Financial Highlights

Third Quarter Highlights

  • During the third quarter, we entered into agreements to sell our Mitsue properties for proceeds of approximately $193 million and our Weyburn Unit working interest for proceeds of $205 million, prior to closing adjustments. Subsequent to the end of the third quarter, the Mitsue transaction closed on October 30, 2015 and we anticipate the Weyburn transaction to close in November 2015, with proceeds from both dispositions to be applied against our senior notes and our syndicated bank facility.

  • As at September 30, 2015, we were in compliance with all of our financial covenants under our lending agreements and had approximately $650 million of undrawn capacity under our syndicated bank facility of $1.2 billion. Senior Debt to EBITDA was 4.3 times, relative to a 5.0 times limit.

  • Production in the third quarter averaged 82,198 barrels of oil equivalent per day. The majority of the difference relative to the second quarter was the result of dispositions closed in late June. Third quarter volumes were also impacted by approximately 1,000 barrels of oil equivalent per day of third party infrastructure constraints, including the TransCanada Pipeline and Alliance Pipeline systems. Additionally, certain turnarounds had been deferred from the second quarter for operational reasons.

  • Third quarter funds flow from operations, which excludes foreign exchange hedge monetizations/settlements, realized foreign exchange losses and restructuring charges was $45 million ($0.09 per share). Despite WTI prices of approximately US$46 per barrel, resulting in Edmonton Par prices of approximately $56 per barrel, our field netbacks including risk management activities remained strong at approximately $14 per boe.

  • Capital expenditures were $116 million during the third quarter of 2015, with our development program selectively focused on the Viking and Cardium plays.

  • In the third quarter of 2015, we recorded non-cash impairment charges of $435 million primarily related to certain non-core properties in the Fort St. John area of northeastern British Columbia and in the Swan Hills and Wainwright areas of Alberta. This was mainly due to a decline in forecasted commodity prices compared to December 31, 2014.

  • Additionally, as a result of entering into definitive sales agreements related to the Mitsue and Weyburn transactions, we recorded non-cash impairment charges of $399 million on these two transactions as the book value of these assets exceeded the fair value received.


  Three months ended September 30
                  2015       2014 % change
Financial (millions, except per share amounts)
Gross revenues (1)(2)  
Funds flow from operations (2)  
Basic per share (2)  
Diluted per share (2)  
Funds flow (2)  
Basic per share (2)  
Diluted per share (2)  
Net income (loss)   ($764) ($15) >(100)
Basic per share   ($1.52) ($0.03) >(100)
Diluted per share   ($1.52) ($0.03) >(100)
Capital expenditures (3)  
Long-term debt at period-end                  
Daily production (average)
Light oil and NGL (bbls/d)      
Heavy oil (bbls/d)  
Natural gas (mmcf/d)  
Total production (boe/d) (4)  
Average sales price
Light oil and NGL (per bbl)        
Heavy oil (per bbl)  
Natural gas (per mcf)  
Netback per boe
Sales price  
Commodity gain (loss)    
Net sales price  
Operating expenses  
Netback (2)  


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

(2) The terms "gross revenues", “funds flow”, “funds flow from operations” and their applicable per share amounts, and “netback” are non-GAAP measures. Please refer to the "Calculation of Funds Flow/Funds Flow from Operations" and "Non-GAAP Measures" in the press release or quarter report for information.

(3) Capital expenditures include costs related to Property, Plant and Equipment and Exploration and Evaluation. Includes capital carried by partners.

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