Business
Peyto Energy Trust announces fourth quarter and 2006 year end report to unitholders
Peyto Energy Trust announces fourth quarter and 2006 year end report to unitholders.
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\nSYMBOL: PEY.UN - TSX\n\n\nCALGARY, March 7 /CNW/ - Peyto Energy Trust ("Peyto") is a leader in the\nexploration and development of natural gas in western Canada. By design, our\ncore areas are located in Alberta's premier gas exploration area, the Deep\nBasin. We are known for our high quality assets, our low cost structure and\nour ability to profitably find and develop new oil and natural gas reserves,\nyear after year. We are proud to present our operating and financial results\nfor the fourth quarter and 2006 fiscal year.\n\n\nThe following summarizes certain of the Trust's attributes at year end.\n\n\n- Long reserve life - Proved Producing 12 years, Total Proved 14 years,\n Proved plus Probable 20 years\n- High netback - $39.25/boe\n- Low operating costs - $2.16/boe\n- Low base general and administrative costs - $0.48/boe\n- High operatorship - over 95% of production\n- Low cash distribution ratio - 57% of fourth quarter 2006 funds from\n operations\n- Low debt to funds from operations ratio - 1.4 (net debt, before\n provision for future performance based compensation, divided by\n annualized fourth quarter 2006 funds from operations)\n- Distribution growth - distributions have been increased 5 times,\n never decreased, and are now 87% higher than when the trust was\n formed three and a half years ago\n- Transparent capital structure - no convertible debentures, no\n exchangeable shares, no stock options, no warrants\n\nThe following summarizes certain performance highlights for the year.\n\n- Value creation - invested $312 million in capital and created\n $914 million of Proved Producing and $1,197 million worth of Proved\n plus Probable undiscounted reserve value, translating into NPV\n recycle ratios of 2.9 and 3.8 respectively\n- Asset value growth - the debt adjusted net present value of the\n trust's Proven plus Probable oil and gas assets, discounted at 5%,\n grew by 9% per trust unit to $30.75 in 2006\n- Reserve growth per unit - proved producing reserves, grew 8% year\n over year\n- Reserve life growth - Proven Producing reserve life grew from 11\n years in 2005 to 12 years in 2006, while Proven plus Probable reserve\n life grew from 19 to 20 years.\n- Distributions per unit - increased by 19% from $1.39 in 2005 to $1.66\n in 2006.\n- Distribution life growth - increased from 19 years in 2005 to\n...