Penn West Announces Its Results for the Third Quarter Ended September 30, 2009

Author: Market Wire

CALGARY, ALBERTA–(Marketwire – Nov. 5, 2009) – PENN WEST ENERGY TRUST (TSX:PWT.UN) (NYSE:PWE) is pleased to announce its results for the third quarter ended September 30, 2009   Corporate Strategy   – Penn West continued to focus on positioning the company to move from a trust to a corporate model prior to the end of 2011. In the future we will primarily use a combination of organic growth and dividends to provide a return on capital that will position us with the other senior independent North American oil and gas producers. Prior to the conversion to an exploration and production corporation, we will continue our focus on the advancement of our large scale resource plays within our existing suite of assets. As our results to date are promising, we will allocate a greater portion of our 2010 capital budget to drilling horizontal multi-stage frac wells within our oil resource plays. Our aim is to apply this technology to increase production and reserves from these large resources with a particular near-term emphasis on those plays that focus on crude oil, such as Waskada, Dodsland, Pembina and Leitchville. This will greatly expand our inventory of locations with a focus on reducing risk, while providing the type of scale necessary to move the company forward.   Operations   – Third quarter production averaged 178,124 (1) boe per day and was weighted 59 percent to oil and natural gas liquids.   – Production for the first nine months of 2009 averaged 179,600 boe per day which is at the higher end of our guidance of approximately 175,000 to 180,000 boe per day. During the first nine months of 2009, Penn West had net dispositions of approximately 3,000 boe per day.   – Crude oil and NGL production averaged 104,583 barrels per day and natural gas production averaged approximately 441 mmcf per day in the third quarter of 2009.   – Development capital expenditures were $171 million in the third quarter of 2009 or $142 million net of $29 million of net asset dispositions. In the quarter, we drilled a total of 36 net wells, including 29 horizontal multi-stage frac wells, with a success rate of 100 percent.   Financial Results   – Funds flow (2) of $349 million in the third quarter of 2009 was 19 percent lower than the $430 million in the second quarter of 2009 and 47 percent lower than the $662 million realized in the third quarter of 2008. On a per-unit-basis (2) basic funds flow was $0.84 per unit in the third quarter of 2009 compared to $1.05 per unit in the second quarter of 2009 and $1.73 per unit in the third quarter of 2008. The decline in funds flow from the second quarter of 2009 was due to $75 million of realized gains in the second quarter as a result of monetizing foreign exchange forward contracts.   – Net income was $7 million ($0.02 per unit-basic) in the third quarter of 2009 compared to a net loss of $41 million ($0.10 per unit-basic) in the second quarter of 2009 and net income of $1,062 million ($2.78 per unit-basic) in the third quarter of 2008. The significantly higher income in the prior year was primarily due to unrealized risk management gains on our oil and natural gas collars.   – The netback (2) of $25.91 per boe in the third quarter of 2009 was one percent higher than the second quarter of 2009 and 40 percent lower than the third quarter of 2008. The decline from 2008 was primarily due to lower commodity prices.   – In the first nine months of 2009, Penn West’s net debt (2) was reduced by approximately $600 million (3).   (1) Please refer to the “Oil and Gas Information Advisory” section below for information regarding the term “boe”.   (2) The terms “funds flow”, “funds flow per unit-basic”, “netback” and “net debt” are non-GAAP measures. Please refer to the “Calculation of Funds Flow” and “Non-GAAP Measures Advisory” sections below. Funds flow for the first nine months of 2009 includes $75 million of gains realized from foreign exchange contracts, including monetizing the remainder of the 2009 contracts entered to hedge the currency risk on US Dollar denominated oil prices, which occurred in June 2009.   (3) Consists of the change in long-term debt, convertible debentures and working capital (excluding future income taxes and risk management), per the Consolidated Balance Sheets.   Business Environment   – Oil prices in the third quarter of 2009 averaged WTI US$68.29 per barrel and appreciated from an average of WTI US$59.62 per barrel in the second quarter of 2009. The price of crude oil increased throughout 2009 due to optimism the economic recovery is continuing. In the third quarter of 2008, oil prices averaged WTI US$118.13 per barrel. The year over year decline in the benchmark WTI oil price was primarily due to decreased demand for distillate products.   – The AECO Monthly Index averaged $2.87 per GJ in the third quarter of 2009 compared to $8.78 per GJ for the same period in 2008 and $3.47 per GJ in the second quarter of 2009. The price for natural gas continues to be impacted by lower industrial demand and high inventory levels.   – Subsequent to September 30, 2009, spot crude oil prices have recovered to a year to date high above WTI US$81.00 per barrel and spot natural gas prices to approximately $5.00 per GJ at AECO.   Financing   – As at September 30, 2009, Penn West had $1.8 billion of unused credit capacity on our bank facility.   – On November 4, 2009, the Board of Directors approved the cancellation of tranche two of the bank facility. This revolving tranche totals $750 million and is non-extendible. Penn West’s unused credit capacity after this cancellation will be approximately $1.0 billion.   – Subsequent to the end of the third quarter, Penn West entered into additional crude oil collars for 2010 on 5,000 barrels per day with an average floor of US$75.00 per barrel and an average ceiling of US$90.86 per barrel.   Distributions   – Penn West’s Board of Directors resolved to maintain the Trust’s distribution level at $0.15 per unit, per month, subject to maintenance of current forecasts of commodity prices, production levels and finalization of the 2010 capital budget.     Quarterly Financial Summary (millions, except per unit and production amounts)    Sep. 30, June 30, Mar. 31, Dec. 31, Three months ended 2009 2009 2009 2008 —————————————————————————- Gross revenues (1) $ 800 $ 791 $ 781 $ 968 Funds flow 349 430 348 490  Basic per unit 0.84 1.05 0.87 1.27  Diluted per unit 0.83 1.05 0.87 1.26 Net income (loss) 7 (41) (98) 404  Basic per unit 0.02 (0.10) (0.25) 1.05  Diluted per unit 0.02 (0.10) (0.25) 1.04 Distributions declared 188 188 276 393  Per unit $ 0.45 $ 0.45 $ 0.69 $ 1.02 Production Liquids (bbls/d) (2) 104,583 104,070 105,643 105,644 Natural gas (mmcf/d) 441 459 447 476 —————————————————————————- Total (boe/d) 178,124 180,601 180,096 184,908 —————————————————————————-   (1) Gross revenues include realized gains and losses on commodity contracts. (2) Includes crude oil and natural gas liquids.    HIGHLIGHTS    Three months ended Nine months ended  September 30 September 30  ————————————————  % %  2009 2008 change 2009 2008 change —————————————————————————- Financial (millions, except  per unit amounts) Gross revenues (1) $ 800 $ 1,235 (35) $ 2,372 $ 3,683 (36) Funds flow 349 662 (47) 1,127 2,047 (45)  Basic per unit 0.84 1.73 (51) 2.75 5.49 (50)  Diluted per unit 0.83 1.71 (51) 2.74 5.41 (49) Net income (loss) 7 1,062 (99) (132) 817 (100)  Basic per unit 0.02 2.78 (99) (0.32) 2.19 (100)  Diluted per unit 0.02 2.73 (99) (0.32) 2.17 (100) Capital expenditures,  net (2) 142 232 (39) 319 757 (58) Long-term debt at  period-end 3,559 3,679 (3) 3,559 3,679 (3) Convertible debentures 273 328 (17) 273 328 (17) Distributions paid(3) $ 188 $ 388 (52) $ 721 $ 1,108 (35) Payout ratio (4) 54% 59% (5) 64% 54% 10 Operations Daily production  Light oil and NGL  (bbls/d) 77,513 78,762 (2) 78,141 80,792 (3)  Heavy oil (bbls/d) 27,070 28,136 (4) 26,621 27,646 (4)  Natural gas (mmcf/d) 441 500 (12) 449 495 (9) —————————————————————————- Total production  (boe/d) 178,124 190,177 (6) 179,600 190,991 (6) —————————————————————————- Average sales price  Light oil and NGL  (per bbl) $ 64.15 $ 110.45 (42) $ 55.58 $ 103.65 (46)  Heavy oil (per bbl) 58.72 98.07 (40) 50.94 86.12 (41)  Natural gas  (per mcf) 3.13 8.49 (63) 4.05 8.88 (54) Netback per boe  Sales price $ 44.58 $ 83.23 (46) $ 41.85 $ 79.73 (48)  Risk management  gain (loss) 4.17 (11.69) 100 6.41 (9.03) 100 —————————————————————————-  Net sales price 48.75 71.54 (32) 48.26 70.70 (32)  Royalties (7.41) (15.23) (51) (7.12) (14.27) (50)  Operating expenses (14.90) (12.49) 19 (14.87) (12.01) 24  Transportation (0.53) (0.49) 8 (0.52) (0.49) 6 —————————————————————————-  Netback $ 25.91 $ 43.33 (40) $ 25.75 $ 43.93 (41) —————————————————————————-   (1) Gross revenues include realized gains and losses on commodity contracts. (2) Excludes business combinations and includes net proceeds on property  acquisitions/dispositions. (3) Includes distributions paid prior to those reinvested in trust units  under the distribution reinvestment plan. (4) Payout ratio is calculated as distributions paid divided by funds flow.    DRILLING PROGRAM    Three months ended Nine months ended  September 30 September 30  —————————————————-  2009 2008 2009 2008  —————————————————-  Gross Net Gross Net Gross Net Gross Net —————————————————————————- Oil 33 27 85 46 69 49 189 102 Natural gas 11 4 97 40 32 12 202 92 Dry – - 2 2 1 1 8 8 —————————————————————————-  44 31 184 88 102 62 399 202 Stratigraphic and service 5 5 10 10 8 7 36 34 —————————————————————————- Total 49 36 194 98 110 69 435 236 —————————————————————————- Success rate (1) 100% 98% 99% 96% —————————————————————————- (1) Success rate is calculated excluding stratigraphic and service wells.     In response to the decline in commodity prices due to financial market turmoil, Penn West reduced its 2009 development programs compared to 2008 and successfully focused its efforts on less capital intensive production restoration and optimization activities to maintain its production. Penn West continues to work on advancing many of our resource plays and, subject to commodity prices and other factors, intends to increase capital allocations to its oil focused resource plays in 2010.   The high reported success rate in the current quarter reflects Penn West’s transition from drilling programs in the past which were approximately 90 percent vertical wells to drilling programs which now include approximately 80 percent horizontal multi-stage frac wells.     LAND    As at September 30, 2009  ————————————————–  Producing Non-producing  ————————————————–  2009 2008 % change 2009 2008 % change —————————————————————————- Gross acres (000s) 6,203 6,377 (3) 3,192 4,337 (26) Net acres (000s) 4,124 4,182 (1) 2,490 3,494 (29) Average working interest 66% 66% – 78% 81% (3) —————————————————————————-   The decline in net acres from the prior year was the result of expirations of lands in non-core areas and property dispositions.   CORE AREA ACTIVITY    Net wells drilled Non-producing land  for the nine month period as at September 30, 2009 Core Area ended September 30, 2009 (thousands of net acres) —————————————————————————- Central 11 263 Eastern 12 261 Northern 2 734 North West Alberta 2 482 Southern 42 750 —————————————————————————-  69 2,490 —————————————————————————-    TRUST UNIT DATA    Three months ended Nine months ended  September 30 September 30  ——————————————— (millions of units) 2009 2008 % change 2009 2008 % change —————————————————————————- Weighted average  Basic 418.0 381.5 10 410.3 372.5 10  Diluted 419.6 389.9 8 410.3 380.1 8 Outstanding as at September 30 419.4 383.5 9 —————————————————————————-     In February 2009, Penn West issued approximately 17.7 million trust units on a bought deal basis with a syndicate of underwriters. On April 30, 2009, Penn West issued an additional 4.7 million trust units on the closing of the Reece Energy Exploration Corp. acquisition.      Letter to our Unitholders     With a series of quarters of consistent strong operational performance, and as we continue to unlock the potential of our assets with new technologies; our outlook for Penn West remains highly optimistic. In the third quarter of 2009, we maintained our strong production base, continued to strengthen our balance sheet, and advanced our inventory of short and long-term projects. Production remains at the upper end of our full-year guidance of 175,000 to 180,000 boe per day. Our capital program showed continued success with more than 80 percent of our spending going into oil projects with consistent strong returns, despite a soft commodity-price environment. Our development teams continue to test the extent to which new and evolving technologies can be applied to opportunities within our existing asset base. We are encouraged by the results on many of our development projects and we are eagerly planning our next steps in these plays. Based on our strong operational results to-date and our continually expanding list of low risk, high return oil drilling locations, we expect increases to our development capital budgets in future years.   Funds flow for the quarter was $349 million, consistent with the second quarter of 2009 (excluding one time gains) but lower than the third quarter of 2008 due to the year-over-year drop in commodity prices. The AECO Monthly Index averaged $2.87 per GJ in the third quarter of 2009, significantly less than the $8.78 per GJ realized in the same period only one year ago. Crude oil prices continued to strengthen in the third quarter, averaging US$68.29 per barrel, lower than the US$118.13 per barrel seen in the same period one year ago; however exceeding the US$59.62 per barrel seen in the previous quarter. Both crude oil and natural gas prices have continued their rise after the end of the third quarter of 2009.   During the third quarter of 2009, Penn West averaged a netback of $25.91 per boe, including realized hedging gains. Our remaining 2009 crude oil production is 31 percent hedged with floors averaging US$80.00 per barrel and 15 percent of our remaining 2009 natural gas production hedged with floors averaging $6.50 per GJ. Penn West continues to prudently hedge future production as part of our ongoing risk management program.   Penn West’s net debt, including working capital, has been reduced by approximately $600 million in the first nine months of 2009. Debt reduction and diversification remain a priority as we believe a stronger balance sheet will better position us for growth in our core areas.   We are currently in the process of finalizing our capital spending budget for 2010. It is anticipated that we will go forward with a drilling program with even greater focus on horizontal multi-stage frac technology applications on crude oil opportunities. In 2010, we anticipate a capital spending program between $800 and $900 million, and production guidance of 170,000 to 180,000 boe per day, prior to acquisitions and dispositions.   At our recent Investor Day on October 21, 2009, we outlined a number of our growth plays and commented on our plans to convert from an income trust model to a conventional exploration and production corporation within the next two years. While a specific transition date has not been determined, we have developed certain strategies including detailed plans to increase capital spending on our suite of producing assets to support growth. Both through our transition period and later as a corporation, we will be targeting a business model which returns a combination of share price growth and dividends to our shareholders. We are firm in our belief that our asset base is of the size and quality to provide a platform for future growth, while still providing an attractive stream of dividend income.   On behalf of the Board of Directors,   William E. Andrew Chief Executive Officer   Murray R. Nunns President and Chief Operating Officer   Calgary, Alberta, November 4, 2009   Outlook   This outlook section is included to provide unitholders with information as to our expectations as at November 4, 2009 for production and net capital expenditures for 2009 and 2010 and readers are cautioned that the information may not be appropriate for any other purpose. This information constitutes forward-looking information. Readers should note the assumptions, risks and disclaimers under “Forward-Looking Statements”.   Our forecast 2009 development capital expenditures are expected to be in the range of approximately $650 to $700 million. The 2009 capital program was reduced compared to 2008 due to lower commodity prices. The remaining 2009 capital program will continue to be focused on programs that add production at very strong efficiency measures through optimization and recompletion programs, combined with development efforts focused on the advancement of certain of our resource plays and enhanced oil recovery projects. Based on this level of capital expenditures, our forecast 2009 average production remains in the range of approximately 175,000 to 180,000 boe per day.   Our prior forecast, released on August 11, 2009 with our 2009 second quarter results and filed on SEDAR at www.sedar.com, was based on 2009 development capital expenditures between $600 million and $825 million with the expectation that spending would be closer to the lower end of the range and average production would be approximately 175,000 to 180,000 boe per day for 2009.   As we move into 2010, the outlook for crude oil prices looks to be positive; however the outlook for natural gas prices is mixed. We have developed a preliminary 2010 capital budget of approximately $800 million to $900 million, excluding acquisition and disposition activities. Based on this level of capital spending, production is estimated to be approximately 170,000 to 180,000 boe per day, prior to acquisitions and dispositions, for 2010.   Non-GAAP Measures Advisory   The above information includes non-GAAP measures not defined under generally accepted accounting principles (“GAAP”), including funds flow, funds flow per unit-basic, netback, payout ratio and net debt. Non-GAAP measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Funds flow is cash flow from operating activities before changes in non-cash working capital and asset retirement expenditures. Funds flow is used to assess our ability to fund distributions and planned capital programs. Netback is a per-unit-of-production measure of operating margin used in capital allocation decisions. Operating margin is calculated as revenue less royalties, operating costs and transportation. Payout ratio is distributions paid divided by funds flow and we use it to assess the adequacy of funds flow to fund capital programs. Net debt is the change in long term debt, convertible debentures and working capital (excluding risk management and future income taxes) and is used to assess our leverage and hence our distribution and capital investment levels.   Calculation of Funds Flow      Three months ended Nine months ended  September 30 September 30  —————————————- (millions, except per unit amounts) 2009 2008 2009 2008 —————————————————————————- Cash flow from operating activities $ 386 $ 616 $ 963 $ 1,654 Increase (decrease) in non-cash  working capital (50) 30 115 340 Asset retirement expenditures 13 16 49 53 —————————————————————————- Funds flow $ 349 $ 662 $ 1,127 $ 2,047 —————————————————————————- Basic per unit $ 0.84 $ 1.73 $ 2.75 $ 5.49 Diluted per unit $ 0.83 $ 1.71 $ 2.74 $ 5.41 —————————————————————————-     Funds flow for the nine months ended September 30, 2009 includes realized gains of $75 million (2008 – $nil) on foreign exchange forward contracts of which $57 million was realized from monetizing our 2009 foreign exchange contracts put in place to fix Canadian dollar sales proceeds on oil volumes that were collared for the second half of 2009.   Oil and Gas Information Advisory   Barrels of oil equivalent (boe) are based on six mcf of natural gas equalling one barrel of oil (6:1). This could be misleading if used in isolation as it is based on an energy equivalency conversion method primarily applied at the burner tip and does not represent a value equivalency at the wellhead.   Forward-Looking Statements   Certain statements contained in this document constitute forward-looking statements or information (collectively “forward-looking statements”) within the meaning of the “safe harbour” provisions of applicable securities legislation. Forward-looking statements are typically identified by words such as “anticipate”, “continue”, “estimate”, “expect”, “forecast”, “may”, “will”, “project”, “could”, “plan”, “intend”, “should”, “believe”, “outlook”, “potential”, “target” and similar words suggesting future events or future performance. In addition, statements relating to “reserves” or “resources” are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future.   In particular, this document contains forward-looking statements pertaining to, without limitation, the following: our corporate strategy, including our intention to convert to a hybrid corporate model that combines an element of growth with a dividend, our intention to continue our focus on the advancement of our inventory of profitable, scalable, repeatable and demonstrable resource plays, our intention to allocate a greater portion of our 2010 capital budget to drilling horizontal multi-stage frac wells within our oil resource plays with a view to increasing production and reserves from these resources, with a particular 2010 focus on oil plays (including Waskada, Dodsland, Pembina and Leitchville); our expectations regarding North American and global supply and demand factors and pricing for crude oil and natural gas in 2009 and beyond; our anticipated per unit distribution level and the factors that may affect such distribution level; our intention to continue to work on advancing many of our resource plays and to increase capital allocations to our oil focused resource plays in 2010; our intention and ability to continue to unlock the potential of our assets with new technologies; our view of our future prospects; our intention to increase our development capital budgets in future years; our intention to hedge future production to manage risk; our intention to reduce and diversify our debt structure; the ability of a strong balance sheet to position us for growth in our core areas; our intention to focus our 2010 drilling program on horizontal multi-stage frac technology applications on crude oil opportunities; our plan to convert into a conventional exploration and production corporation within the next two years; our plan to increase capital spending on our suite of producing assets; our intention and ability to target a business model that returns a combination of share price growth and dividends to our shareholders; and, the disclosure contained under the headings “Letter to our Unitholders” and “Outlook”, which among other things set forth management’s expectations as to the outlook for commodity prices in 2010, our capital expenditures for 2009 and the intended focus of such expenditures, our forecast average daily production for 2009, and our expectations as to our capital expenditures and forecast average daily production for 2010.   With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things: future oil and natural gas prices and differentials between light, medium and heavy oil prices; future capital expenditure levels; future oil and natural gas production levels; future exchange rates and interest rates; the amount of future cash distributions that we intend to pay; our ability to obtain equipment in a timely manner to carry out development activities; our ability to market our oil and natural gas successfully to current and new customers; the impact of increasing competition; our ability to obtain financing on acceptable terms; and our ability to maintain existing production levels and add production and reserves through our development and exploitation activities. In addition, many of the forward-looking statements contained in this document are located proximate to assumptions that are specific to those forward-looking statements, and such assumptions should be taken into account when reading such forward-looking statements: see in particular the assumptions identified under the headings “Distributions” and “Outlook”.   Although Penn West believes that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause Penn West’s actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things: the impact of weather conditions on seasonal demand and ability to execute capital programs; risks inherent in oil and natural gas operations; uncertainties associated with estimating reserves and resources; competition for, among other things, capital, acquisitions of reserves, resources, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions, including the completed acquisitions discussed herein; geological, technical, drilling and processing problems; general economic conditions in Canada, the U.S. and globally; industry conditions, including fluctuations in the price of oil and natural gas; royalties payable in respect of our oil and natural gas production and changes thereto; changes in government regulation of the oil and natural gas industry, including environmental regulation; fluctuations in foreign exchange or interest rates; unanticipated operating events that can reduce production or cause production to be shut-in or delayed; failure to obtain industry partner and other third-party consents and approvals when required; stock market volatility and market valuations; OPEC’s ability to control production and balance global supply and demand of crude oil at desired price levels; political uncertainty, including the risks of hostilities, in the petroleum producing regions of the world; the need to obtain required approvals from regulatory authorities from time to time; failure to realize the anticipated benefits of acquisitions, including the completed acquisitions discussed herein; changes in tax laws that affect us and our security holders; changes in government royalty frameworks; uncertainty of obtaining required approvals for acquisitions and mergers; and the other factors described in Penn West’s public filings (including our Revised Annual Information Form) available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be construed as exhaustive.   The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, Penn West does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.      Penn West Energy Trust  Consolidated Balance Sheets   (CAD millions, unaudited) September 30, December 31,  2009 2008 —————————————————————————-   Assets Current  Accounts receivable $ 397 $ 386  Risk management – 448  Future income taxes 2 -  Other 140 106 —————————————————————————-  539 940 —————————————————————————- Property, plant and equipment 11,726 12,452 Goodwill 2,020 2,020 —————————————————————————-  13,746 14,472 —————————————————————————-  $ 14,285 $ 15,412 —————————————————————————-   Liabilities and unitholders’ equity Current  Accounts payable and accrued liabilities $ 462 $ 630  Distributions payable 63 132  Convertible debentures 18 7  Future income taxes – 132  Risk management 7 – —————————————————————————-  550 901 Long-term debt 3,559 3,854 Convertible debentures 255 289 Risk management 39 6 Asset retirement obligations 596 614 Future income taxes 1,216 1,368 —————————————————————————-  6,215 7,032 —————————————————————————- Unitholders’ equity Unitholders’ capital 8,414 7,976 Contributed surplus 111 75 Retained earnings (deficit) (455) 329 —————————————————————————-  8,070 8,380 —————————————————————————-  $ 14,285 $ 15,412 —————————————————————————-     Penn West Energy Trust  Consolidated Statements of Operations and Retained Earnings (Deficit)    Three months ended Nine months ended  September 30 September 30  ————————————– (CAD millions, except per unit  amounts, unaudited) 2009 2008 2009 2008 —————————————————————————-   Revenues  Oil and natural gas $ 732 $ 1,439 $ 2,058 $ 4,155  Royalties (122) (265) (349) (746) —————————————————————————-  610 1,174 1,709 3,409    Risk management gain (loss)  Realized 68 (204) 314 (472)  Unrealized (58) 1,109 (447) 79 —————————————————————————-  620 2,079 1,576 3,016 —————————————————————————-   Expenses  Operating 248 221 739 636  Transportation 9 9 26 26  General and administrative 43 39 125 110  Financing 43 51 120 151  Depletion, depreciation and accretion 404 404 1,189 1,194  Unrealized risk management loss 45 7 41 -  Unrealized foreign exchange loss  (gain) (118) 37 (161) 64  Gain on currency contracts – - (75) – —————————————————————————-  674 768 2,004 2,181 —————————————————————————- Income (loss) before taxes (54) 1,311 (428) 835 —————————————————————————-   Taxes  Future income tax (recovery) expense (61) 249 (296) 18 —————————————————————————-   Net and comprehensive income (loss) $ 7 $ 1,062 $ (132) $ 817   Retained earnings (deficit),  beginning of period $ (274) $ (353) $ 329 $ 658  Distributions declared (188) (391) (652) (1,157) —————————————————————————- Retained earnings (deficit), end of  period $ (455) $ 318 $ (455) $ 318 —————————————————————————-   Net income (loss) per unit  Basic $ 0.02 $ 2.78 $ (0.32) $ 2.19  Diluted $ 0.02 $ 2.73 $ (0.32) $ 2.17 Weighted average units outstanding  (millions)  Basic 418.0 381.5 410.3 372.5  Diluted 419.6 389.9 410.3 380.1 —————————————————————————-     Penn West Energy Trust  Consolidated Statements of Cash Flows    Three months ended Nine months ended  September 30 September 30  ————————————- (CAD millions, unaudited) 2009 2008 2009 2008 —————————————————————————- Operating activities  Net income (loss) $ 7 $ 1,062 $ (132) $ 817  Depletion, depreciation and accretion 404 404 1,189 1,194  Future income tax (recovery) expense (61) 249 (296) 18  Unit-based compensation 14 12 39 33  Unrealized risk management loss (gain) 103 (1,102) 488 (79)  Unrealized foreign exchange loss  (gain) (118) 37 (161) 64  Asset retirement expenditures (13) (16) (49) (53)  Change in non-cash working capital 50 (30) (115) (340) —————————————————————————-  386 616 963 1,654 —————————————————————————-   Investing activities  Acquisition of property, plant and  equipment (24) – (31) (17)  Disposition of property, plant and  equipment 53 6 204 11  Additions to property, plant and  equipment (171) (238) (492) (751)  Acquisition costs – (1) – (29)  Change in non-cash working capital 11 31 (109) 4 —————————————————————————-  (131) (202) (428) (782) —————————————————————————-   Financing activities  Proceeds from issuance of notes – 114 238 619  Redemption / maturity of convertible  debentures – (5) (4) (29)  Repayment of acquired credit  facilities – (43) (31) (1,600)  Increase (decrease) in bank loan (101) (155) (372) 1,053  Issue of equity 12 12 270 49  Distributions paid (166) (337) (636) (964) —————————————————————————-  (255) (414) (535) (872) —————————————————————————-   Change in cash – - – - Cash, beginning of period – - – - —————————————————————————- Cash, end of period $ – $ – $ – $ – —————————————————————————-   Interest paid $ 34 $ 35 $ 104 $ 127 Income taxes paid (received) $ – $ – $ (3) $ 6 —————————————————————————-     Investor Information   Penn West trust units and debentures are listed on the Toronto Stock Exchange under the symbols PWT.UN, PWT.DB.C, PWT.DB.D, PWT.DB.E and PWT.DB.F and Penn West trust units are listed on the New York Stock Exchange under the symbol PWE.   A conference call will be held to discuss Penn West’s results at 10:00 a.m. Mountain Standard Time (12:00 p.m. Eastern Standard Time) on November 5, 2009.   To listen to the conference call, please call one of the following:   416-340-8061 (Toronto)   866-225-0198 (North American toll-free)   This call will be broadcast live on the Internet and may be accessed directly on the Penn West website at www.pennwest.com or at the following URL: http://events.digitalmedia.telus.com/pennwest/111209/index.php.   A taped recording will be available until November 12, 2009 by dialing 416-695-5800 (Toronto) or 800-408-3053 (North American toll-free) and entering pass code 2024822.   Penn West expects to file its Management’s Discussion and Analysis and unaudited interim consolidated financial statements on SEDAR and EDGAR shortly.

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One Small Step For Bookkeeping, One Giant Leap For Your Small Business

Author: RightmyBooks Dotcom

Keeping good financial records has its payoff. In fact, it’s one of the key steps in building a good, and more importantly, successful business. Accurate bookkeeping makes it possible for a business owner to determine the exact financial condition of his company. More significantly, accurate bookkeeping from a small business is often the first step into the realm of top competitors in the ever changing market place.  Large and medium-sized companies have the resources to form an internal accounting department to do the books, which gives management enough time to do the more important parts of business management like formulating marketing strategies and creating new networks. But for small businesses who have limited budget and number of staff members, monthly bookkeeping just seems like such a daunting task, especially if you add it to the list of other duties to keep everything running. Fortunately, small business bookkeeping doesn’t have to be so grueling anymore. Monthly bookkeeping services are now available online and are quite affordable. This cheap yet effective means of bookkeeping provides the same efficiency and accuracy a private accounting firm gives its clients. Online bookkeeping is a practical way for small businesses to get to where they want to be, when they want to. It’s like professional bookkeeping made to-go!   Online bookkeeping is exactly like doing the books on paper except it’s done faster. It gives the small business owner the same standard set of bookkeeping reports a big company would get from an accounting firm. A basic bookkeeping report, when done correctly, should be able to answer these questions: 1. How much income are you generating every month, and how much will you be expecting in the future?  2. How much cash is under your list of receivables and when will they turn to actual cash? 3. Which of your product lines or services are bringing in the most amount of profit, breaking even, and/or draining your resources? 4. How do the data compare with last year or the last quarter? 5. How do the data compare with projections? 6. How do all these information compare with the competition? Are you leading or falling behind?  Providing precise answers to these questions is possible through online bookkeeping or “outsourced bookkeeping” as others would call it. Investing a little money on quality and accurate bookkeeping services gives you the advantage of foreseeing the things that matter most for a thriving and successful business.  Professional online bookkeeping will help you monitor the progress of your business, prepare necessary financial statements for end-of-the-month reports, identify receipt sources so you can separate business from non-business ones, keep track of deductible expenses, and prepare your tax returns. This cheap yet efficient way of bookkeeping will also allow you to fulfill your checklist for a well managed company. You’ll be able to out a check on items such as:  -Increased profitability -Efficient operations -Properly categorized business assets, liabilities, income, and expenses -Clean tax record -Good relations with my banker -Satisfy the IRS  Once you’ve put a check mark on these factors, then you’ll be sure to stay on top of the game-all this with a simple click of a button towards fast and efficient bookkeeping. In addition to all the above listed benefits of small business bookkeeping, you’ll also be put a step ahead in making your cash flow plans so you know exactly where you stand on a daily, monthly, and yearly basis. This way, you’ll have a more precise map of which direction to take in the future. Subscribe to a bookkeeping service and start focusing on what matters. Why not take advantage of online bookkeeping?

Article Source: http://www.articlesbase.com/accounting-articles/one-small-step-for-bookkeeping-one-giant-leap-for-your-small-business-1472433.html

About the Author:
RightmyBooks.com Bookkeeping Services
Contact Name: Mr. Aniceto Castro
Address: 3651 Lindell Rd Ste D228, Las Vegas NV 89103
Telephone No.: (866) 873-0626
Fax No.: (866) 749-6681
E-mail Address:  info@rightmybooks.com
Website:  http://www.rightmybooks.com

Pay as You Earn

Author: Brigette

One of the major advantages of being self-employed is that it not only enables you to pay your tax annually and partially in arrears but it also allows many expenses as deductions when calculating the income on which your tax bill will be based.  In contrast, the Pay as You Earn (PAYE) system, used for taxing employees, is a great advantage to any government. After all it enables the collection of income tax throughout the year rather than waiting until its end. There are also far more limiting rules as to what is an allowable deduction for an employee. It is not surprising therefore that so many resources are put into policing the PAYE system. This is why the payroll bureau has become an essential resource for every business.  PAYE audits are routinely undertaken on businesses. It is not a question of whether a business will be investigated but when. A payroll bureau can deal with this quickly and efficiently as they will have already carried out the type of checks which the Revenue use.   If a business is found to have made mistakes, they will of course be given a bill for any unpaid tax but they will also be charged interest on any tax deemed to have been paid late and charged penalties of up to 100 per cent of the tax that would have been lost had the mistake not been discovered. Businesses do not want to risk getting it wrong and use an expert payroll bureau such as us at Dataplan.

Article Source: http://www.articlesbase.com/accounting-articles/pay-as-you-earn-1477928.html

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The Article is written by dataplanpayroll.co.uk providing  Payroll Services  and  Payroll Company  Services. Visit  http://www.dataplanpayroll.co.uk  for more information on dataplanpayroll.co.uk Products & Services___________________________
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Finance Accounting

Author: Pinki Gupta

Finance Accounting – Investment Basics For the Clueless    Many investors are clueless when it comes to bright how to fashion. One reason for this is that they do not know the investment basics.  Visit here   http://allfinance-tips-help.blogspot.com    Put added way, they regard no bag knowledge whence they consider no way to intelligently tiptop investments that fit their needs.In fact, many folks consider thus little investment knowledge they don’t comprehend what questions to ask when presented with an investment submission. How would they when they don’t know investment basics. Relax, what follows cede give you a station to work from so you incubus someday invest informed, not clueless. Learning how to invest is a process.Here are five investment basics to be concerned with when considering detail investment opportunity. unredeemed this proposition knowledge you cannot invest informed, you are clueless.Liquidity…How quickly and soft could I sell this investment if I enthusiasm all or part of my money ferry? Will ace be charges, fees or penalties if I important notoriety opening? Don’t annex yourself into an hazard if you may need access to your money in the next few years.   Safety…On a scale of 1 to 10, how safe is this investment? Will the value of the investment fluctuate? This investment conclusion is crucial if you cannot produce to have this money at risk. If you need safety a CD at the bank is appropriate. A growth cattle is not.Growth…A growth investment has the power to conclude higher sequence than money in the bank. Growth is requisite for investors accumulating money for retirement. It is also indispensable in order to last ahead of inflation and taxes. Stocks are ice investments, but equaling investments offer few if any guarantees, again prices or values will fluctuate. Don’t ignore the most basic of bag basics: where there is exceptional growth compulsion sharp is also risk of losing money.Income…Some investments pay higher income then you can get at the bank. Bonds again bond wealth are examples. Don’t hold to get ultra income lacking some risk. If someone promises you a risk-free 6%, 7% or more per year in disturb or dividends when your bank is legacy only 3% or 4%, show your investment intuition. Show them the door.   Tax Advantages…Certain investments or types of investor accounts present tax advantages. Examples include municipal bonds, the IRA and 401(k). Take advantage of these tax whack if they are appropriate seeing you. But form informed. If you pull cash out of an IRA or 401(k) too soon, you may steward nut to taxes besides penalties. Beware or anyone gifting you a millstone break that seems too good to be true.Now, when faced with an risk decision, affirm gross five of these investment basics. There is no perfect deal. Don’t be mislead. A growth bag is not safe, and a safe pursuit doesn’t pay high dividends or grow at an account scale of 15% or more.It’s intact a producer of trade-offs and arbitration investments that just you. Once you know the investment basics it is much easier to increase your investment knowledge.Get advancing to speed, don’t invest clueless. Put some tug into learning how to invest, so you can invest informed.A retired money planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals. Visit here   http://allfinance-tips-help.blogspot.com

Article Source: http://www.articlesbase.com/accounting-articles/finance-accounting-1517727.html

About the Author:
I am a Freelancer Writer since 5 years.Visit here  http://allfinance-tips-help.blogspot.com

Investing in Penny Stocks Can Make Big Profits

Author: Jeminy Rider

Penny stocks as anyone know deal with a low amount of investment. But there are more benefit possibilities with it. It is not impossible to earn huge money in stocks, and especially in penny stocks.     Some people have made larger profit in  penny stocks . It may be possible that they may have begun trading in penny stocks, but then stepped up to larger stocks with larger investments. But the fact is that they have gained experience from stocks. An investor can make more gain if he can cut down risk involved in these stocks.     It is essential to know what penny stocks are before start trading. After that only you can go for profit. Penny stocks do not have a specific definition. Different people give different meanings. A few people define penny stocks as stocks trading less than $1, while others have opined that stocks whose value is under $5. Others have viewed it as any stock whose total value of the company’s tangible assets is less than $4 million.   Based on this definition, companies that have a legal business do not come under the category of penny stocks. The SEC defines  penny stocks  as those stocks that cost under $5 and that trade outside the official stock exchanges.    These stocks can be quite unsteady, shooting and dipping percentage points in a moment. So you could lose everything or it could bring you large amounts of capital.     Investor can gather more experience with a couple of trades involving lesser risks when you are dealing in penny stock in order to make the most of your profits. You may take weeks, months or years to become experienced. After obtaining extensive experience with trading and analysis a trader trade successfully. Still he will still lose on some trades.

Article Source: http://www.articlesbase.com/investing-articles/investing-in-penny-stocks-can-make-big-profits-1476173.html

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For more information about  Penny stock , please visit the site  http://www.microcapinsider.com/

BSE Sensex Affecting Market

Author: Sourav Sharma

Sensex is the buzzword today that governs the activities of the investors in India. With metamorphosis witnessed in all sectors and the country turning into a fast developing economy there is no dearth of investors. Even overseas investors are attracted towards sensex India and it has not been a decade that the stock market gained great momentum. The BSE index rose to such an escalating level that thousands of shares were being traded every minute and more investors being ready to invest. But the sudden downslide in the year 2008 left all in panic – reminding one of the ‘snake & ladder’ game. Many turned bankrupt, a number of companies closed down, and financial chaos were the order of the day for over six months at a stretch. The downslide affected the BSE sensex, lowering the stock prices and investors were in a dilemma whether to take the risk or not. But now market conditions have changed for the better; the BSE index, over the last few months, has been displaying a rising figure. At present, the sensex index closed at 16844.20 up from the below-10,000 figure!   Two stock exchanges in India hold prominence – the Bombay Stock Exchange and the National Stock Exchange. The calculations of the stocks of the BSE are measured by the Sensex and that of the NSE by Nifty. Reading any stock market news in India will automatically transport you to the two worlds of Sensex Nifty. While the Sensex carries information on 30 traded stocks, the Nifty acquaints one of its 50 popular stocks. As per the latest stock market news, the sensex index was up by 148.47 points and the Nifty ended at 4996.90, up by 44.25 points.   The Sensex Nifty gives the investor and all related to the stock market a general idea whether the stocks have gone up or down. So far as per the latest BSE index, Siemens traded in 1,32,938 shares, Axis Bank, 7,53,856, Oriental Bank of Commerce trading in 80,035 shares, AIA Engineering selling 42,05,066 shares on the BSE followed by other companies. Currently these are the companies that have gained the most on the BSE sensex.   But changeability is the order of the day in the stock market. The shares that you buy at a high price may or may not give you good returns. If the particular sector suddenly confronts a downslide, you will end up selling the same shares at a loss!

Article Source: http://www.articlesbase.com/investing-articles/bse-sensex-affecting-market-1476269.html

About the Author:
Sourav Sharma is freelance market analyst and is writing reviews articles on sensex, bse sensex, sensex index,  sensex india ,  sensex nifty ,  BSE index .

What You Won’t Find in Typical Commercial Property Listings?

Author: Posey Gaines

There are many reasons people turn to  commercial property listings  to find great investment properties. However, is it the right decision for your individual circumstances? The answer is not always so cut and dried. There are quite a few potential benefits to seeking the help of others as you make your investments.    Realtors vs. Commercial Property Listings    You may think it will save you money to pour through various publications that list commercial real estate and/or properties week after week in search of the perfect property for your investment. This isn’t the case though most of the time. Time is money after all and you can save yourself a lot of time sifting through properties that don’t meet your standards by going through a Realtor.    Benefits of a Real Estate Professional    There are more benefits to hiring a real estate pro to help you find commercial property listings that meet your needs than you might see at first glance. Some of the benefits that don’t immediately jump out and grab you include the following:   Knowledge of the local marketing. This includes growth trends, downturns, and events occurring in the community that might affect the value of various properties. It’s their business to keep ears to the ground in order to serve you better. Benefit from their hard work.   Understanding of real estate trends. More importantly, they understand how these trends relate to your investment goals. You have your own business. You’ve been trained to do that business and odds are that you’re good at what you do as a result. Commercial property agents have also had training and experience to help them assist you better.   Experience dealing with the local economy and how it relates to the value of property. You probably understand that some parts of the country have properties that generally sell above or below (depending on the market) the estimated value of the property. Did you know that the same holds true in your city or town? There are some neighborhoods where properties are “worth” more than they would be in other neighborhoods. You would do well to work with a real estate professional that understands this well.    Going it alone is like Digging for Treasure without a Map    When it’s your investment future that’s on the line, you’d do well to work with a partner that will help you find the path you’re working towards. Otherwise, you risk leaving money on the table by the time all is said and done with your investment venture. A skilled professional is dedicated to making sure you are poised to receive the greatest potential return on investment or at least shoot straight with you so that you know what you’re getting into.

Article Source: http://www.articlesbase.com/investing-articles/what-you-wont-find-in-typical-commercial-property-listings-1476971.html

About the Author:
You don’t have to go through mountains of  commercial property listings  on your own. Get expert help and advice from the dedicated professionals at Stan Johnson Co.:   http://www.stanjohnsonco.com   today.

Are Net Leased Properties Good for Beginners?

Author: Posey Gaines

New to real estate investing and wondering if  net leased  properties are a good idea for you. It’s a good question to ask if you’re even thinking about getting involved in the great big world of commercial real estate investing. The more questions you ask at this stage of the game, (when you’re first getting involved), the better prepared you will be to make an informed decision about the best types of investment properties for you.    NNN Leased Properties 101    Getting started with these types of properties can be ideal for someone who knows little about the “ins” and “outs” of owning commercial real estate or even someone that is hoping for a “no hassle” or “low stress” sort of real estate investment. It gives you the benefits of property ownership without many of the worries that go along with it. Most people who invest in this type of real estate wouldn’t trade it for the world, if they have a choice in the matter.    Economic Factors for Investing    The biggest question you’ll have before making an investment in net leased properties is whether or not you can come up with the capital. These are not small investments. However, they are investments that are great building blocks for a secure future in commercial real estate. As a first investment, many new investors will find these properties just beyond reach. If you have the means, however, it is an excellent choice that can be leveraged (with the beauty of a 1031 exchange) into an even more profitable NNN Lease property in the future.    What 1031 Exchanges means for Net Lease Property Owners    If your goals are to build a financially stable future for your family through real estate investing, you’ll have a lot to think about with net leases.  These properties offer plenty of benefits to those who are inexperienced with real estate investing and an absence of hassles that is appreciated by those who do have experience in this market. 1031 exchanges allow you to get your foot in the door with the smallest possible investment along with the ability to build up to larger investments without paying a tax penalty at various stages in between.   When you combine the power of the NNN Lease with the beauty of a 1031 exchange, you get all the benefits of real estate investing with very little of the “growing pains” that many other investors have had to suffer through along the way. If you can start out with this type of investment, it truly is the way to go.   Ultimately, any property investment you undertake will have pros and cons. You and you alone will have to decide if you are interested in starting out with the high cost/high stability NNN lease, if you prefer a lower cost buy in, or even a property that offers greater risk with the potential for greater reward and faster growth.

Article Source: http://www.articlesbase.com/investing-articles/are-net-leased-properties-good-for-beginners-1476995.html

About the Author:
Don’t know where to begin with your  net leased  investment? Get the help you need to get started today from the qualified professionals at Stan Johnson Co.:    http://www.stanjohnsonco.com  .

Indian Stock Market: New Phenomenon in Money Making

Author: Money Control

All those individuals who have a will to get good financial growth and capital asset always look forward to the Indian Stock Market. Being known as the undisputed leader among the Asian stock markets, Indian stock market has made up a milestone in stock trading worldwide. The financial bench mark is not only for the domestic players but also for the foreign financial institutions.  If we talk about the up scaling of the financial market, in the recent years Indian stock market has witnessed tremendous ups and downs. At one side it has shown phenomenal crash in 2004 and other side the market has focused with record gains for the Indian equity scenario. Bombay Stock Exchange, collectively called as BSE has breached the mark of 7500 on July 25, 2005 first time in its history.  If discussing in detail, NSE and BSE are the two major stock market indices that regulates the up scaling and downturn of the Indian Share market. If stock brokers are to be believed stocks listed in the Indian stock market are being highly traded due the presence of foreign institutional investors (FII) whose investments are very large in the terms of asset and capital.  Indian Stock Market is now surging like a huge storm as India has become a good market for investors not only due to its demographic locations but also due to prominent economic growth, huge and growing exports and stock market reforms and policies.  Indian Stock Market strategies are formulated by the stock experts. Since the economic crisis has gripped the entire financial zone globally, all the developed and developing countries portrayed seek for financial help. Undoubtedly the Indian Stock market has not been uninfluenced by the alarming financial plunge however, the growth-oriented policies and economic mechanism has made the phenomenon less drastic in comparison to other growing economies.  The Indian Stock market is undoubtedly depicting the new face of economic uplift for the corporate world. The entire new facet of Indian economic system has taken over the economic crisis and lessened the impact of the economic crisis to a greater extent. Indian Stock market is now growing up like a phenomenon to the financial establishments and showing up a new trend to the capital market.

Article Source: http://www.articlesbase.com/investing-articles/indian-stock-market-new-phenomenon-in-money-making-1477922.html

About the Author:
MoneyControl.com provides the latest information of  Indian Stock Market  with stock prices and market statistic of the different industries. You can also find the best information of  World Stock Market  related to the finance, mutual funds, SENSEX, bid prices, bid quantity and different tools for personal financial services.

Money Growth Can Be Substantial

Author: John Parks

Over the last twenty years, mutual funds have become quite popular with more than 80 million individuals investing in them. Investing in them gives everyone the opportunity to get their share of the market, and if they deliver, money growth can be substantial.   Mutual funds that focus on large, fast-growing companies that have high revenue growth earnings and do not pay dividends, but are making significant earnings are called ‘growth funds’. Growth mutual fund managers will take risks and pay more for stocks in order to construct a portfolio of those companies that have above average earnings consistently and/or price appreciation. These funds can be and often times are more vulnerable to rises and falls than other mutual funds. When a market is on the downside, a manager must be aggressive to make up for the loss or a lot of money will go down the drain.   To understand mutual funds, one must look at them as a collection of stocks and bonds. They are similar to an organization that brings people together to invest in stocks and bonds and other securities. In turn, the investor owns shares representing a part of the holdings of the entire fund. They earn money in three ways: Dividends on stocks and bonds bring in interest. Fund owners receive distributions, which is income that the fund pays out over the course of a year. If the fund also sells securities that have increased in value and price, it has capital gain, and these gains are passed on to the investor via a distribution. If their price increases and are not sold by the executor of the funds, the fund’s increase in price and shares can be sold for a profit. Investors can receive funds by check or can reinvest earnings into additional shares.   On the positive side the advantages of owning mutual funds are a professional, who purchases them for you and manages your portfolio, manages your money. It’s a relatively inexpensive way for a smaller investor to manage his or her money through the help of a professional manager. Owning shares also allows investors to spread risks out over a large number of assets; thereby making the loss of any single investment less harmful. Buying mutual funds is less expensive transaction wise than a singular security transaction. You can convert mutual shares into cash whenever you like, and it’s very easy to purchase them through a bank, with a minimum, small investment.   A major disadvantage is picking the wrong professional to manage your money. Whether you win or lose money through them, you still have to pay your manager, and that could hurt if you’re in the red already. Another negative is having too much diversification because of investing in too many companies, or if the fund gets too large, it might be impossible for your manager to reinvest all the money it brings in. This is called dilution.   For more information on mutual funds, visit  http://www.best-mutualfund.com

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