Business
Peyto Energy Trust announces second quarter 2007 results
Peyto Energy Trust announces second quarter 2007 results.
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\nSYMBOL: PEY.UN - TSX\n\n\nCALGARY, Aug. 8 /CNW/ - Peyto Energy Trust ("Peyto") is pleased to\npresent the operating and financial results for the second quarter of the 2007\nfiscal year. Peyto is a conventional oil and gas business that designs, drills\nand builds high quality, tight gas assets located in Alberta's premier gas\nexploration area, the Deep Basin.\n\n\nPeyto is well known for its long reserve life gas assets with low\noperating costs and high revenue per boe. The following summarizes the Trust's\nfoundation.\n\n\n- Long reserve life - Proved 14 years, Proved plus Probable 20 years\n from the end of 2006\n- Low operating costs - $2.70/boe, three months ending June 30, 2007\n- Low base general and administrative costs - $1.10/boe, three months\n ending June 30, 2007\n- High revenue per boe - $51.13/boe, before hedging, $53.98/boe, after\n hedging, three months ending June 30, 2007\n- High field netback - $41.21/boe, three months ending June 30, 2007\n- High operatorship - we operate over 95% of our production\n- Low cash distribution payout ratio - cash distributions were 64% of\n funds from operations for the three months ended June 30, 2007\n- Low debt to funds from operations ratio - 1.5 (net debt, before\n provision for future compensation, divided by annualized second\n 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 formed\n in July 2003\n- Since inception, Peyto has raised a total of $406 million issuing\n units from treasury, accumulated earnings of $627 million, and\n distributed $534 million to unitholders\n- Transparent capital structure - no convertible debentures, no\n exchangeable shares, no stock options, no warrants\n\nThe second quarter was highlighted by strong commodity prices, sustained\ndistributions and increased financial flexibility from a disciplined capital\ninvestment strategy. The following summarizes performance highlights of the\nbusiness for the second quarter of 2007.\n\n- Capital expenditures - $12.9 million was invested into finding and\n developing new natural gas reserves in the quarter, an 81% reduction\n from Q2 2006. Capital expenditures for the first half of 2007 were\n $43 million versus $212 million for the first half of 2006, a\n reductio...