Saturday, March 28th10.2°C
25490
24506

Penn West Petroleum records $728-million net loss, lower funds flow in Q4

CALGARY - Penn West Petroleum Ltd. (TSX:PWT) had a $728-million net loss in the fourth quarter, mostly due to non-cash asset impairment charges related to the company's disposal of natural gas assets late last year as it focuses on light oil production in Western Canada.

The loss amounted to $1.49 per share and compared with a year-earlier net loss of 16 cents per share, when the overall loss was $78 million.

Funds flow from operations also declined, dropping 27 per cent to $216 million or 44 cents per share, mainly due to lower crude oil prices and lower production volumes as a result of asset dispositions in the fourth quarter of 2013.

"To date in 2014, we have benefited from stronger than planned commodity prices and a favourable currency climate; however, we remain conservative in our commodity outlook for the remainder of the year," Penn West said in a statement.

The company said it will pay a quarterly dividend of 14 cents per share on April 15. It has been at that level since Penn West cut the payout from 27 cents per share last summer as part of a cost-cutting effort, staff reduction and change in CEO.

In the fourth quarter, Penn West recorded $742 million of asset impairment charges related to natural gas property, plant and equipment and lower reserve recoveries in its Manitoba properties.

It announced in January, in the current year's first quarter, that it had reached another deal to sell another $175 million of non-core assets in Alberta.

The company said it's doing better than expected with asset dispositions under a strategy adopted four months ago — which called up to $2 billion of divestments by the end of 2014 — and said its organization is 35 per cent smaller than a year ago.

Some analysts said they were unimpressed with details of the January transaction — both in terms of size and price — and Penn West shares fell about 13 per cent over a two-day period to $7.89 on Jan. 23.

The shares have risen since then but remain well off a 52-week high of $13.57 set last summer.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14812.42-57.38
S&P CDNX681.43+1.87
DJIA17712.66+34.43
Nasdaq4891.22+27.86
S&P 5002061.02+4.87
CDN Dollar0.7928-0.0082
Gold1196.30-8.80
Oil48.43-3.00
Lumber282.40-3.60
Natural Gas2.62-0.05

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.50+0.00
Cantex0.03-0.01
Anavex Life Sciences0.219+0.009
Metalex Ventures0.04-0.01
Russel Metals24.50-0.18
Copper Mountain Mining1.13+0.00
Colorado Resources0.125+0.010
ReliaBrand Inc0.006-0.001
Sunrise Resources Ltd0.045+0.000
Mission Ready Services0.255+0.020
Decisive Dividend Corporation1.80+0.02

 



24497

FEATURED Property
1169376BEAUTIFUL TWO STORY PLUS BASEMENT NEW HOUSE IN WEST KELOWNA ONLY $499,000! WOW
$499,000
more details
Click here to feature your property
Please wait... loading


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...


Stay out of sales limbo!

Have you ever had a series of good meetings with a prospect … gathered all kinds of information … and given what you thought was a great presentation … only to receive a response ...

_








Member of BC Press Council


25342