude oil for 2010 at
prices between US$63.33 per barrel and US$78.09 per barrel. Additional
crude oil hedges for 2010 increase the certainty of future funds flow
during this time of commodity price volatility.
- In June 2009, Penn West monetized its 2009 foreign exchange contracts
related to oil collars for the second half of 2009 for proceeds of $57
million. These proceeds were used to repay a portion of Penn West's
syndicated bank facility.
Distributions
- Penn West's Board of Directors resolved to maintain the Trust's
distribution level at $0.15 per unit, per month, for the period August
2009 through November 2009, subject to maintenance of current forecasts
of commodity prices, production levels and planned capital
expenditures.
Reece Acquisition
- On April 30, 2009, Penn West closed of the acquisition of Reece
Energy Exploration Corp. ("Reece"). The total acquisition
cost was approximately $101 million including approximately $42 million
of Reece's debt and working capital. We have reduced our planned 2009
development spending by the amount of debt assumed. The acquisition
added approximately 1,900 barrels of oil equivalent per day to our
production base and 64,000 acres of undeveloped land, the
majority of which is located in our Dodsland oil resource play.
Regulatory
- In June 2009, the Government of Alberta extended two components of
the Energy Incentive Program which became effective on April 1, 2009. The
drilling royalty credit which provides a $200 per metre of drilling
depth credit on all conventional oil and natural gas wells drilled and
the new well incentive program which offers a maximum five percent
royalty rate on all new wells that begin producing conventional oil or
natural gas after the effective date have been extended by an
additional year and will now expire on March 31, 2011.
- In August 2009, subsequent to the end of the second quarter, the
Government of British Columbia announced a stimulus program (the
"Program") for oil and gas drilling activity in the province.
The Program includes a one year, two percent royalty rate on wells
drilled in the province beginning in September 2009 and ending in June
2010, an increase of approximately 15 percent to existing royalty
deductions for natural gas deep drilling and drilling credits on
horizontal wells drilled at depths between 1,900 and 2,300 metres.
HIGHLIGHTS Three months ended June 30 Six months ended June 30 ---------------------------------------------------------- % % 2009 2008 change 2009 2008 change ---------------------------------------------------------------------------- Financial (millions, except per unit amounts) Gross revenues(1) $ 791 $ 1,312 (40) $ 1,572 $ 2,448 (36) Funds flow 430 753 (43) 778 1,385 (44) Basic per unit 1.05 2.00 (48) 1.91 3.77 (49) Diluted per unit 1.05 1.98 (47) 1.91 3.74 (49) Net loss (41) (323) (87) (139) (245) (43) Basic per unit (0.10) (0.86) (88) (0.34) (0.67) (49) Diluted per unit (0.10) (0.86) (88) (0.34) (0.67) (49) Capital expenditures, net (2) 136 247 (45) 177 525 (66) Long-term debt at period-end 3,778 3,683 3 3,778 3,683 3 Convertible debentures 281 334 (16) 281 334 (16) Distributions paid (3) $ 219 $ 383 (43) $ 533 $ 720 (26) Payout ratio (4) 51% 51% - 69% 52% 17 Operations Daily production Light oil and NGL (bbls/d) 77,614 81,957 (5) 78,460 81,818 (4) Heavy oil (bbls/d) 26,456 27,460 (4) 26,392 27,399 (4) Natural gas (mmcf/d) 459 487 (6) 453 493 (8) ---------------------------------------------------------------------------- Total production (boe/d) 180,601 190,515 (5) 180,350 191,403 (6) ---------------------------------------------------------------------------- Average sales price Light oil and NGL (per bbl) $ 58.11 $ 111.88 (48) $ 51.27 $ 100.34 (49) Heavy oil (per bbl) 56.71 93.12 (39) 46.89 79.91 (41) Natural gas (per mcf) 3.68 10.20 (64) 4.50 9.08 (50) Netback per boe Sales price $ 42.62 $ 87.60 (51) $ 40.48 $ 77.71 (48) Risk management gain (loss) 5.46 (12.01) 100 7.53 (7.69) 100 ---------------------------------------------------------------------------- Net sales price 48.08 75.59 (36) 48.01 70.02 (31) Royalties (7.14) (15.35) (54) (6.97) (13.79) (50) Operating expenses (14.79) (11.91) 24 (14.86) (11.77) 26 Transportation (0.51) (0.49) 4 (0.52) (0.49) 6 ---------------------------------------------------------------------------- Netback $ 25.64 $ 47.84 (46) $ 25.66 $ 43.97 (42) ---------------------------------------------------------------------------- (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 June 30 Six months ended June 30 -------------------------------------------------------- 2009 2008 2009 2008 -------------------------------------------------------- Gross Net Gross Net Gross Net Gross Net ---------------------------------------------------------------------------- Oil 14 8 26 10 36 22 104 56 Natural gas 4 3 24 10 21 8 105 52 Dry - - 2 2 1 1 6 6 ---------------------------------------------------------------------------- 18 11 52 22 58 31 215 114 Stratigraphic and service 1 1 3 1 3 2 26 24 ---------------------------------------------------------------------------- Total 19 12 55 23 61 33 241 138 ---------------------------------------------------------------------------- Success rate (1) 100% 91% 97% 95% ---------------------------------------------------------------------------- (1) Success rate is calculated excluding stratigraphic and service wells.
In
response to issues in financial markets and the decline in commodity
prices, Penn West reduced its 2009 development programs in the first
six months compared to 2008 and successfully focused its efforts on
less capital intensive production restoration and optimization
activities to maintain its production.
UNDEVELOPED LANDS As at June 30 --------------------------- 2009 2008 % change ---------------------------------------------------------------------------- Gross acres (000s) 3,385 4,466 (24) Net acres (000s) 2,670 3,612 (26) Average working interest 79% 81% (2) ---------------------------------------------------------------------------- CORE AREA ACTIVITY Net wells drilled Undeveloped land for the six month period as at June 30, 2009 Core Area ended June 30, 2009 (thousands of net acres) ---------------------------------------------------------------------------- Central 7 407 Eastern 5 255 Northern 1 746 North West Alberta 2 491 Southern 18 771 ---------------------------------------------------------------------------- 33 2,670 ---------------------------------------------------------------------------- TRUST UNIT DATA Three months Six months ended June 30 ended June 30 ------------------------------------------------------ % % (millions of units) 2009 2008 change 2009 2008 change ---------------------------------------------------------------------------- Weighted average Basic and Diluted 411.0 376.2 9 406.5 367.9 11 Outstanding as at June 30 416.4 377.6 10 ----------------------------------------------------------------------------
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 acquisition.
Letter to our Unitholders
We are pleased to report that Penn West delivered results in excess of
our guidance again during the second quarter of 2009. After completing
a substantial organizational restructuring in late 2008, our operating
and development teams are gaining momentum. Average daily production
for the second quarter of 2009 was 180,601 boe per day, which exceeded
our guidance of 177,000 boe per day net of acquisitions and
dispositions. We are on target to achieve full-year 2009 production
guidance of 175,000 - 180,000 boe per day.
Funds flow for the quarter was $430 million or $1.05 per unit, up from
$348 million or $0.87 per unit in the first quarter of this year but
down from the same period last year. Although natural gas prices
remained weak in the second quarter of 2009, oil prices strengthened
with WTI averaging US$59.62 per barrel compared to an average WTI price
of US$43.21 per barrel in the first quarter of 2009.
During the second quarter of 2009 we achieved an average netback of
$25.64 per boe, which included a realized hedging gain of $5.46 per
boe. Currently, approximately 31 percent of 2009 crude oil production
is hedged with collars having floors averaging US$80.00 per barrel. Approximately
22 percent of 2009 natural gas production is hedged with collars having
floors averaging $6.50 per GJ. Penn West has also hedged a portion of
oil and natural gas for 2010. Approximately 32 percent of 2010 crude
oil production is hedged with collars having floors averaging US$57.63
per barrel and approximately 11 percent of 2010 natural gas production
is hedged with collars having floors averaging $6.50 per GJ. Penn West
has also extended the term of some of our natural gas contracts into
2010. Penn West continues to use a prudent risk management program to
mitigate the impact of volatile commodity pricing on both our capital
program and our monthly distribution.
Based on capital expenditures in the first half of the year and average
daily production to-date it is clear that our efforts to achieve
improved returns on capital deployed are succeeding. Capital
expenditures were $140 million in the second quarter of 2009, bringing
the first half of 2009 capital expenditures total to $321 million. This
was in-line with our first half guidance of $250 million to $325
million in capital expenditures.
In the first six months of 2009, Penn West has reduced net debt,
including working capital, by approximately $350 million. Debt
diversification also remains a priority for Penn West. Penn West
completed the placement of approximately $238 million of senior
unsecured notes in the second quarter of 2009, bringing our total
long-term private debt to $1.5 billion with average terms of 5 - 13
years and an average interest rate of approximately 6.6 percent.
Penn West currently has an excellent portfolio of properties that can
be explored and developed to grow the company organically when
complimented by strategic acquisitions and selective divestitures. Through
prudent allocation of capital to our extensive land base of approximately
seven million net acres, we have the opportunity to economically
increase our drilling inventory over the coming months. As we move
towards transition from a trust to an exploration and production
company we will ramp up activity on our properties. We recognize that a
robust economic climate and good commodity pricing are also two
important catalysts for growth. Our current trust structure allows us
to make a measured transition to a conventional E&P model. We
believe that Penn West's assets will be able to sustain an economic
level of reinvestment over a long period of time. We believe that this
focus, along with our ongoing debt repayment agenda, will increasingly
add economic value to the company and thus enable us to deliver a
superior rate of return to our unitholders.
On behalf of the Board of Directors,
William E. Andrew Murray R. Nunns Chief Executive Officer President and Chief Operating Officer Calgary, Alberta August 11, 2009
Outlook
This outlook section is included to provide unitholders with
information as to our expectations as at August 11, 2009 for production
and net capital expenditures for 2009 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 remain at the lower
end of our $600 million to $825 million range. The reduction of our
planned capital program in 2009 compared to 2008 reflects year over
year commodity price erosion. In the second half of 2009, we currently
anticipate spending between $250 million and $300 million based on
current expectations for commodity price levels and industry costs. The
remaining 2009 capital program will continue to be focused on low cost
production recovery and additions through production optimization and
the advancement of certain of our resource plays and enhanced oil
recovery projects. Based on this level of capital expenditures, we
forecast 2009 average production to be in the range of approximately
175,000 to 180,000 boe per day. We continue to monitor the improvement
in crude oil pricing and our capital efficiencies. Continued
improvement in both of these areas could result in management seeking
Board approval to target capital expenditures at a higher level in our
guidance range.
Our prior forecast, released on May 6, 2009 with our 2009 first quarter
results and filed on SEDAR at www.sedar.com, was based on 2009 capital expenditures (excluding corporate
acquisitions) between $600 million and $825 million with the
expectation that spending will be near to the lower end of the range
and average production of approximately 180,000 boe per day, prior to
the effect of property dispositions, for the first half of 2009. Penn
West exceeded its first half 2009 production guidance primarily due to
drilling success at our resource oil plays and strong production
optimization performance.
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 total
of long-term debt and working capital (excluding risk management and
future income taxes) and is used to assess the appropriateness of our
distribution level and capital program.
Calculation of Funds Flow Three months ended Six months ended June 30 June 30 ---------------------------------------- (millions, except per unit amounts) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Cash flow from operating activities $ 295 $ 671 $ 577 $ 1,038 Increase in non-cash working capital 114 59 165 310 Asset retirement expenditures 21 23 36 37 ---------------------------------------------------------------------------- Funds flow $ 430 $ 753 $ 778 $ 1,385 ---------------------------------------------------------------------------- Basic per unit $ 1.05 $ 2.00 $ 1.91 $ 3.77 Diluted per unit $ 1.05 $ 1.98 $ 1.91 $ 3.74 ----------------------------------------------------------------------------
Funds
flow for the second quarter of 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 related to oil collars 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: future distribution
levels; our belief that we will meet our production guidance for fiscal
2009; the ability of our risk management program to mitigate the impact
of commodity price volatility on our capital program and distributions;
our ability to improve our returns on the capital we deploy; our
ability to grow organically through the exploration and development of
our properties; our ability to economically increase our drilling
inventory through the prudent allocation of capital in the coming
months; our intention to ramp up activity on our properties; our
intention to make a measured transition from a trust model to a
conventional exploration and production model; the ability of our
assets to sustain an economic level of reinvestment over a long period
of time; the ability of our business strategy to add economic value to
Penn West and the resulting impact on the rate of return received by
our unitholders; and, the disclosure contained under the headings
"Letter to our Unitholders" and "Outlook", which
sets forth management's expectations as to our capital expenditures for
2009 as a whole and during the last half of 2009 and the intended focus
of capital expenditures during the last half of 2009, and our forecast
average production for 2009.
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 the Alberta
royalty framework; uncertainty of obtaining required approvals for
acquisitions and mergers; and the other factors described in Penn
West's public filings (including our Annual Information Form) available
in Canada at 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) June 30, December 31, 2009 2008 ---------------------------------------------------------------------------- Assets Current Accounts receivable $ 430 $ 386 Risk management 76 448 Other 111 106 ---------------------------------------------------------------------------- 617 940 ---------------------------------------------------------------------------- Property, plant and equipment 11,977 12,452 Goodwill 2,020 2,020 ---------------------------------------------------------------------------- 13,997 14,472 ---------------------------------------------------------------------------- $ 14,614 $ 15,412 ---------------------------------------------------------------------------- Liabilities and unitholders' equity Current Accounts payable and accrued liabilities $ 405 $ 630 Distributions payable 63 132 Convertible debentures 8 7 Future income taxes 23 132 ---------------------------------------------------------------------------- 499 901 Long-term debt 3,778 3,854 Convertible debentures 273 289 Risk management 19 6 Asset retirement obligations 598 614 Future income taxes 1,252 1,368 ---------------------------------------------------------------------------- 6,419 7,032 ---------------------------------------------------------------------------- Unitholders' equity Unitholders' capital 8,371 7,976 Contributed surplus 98 75 Retained earnings (deficit) (274) 329 ---------------------------------------------------------------------------- 8,195 8,380 ---------------------------------------------------------------------------- $ 14,614 $ 15,412 ---------------------------------------------------------------------------- Penn West Energy Trust Consolidated Statements of Operations and Retained Earnings (Deficit) Three months ended Six months ended June 30 June 30 ----------------------------------------- (CAD millions, except per unit amounts, unaudited) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Revenues Oil and natural gas $ 701 $ 1,520 $ 1,326 $ 2,716 Royalties (117) (267) (227) (481) ---------------------------------------------------------------------------- 584 1,253 1,099 2,235 Risk management gain (loss) Realized 90 (208) 246 (268) Unrealized (308) (837) (389) (1,030) ---------------------------------------------------------------------------- 366 208 956 937 ---------------------------------------------------------------------------- Expenses Operating 246 210 491 415 Transportation 8 9 17 17 General and administrative 41 36 82 71 Financing 37 48 77 100 Depletion, depreciation and accretion 400 394 785 790 Unrealized risk management gain (45) - (4) (7) Unrealized foreign exchange (gain) loss (86) 10 (43) 27 Gain on currency contracts (75) - (75) - ---------------------------------------------------------------------------- 526 707 1,330 1,413 ---------------------------------------------------------------------------- Loss before taxes (160) (499) (374) (476) ---------------------------------------------------------------------------- Taxes Future income tax recovery (119) (176) (235) (231) ---------------------------------------------------------------------------- Net and comprehensive loss $ (41) $ (323) $ (139) $ (245) Retained earnings (deficit), beginning of period $ (45) $ 354 $ 329 $ 658 Distributions declared (188) (384) (464) (766) ---------------------------------------------------------------------------- Deficit, end of period $ (274) $ (353) $ (274) $ (353) ---------------------------------------------------------------------------- Net loss per unit Basic $ (0.10) $ (0.86) $ (0.34) $ (0.67) Diluted $ (0.10) $ (0.86) $ (0.34) $ (0.67) Weighted average units outstanding (millions) Basic 411.0 376.2 406.5 367.9 Diluted 411.0 376.2 406.5 367.9 ---------------------------------------------------------------------------- Penn West Energy Trust Consolidated Statements of Cash Flows Three months ended Six months ended June 30 June 30 -------------------------------------- (CAD millions, unaudited) 2009 2008 2009 2008 ---------------------------------------------------------------------------- Operating activities Net loss $ (41) $ (323) $ (139) $ (245) Depletion, depreciation and accretion 400 394 785 790 Future income tax recovery (119) (176) (235) (231) Unit-based compensation 13 11 25 21 Unrealized risk management loss 263 837 385 1,023 Unrealized foreign exchange (gain) loss (86) 10 (43) 27 Asset retirement expenditures (21) (23) (36) (37) Change in non-cash working capital (114) (59) (165) (310) ---------------------------------------------------------------------------- 295 671 577 1,038 ---------------------------------------------------------------------------- Investing activities Acquisition of property, plant and equipment (1) (16) (7) (17) Disposition of property, plant and equipment 5 - 151 5 Additions to property, plant and equipment (140) (231) (321) (513) Acquisition costs - - - (28) Change in non-cash working capital (12) (147) (120) (27) ---------------------------------------------------------------------------- (148) (394) (297) (580) ---------------------------------------------------------------------------- Financing activities Proceeds from issuance of notes 238 505 238 505 Redemption / maturity of convertible debentures - - (4) (24) Repayment of acquired credit facilities (31) - (31) (1,557) Increase (decrease) in bank loan (171) (471) (271) 1,208 Issue of equity 10 24 258 37 Distributions paid (193) (335) (470) (627) ---------------------------------------------------------------------------- (147) (277) (280) (458) ---------------------------------------------------------------------------- Change in cash - - - - Cash, beginning of period - - - - ---------------------------------------------------------------------------- Cash, end of period $ - $ - $ - $ - ---------------------------------------------------------------------------- Interest paid $ 46 $ 66 $ 70 $ 92 Income taxes paid (received) $ (3) $ 5 $ (3) $ 6 ----------------------------------------------------------------------------
Investor
Information
Penn West trust units and debentures are listed on the Toronto Stock
Exchange under the symbols PWT.UN, PWT.DB.B, PWT.DB.C, PWT.DB.D,
PWT.DB.E and PWT.DB.F and Penn West trust units are listed on the New
York Stock Exchange under the symbol PWE.
A conference call will be held to discuss Penn West's results at 10 a.m. Mountain
Daylight Time (12 p.m. Eastern Daylight Time) on August 12, 2009.
To listen to the conference call, please call one of the following:
416-340-8018 (Toronto)
866-223-7781 (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.onlinebroadcasting.com/pennwest/081209/index.php.
A taped recording will be available until August 19, 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.
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