This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Penn West Exploration Announces Its Financial Results For The Third Quarter Ended September 30, 2011 And 2012 Growth Plan

CALGARY, Alberta, November 3, 2011 /PRNewswire/ --

- All $s are CAD unless otherwise mentioned

PENN WEST PETROLEUM LTD. (TSX: PWT) (NYSE: PWE) ("PENN WEST") is pleased to announce its results for the third quarter ended September 30, 2011

Over the last two years, Penn West has demonstrated the ability to add value through the application of horizontal multi-stage technology to our assets. From the beginning of 2010 to year end 2011, we anticipate increasing our light-oil production to 51 percent of our production from 39 percent and our total liquids production to 66 percent from 57 percent. For 2012, Penn West targets a seven to nine percent annual average production growth rate and a further increase in its liquid weighting prior to the disposition of non-core assets.

  • Penn West has dominant and leading positions in four of Canada's five largest light-oil producing regions. This provides us with unrivaled leverage to low-risk, large-scale light-oil development. Since 2009, our focus has been to appraise our significant oil resources with an emphasis on optimizing the application of evolving drilling and completions technology. These activities have provided Penn West with an inventory of drilling locations to fuel light-oil growth well into the future. In 2012, we will further shift our capital spending into large-scale development in the Cardium, Carbonates, Spearfish and Viking oil trends. To maximize efficiency, we will drill on a continuous basis to the fullest extent possible. Resource appraisal activities will be focused on Peace River oil sands, Cordova shale gas, enhanced oil recovery and selected exploratory plays.

Financial Results
  • Funds flow (1) was $348 million in the third quarter of 2011, a 30 percent increase from the $267 million reported in the third quarter of 2010 due to stronger commodity prices and an increase in our weighting to light-oil production and a 12 percent decrease from the $396 million reported in the second quarter of 2011 due to lower commodity prices. Basic funds flow was $0.74 per share (1)in the third quarter of 2011 compared to $0.59 per share in the third quarter of 2010 and to $0.85 per share in the second quarter of 2011.
  • Net income for the third quarter of 2011 was $138 million ( $0.29 per share-basic) compared to $304 million ( $0.67 per share-basic) in the third quarter of 2010 and $271 million ( $0.58 per share-basic) in the second quarter of 2011. Net income in the prior periods included gains on asset dispositions, including a $368 million gain on the formation of our joint venture in the Cordova Embayment in the third quarter of 2010 and a $127 million gain on minor property dispositions recorded in the second quarter of 2011.

Operational Results
  • Average production for the third quarter of 2011 was consistent with our guidance at 161,323 boe (2) per day compared to 156,107 boe per day in the second quarter of 2011. Third quarter activities were concentrated on restoring production and on resuming full operations in areas affected by fires and floods in the second quarter.
  • Our production was weighted 63 percent to oil and liquids in the third quarter of 2011 compared to 60 percent in the third quarter of 2010.
  • Capital expenditures for the third quarter of 2011, including net property acquisitions, totalled $481 million compared to $357 million for the third quarter of 2010. For the first nine months of 2011, capital expenditures, including net property dispositions, totalled $1,157 million including land expenditures of $172 million and the drilling of 318 net wells primarily focused on our suite of light-oil resource plays.

(1) 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. (2) Please refer to the "Oil and Gas Information Advisory" section below for information regarding the term "boe".

1 of 9

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs