PENN WEST PETROLEUM LTD. (TSX – PWT; NYSE – PWE) ("Penn West", the "Company", "we", "us" or "our") is pleased to announce its financial and operational results for the three months ended March 31, 2017.
"Our first quarter results reflect a quality start for the new Penn West, with robust funds flow from operations, production growth in our key development areas, and a repositioned balance sheet from which to pursue our activities," commented David French, President and Chief Executive Officer. "First quarter development has set the Company up well for annual double-digit growth and our restructuring sales program is complete, bringing us to long term debt below $400 million. Looking ahead, we will work as a normal course business to selectively consolidate in areas where it makes sense, such as our recent tuck-in land acquisition in Peace River that increased inventory in the area by at least 40 near-term locations.
We are positioned with the assets, people, and commercial approach to succeed in the current commodity price environment. To further showcase our potential, we will be hosting an analyst day event next month to deepen investor awareness of our assets and go forward plans. I look forward to building on our strong momentum from the first quarter over the coming months."
Penn West Results for the Three Months Ended March 31, 2017
First Quarter Operational and Financial Highlights
Continued Strong Quarterly Performance
First Quarter Operations Setting Up for Growth in the Fourth Quarter
Dispositions Are Complete – Moving Towards Selective Consolidation
On Track for Year-end Growth: Reiterating 2017 Production Guidance
The Company remains on track to generate double-digit organic production growth from the fourth quarter of 2016 to the fourth quarter of 2017. We anticipate this year's $180 million capital program will be paid for fully with funds flow from operations.
Analyst Day 2017
Penn West plans to hold an Analyst Day event on June 7, 2017 to offer the investment community a comprehensive technical overview of our cost structure, operations, and sustainable growth strategy. The event will be held in Calgary for members of the financial analyst community and simultaneously webcast for the public and those unable to attend in person. The Company will release full details of the webcast closer to the event date.
Updated Hedging Position
Our hedging program helps reduce the volatility of our funds flow from operations, and thereby improves our ability to manage our ongoing capital programs. Recently, we expanded our hedging volumes in 2018 to support our internal 18-month forecast and planning cycle. We currently have approximately 40 to 50 percent of our crude oil exposure, net of royalties, and 25 to 30 percent of our natural gas exposure, net of royalties, hedged through the first quarter of 2018. Our hedging program increases our confidence to self-fund our entire 2017 capital program down to benchmark WTI prices of approximately US$40 per bbl.
SOURCE: Penn West
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.