Dave Roberts, President and Chief Executive Officer, commented, "In the second quarter, Penn West continued to deliver operating results in line with expectations as we focused on reliable and repeatable performance from our asset base. Total production for the quarter averaged 140,083 boe per day with 63 percent being liquids. Funds flow of $278 million for the second quarter of 2013 was higher than the prior year due to narrowing WTI to Edmonton light sweet oil pricing differentials, which more than offset lower production as a result of asset dispositions closed in late 2012. Based on our performance to date, we can reiterate our expected production guidance for the year to deliver an annualized 135,000 to 145,000 boe per day in 2013. Capital expenditures for the year are expected at $900 million."
"In addition to the strategic review of the Company being progressed by the Special Committee of the Board, we are actively streamlining and focusing our management and operating structure. To date in 2013, the Company has reduced its workforce by over 10 percent of full time equivalents including a realignment of responsibilities and significant reduction of personnel, including at the executive and management level. Further steps to improve our focus, accountability and cost model to allow us to achieve our goal to deliver best in class operating performance and shareholder returns are expected in the present quarter."
SECOND QUARTER KEY POINTS
- Total average production of 140,083 boe per day (63 percent liquids).
- Funds flow up as commodity price gains and cost reductions offset asset sales.
- Staff reduction target of 10 percent on the year, achieved prior to the end of the quarter.
- 2013 annual average production target re-confirmed between 135,000 and 145,000 boe per day.
- 2013 capital re-confirmed at $900 million.