Financial Highlights


Third Quarter Highlights

  • Production in the third quarter averaged 100,839 boe per day compared to 133,712 boe per day in the third quarter of 2013. Penn West's production volumes were consistent with its previous forecast of 100,000 boe per day on average for the third quarter.

  • Funds flow for the third quarter of 2014 was $231 million ($0.47 per share - basic) compared to $296 million in the comparative period in 2013. The decline is attributed to lower crude oil prices and lower production volumes due to asset dispositions which both contributed to lower revenues.

  • Development capital expenditures for the third quarter of 2014 were $225 million compared to $75 million in the comparative period in 2013. Third quarter activities proceeded as planned with a focus on development activities in the Cardium and Viking areas and appraisal activities in the Slave Point area.

  • Over 90 percent of all net wells drilled were in the Company's three core light oil areas.

  • As at September 30, 2014, the Company was in compliance with all financial covenants under its lending agreements. Specifically, the reported senior debt to EBITDA ratio of 2:1 times in the quarter is well within the covenant threshold of 3:1, and the senior debt to capitalization of 23 percent is well within the covenant threshold of 50 percent.

 

  Nine months ended
September 30

 
                                         
     2014
                           


(restated) 2013

        % change
Financial (millions, except per share amounts)
Gross revenues (1)(2)   $584 $773   (24)
Funds flow (2)   $231 $296   (22)
Basic per share (2)   $0.47 $0.61   (23)
Diluted per share (2)   $0.47 $0.61   (23)
Net income (loss)   ($15) $34   >(100)
Basic per share   ($0.03) $0.07   >(100)
Diluted per share   ($0.03) $0.07   >(100)
Development capital expenditures (3)   $225 $75   >100
Long term debt at period-end                   $2,192 $3,004   (27)
Dividends (millions)
Dividends paid (4)         $69 $131   (47)
DRIP   ($14) ($27)   (48)
Dividends paid in cash   $55 $104   (47)
Operations
Daily production (average)
Light oil and NGL (bbls/d)       51,675 68,977   (25)
Heavy oil (bbls/d)   13,012 15,483   (16)
Natural gas (mmcf/d)   217 296   (27)
Total production (boe/d) (5)   100,839 133,712   (25)
Average sales price
Light oil and NGL (per bbl)         $87.49 $92.42   (5)
Heavy oil (per bbl)   $72.38 $84.02   (14)
Natural gas (per mcf)   $4.33 $2.83   53
Netback per boe
Sales price   $63.49 $63.67   -
Risk management gain (loss)     ($0.65) ($0.50)   30
Net sales price   $62.84 $63.17   (1)
Royalties   ($8.99) ($9.37)   (4)
Operating expenses   ($20.74) ($19.48)   6
Transportation   ($0.60) ($0.58)   3
Netback (2)   $32.51 $33.74   (4)

 

(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 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”.