Business
Peyto Energy Trust announces first quarter 2009 results
SYMBOL: PEY.UN - TSX CALGARY, May 13 /CNW/ - Peyto Energy Trust ("Peyto") is pleased to present t...
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\nSYMBOL: PEY.UN - TSX\n\n\nCALGARY, May 13 /CNW/ - Peyto Energy Trust ("Peyto") is pleased to\npresent the operating and financial results for the first quarter of the 2009\nfiscal year. Peyto is an explorer and producer of unconventional tight gas\nassets in Alberta's Deep Basin and using its trust structure is able to flow\nprofits from the success of that business to its unitholders in the form of\ndistributions.\n\n\nPeyto is well known for owning high quality, sweet natural gas assets\nthat exhibit long reserve life, low operating costs and high revenue per mcfe.\nThe following summarizes the Trust's foundation:\n\n\n- Long reserve life - Proved Producing 14 years, Total Proved 17 years,\n Proved plus Probable 23 years\n- Low operating costs - $0.44/mcfe ($2.66/boe), three months ending\n March 31, 2009\n- High heat content natural gas stream - Realized revenue of $6.34/mcfe\n ($38.04/boe) before hedging, $7.63/mcfe ($45.78/boe) after hedging,\n three months ending March 31, 2009\n- Low base general and administrative costs - $0.22/mcfe ($1.32/boe),\n three months ending March 31, 2009\n- High field netback - $6.27/mcfe ($37.62/boe) or 82% of revenue, three\n months ending March 31, 2009\n- High level of operatorship - operates over 97% of its production\n- Cash distributions - cash distributions of $41.3 million were 70% of\n funds from operations for the three months ended March 31, 2009\n- Since inception, Peyto has raised a total of $410 million issuing\n units from treasury, accumulated earnings of $983 million, and\n distributed $851 million to unitholders\n- Transparent capital structure - no convertible debentures, no\n exchangeable shares, no stock options, no warrants\n\nThe first quarter of 2009 was highlighted by strong cash netbacks despite\nweak natural gas prices and reduced activity due to changing royalty\nincentives as illustrated by the following:\n\n- Natural gas prices before hedges were 22% lower in Q1 2009 with\n prices averaging $6.15/mcf versus $7.93/mcf in Q1 2008. After\n hedging, gas prices were 10% lower at $7.68/mcf and $8.49/mcf\n respectively\n- Cash netbacks for the quarter averaged $5.70/mcfe ($34.23/boe) versus\n $6.38/mcfe ($38.33/boe) a year ago which represents 75% of revenue or\n a 75% pre-tax profit margin\n- Capital expenditures - $13.0 million was invested into find...