CALGARY, May 4, 2012 /PRNewswire/ - PENN WEST PETROLEUM LTD. (TSX: PWT) (NYSE: PWE) ("PENN WEST") is pleased to announce its results for the first quarter ended March
31, 2012
Our corporate strategy is to provide shareholder return through a
combination of oil production growth and a stable dividend. We have
focused investment over the past several years on establishing the
growth potential of the largest light-oil inventory in Western Canada.
In three years, we have proven that we can execute on a large scale
using horizontal multi-stage fracture technology. We have applied the
technology from a standing start to producing over 35,000 boe per day
from horizontal wells. We acquired complimentary land positions in our
existing plays and emerging trends with a strong weighting to oil.
Throughout this period, we maintained capital discipline, increased the
term of our debt capital and disposed of non-core assets to partially
fund our capital programs while conserving our balance sheet. The first
quarter results are a product of our approach to the business.
HIGHLIGHTS
-
Average production in the first quarter of 2012 was 167,420 boe (1) per day, after the effect of approximately 4,500 boe per day of asset
dispositions in January, compared to 168,801 boe per day for the fourth
quarter of 2011.
-
First quarter average liquids production was in excess of 107,000 boe
per day, of which approximately 90 percent was oil.
-
Capital expenditures for the first quarter of 2012, including net
property dispositions, totalled $338 million compared to $436 million
for the first quarter of 2011. Our capital guidance for 2012 remains
$1.3 billion to $1.4 billion, net of acquisition and disposition
activity in the first quarter of 2012.
-
Funds flow (2) was $337 million ($0.71 per share - basic (2)) in the first quarter of 2012 compared to $356 million ($0.77 per share
- basic) reported in the first quarter of 2011 primarily due to lower
natural gas prices and wider Canadian crude oil differentials offset by
higher WTI oil prices.
-
Net income for the first quarter of 2012 was $59 million ($0.12 per
share - basic).
-
Proceeds on net property dispositions in the first quarter of 2012
totalled $322 million.
DIVIDEND
-
On May 3, 2012, our Board of Directors declared a second quarter 2012
dividend of $0.27 per share to be paid on July 13, 2012 to shareholders
of record on June 29, 2012. Shareholders are advised that this dividend
is designated as an "eligible dividend" for Canadian income tax
purposes.
RISK MANAGEMENT
-
For 2012, we have 60,000 barrels per day of oil production hedged
between US$85.53 per barrel and US$100.20 per barrel.
-
In 2012, we have 50,000 mcf per day of natural gas production hedged at
an average price of $4.30 per mcf.
-
We have foreign exchange contracts to swap US$156 million per month of
US dollar revenue for 2012 to Canadian dollars at an average rate of
1.02 Canadian dollars per US dollar.
-
For 2013 we have hedged 41,000 barrels per day of oil production between
US$94.51 per barrel and US$108.28 per barrel.
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(1)
|
Please refer to the "Oil and Gas Information Advisory" section below for
information regarding the term "boe".
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|
(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 below.
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OPERATIONS UPDATE
In the first quarter of 2012, we were the most active driller for
light-oil targets in Western Canada. We executed our most active
operational quarter in company history. At peak, we had 38 drilling
rigs operating and rig released 179 operated development wells in the
quarter. Predictable results and an inventory of multi-well pads for
tie-in position us well to continue our operational momentum.
Oil Development
Carbonates
-
From an exploration concept in 2009, we have progressed to drilling 23
wells, 14 of which were dual-laterals, during the first quarter with an
average of eight rigs.
-
We have grown horizontal production to more than 7,500 boe per day.
-
In the Slave Point, we are the dominant player where we have secured
approximately 400,000 net acres of land and our drilling inventory is
growing.
-
The ongoing expansion of our Slave Point facilities ensures growth
capacity and area control.
Cardium
-
Penn West holds the largest land position in industry on the Cardium
trend with approximately 665,000 net acres.
-
We are in full-scale development in Willesden Green, Alder Flats and
West Pembina where our results exceed the industry average.
-
We had six rigs active in our three focus areas and we drilled 28 wells.
-
We are currently producing over 9,000 boe per day from our horizontal
development program.
Viking
-
In southwest Saskatchewan, we continue to drive this predictable and
highly economic resource play.
-
We drilled 44 wells on the Viking trend in this quarter and are
currently producing over 6,000 boe per day from horizontal development.
-
In Alberta, our results are encouraging and we continue to appraise the
oil rich prospects on our extensive Viking position.
Spearfish
-
We had five rigs active over the quarter and rig released 37 wells.
-
Current horizontal production has grown to over 8,500 boe per day and
our current inventory supports over five years of growth.
-
The battery was expanded to 13,500 boe per day. We will drill to fill
over the next year.
Resource Appraisal
-
The combination of multi-stage fracture technology with proven secondary
and tertiary recovery methods provide Penn West with a broad suite of
profitable opportunities. By year-end 2012, we anticipate having a
number of EOR projects underway.
-
In the Peace River Oil Partnership, the second steam injection cycle
continued throughout the first quarter at the Seal Main thermal pilot
and planning for the next pilot is ongoing.
-
In the Cordova Joint Venture, we continue to appraise the ultimate
recoverable gas potential and further refine our drilling and
completions techniques.
HIGHLIGHTS
|
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Three months ended March 31
|
|
|
2012
|
2011
|
% change
|
Financial
(millions, except per share amounts)
|
|
|
|
|
|
Gross revenues (1)
|
$
|
870
|
$
|
844
|
3
|
|
Funds flow
|
|
337
|
|
356
|
(5)
|
|
|
Basic per share
|
|
0.71
|
|
0.77
|
(8)
|
|
|
Diluted per share
|
|
0.71
|
|
0.77
|
(8)
|
|
Net income
|
|
59
|
|
291
|
(80)
|
|
|
Basic per share
|
|
0.12
|
|
0.63
|
(81)
|
|
|
Diluted per share
|
|
0.12
|
|
0.63
|
(81)
|
|
Capital expenditures, net (2)
|
|
338
|
|
436
|
(22)
|
|
Debt at period-end (3)
|
|
3,397
|
|
2,838
|
20
|
|
Dividends paid (4)
|
$
|
127
|
$
|
41
|
100
|
|
Payout ratio (5)
|
|
38%
|
|
12%
|
26
|
|
Operations
|
|
|
|
|
|
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Daily production
|
|
|
|
|
|
|
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Light oil and NGL (bbls/d)
|
|
89,029
|
|
85,651
|
4
|
|
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Heavy oil (bbls/d)
|
|
18,170
|
|
18,698
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(3)
|
|
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Natural gas (mmcf/d)
|
|
361
|
|
371
|
(3)
|
|
Total production (boe/d)
|
|
167,420
|
|
166,135
|
1
|
|
Average sales price
|
|
|
|
|
|
|
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Light oil and NGL (per bbl)
|
$
|
84.16
|
$
|
80.07
|
5
|
|
|
Heavy oil (per bbl)
|
|
72.68
|
|
62.82
|
16
|
|
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Natural gas (per mcf)
|
$
|
2.29
|
$
|
3.79
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(40)
|
|
Netback per boe
|
|
|
|
|
|
|
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Sales price
|
$
|
57.59
|
$
|
56.82
|
1
|
|
|
Risk management loss
|
|
(1.24)
|
|
(0.79)
|
57
|
|
|
Net sales price
|
|
56.35
|
|
56.03
|
1
|
|
|
Royalties
|
|
(10.59)
|
|
(10.04)
|
5
|
|
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Operating expenses
|
|
(17.93)
|
|
(15.92)
|
13
|
|
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Transportation
|
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(0.49)
|
|
(0.51)
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(4)
|
|
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Netback
|
$
|
27.34
|
$
|
29.56
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(8)
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(1)
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Gross revenues include realized gains and losses on commodity contracts.
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(2)
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Includes net asset acquisitions/dispositions and excludes business
combinations.
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(3)
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Comparative debt at December 31, 2011 was $3,219 million.
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(4)
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Includes dividends paid prior to those reinvested in shares under the
dividend reinvestment plan. In 2011, we began paying dividends on a
quarterly basis. The last monthly distribution payment as a Trust was
declared in December 2010 and paid in January 2011 ($0.09 per unit).
Our first quarterly dividend ($0.27 per share) as a corporation was
paid in April 2011.
|
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(5)
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Payout ratio is calculated as dividends paid divided by funds flow. The
term "payout ratio" is a non-GAAP measure. See "Non-GAAP Measures
Advisory" section below.
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DRILLING STATISTICS
|
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Three months ended March 31
|
|
2012
|
2011
|
|
|
Gross
|
Net
|
Gross
|
Net
|
|
Oil
|
188
|
151
|
171
|
145
|
|
Natural gas
|
20
|
17
|
12
|
8
|
|
|
208
|
168
|
183
|
153
|
|
Stratigraphic and service
|
50
|
27
|
67
|
32
|
|
Total
|
258
|
195
|
250
|
185
|
|
Success rate (1)
|
|
100%
|
|
100%
|
(1) Success rate is calculated excluding stratigraphic and service
wells.
CAPITAL EXPENDITURES
|
|
Three months ended March 31
|
|
(millions)
|
2012
|
2011
|
|
Land acquisition and retention
|
$
|
8
|
$
|
18
|
|
Drilling and completions
|
|
497
|
|
351
|
|
Facilities and well equipping
|
|
199
|
|
146
|
|
Geological and geophysical
|
|
8
|
|
6
|
|
Corporate
|
|
8
|
|
3
|
|
Capital expenditures (1)
|
|
720
|
|
524
|
|
Joint venture, carried capital
|
|
(60)
|
|
(32)
|
|
Property dispositions, net
|
|
(322)
|
|
(56)
|
|
Total capital expenditures
|
$
|
338
|
$
|
436
|
(1) Capital expenditures include costs related to development capital
and Exploration and Evaluation activities.
During the first quarter of 2012, we continued our light-oil focus with
our capital program concentrating on our key light-oil properties in
the Carbonates, Cardium, Viking and Spearfish. Completion and tie-in
activities continue as we move into the second quarter. In January
2012, we completed net property dispositions with production of 4,500
boe per day as part of our ongoing portfolio management.
LAND
|
|
As at March 31
|
|
|
Producing
|
Non-producing
|
|
|
2012
|
2011
|
%
change
|
2012
|
2011
|
%
change
|
|
Gross acres (000s)
|
5,979
|
6,366
|
(6)
|
2,879
|
2,924
|
(2)
|
|
Net acres (000s)
|
4,014
|
4,229
|
(5)
|
2,025
|
2,023
|
-
|
|
Average working interest
|
67%
|
66%
|
1
|
70%
|
69%
|
1
|
|
|
|
|
|
|
COMMON SHARES DATA
|
(millions of shares)
|
Three months ended March 31
|
|
2012
|
2011
|
% change
|
|
Weighted average
|
|
|
|
|
Basic
|
472.6
|
461.8
|
2
|
|
Diluted
|
472.9
|
468.1
|
1
|
|
Outstanding as at March 31
|
472.9
|
464.3
|
2
|
Letter to our Shareholders
Over the past several years we have seen a steady rise in both oil
demand and its price worldwide. This parallels the slow and steady
economic recovery in the West, with robust growth in Asian and emerging
economies. Throughout the first quarter of 2012, price differentials
between Canadian crude oil and the benchmark West Texas Intermediate
price widened and natural gas prices further deteriorated. The
uncertainty as to the duration of these events has been reflected in
Canadian energy stock price performance over recent months. Despite
volatility in commodity return and the market, our strategy of
light-oil development remains unchanged. Penn West's extensive
inventory ensures years of light-oil development while we wait to see
how natural gas inventory levels and domestic demand balance out. We
believe the solution to crude oil differentials in North America will
be solved more readily than the natural gas supply / demand balance
issue.
As a significant, oil-oriented exploration and production company
utilizing horizontal multi-stage fracture technology, Penn West must
adapt to the impact that technology is having on the supply / demand
equation in North America. Growing Canadian conventional crude oil,
increasing synthetic crude shipments from the oil sands of northern
Alberta, and an increase in Bakken oil production have all contributed
to the rising supply of oil. Current US pipeline infrastructure is
insufficient to deliver North American crude oil to key refinery sites
on both the Gulf coast and east-coast. Canadian and US crude sources
can displace imports providing there is an evolution in the pipeline
infrastructure which transports these products to refineries and allows
North American crude to compete on a world basis. Rising supply,
limitations of existing infrastructure, and a significant number of
refineries being off-line in the first quarter of 2012 combined to
produce differentials which at peak levels exceeded $25 per barrel on
light sweet crudes. Subsequent to refinery turnarounds, differentials
have narrowed significantly.
Penn West is actively mitigating the impact of future differentials and
any potential weakness in crude oil pricing. To ensure firm access to
pipelines in the US, Penn West has contracted pipeline capacity on some
of the near-term pipeline expansions. Under a wide differential
scenario, this should provide greater certainty of access to US markets
where our crude oil will fetch a higher price. We have evolved our
crude oil marketing strategies, moving towards direct sales to refiners
of choice. We have been actively hedging our crude oil volumes
increasing the floor price each year, reaching approximately $95 for
2013.
At a more macro level, there are several infrastructure transport issues
which will need to be addressed on an ongoing basis to ensure long-term
certainty for crude oil development in North America. We believe the
first generation of these changes is already underway as projects
intended to increase capacity into Gulf Coast refineries will reduce
the backlog of crude inventories in the US mid-continent. This is a
significant step in reducing pricing differentials on crude oil
produced here in Canada. Second generation infrastructure developments
include additional de-bottlenecking in the US via line extensions, many
of which are already underway, and possible eastern Canada line
reversals which could allow the flow of crude from western Canada to
refineries located in eastern North America. Longer-term, we believe
the third generation of pipeline infrastructure could include the
development and expansion of crude oil capacity to western Canadian
ports allowing increased export to Asian markets. These projects have
longer lead times and will require government support. We view recent
announcements by the Canadian federal government to shorten the
approval and regulatory process, while maintaining rigorous standards,
as important steps in support of a vibrant and growing energy industry
in Canada which has beneficial economic impacts that extend to a broad
spectrum of industries across the nation.
"Signed"
Murray R. Nunns
President and Chief Executive Officer
Calgary, Alberta
May 3, 2012
Outlook
This outlook section is included to provide shareholders with
information about our expectations as at May 3, 2012 for production and
capital expenditures for 2012 and readers are cautioned that the
information may not be appropriate for any other purpose. This
information constitutes forward-looking information. Readers should
note the assumptions, risks and discussion under "Forward-Looking
Statements".
Our production and capital guidance for 2012 remains unchanged. After
giving effect to net acquisition and disposition activity to date in
2012, our forecast average production for 2012 is between 168,500 and
172,500 boe per day and our exploration and development capital, net of
acquisition and disposition activity to date in 2012, is forecasted to
be in the range of $1.3 billion to $1.4 billion. These ranges are
consistent with our prior forecasts as filed on SEDAR at www.sedar.com.
Non-GAAP Measures Advisory
This news release includes non-GAAP measures not defined under IFRS
including funds flow, funds flow per share-basic, funds flow per
share-diluted, netback and payout ratio. Non-GAAP measures do not have
any standardized meaning prescribed by GAAP and therefore may not be
comparable to similar measures presented by other issuers. Funds flow
is cash flow from operating activities before changes in non-cash
working capital and decommissioning expenditures. Funds flow is used to
assess our ability to fund dividends and planned capital programs. See
"Calculation of Funds Flow" below. Netback is a per-unit-of-production
measure of operating margin used in capital allocation decisions, to
economically rank projects and is the per unit of production amount of
revenue less royalties, operating costs, transportation and realized
risk management. Payout ratio is calculated as dividends paid divided
by funds flow. We use payout ratio to assess the adequacy of retained
funds flow to finance capital programs.
Calculation of Funds Flow
|
(millions, except per share amounts)
|
Three months ended March 31
|
|
2012
|
2011
|
|
Cash flow from operating activities
|
$
|
234
|
$
|
240
|
|
Increase in non-cash working capital
|
|
79
|
|
96
|
|
Decommissioning expenditures
|
|
24
|
|
20
|
|
Funds flow
|
$
|
337
|
$
|
356
|
|
|
|
|
|
|
|
Basic per share
|
$
|
0.71
|
$
|
0.77
|
|
Diluted per share
|
$
|
0.71
|
$
|
0.77
|
|
|
|
|
|
|
Oil and Gas Information Advisory
Barrels of oil equivalent ("boe") may be misleading, particularly if
used in isolation. A boe conversion ratio of six thousand cubic feet of
natural gas to one barrel of crude oil is based on an energy
equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead. Given that
the value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency
conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is
misleading as an indication of value.
Forward-Looking Statements
In the interest of providing our securityholders and potential investors
with information regarding Penn West, including management's assessment
of our future plans and operations, certain statements contained in
this document constitute forward-looking statements or information
(collectively "forward-looking statements") within the meaning of the
"safe harbour" provisions of applicable securities legislation.
Forward-looking statements are typically identified by words such as
"anticipate", "continue", "estimate", "expect", "forecast", "may",
"will", "project", "could", "plan", "intend", "should", "believe",
"outlook", "objective", "aim", "potential", "target" and similar words
suggesting future events or future performance. In addition, statements
relating to "reserves" or "resources" are deemed to be forward-looking
statements as they involve the implied assessment, based on certain
estimates and assumptions, that the reserves and resources described
exist in the quantities predicted or estimated and can be profitably
produced in the future.
In particular, this document contains forward-looking statements
pertaining to, without limitation, the following: our corporate
strategy to provide shareholder return through a combination of oil
production growth and a stable dividend; our intention and ability to
establish the growth potential of the largest light oil inventory in
Western Canada; our capital expenditure guidance for 2012; the details
of our second quarter dividend; our belief that consistent, predictable
results and an inventory of multi-well pads for tie-in position us well
to continue our operational momentum; certain disclosures contained
under the heading "Operations Update" in respect of our Carbonates,
Cardium, Viking and Spearfish oil development plays and our Peace River
Oil Partnership and Cordova Joint Venture, including our belief that
our drilling inventory on our Carbonates play is growing, our belief
that the ongoing expansion of our Slave Point facilities will ensure
growth capacity and area control, our belief that the southwest
Saskatchewan Viking play is a predictable and highly economic resource
play, our belief that our current inventory on our Spearfish play
supports over five years of growth, our belief that a combination of
multi-stage fracture technology with proven secondary and tertiary
recovery methods provide us with a broad suite of profitable
opportunities and that by year-end 2012 we anticipate having a number
of EOR projects underway, our belief that there will be another thermal
pilot well on our Peace River oil play, and our intention to continue
to appraise the ultimate recoverable gas potential on our Cordova joint
venture and further refine our drilling and completions techniques; our
anticipation that completion and tie-in activities on our key light-oil
properties in the Carbonates, Cardium, Viking and Spearfish plays will
continue as we move into the second quarter; our strategy to focus on
light oil development; our belief that our extensive inventory ensures
years of light-oil development; our belief that the solution to crude
oil differentials in North America will be solved more readily than the
natural gas supply / demand balance issue; our belief that Canadian and
US crude sources can displace imports; our intention to actively
mitigate the impact of future differentials and any potential weakness
in crude oil pricing; our belief that infrastructure projects intended
to increase capacity into Gulf Coast refineries will reduce the backlog
of crude inventories in the US mid-continent; and certain disclosures
contained under the heading "Outlook" relating to our forecast
exploration and development capital expenditures for 2012 and our
forecast average production levels for 2012.
With respect to forward-looking statements contained in this document,
we have made assumptions regarding, among other things: future crude
oil, natural gas liquids and natural gas prices and differentials
between light, medium and heavy oil prices and Canadian, WTI and world
oil prices; future capital expenditure levels; future crude oil,
natural gas liquids and natural gas production levels; drilling
results; future exchange rates and interest rates; the amount of future
cash dividends that we intend to pay and the level of participation in
our dividend reinvestment plan; our ability to obtain equipment in a
timely manner to carry out development activities and the costs
thereof; our ability to market our oil and natural gas successfully to
current and new customers; the impact of increasing competition; our
ability to obtain financing on acceptable terms, including our ability
to renew or replace our credit facility and our ability to finance the
repayment of our senior unsecured notes on maturity; and our ability to
add production and reserves through our development and exploitation
activities. In addition, many of the forward-looking statements
contained in this document are located proximate to assumptions that
are specific to those forward-looking statements, and such assumptions
should be taken into account when reading such forward-looking
statements: see in particular the assumptions identified under the
heading "Outlook".
Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations will prove
to be correct. Readers are cautioned not to place undue reliance on
forward-looking statements included in this document, as there can be
no assurance that the plans, intentions or expectations upon which the
forward-looking statements are based will occur. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties that contribute to the possibility that
the predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause our actual performance and
financial results in future periods to differ materially from any
estimates or projections of future performance or results expressed or
implied by such forward-looking statements. These risks and
uncertainties include, among other things: the impact of weather
conditions on seasonal demand and ability to execute capital programs;
risks inherent in oil and natural gas operations; uncertainties
associated with estimating reserves and resources; competition for,
among other things, capital, acquisitions of reserves, resources,
undeveloped lands and skilled personnel; incorrect assessments of the
value of acquisitions; geological, technical, drilling and processing
problems; general economic conditions in Canada, the U.S. and globally;
industry conditions, including fluctuations in the price of oil and
natural gas; royalties payable in respect of our oil and natural gas
production and changes thereto; changes in government regulation of the
oil and natural gas industry, including environmental regulation;
fluctuations in foreign exchange or interest rates; unanticipated
operating events or environmental events that can reduce production or
cause production to be shut-in or delayed, including wild fires and
flooding; failure to obtain industry partner and other third-party
consents and approvals when required; stock market volatility and
market valuations; OPEC's ability to control production and balance
global supply and demand of crude oil at desired price levels;
political uncertainty, including the risks of hostilities, in the
petroleum producing regions of the world; the need to obtain required
approvals from regulatory authorities from time to time; failure to
realize the anticipated benefits of dispositions, acquisitions, joint
ventures and partnerships, including the completed dispositions,
acquisitions, joint ventures and partnerships discussed herein; changes
in tax and other laws that affect us and our securityholders; changes
in government royalty frameworks; uncertainty of obtaining required
approvals for acquisitions and mergers; the potential failure of
counterparties to honour their contractual obligations; and the other
factors described in our public filings (including our Annual
Information Form) available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be
construed as exhaustive.
The forward-looking statements contained in this document speak only as
of the date of this document. Except as expressly required by
applicable securities laws, we do not undertake any obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. The
forward-looking statements contained in this document are expressly
qualified by this cautionary statement.
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Penn West Petroleum Ltd.
|
|
Consolidated Balance Sheets
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|
|
(CAD millions, unaudited)
|
|
March 31, 2012
|
December 31, 2011
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
Accounts receivable
|
|
$
|
484
|
$
|
486
|
|
|
Other
|
|
|
117
|
|
104
|
|
|
Risk management
|
|
|
74
|
|
39
|
|
|
|
|
675
|
|
629
|
|
Non-current
|
|
|
|
|
|
|
|
Deferred funding assets
|
|
|
528
|
|
596
|
|
|
Exploration and evaluation assets
|
|
|
515
|
|
418
|
|
|
Property, plant and equipment
|
|
|
11,935
|
|
11,893
|
|
|
Goodwill
|
|
|
2,020
|
|
2,020
|
|
|
Risk management
|
|
|
32
|
|
28
|
|
|
|
|
15,030
|
|
14,955
|
|
Total assets
|
|
$
|
15,705
|
$
|
15,584
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
1,036
|
$
|
1,117
|
|
|
Dividends payable
|
|
|
128
|
|
127
|
|
|
Risk management
|
|
|
169
|
|
114
|
|
|
|
|
1,333
|
|
1,358
|
|
Non-current
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
3,397
|
|
3,219
|
|
|
Decommissioning liability
|
|
|
576
|
|
607
|
|
|
Risk management
|
|
|
51
|
|
46
|
|
|
Deferred tax liability
|
|
|
1,311
|
|
1,287
|
|
|
|
|
6,668
|
|
6,517
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
Shareholders' capital
|
|
|
8,884
|
|
8,840
|
|
|
Other reserves
|
|
|
90
|
|
95
|
|
|
Retained earnings
|
|
|
63
|
|
132
|
|
|
|
|
9,037
|
|
9,067
|
|
Total liabilities and shareholders' equity
|
|
$
|
15,705
|
$
|
15,584
|
|
|
|
|
|
|
|
|
Penn West Petroleum Ltd.
|
|
Consolidated Statements of Income
|
|
|
|
|
Three months ended
March 31
|
|
(CAD millions, except per share amounts, unaudited)
|
|
2012
|
2011
|
|
|
|
|
|
|
|
|
Oil and natural gas sales
|
|
$
|
889
|
$
|
856
|
|
Royalties
|
|
|
(161)
|
|
(150)
|
|
|
|
|
728
|
|
706
|
|
|
|
|
|
|
|
|
Risk management loss
|
|
|
|
|
|
|
|
Realized
|
|
|
(19)
|
|
(12)
|
|
|
Unrealized
|
|
|
(63)
|
|
(176)
|
|
|
|
|
646
|
|
518
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
Operating
|
|
|
273
|
|
238
|
|
|
Transportation
|
|
|
8
|
|
8
|
|
|
General and administrative
|
|
|
39
|
|
37
|
|
|
Share-based compensation
|
|
|
17
|
|
78
|
|
|
Depletion and depreciation
|
|
|
312
|
|
247
|
|
|
Gain on dispositions
|
|
|
(72)
|
|
(24)
|
|
|
Exploration and evaluation
|
|
|
1
|
|
4
|
|
|
Unrealized risk management gain
|
|
|
(42)
|
|
(31)
|
|
|
Unrealized foreign exchange gain
|
|
|
(31)
|
|
(38)
|
|
|
Financing
|
|
|
47
|
|
47
|
|
|
Accretion
|
|
|
11
|
|
12
|
|
|
|
|
563
|
|
578
|
|
Income (loss) before taxes
|
|
|
83
|
|
(60)
|
|
|
|
|
|
|
|
|
|
Deferred tax expense (recovery)
|
|
|
24
|
|
(351)
|
|
|
|
|
|
|
|
|
Net and comprehensive income
|
|
$
|
59
|
$
|
291
|
|
|
|
|
|
|
|
|
Net income per share
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
$
|
0.63
|
|
|
Diluted
|
|
$
|
0.12
|
$
|
0.63
|
|
Weighted average shares outstanding (millions)
|
|
|
|
|
|
|
Basic
|
|
|
472.6
|
|
461.8
|
|
|
Diluted
|
|
|
472.9
|
|
468.1
|
|
|
|
|
|
|
|
|
|
Penn West Petroleum Ltd.
|
|
Consolidated Statements of Cash Flows
|
|
|
|
|
Three months ended
March 31
|
|
(CAD millions, unaudited)
|
|
2012
|
2011
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
59
|
$
|
291
|
|
|
Depletion and depreciation
|
|
|
312
|
|
247
|
|
|
Gain on dispositions
|
|
|
(72)
|
|
(24)
|
|
|
Exploration and evaluation
|
|
|
1
|
|
4
|
|
|
Accretion
|
|
|
11
|
|
12
|
|
|
Deferred tax expense (recovery)
|
|
|
24
|
|
(351)
|
|
|
Share-based compensation
|
|
|
12
|
|
70
|
|
|
Unrealized risk management loss
|
|
|
21
|
|
145
|
|
|
Unrealized foreign exchange gain
|
|
|
(31)
|
|
(38)
|
|
|
Decommissioning expenditures
|
|
|
(24)
|
|
(20)
|
|
|
Change in non-cash working capital
|
|
|
(79)
|
|
(96)
|
|
|
|
|
234
|
|
240
|
|
Investing activities
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(660)
|
|
(492)
|
|
|
Acquisitions
|
|
|
(9)
|
|
(27)
|
|
|
Proceeds from dispositions
|
|
|
331
|
|
107
|
|
|
Change in non-cash working capital
|
|
|
(8)
|
|
(19)
|
|
|
|
|
(346)
|
|
(431)
|
|
Financing activities
|
|
|
|
|
|
|
|
Increase in bank loan
|
|
|
209
|
|
57
|
|
|
Proceeds from issuance of notes
|
|
|
-
|
|
75
|
|
|
Issue of equity
|
|
|
3
|
|
100
|
|
|
Dividends paid
|
|
|
(100)
|
|
(34)
|
|
|
Settlement of convertible debentures
|
|
|
-
|
|
(7)
|
|
|
|
|
112
|
|
191
|
|
|
|
|
|
|
|
|
Change in cash
|
|
|
-
|
|
-
|
|
Cash, beginning of period
|
|
|
-
|
|
-
|
|
Cash, end of period
|
|
$
|
-
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
Penn West Petroleum Ltd.
|
|
Statements of Changes in Shareholders' Equity
|
|
|
|
|
|
(CAD millions, unaudited)
|
|
|
|
|
Shareholders'
Capital
|
Other
Reserves
|
Retained
Earnings
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2012
|
|
$
|
8,840
|
$
|
95
|
$
|
132
|
$
|
9,067
|
|
Net and comprehensive income
|
|
|
-
|
|
-
|
|
59
|
|
59
|
|
Share-based compensation
|
|
|
-
|
|
9
|
|
-
|
|
9
|
|
Issued on exercise of options and share rights
|
|
|
17
|
|
(14)
|
|
-
|
|
3
|
|
Issued to dividend reinvestment plan
|
|
|
27
|
|
-
|
|
-
|
|
27
|
|
Dividends declared
|
|
|
-
|
|
-
|
|
(128)
|
|
(128)
|
|
Balance at March 31, 2012
|
|
$
|
8,884
|
$
|
90
|
$
|
63
|
$
|
9,037
|
|
(CAD millions, unaudited)
|
|
|
|
|
Shareholders'
Capital
|
Other
Reserves
|
Retained
Earnings
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at January 1, 2011
|
|
$
|
9,170
|
$
|
-
|
$
|
(610)
|
$
|
8,560
|
|
Elimination of deficit
|
|
|
(610)
|
|
-
|
|
610
|
|
-
|
|
Net and comprehensive income
|
|
|
-
|
|
-
|
|
291
|
|
291
|
|
Implementation of Option Plan and CSRIP
|
|
|
-
|
|
81
|
|
-
|
|
81
|
|
Share-based compensation
|
|
|
-
|
|
12
|
|
-
|
|
12
|
|
Issued on exercise of options and share rights
|
|
|
112
|
|
(12)
|
|
-
|
|
100
|
|
Issued to dividend reinvestment plan
|
|
|
7
|
|
-
|
|
-
|
|
7
|
|
Dividends declared
|
|
|
-
|
|
-
|
|
(125)
|
|
(125)
|
|
Balance at March 31, 2011
|
|
$
|
8,679
|
$
|
81
|
$
|
166
|
$
|
8,926
|
|
|
|
|
|
|
|
|
|
|
|
Investor Information
Penn West shares are listed on the Toronto Stock Exchange under the
symbol PWT and on the New York Stock Exchange under the symbol PWE.
A conference call will be held to discuss Penn West's results at 10:00am
Mountain Time (12:00pm Eastern Time) on May 4, 2012.
To listen to the conference call, please call 647-427-7450 or
1-888-231-8191 (North America toll-free). This call will be broadcast
live on the Internet and may be accessed directly on the Penn West
website at www.pennwest.com or at the following URL:
http://event.on24.com/r.htm?e=456788&s=1&k=A3266F6F97922698A78637A9D335BA5B
A digital recording will be available for replay two hours after the
call's completion, and will remain available until May 18, 2012 21:59
Mountain Time (23:59 Eastern Time). To listen to the replay, please
dial 416-849-0833 or 1-855-859-2056 (North America toll-free) and enter
Conference ID 76710433, followed by the pound (#) key.
SOURCE Penn West Exploration
