Financial Highlights

 

First Quarter Key Points

  • Production in the first quarter of 2014 was on plan, averaging 110,795 boe per day compared to 142,804 boe per day in the first quarter of 2013. The decrease in production is primarily due to asset dispositions completed in 2013 and 2014 and our decision not to restore production shut-in due to marginal economic returns during 2013.

  • Development capital expenditures for the first quarter of 2014 were $205 million (2013 – $427 million) as we continued our focus on development in the Cardium, Slave Point and Viking, and realized sustained cost reductions across all plays.

  • Netbacks were $36.67 per boe compared to $27.76 per boe in the first quarter of 2013. The increase is mainly due to higher commodity prices.

  • Funds flow for the first quarter of 2014 was $279 million compared to $267 million in the comparative period in 2013. The increase in funds flow is mainly due to higher commodity prices, a stronger US dollar, and lower operating and general and administrative costs. This was partially offset by lower production volumes compared to 2013.

  • Net loss was $96 million in the first quarter of 2014 compared to a net loss of $97 million in the first quarter of 2013. The net loss in 2014 was primarily due to losses on non-core asset dispositions and unrealized foreign exchange losses.

 

  Three months ended
March 31

 
                                           
     2014
                             
2013
         % change
Financial (millions, except per share amounts)
Gross revenues (1)(2)   $668 $704   (5)
Funds flow (2)   $279 $267   4
Basic per share (2)   $0.57 $0.55   4
Diluted per share (2)   $0.57 $0.55   4
Net income (loss)   ($96) ($97)   (1)
Basic per share   ($0.20) ($0.20)   -
Diluted per share   ($0.20) ($0.20)   -
Development capital expenditures (3)   $205 $427   (52)
Long term debt at period-end                    $2,353 $2,962   (21)
Dividends (millions)
Dividends paid (4)         $68 $129   (47)
DRIP   ($14) ($28)   (50)
Dividends paid in cash   $54 $101   (47)
Operations
Daily production (average)
Light oil and NGL (bbls/d)         58,520 72,926   (20)
Heavy oil (bbls/d)   13,119 16,324   (20)
Natural gas (mmcf/d)   235 321   (27)
Total production (boe/d) (5)   110,795 142,804   (22)
Average sales price
Light oil and NGL (per bbl)           $91.67 $80.23   14
Heavy oil (per bbl)   $69.15 $50.78   36
Natural gas (per mcf)   $5.84 $3.18   84
Netback per boe
Sales price   $69.00 $53.93   28
Risk management gain (loss)       ($1.99) $0.60   >(100)
Net sales price   $67.01 $54.53   23
Royalties   ($12.05) ($9.30)   30
Operating expenses   ($17.66) ($16.88)   5
Transportation   ($0.63) ($0.59)   7
Netback (2)   $36.67 $27.76   32

 

(1) Gross revenues include realized gains and losses on commodity contracts.

(2) The terms "gross revenues", “funds flow”, “funds flow per share-basic”, “funds flow per share-diluted” and “netback” are non-GAAP measures. Please refer to the "Calculation of FundsFlow" and "Non-GAAP Measures Advisory" in the press release or quarter report for information.

(3) Includes the effect of capital carried by partners.

(4) Includes dividends paid prior to amounts reinvested in shares under the dividend reinvestment plan.

(5) Please refer to the “Oil and Gas Information Advisory” in the press release or quarter report for information regarding the term “boe”.