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Parallel Energy Trust Announces Third Quarter 2013 Financial and Operating Results and Provides Production and Financial

Parallel Energy Trust Announces Third Quarter 2013 Financial and Operating 
Results and Provides Production and Financial Updates 
CALGARY, ALBERTA -- (Marketwired) -- 11/11/13 -- Parallel Energy
Trust (TSX:PLT.UN) ("Parallel" or the "Trust") announces its
financial and operating results for the three months ended September
30, 2013. Parallel's unaudited interim financial statements and
accompanying Management's Discussion and Analysis ("MD&A") will be
filed shortly on the SEDAR website at www.sedar.com and on the
Trust's website at www.parallelenergy.ca. 
Third Quarter & Year-to-Date Financial and Operating Highlights 
During the third quarter of 2013, Parallel: 


 
--  Recorded average daily production of 7,100 boe/day, as previously
    disclosed in Parallel's press release dated October 1, 2013. 
    
--  Recorded year-to-date average daily production of 7,122 boe/day, which
    exceeds the Trust's full year average daily production guidance of 7,000
    boe/day. 
    
--  Realized an average sales price (prior to realized hedging gains/loss)
    of US$44.30 per boe, an improvement of 10% over the realized average
    sales price of US$40.18 per boe in the second quarter of 2013. The
    higher average sales price resulted primarily from improved condensate
    and natural gas liquids pricing in the third quarter of 2013. 
    
--  Recorded a total payout ratio (calculated as declared distributions plus
    capital expenditures including workovers divided by funds from
    operations) of 84%. 
    
--  Reduced bank debt by approximately US$3.6 million. This resulted in
    total bank debt of US$158.2 million drawn against the Trust's borrowing
    base of US$190 million. In October 2013, the Trust's lenders completed
    the semi-annual review of Parallel's credit facility and reaffirmed the
    Trust's borrowing base of US$190 million. 
    
--  Declared total distributions of $0.15 per unit during the quarter, being
    $0.05 per month for each July, August and September. 

 
Summary of Third Quarter 2013 Financial and Operating Results 


 
                               ---------------------------------------------
                               ---------------------------------------------
                                 Quarter Ended  Quarter Ended  Quarter Ended
($000s, except where indicated) Sept. 30, 2013  Jun. 30, 2013 Sept. 30, 2012
----------------------------------------------------------------------------
Production                                                                  
  Natural gas (mcf/day)                 13,931         15,254         10,630
  Condensate (bbls/day)                  1,594          1,743          1,336
  Natural Gas Liquids                                                       
   (bbls/day)                            3,185          3,174          2,689
----------------------------------------------------------------------------
Total (@6:1) (boe/day)                   7,100          7,459          5,797
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Average sales price (US$ per                                                
 boe)                                    44.30          40.18          38.61
----------------------------------------------------------------------------
                                                                            
Revenue, net of royalties               24,483         22,750         16,759
Funds from operations(1)                10,788         11,282          8,433
Distributions                            7,983          7,945         12,264
Capital expenditures including                                              
 workovers                               1,126          3,488         10,637
                                                                            
Bank debt outstanding (US$)            158,200        161,800        138,600
Convertible debentures                  63,000         63,000         63,000
Unitholder's equity                    272,042        288,763        368,032
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
1.  Non-GAAP measure. Readers are referred to Advisories at the end of the
    press release for additional information. 

 
Production and Financial Update 
Based on field data, Parallel's average daily production to date in
the fourth quarter is approximately 7,400 boe/day. Based on these
results, the Trust maintains its full year average daily production
guidance of 7,000 boe/day and its previously increased exit rate
production guidance of 7,300 boe/day. The Trust's full year
production guidance includes a three to five per cent annual
contingency for downtime due to third-party disruptions and
weather-related incidents, which historically occur more frequently
during winter months. 
During October 2013, the Trust further reduced its bank debt by
approximately US$1.4 million and expects to continue to reduce its
debt in the fourth quarter.  
"Our team did an excellent job of improving our production
reliability in the third quarter of 2013 and I am pleased that we
were able to meet our quarterly production guidance as a result of
their hard work. We are experiencing strong operational performance
in the fourth quarter, supported by the success of our ongoing
workover program. Based on our results to date, we feel confident
that we can achieve our full year and exit rate production targets,"
said Rick Alexander, President and CEO of Parallel. "Further
information related to our 2014 capital program and production
guidance will be announced in late November." 
ABOUT PARALLEL ENERGY TRUST 
Parallel's objectives are to create stable, consistent returns for
investors through the acquisition and development of conventional oil
and natural gas reserves and production with unexploited low risk
potential in certain regions of the United States, and to pay out a
portion of available cash to holders of trust units on a monthly
basis. The trust units of Parallel are listed on the Toronto Stock
Exchange ("TSX") under the symbol "PLT.UN" and the debentures are
listed on the TSX under the symbol "PLT.DB". 
Parallel is a "mutual fund trust" under the Income Tax Act (Canada)
(the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in
the Tax Act), provided that the Trust complies at all times with its
investment restriction which precludes the Trust from holding any
"non-portfolio property" (as defined in the Tax Act). Further
information relating to Parallel is set out in Parallel's annual
information form dated March 21, 2012, which may be obtained on the
SEDAR website at www.sedar.com under Parallel's profile. 
ADVISORIES 
Forward-Looking Information 
This news release contains forward-looking information that involves
substantial known and unknown risks and uncertainties, most of which
are beyond the control of Parallel, including, without limitation,
those listed under "Risk Factors" in Parallel's annual information
form dated March 25, 2013 (collectively, "forward-looking
information"). Forward-looking information in this news release
includes, but is not limited to, Parallel's objectives and status as
a mutual fund trust and not a SIFT trust and Parallel's expectations
and estimates regarding current and future production rates and
drilling results. Parallel cautions investors in Parallel's
securities about important factors that could cause Parallel's actual
results to differ materially from those projected in any
forward-looking statements included in this news release. Any
statements that express, or involve discussions as to, expectations,
beliefs, plans, objectives, assumptions or future events or
performance are not historical facts and may be forward-looking and
may involve estimates, assumptions and uncertainties which could
cause actual results or outcomes to differ materially from those
expressed in such forward-looking statements. No assurance can be
given that the expectations set out in Parallel's final prospectus or
herein will prove to be correct and accordingly, prospective
investors should not place undue reliance on these forward-looking
statements. These statements speak only as of the date of this press
release and Parallel does not assume any obligation to update or
revise them to reflect new events or circumstances. 
In this news release, Parallel and its subsidiaries are referred to
collectively as the "Trust" or "Parallel" for purposes of
convenience. 
Non-GAAP Measures 
This press release contains the term "funds from operations". This
term is not a recognized measure under Canadian generally accepted
accounting principles (GAAP). Parallel believes that in addition to
net income, funds from operations is a useful supplemental
measurement. Funds from operations provides an indication of the
funds generated by the Trust's principal business activities and is
defined as "cash from operating activities" prior to workovers and
"change in non-cash working capital related to operating activities"
in the Statement of Cash Flows. 
Oil and Gas Measures and Definitions 
This press release contains disclosure expressed as "boe" and
"boe/day". All oil and natural gas equivalency volumes have been
derived using the ratio of six thousand cubic feet of natural gas to
one barrel of oil. Equivalency measures may be misleading,
particularly if used in isolation. A conversion ratio of six thousand
cubic feet of natural gas to one barrel of oil is based on an energy
equivalency conversion method primarily.
Contacts:
Parallel Energy Trust
Curtis Pelletier
Manager, Investor Relations
403-781-7888 or Toll-Free: 1-855-781-7888
investor@parallelenergy.ca
www.parallelenergy.ca
 
 
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