Financial Highlights


Second Quarter Highlights

  • Production in the second quarter averaged 91,164 boe per day compared to 106,706 boe per day in the second quarter of 2014. The decrease in production is primarily due to non-core asset disposition activity in 2014 and 2015 as the Company continues to focus its asset portfolio and strengthen its balance sheet.

  • Development capital expenditures for the second quarter of 2015 were $64 million compared to $65 million in the comparative period in 2014. Second quarter 2015 activities were minimal due to spring break-up as the Company focused on completion work within the Cardium and Viking plays.

  • Netbacks were $18.72 per boe compared to $39.37 per boe in the second quarter of 2014. The decrease is mainly due to a significant reduction in commodity prices compared to 2014.

  • Funds flow from operations was $79 million for the second quarter of 2015 (2014 - $299 million). The decrease in funds flow compared to the prior year is mainly due to lower revenues as a result of a weaker commodity price environment and lower production volumes due to asset dispositions.

  • Net loss in the second quarter of $28 million compared to $143 million net income in the comparable period in 2014. The net loss in 2015 was due to a reduction in revenues primarily related to a lower commodity price environment.

  • In the second quarter, the Company finalized amending agreements with its lenders under its syndicated bank facility and with the holders of its senior notes to amend, among other things, its financial covenants.

  • The Company continued to progress on its asset disposition program with transactions of $414 million closed during the period. In accordance with the amending agreements, sale proceeds were offered and subsequently accepted by its lenders for prepayment on outstanding debt.

 

  Three months ended June 30
                  2015       2014 % change
Financial (millions, except per share amounts)
Gross revenues (1)(2)  
$360
$656
(45)
Funds flow from operations (2)  
$79
$299
(74)
Basic per share (2)  
$0.16
$0.61
(74)
Diluted per share (2)  
$0.16
$0.61
(74)
Funds flow (2)  
$47
$298
(84)
Basic per share (2)  
$0.09
$0.61
(85)
Diluted per share (2)  
$0.09
$0.60
(85)
Net income (loss)   ($28) $143 >(100)
Basic per share   ($0.06) $0.29 >(100)
Diluted per share   ($0.06) $0.29 >(100)
Development capital expenditures (3)  
$64
$65
(2)
Long term debt at period-end                  
$2,206
$2,234
(1)
Dividends (millions)
Dividends paid (4)        
$5
$69
(93)
DRIP  
-
($15)
(100)
Dividends paid in cash  
$5
$54
(91)
Operations
Daily production (average)
Light oil and NGL (bbls/d)      
51,275
55,783
(8)
Heavy oil (bbls/d)  
11,947
13,625
(12)
Natural gas (mmcf/d)  
168
224
(25)
Total production (boe/d) (5)  
91,164
106,706
(15)
Average sales price
Light oil and NGL (per bbl)        
$58.05
$95.22
(39)
Heavy oil (per bbl)  
$46.44
$79.55
(42)
Natural gas (per mcf)  
$2.78
$4.96
(44)
Netback per boe
Sales price  
$43.84
$70.34
(38)
Commodity gain (loss)    
($0.49)
($3.05)
(84)
Net sales price  
$43.35
$67.29
(36)
Royalties  
($4.72)
($11.54)
(59)
Transportation  
($1.40)
($1.18)
19
Operating expenses  
($18.51)
($15.20)
22
Netback (2)  
$18.72
$39.37
(52)

 

(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) Includes capital carried by partners.

(4) Includes dividends paid in cash that are subsequently reinvested to purchase shares from treasury 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”.