Penn West Announces Workforce Reduction; Suspends Dividend; Updates Guidance

(RTTNews) - Penn West Petroleum Ltd. (PWE, PWT.TO) announced the company has taken further actions in response to the current commodity price environment. Going forward, the company's total capital expenditures will remain within its funds flow from operations.

Penn West will reduce its total workforce by 35%, representing over 400 full time employees and contractors, with most of the reduction being effective immediately.

The company's Board has decided to suspend dividend until further notice following the payment on October 15, 2015 of the most recently declared dividend.

The company's Board has voluntarily decreased the annual retainers payable to non-management directors.

Penn West has updated its guidance given the impact of the C$414 million in asset dispositions to date and the further planned reductions in capital programs. The company's revised 2015 capital budget is C$500 million. Penn West said its revised capital budget represents a 40% reduction from the original November 2014 guidance of C$840 million. The company said it will continue to look for additional opportunities to further reduce 2015 capital expenditures.

The company's revised 2015 production guidance range is 86,000 - 90,000 boe/d. Penn West expects operating costs for the year to be between C$19.25/boe and C$19.75/boe, while G&A is expected to be between C$2.80/boe and C$3.05/boe.