Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

UPDATE 1-Penn West Petroleum cuts 2015 budget for the second time

Published 2015-07-30, 07:34 a/m
UPDATE 1-Penn West Petroleum cuts 2015 budget for the second time

(Adds details, share close)
July 30 (Reuters) - Canadian oil producer Penn West
Petroleum Ltd PWT.TO PWE.N cut its 2015 capital budget for
the second time as it looks to contain costs amid a steep fall
in crude oil prices.
The company also reported a smaller-than-expected quarterly
loss, helped by a 21 percent fall in total expenses.
Penn West cut its capital budget to C$575 million ($443
million) from C$625 million on Thursday, after lowering its
price assumption for Canadian crude oil to C$60 from C$65. In
December, it cut its full-year budget by about 26 percent.
The company said in May that it had sold or entered into
deals to sell assets for about C$415 million and would use the
proceeds to repay debt.
Penn West amended some of its debt covenants earlier in the
year after it had trouble meeting some terms related its cash
flow.
The company's cash flow from operating activities, a measure
of its ability to pay for drilling and other projects, was a
negative C$67 million in the quarter ended June 30, compared
with a positive C$214 million a year earlier.
Penn West said average sales price for light oil and natural
gas liquids fell 39 percent to C$58.05 per barrel in the second
quarter, while prices for heavy oil fell nearly 42 percent to
C$46.44.
The company's net loss was C$28 million, or 6 Canadian cents
per share, in the quarter, compared with a profit of C$143
million, or 29 Canadian cents per share, a year earlier.
Excluding an asset gain and deferred income tax expense, the
company's loss was 13 Canadian cents per share, smaller than the
average analyst estimate of 15 Canadian cents, according to
Thomson Reuters I/B/E/S.
Calgary, Alberta-based Penn West's total revenue fell 43
percent to C$325 million. ID:nPnc77Gc3
Up to Wednesday's close of C$1.72, the company's
Toronto-listed stock had fallen 29 percent this year. Its
U.S.-listed stock had fallen 37 percent.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

($1= C$1.2966)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.