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 $366 million in the fourth quarter of 2009 was 5 percent higher than the $349 million realized in the third quarter of 2009 and 25 percent lower than the $490 million realized in the fourth quarter of 2008. On a per-unit-basis (1) basic funds flow was $0.87 per unit in the fourth quarter of 2009 compared to $0.84 per unit in the third quarter of 2009 and $1.27 per unit in the fourth quarter of 2008.
- Net loss was $12 million ($0.03 per unit-basic) in the fourth quarter of 2009 compared to a net income of $7 million ($0.02 per unit-basic) in the third quarter of 2009 and net income of $404 million ($1.05 per unit-basic) in the fourth quarter of 2008. The decline in net income in the fourth quarter of 2009 compared to 2008 was primarily due to unrealized risk management losses.
(1) The Terms "funds flow", "funds flow per unit-basic", "recycle ratio", "netback" and "net debt" are non-GAAP measures. Please refer to the "Calculation of Funds Flow", "Netbacks" and "Non-GAAP Measures Advisory" sections. Funds flow for 2009 includes $75 million of realized gains from foreign exchange contracts related to oil collars in the second quarter of 2009.
Click here for full 2009 Fourth Quarter Report
| Financial (millions, except per unit amounts) | ||||
|---|---|---|---|---|
| Three months ended December 31 | Year ended December 31 | |||
| 2009 | 2008 | 2009 | 2008 | |
| Gross Revenues (1) | $831 | $968 | $3,203 | $4,651 |
| Funds flow | 366 | 490 | 1,493 | 2,537 |
| Basic per unit | 0.87 | 1.27 | 3.62 | 6.75 |
| Diluted per unit | 0.86 | 1.26 | 3.60 | 6.66 |
| Net income (loss) | (12) | 404 | (144) | 1,221 |
| Basic per unit | (0.03) | 1.05 | (0.35) | 3.25 |
| Diluted per unit | (0.03) | 1.04 | (0.35) | 3.22 |
| Capital expenditures, net (2) | - | 288 | 319 | 1,045 |
| Long-term debt at period-end | 3,219 | 3,854 | 3,219 | 3,854 |
| Convertible debentures | 273 | 296 | 273 | 296 |
| Distributions paid (3) | $189 | $392 | $910 | $1,500 |
| Operations | ||||
| Daily production | ||||
| Natural gas (mmcf/d) | 411 | 476 | 440 | 490 |
| Light oil and NGL (bbls/d) | 77,627 | 79,115 | 78,011 | 80,370 |
| Heavy oil (bbls/d) | 24,009 | 26,529 | 25,962 | 27,366 |
| Total production (boe/d) | 170,164 | 184,908 | 177,221 | 189,462 |
| Average sales price | ||||
| Natural gas (per mcf) | $4.39 | $7.03 | $4.13 | $8.43 |
| Light oil and NGL (per bbl) | 69.49 | 53.72 | 59.07 | 91.30 |
| Heavy oil (per bbl) | 62.97 | 38.67 | 53.75 | 74.55 |
| Netback per boe | ||||
| Sales price | $51.19 | $46.79 | $44.11 | $71.65 |
| Risk management (loss) gain | 1.89 | 3.12 | 5.32 | (6.05) |
| Net sales price | 53.08 | 49.91 | 49.43 | 65.60 |
| Royalties | (9.35) | (8.89) | (7.66) | (12.95) |
| Operating expenses | (15.10) | (13.22) | (14.93) | (12.31) |
| Transportation | (0.52) | (0.49) | (0.52) | (0.49) |
| Netback | $28.11 | $27.31 | $26.32 | $39.85 |
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.