Financial and Operating Highlights
Penn West Energy Trust is a Canadian senior independent oil and natural gas income trust whose more than 1,800 head office and field employees are committed to maximizing unitholder value over the long term. Penn West's track record of success has been achieved through a balance of successful drilling on internally generated prospects and cost-effective acquisitions. On May 31, 2005, Penn West Petroleum Ltd. converted all its assets and liabilities into an income trust. Shareholders of Penn West Petroleum Ltd. received three units of Penn West Energy Trust for each common share held. Penn West paid its first distribution on July 15, 2005.
Highlights
- Funds flow (1) 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 (1) 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.
(1) 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.
Click here for full 2009 Third Quarter Report
| Financial (millions, except per unit amounts) | ||||
|---|---|---|---|---|
| Three months ended September 30 | Nine months ended September 30 | |||
| 2009 | 2008 | 2009 | 2008 | |
| Gross Revenues (1) | $800 | $1,235 | $2,372 | $3,683 |
| 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 |
| Net income (loss) | 7 | 1,062 | (132) | 817 |
| Basic per unit | 0.02 | 2.78 | (0.32) | 2.19 |
| Diluted per unit | 0.02 | 2.73 | (0.32) | 2.17 |
| Capital expenditures, net (2) | 142 | 232 | 319 | 757 |
| Long-term debt at period-end | 3,559 | 3,679 | 3,559 | 3,679 |
| Convertible debentures | 273 | 328 | 273 | 328 |
| Distributions paid (3) | $188 | $388 | $721 | $1,108 |
| Operations | ||||
| Daily production | ||||
| Natural gas (mmcf/d) | 441 | 500 | 449 | 495 |
| Light oil and NGL (bbls/d) | 77,513 | 78,762 | 78,141 | 80,792 |
| Heavy oil (bbls/d) | 27,070 | 28,136 | 26,621 | 27,646 |
| Total production (boe/d) | 178,124 | 190,177 | 179,600 | 190,991 |
| Average sales price | ||||
| Natural gas (per mcf) | $3.13 | $8.49 | $4.05 | $8.88 |
| Light oil and NGL (per bbl) | 64.15 | 110.45 | 55.58 | 103.65 |
| Heavy oil (per bbl) | 58.72 | 98.07 | 50.94 | 86.12 |
| Netback per boe | ||||
| Sales price | $44.58 | $83.23 | $41.85 | $79.73 |
| Risk management (loss) gain | 4.17 | (11.69) | 6.41 | (9.03) |
| Net sales price | 48.75 | 71.54 | 48.26 | 70.70 |
| Royalties | (7.41) | (15.23) | (7.12) | (14.27) |
| Operating expenses | (14.90) | (12.49) | (14.87) | (12.01) |
| Transportation | (0.53) | (0.49) | (0.52) | (0.49) |
| Netback | $25.91 | $43.33 | $25.75 | $43.93 |
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 may not represent a value equivalency at the wellhead.
(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.