Q1 Press release from CNW Group
Parallel Energy Trust Announces First Quarter 2015 Financial and Operating Results and Provides a Production Update
Monday, May 11, 2015
Parallel Energy Trust Announces First Quarter 2015 Financial and Operating Results and Provides a Production Update
08:00 EDT Monday, May 11, 2015
CALGARY, May 11, 2015 /CNW/ - Parallel Energy Trust ("Parallel" or the "Trust") is pleased to announce its financial and operating results for the three months ended March 31, 2015. Parallel's unaudited first quarter financial statements and accompanying Management's Discussion and Analysis ("MD&A") will be filed shortly on the SEDAR website at www.sedar.com and on the Trust's website at www.parallelenergy.ca.
Summary of First Quarter 2015 Financial and Operating Results
| | | | |
| ($000s, except where indicated) | Quarter Ended
Mar. 31, 2015 | Quarter Ended
Dec. 31, 2014 | Quarter Ended
Mar. 31, 2014 |
| Production | | | |
| | Natural gas (mcf/day) | 14,936 | 14,174 | 14,316 |
| | Condensate (bbls/day) | 1,659 | 1,760 | 1,669 |
| | Natural Gas Liquids (bbls/day) | 2,536 | 2,988 | 2,552 |
| | Total (@6:1) (boe/day) | 6,684 | 7,110 | 6,607 |
| | | | |
| Average sales price (US$ per boe) | 22.50 | 33.61 | 53.71 |
| | | | |
| Revenue, net of royalties | 13,606 | 20,239 | 28,974 |
| Funds from operations(1) | 4,057 | 8,931 | 11,492 |
| Net income (loss) | (6,182) | (182,856) | 731 |
| Distributions | 1,675 | 6,925 | 8,078 |
| Capital expenditures excluding acquisitions | 2,014 | 1,717 | 6,325 |
| | | | |
| Bank debt outstanding (US$) | 158,600 | 156,000 | 157,700 |
| Convertible debentures (CAD$) | 63,000 | 63,000 | 63,000 |
| | | | |
| Unitholder's equity | 126,164 | 117,465 | 294,447 |
| | (1) Non-GAAP measure. Readers are referred to Advisories at the end of the press release for additional information. |
First Quarter 2015 Financial and Operating Highlights
- Recorded average daily production of 6,684 boe/day (63 per cent natural gas liquids and condensate), consistent with production results in the first quarter of 2014 as the Trust's operating areas were impacted by severe winter weather during both periods.
- Realized an average sales price (prior to hedging) of US$22.50.
- Generated funds from operations of $4.1 million ($0.07 per basic unit).
- Reported total bank debt of US$158.6 million, representing an increase of approximately US$2.6 million during the quarter which is consistent with prior years as working capital needs are higher in the first quarter of the year. In April 2015, Parallel's lenders renewed the Trust's credit facility until September 30, 2015 at a revised amount of US$165 million, which is above the Trust's expected usage.
- Parallel declared total distributions of $0.03 per unit during the quarter, representing $0.01 per unit per month for January, February and March. Subsequent to the end of the first quarter, Parallel suspended its monthly distribution.
- As previously disclosed, in April 2015 Parallel's Board of Directors announced the initiation of a strategic alternatives process to reduce indebtedness and maximize unitholder value.
Production Update
Based on field data, Parallel recorded average daily production of approximately 6,900 boe/day in April 2015. In addition, normal operating conditions are prevailing to date in the second quarter of 2015 and the Trust is reconfirming its full year production guidance of 6,800 boe/day.
President's Message
"I am very pleased with the performance of our operating team as they continue to efficiently manage our operations and optimize our production results despite experiencing another period of challenging weather conditions in the first quarter of 2015. It is even more impressive that our team is achieving these results while managing a reduced capital budget and limiting operating expenses in accordance with our corporate goal to lower operating costs during the year," said Rick Alexander, Parallel's President and CEO. "Due to the resiliency of our asset base, and thanks to our team's efforts, we remain confident that we will achieve our full year production guidance of 6,800 boe/day."
ABOUT PARALLEL ENERGY TRUST
Parallel's assets and operations are located in the Mid-Continent Region of the United States and its portfolio consists of mature, liquids-rich natural gas assets. Parallel's common units are traded on the Toronto Stock Exchange ("TSX") under the symbol "PLT.UN" and the Trust's debentures are traded on the TSX under the symbol "PLT.DB".
Additional information about Parallel can be found on the Trust's website at www.parallelenergy.ca or in Parallel's annual information form, available on SEDAR at www.sedar.com.