Financial and Operating Highlights
Penn West Energy is a Canadian senior independent oil and natural gas income trust whose more than 1,900 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 $269 million in the second quarter of 2010 was 22 percent lower than the $344 million realized in the first quarter of 2010 and 37 percent lower than the $430 million realized in the second quarter of 2009. The decline from the first quarter of 2010 was primarily due to lower commodity prices. Basic funds flow was $0.62 per unit (1) in the second quarter of 2010 compared to $0.81 per unit in the first quarter of 2010 and $1.05 per unit in the second quarter of 2009.
- Net income of $195 million ($0.45 per unit-basic) in the second quarter of 2010 was much stronger compared to net income of $77 million ($0.18 per unit-basic) in the first quarter of 2010 and was a reversal of the net loss of $41 million ($0.10 per unit-basic) in the second quarter of 2009.
(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", "Highlights - Netback per boe" and "Non-GAAP Measures Advisory" sections.
Click here for Second Quarter 2010 Report
| Financial (millions, except per unit amounts) | ||||
|---|---|---|---|---|
| Three months ended June 30 | Six months ended June 30 | |||
| 2010 | 2009 | 2010 | 2009 | |
| Gross Revenues (1) | $718 | $791 | $1,524 | $1,572 |
| Funds flow | 269 | 430 | 613 | 778 |
| Basic per unit | 0.62 | 1.05 | 1.43 | 1.91 |
| Diluted per unit | 0.61 | 1.05 | 1.41 | 1.91 |
| Net income (loss) | 195 | (41) | 272 | (139) |
| Basic per unit | 0.45 | (0.10) | 0.63 | (0.34) |
| Diluted per unit | 0.44 | (0.10) | 0.63 | (0.34) |
| Capital expenditures, net (2) | (368) | 136 | (549) | 177 |
| Long-term debt at period-end | 2,473 | 3,778 | 2,473 | 3,778 |
| Convertible debentures | 273 | 281 | 273 | 281 |
| Distributions paid (3) | $192 | $219 | $382 | $533 |
| Operations | ||||
| Daily production | ||||
| Natural gas (mmcf/d) | 408 | 459 | 409 | 453 |
| Light oil and NGL (bbls/d) | 77,198 | 77,614 | 76,818 | 78,460 |
| Heavy oil (bbls/d) | 18,579 | 26,456 | 19,228 | 26,392 |
| Total production (boe/d) | 163,700 | 180,601 | 164,141 | 180,350 |
| Average sales price | ||||
| Natural gas (per mcf) | $3.83 | $3.68 | $4.64 | $4.50 |
| Light oil and NGL (per bbl) | 67.70 | 58.11 | 70.18 | 51.27 |
| Heavy oil (per bbl) | 57.03 | 56.71 | 60.77 | 46.89 |
| Netback per boe | ||||
| Sales price | $47.94 | $42.62 | $51.52 | $40.48 |
| Risk management gain (loss) | (0.22) | 5.46 | (0.20) | 7.53 |
| Net sales price | 48.16 | 48.08 | 51.32 | 48.01 |
| Royalties | (8.57) | (7.14) | (9.28) | (6.97) |
| Operating expenses | (15.52) | (14.79) | (15.56) | (14.86) |
| Transportation | (0.55) | (0.51) | (0.56) | (0.52) |
| Netback | $23.52 | $25.64 | $25.92 | $25.66 |
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. The term "payout ratio" is a Non-GAAP measure. See "Non-GAAP Measures Advisory" section.