Business
Peyto Energy Trust announces fourth quarter and 2007 year end report to unitholders
SYMBOL: PEY.UN - TSX CALGARY, March 5 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust") is a le...
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\nSYMBOL: PEY.UN - TSX\n\n\nCALGARY, March 5 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust") is a\nleader in the exploration and development of natural gas in western Canada. By\ndesign, the Trust's core areas are located in Alberta's premier gas\nexploration area, the Deep Basin. Peyto is known for high quality, sweet\nnatural gas assets, low cost structure and an ability to profitably find and\ndevelop new natural gas reserves, year after year. This performance is\nevidenced by an annual and five year average return on equity of 41% and 46%,\nrespectively. Peyto is proud to present the operating and financial results\nfor the fourth quarter and 2007 fiscal year.\n\n\nThe following summarizes certain attributes of the Trust at year end.\n\n- Long reserve life - Proved Producing 13 years, Total Proved 16 years,\n Proved plus Probable 21 years\n- High revenue natural gas - $47.48/boe before hedging, $53.56/boe\n after hedging\n- Low operating costs (including transportation) - $3.14/boe\n- High operating netback - $41.06/boe\n- Low base general and administrative costs - $0.94/boe\n- High operatorship - over 95% of production\n- Low cash distribution ratio - 64% of fourth quarter 2007 funds from\n operations\n- Low debt to funds from operations ratio - 1.65 times (net debt,\n before provision for future performance based compensation, divided\n by annualized fourth quarter 2007 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 four and a half years ago\n- Since inception, Peyto has raised a total of $406 million issuing\n units from treasury, accumulated earnings of $740 million, and\n distributed $622 million to unitholders.\n- Transparent capital structure - no convertible debentures, no\n exchangeable shares, no stock options, no warrants\n\nThe year 2007 was highlighted by improved efficiency and the successful\nexecution of a disciplined capital investment strategy. The following\nsummarizes certain performance highlights for the year.\n\n- Value creation - invested $122 million in capital and created\n $569 million of Proved Producing and $465 million of Proved plus\n Probable undiscounted reserve value, translating into Net Present\n Value ("NPV") recycle ratios (as def...