Penn West Posts Profit In Q2 - Update

(RTTNews) - Penn West Petroleum Ltd. (PWT.TO, PWE) Thursday reported profit for the second quarter, compared with a loss last year, mainly due to the strengthening of the Canadian dollar compared to the US dollar. Oil and natural gas sales declined from last year.

The firm said it remains well on pace to meet its full-year production guidance of 101,000 to 106,000 boe per day for 2014.

According to the company, the strengthening of the Canadian dollar led to unrealized foreign exchange gains on its senior unsecured notes denominated in US dollars.

For the second quarter, Penn West posted net and comprehensive income of C$143 million or C$0.29 per share, compared with a loss of C$53 million or C$0.11 per share last year.

On an adjusted basis, the company earned C$0.60 per share, compared to C$0.51 per share a year ago. Penn West has restated its prior-year results.

Quarterly revenues, including realized risk management gains and losses, however declined to C$650 million from C$745 million a year ago. Oil and natural gas sales were C$679 million, down from C$746 million in the preceding year.

Total expenses fell to C$408 million from C$732 million in the same quarter last year.

Average production declined to 106,706 boe per day from 140,083 boe per day in the prior year.

Average sales price of Light oil and NGL increased 14 percent to C$94.15 per bbl and price of Heavy oil rose 18 percent to C$79.40 per bbl. Natural gas price climbed 34 percent to C$4.96 per mcf.

Separately, Penn west said the Audit Committee determined that a review of prior periods going back to and including 2007 was necessary, including establishing the relevant January 1, 2012 opening balances for the restatement.

The board has also declared a quarterly dividend of C$0.14 per share, to shareholders on record September 30, 2014, payable on October 15.

PWE closed Wednesday's regular trading at $7.01 on the NYSE. In the pre-market activity on Thursday, the shares are up 9.27 percent.

On the Toronto Stock Exchange, the shares ended at C$7.73.