Financial Highlights

  • We had strong delivery from our 2015 operations with results within or ahead of guidance.  Full year production volumes averaged 86,357 boe/d, above the mid-point of guidance. Capital expenditures were $30 million below our guidance, resulting in full year spending of $470 million.  Our focus on reducing the cost structure within our business drove full year operating costs of $18.96 per boe that were notably below the bottom end of guidance and G&A of $2.91 per boe was within our guidance range

  • During the year, we entered into agreements to sell certain royalty interests and non-core properties for proceeds of $800 million.  We believe that these transactions demonstrate our ability to complete non-core asset dispositions at attractive deal metrics despite continuing weakness in the A&D market.  Proceeds from all dispositions were applied against our senior notes and our syndicated bank facility

  • As at December 31, 2015, we were in compliance with all of the financial covenants under our lending agreements and had approximately $689 million of undrawn capacity under our syndicated bank facility of $1.2 billion.  Senior Debt to EBITDA was 4.6 times, relative to a 5.0 times limit.  In order to ensure continued compliance with our lending agreements, we have entered into discussions with our senior noteholders and members of the syndicated bank facility to amend our note and credit agreements

  • Full year funds flow from operations, which excludes foreign exchange hedge monetizations/settlements, realized foreign exchange losses and restructuring charges was $237 million ($0.47 per share).  Despite average WTI prices of approximately US$48 per barrel, resulting in Edmonton Par prices of approximately $57 per barrel, our field netbacks including risk management activities remained strong at approximately $15.52 per boe

  • Production in the fourth quarter averaged 77,398 boe/d, driving funds flow from operations of $36 million ($0.07 per share).  Average fourth quarter WTI prices of approximately US$42 per barrel and Edmonton Par prices of approximately $53 per barrel, were the lowest of any quarter during the year.  However, our field netback including risk management activities of $15.32 per boe remained consistent with our full year result and demonstrates the progress we have made in enhancing the value of every barrel we produce

  • Our proved plus probable reserve volumes at the end of 2015 were 306 mmboe, with a net present value, before taxes and discounted at 10%, of $3.4 billion.  Approximately 75% of our reserve value and approximately 65% of reserve volumes on a proved plus probable basis are attributed to the Viking and Cardium areas

  • During the year, we recorded non-cash, after-tax PP&E impairments totaling approximately $1.2 billion, primarily due to lower commodity price forecasts, lower estimated reserve recoveries and lower or minimal future development capital planned in the areas where the impairments were recorded.  Through our 2015 year-end reserves process, we reduced our future development costs to align with the Company’s near-term capital budget.  Additionally, in 2015 we recorded approximately $700 million of goodwill impairment due to lower commodity price forecasts. At December 31, 2015, we had no goodwill remaining