Peyto Exploration & Development Corp. Announces Unaudited Earnings and Operating Results for the Second Quarter and Six Months Ended June 30, 2015; Provides Capital Expenditure Guidance for the Year 2015
Aug 12 15
Peyto Exploration & Development Corp. announced unaudited earnings and operating results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported petroleum and natural gas sales, of CAD 166,327,000 against CAD 189,830,000 a year ago. Earnings before taxes were CAD 53,349,000 against CAD 82,888,000 a year ago. Earnings for the period were CAD 12,295,000 or CAD 0.08 basic and diluted per share against CAD 62,159,000 or CAD 0.41 basic and diluted per share a year ago. Cash provided by operating activities was CAD 134,316,000 against CAD 152,170,000 a year ago. Additions to property, plant and equipment was CAD 116,643,000 against CAD 151,290,000 a year ago. Funds from operations were CAD 135,195,000 or CAD 0.86 per share against CAD 161,577,000 or CAD 1.05 per share a year ago, due to a 28% reduction in realized commodity prices. Capital expenditure was CAD 116,643,000 against CAD 151,290,000 a year ago. Annualized return on equity of 10% in the quarter was reduced to 7% due to the one-time increase in deferred taxes resulting from the announced Alberta NDP government corporate tax rate increase. Cash flow was CAD 133.52 million or CAD 0.84 per share against CAD 154.73 million or CAD 1.01 per share a year ago.
For the six months, the company reported petroleum and natural gas sales, of CAD 342,147,000 against CAD 381,286,000 a year ago. Earnings before taxes were CAD 112,699,000 against CAD 165,728,000 a year ago. Earnings for the period were CAD 56,808,000 or CAD 0.36 basic and diluted per share against CAD 124,288,000 or CAD 0.81 basic and diluted per share a year ago. Cash provided by operating activities was CAD 260,450,000 against CAD 298,624,000 a year ago. Additions to property, plant and equipment was CAD 254,720,000 against CAD 330,668,000 a year ago. Funds from operations were CAD 279,837,000 or CAD 1.80 per share against CAD 322,362,000 or CAD 2.11 per share a year ago. Capital expenditure was CAD 254,720,000 against CAD 330,668,000 a year ago. Net debt as at June 30, 2015, was CAD 934,262,000 against CAD 880,386,000 a year ago. Cash flow was CAD 275.15 million or CAD 1.76 per share against CAD 309.15 million or CAD 2.02 per share a year ago.
For the quarter, the company reported natural gas production of 455,443 mcf/d against 388,407 mcf/d a year ago. Oil & NGL was 6,843 bbl/d against 7,568 bbl/d a year ago. Barrels of oil equivalent (boe/d at 6:1) was 82,750 boe/d against 72,302 boe/d a year ago.
For the six months, the company reported natural gas production of 450,148 mcf/d against 388,703 mcf/d a year ago. Oil & NGL was 7,148 bbl/d against 7,472 bbl/d a year ago. Barrels of oil equivalent (boe/d at 6:1) was 82,172 boe/d against 72,256 boe/d a year ago.
The company is maintaining the previous 2015 capital budget between CAD 575 million and CAD 625 million, although it is expected that approximately six more wells will now be drilled with this same capital investment. Drilling and completion costs continue to remain low with realized reductions of approximately 30% as compared to 2014. TCPL and propane the latest projections from TransCanada Pipelines Ltd. are for gradual increases in system capacity over August and September with a larger step-up in October. The company remains optimistic that production will return to full capability for the normally higher gas price winter months of November and December. In addition, the company is rejecting approximately 1,200 boe per day of propane into the gas stream due to negative liquid propane prices. The company's current production is approximately 80,000 boe per day with an additional 11,000 boe per day of production offline due to restrictions. Aggregate well production results for the new 2015 wells continue to exceed the per-well average production results of all prior years. These two achievements are combining to preserve the company’s return expectations in a lower commodity price environment. As a result, the company increased the drilling activity to 10 active drilling rigs at the start of the third quarter which, when combined with the reduced drilling time, is effectively the same as running 12 rigs a year ago.