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On May 8, 2009,
Enerplus Resources Fund
reported that its Q1 FY09 earnings more than halved, hurt by lower revenue. Net income for the quarter stood at Canadian Dollars (Cdn$) 51.79 million or Cdn$0.31 per trust unit compared to Cdn$121.39 million or Cdn$0.82 per trust unit. The latest quarterly earnings beat the most recent consensus estimate of $0.01 per share.
Oil and gas revenue plunged 39.7% to Cdn$307.52 million from Cdn$510.07 million a year ago due to a significant decline in oil and gas prices. Geographically, revenue from Canada decreased 36.9% to Cdn$262.30 million from Cdn$415.70 million, while revenue from the US slumped 55.8% to Cdn$38.90 million from Cdn$88.00 million on a year-over-year basis.
Average production volumes of natural gas climbed 10.1% to 338.86 million cubic feet per day (MMcf/d) from 307.75 MMcf/d, while average selling price decreased to Cdn$5.13 per thousand cubic feet (Mcf) from Cdn$7.52 per Mcf in Q1 FY08. Crude oil production increased 3.5% to 34,427 barrels per day (Bbl/d) from 33,256 Bbl/d, while average crude oil selling price plummeted 50.7% to Cdn$42.41 per barrel (Bbl) from Cdn$86.02 per Bbl. Moreover, natural gas liquids (NGL) production declined 11.8% to 4,059 Bbl/d from 4,603 Bbls/day. However, the average selling price of NGL diminished 41.8% to Cdn$40.59 per Bbl from Cdn$69.75 per Bbl in the year-ago quarter.
Enerplus Resources Fund generated cash flow from operating activities of Cdn$169.39 million, down 33.9% from Cdn$256.22 million in Q1 FY08. The company incurred capital expenditure of $101.80 million. Recently, ERF paid a monthly cash distribution of Cdn$0.18 per unit.
Looking forward to FY09, the company reaffirmed that it expects its production volumes to average 91,000 barrels of oil equivalent per day (Boe/d) and exit rate of 88,000 BOE/d.