Business
Advantage Announces Fourth Quarter and Year Ended December 31, 2009 Financial Results
Advantage Announces Fourth Quarter and Year Ended December 31, 2009 Financial Results
About this update from Advantage Energy Ltd
[{"type":"text","content":"\n\n\n\nCALGARY, Mar. 16, 2010 (Canada NewsWire Group) -- /CNW/ -- Advantage Oil & Gas Ltd. (\"Advantage\" or the \"Corporation\") is pleased to announce the financial and operating results for the year ended December 31, 2009.Reduced Debt, Strong Hedging Gains, Lower Operating Costs and RoyaltiesContribute to a Solid 2009- Total debt obligations at year end 2009 were reduced by 57% ascompared to December 31, 2008. At December 31, 2009, Advantage's bankdebt is $250.3 million on a credit facility of $525 million resultingin an unutilized capacity of approximately $274.7 million. A total of$218 million of convertible debentures remain outstanding of which$69 million will mature in June 2010, $63 million in December 2011and the balance of $86 million in January 2015.- Hedging gains of $86.5 million during 2009 contributed significantlyto funds from operations of $199.0 million or $1.30 per share despitea 49% reduction in the AECO monthly natural gas price and a 38%reduction in WTI crude oil prices in 2009 as compared to 2008. Annualfunds from operations were 45% lower compared to 2008 due to thesignificantly lower commodity prices and also due to the sale of8,100 boe per day of assets which closed in July 2009. In the fourthquarter of 2009, funds from operations were $49.8 million or $0.30per share compared to $69.4 million or $0.49 per share in the sameperiod of 2008. Hedging gains during the fourth quarter of 2009amounted to $16.3 million.- Total operating costs decreased 46% and 27% for the three months andyear ended December 31, 2009 as compared to the same periods in 2008.Operating costs per unit decreased 25% to $11.01 per boe for thefourth quarter of 2009 and decreased 13% to $12.11 per boe for thefull year of 2009 when compared to the same periods in 2008.Advantage's per unit operating costs have decreased continually sinceearly 2008 due to a successful and ongoing optimization program. Inaddition, the sale of 8,100 boe per day of higher cost production inJuly 2009 and increasing production at Glacier are anticipated tofurther reduce future corporate operating costs.- Total royalties during the fourth quarter of 2009 decreased 51% andfor the full year 2009 decreased 67% when compared to the similarperiods of 2008. The royalty rate as a percentage of revenuedecreased 3.4% to 13.8% in the fourth quarter of 2009 and for theful...