Financial Highlights

Second Quarter Key Points

  • Net Debt of $2.4B at quarter-end was reduced by $269MM compared to Q1/14

  • Funds Flow for Q2 was $298MM ($0.61/share - basic)

  • Operating cost of $15.20/boe was lower than expected:

    • Result of cost reduction efforts which caused operating cost accruals to be too high
    • Reduced accruals to accurately reflect costs – resulted in reduction of $26MM ($2.65/boe
    • Operating cost of $19.12/boe for the first half of 2014, before the effect of the accrual adjustment, is more indicative of our future and ongoing performance
  • Capital Budget revised from $900MM to $820MM

    • Reflecting reclassification of $80MM from capital to operating expenses
    • No impact to planned development activities for 2014
  • The Board of Penn West declared the third quarter 2014 dividend in the amount of $0.14 per share to be paid October 15, 2014 to shareholders of record on September 30, 2014

 

  Three months ended
June 30

 
                                         
     2014
                           
2013
        % change
Financial (millions, except per share amounts)
Gross revenues (1)(2)   $650 $745   (13)
Funds flow (2)   $298 $249   20
Basic per share (2)   $0.61 $0.51   20
Diluted per share (2)   $0.60 $0.51   18
Net income (loss)   $143 ($53)   >100
Basic per share   $0.29 ($0.11)   >100
Diluted per share   $0.29 ($0.11)   >100
Development capital expenditures (3)   $65 $68   (4)
Long term debt at period-end                   $2,234 $3,125   (29)
Dividends (millions)
Dividends paid (4)         $69 $130   (47)
DRIP   ($15) ($26)   (42)
Dividends paid in cash   $54 $104   (48)
Operations
Daily production (average)
Light oil and NGL (bbls/d)       55,783 72,493   (23)
Heavy oil (bbls/d)   13,625 15,653   (13)
Natural gas (mmcf/d)   224 312   (28)
Total production (boe/d) (5)   106,706 140,083   (24)
Average sales price
Light oil and NGL (per bbl)         $94.15 $82.65   14
Heavy oil (per bbl)   $79.40 $67.10   18
Natural gas (per mcf)   $4.96 $3.70   34
Netback per boe
Sales price   $69.76 $58.49   19
Risk management gain (loss)     ($3.05) ($0.07)   100
Net sales price   $66.71 $58.42   14
Royalties   ($11.54) ($8.38)   38
Operating expenses   ($15.20) ($21.15)   (28)
Transportation   ($0.60) ($0.59)   1
Netback (2)   $39.37 $28.30   39

 

(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”.