Business
Peyto Energy Trust announces first quarter 2008 results
SYMBOL: PEY.UN - TSX CALGARY, May 7 /CNW/ - Peyto Energy Trust ("Peyto") is pleased to present th...
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\nSYMBOL: PEY.UN - TSX\n\n\nCALGARY, May 7 /CNW/ - Peyto Energy Trust ("Peyto") is pleased to present\nthe operating and financial results for the first quarter of the 2008 fiscal\nyear. Peyto is an explorer and producer of unconventional tight gas assets in\nAlberta's Deep Basin and, due to its trust structure, is able to flow profits\nfrom the success of that business to its unitholders in the form of\ndistributions. The success of Peyto's strategy has resulted in the growth of\nboth assets and distributions over time.\n\n\nPeyto is well known for owning high quality, sweet gas assets that\nexhibit long reserve life, low operating costs and high revenue per boe. The\nfollowing summarizes the Trust's foundation:\n\n\n- Long reserve life - Proved Producing 13 years, Total Proved 16 years,\n Proved plus Probable 21 years\n- Low operating costs - $2.68/boe, three months ending March 31, 2008\n- High revenue natural gas - $54.09/boe before hedging, $56.41/boe\n after hedging, three months ending March 31, 2008\n- Low base general and administrative costs - $1.19/boe, three months\n ending March 31, 2008\n- High field netback - $42.70/boe, three months ending March 31, 2008\n- High operatorship - operates over 95% of its production\n- Cash distributions - cash distributions of $44.4 million were 63% of\n funds from operations for the three months ended March 31, 2008\n- Low debt to funds from operations ratio - 1.6:1 (net debt, before\n provision for future compensation, divided by annualized first\n quarter 2008 funds from operations)\n- Distribution growth - distributions have been increased 5 times; they\n have never decreased, and are now 87% higher than when the trust was\n formed in July, 2003\n- Since inception, Peyto has raised a total of $410 million issuing\n units from treasury, accumulated earnings of $772 million, and\n distributed $667 million to unitholders\n- Transparent capital structure - no convertible debentures, no\n exchangeable shares, no stock options, no warrants\n\nThe first quarter was highlighted by sustained distributions, increasing\nnatural gas prices and improved financial flexibility. The following\nsummarizes performance highlights of the business for the first quarter of\n2008:\n\n- Capital expenditures - $33.1 million was invested into finding and\n developing new natural gas reser...