In the first quarter, capital expenditures were on budget, anticipated drilling and completion cost savings were realized and all planned development activities were executed. Production to date is on target, wells were brought on-stream on schedule, and execution of our base production reliability initiatives are on plan.

• Average production for the first quarter of 2013 was 142,804 boe ⁽¹⁾ per day driven in part by improved production reliability and reduced repair and maintenance cycle times; annual 2013 average production guidance remains at 135,000 to 145,000 boe per day.
   
• Exploration and development capital expenditures of $427 million were on budget; full year 2013 capital guidance remains $900 million.
   
• Improvements in capital efficiencies and cost structures on all key plays were realized, driven by reductions in drill times and decreased completion costs in addition to improvements in field execution.
   
• 119 net development wells were drilled in the first quarter, consistent with plans.
   
• First quarter light oil and natural gas liquids production comprised 82 percent of total liquids production and received average prices of $80.75 per barrel after hedging.
   
• Hedges are in place on over 80 percent of forecast 2013 oil production, net of royalties, between US$91.55 and US$104.42 per barrel.
   
• First quarter 2013 light oil and natural gas liquids price differentials, after price adjustments, were $14.43 per barrel (2012 – $23.16 per barrel) compared to benchmark WTI oil prices, narrower than internal expectations.
   
• Funds flow ⁽²⁾ for the first quarter was $267 million ($0.55 per share – basic ⁽²⁾) ahead of internal expectations due to higher light-oil price realizations.

⁽¹⁾ Please refer to the "Oil and Gas Information Advisory" section in the "First Quarter Release" for information regarding the term "boe".

⁽²⁾ The terms "funds flow" and "funds flow per share-basic" are non-GAAP measures. Please refer to the "Calculation of Funds Flow" and "Non-GAAP Measures Advisory" sections in the "First Quarter Release".

 

	Three months ended March 31
			2013		2012		% change
Financial (millions, except per share amounts)
Gross revenues (1)			$704	$870			(19)
Funds flow			267	337			(21)
Basic per share			0.55	0.71			(23)
Diluted per share			0.55	0.71			(23)
Net income (loss)			(97)	59			(100)
Basic per share			(0.20)	0.12			(100)
Diluted per share			(0.20)	0.12			(100)
Capital expenditures(2)			427	660			(35)
Debt at period-end			$2,962	$3,397			(13)
Dividends (millions)
Dividends paid (3)			$129	$127			2
DRIP			(28)	(27)			4
Dividends paid in cash			$101	$100			1
Operations
Daily production
Light oil and NGL (bbls/d)			72,926	89,029			(18)
Heavy oil (bbls/d)			16,324	18,170			(10)
Natural gas (mmcf/d)			321	361			(11)
Total production (boe/d)			142,804	167,420			(15)
Average sales price
Light oil and NGL (per bbl)			$80.23	$84.16			(5)
Heavy oil (per bbl)			50.78	72.68			(30)
Natural gas (per mcf)			$3.18	$2.29			39
Netback per boe
Sales price			$53.93	$57.59			(6)
Risk management gain (loss)			0.60	(1.24)			100
Net sales price			54.53	56.35			(3)
Royalties			(9.30)	(10.59)			(12)
Operating expenses			(16.88)	(17.93)			(6)
Transportation			(0.59)	(0.49)			20
Netback			$27.76	$27.34			2

 

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

⁽²⁾ Capital expenditures include exploration and development capital less joint venture, carried capital.