Business
Peyto Energy Trust announces ten successful years with fiscal 2008 year end results
SYMBOL: PEY.UN - TSX CALGARY, March 4 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust") is plea...
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\nSYMBOL: PEY.UN - TSX\n\n\nCALGARY, March 4 /CNW/ - Peyto Energy Trust ("Peyto" or the "Trust") is\npleased to present the operating and financial results for the fourth quarter\nand 2008 fiscal year which culminate ten successful years of operation in\nWestern Canada. Peyto has been a leader in the exploration and development of\nnatural gas in Alberta's premier gas exploration area, the Deep Basin.\n\n\nThe following summarizes Peyto's accomplishments over the last ten years:\n\n- Developed 150 net sections of an accumulated land base of 324 net\n sections (9 townships)\n- Internally generated and executed on over 650 gas drilling locations\n- Designed and constructed 195 mmcf/d of processing capacity in five\n 100% owned gas plants\n- Installed over 700 wellsites and 750 km of gas gathering system\n- Invested over $1.5 billion in capital projects\n- Developed over 900 BCFe of proved natural gas reserves, with over\n 290 BCFe recovered to date\n- Generated over $1.45 billion in funds from operations\n- Produced over $475 million in crown royalties for Albertans\n- Paid out over $800 million in distributions to unitholders\n ($7.96/unit)\n- Accumulated over $900 million in earnings\n- Averaged 22% Return on Capital Employed and 44% Return on Equity\n- Delivered a ten year compound annual total return of 65%\n\nThe Trust's assets exhibited the following attributes for 2008:\n\n- Long reserve life - Proved Producing 14 yrs, Total Proved 17 yrs,\n Proved plus Probable 23 yrs\n- High revenue natural gas - $9.75/mcfe ($58.49/boe) before hedging,\n $9.54/mcfe ($57.24/boe) after hedging\n- Low operating costs (including transportation) - $0.54/mcfe\n ($3.23/boe)\n- Low base general and administrative costs - $0.15/mcfe ($0.91/boe)\n- High operating netback - $7.18/mcfe ($43.10/boe), or 74% operating\n margin before hedging\n- High operatorship - over 95% of production\n- Debt to funds from operations ratio - 1.8 times (net debt, before\n provision for future performance based compensation, divided by\n annualized fourth quarter 2008 funds from operations)\n\nThe following summarizes certain performance highlights for the 2008 year:\n\n- Annual Return on Capital Employed (ROCE) was 19%, Return on Equity\n (ROE) was 33%\n- Value creation - invested $139 million in capital and created\n $299 million of Proved P...