Financial and Operating ResultsTrilogy Energy Corp. Announces Financial and Operating Results for the Three Months-Ended March 31, 2011 and May Dividend
CALGARY, ALBERTA, May 19, 2011 (Marketwire via COMTEX News Network) --
Trilogy Energy Corp. (TSX:TET) ("Trilogy" or the "Company") is pleased to announce its financial and operating results for the three months ended March 31, 2011.
The Company also announces that its cash dividend for May 2011 will be
.035 per share. The dividend is payable on June 15, 2011 to shareholders of record on May 31, 2011. The ex-dividend date is May 27, 2011.
FINANCIAL AND OPERATING HIGHLIGHTS
-- Sales volumes for the first quarter of 2011 averaged 25,362 Boe/d as
compared to 21,544 Boe/d for the previous quarter, representing an 18
percent increase quarter over quarter.
-- Capital expenditures (excluding acquisitions and dispositions and
including $36.3 million of undeveloped Crown land purchases) totaled
$136.1 million for the first quarter of 2011 versus $46.3 million in the
prior quarter. In total, 21 (15.1 net) wells were drilled in the
quarter.
-- Funds flow from operations increased to $45.6 million during the first
quarter of 2011 as compared to $34.9 million for the previous quarter.
The increase was attributed primarily to higher production levels and
commodity prices, the impact of the previously announced Natural Gas
Liquids Recovery Agreement with Aux Sable Canada LP (the "NGL Recovery
Agreement") and lower royalties offset, in part, by increased operating
costs on the higher volumes.
-- Dividends to Shareholders for the first quarter of 2011 were $12.1
million (26 percent of cash flow from operations) as compared to $12.1
million in the prior quarter (42 percent of cash flow from operations).
-- Income before tax for the first quarter was
.3 million as compared to
a loss in the prior quarter of $9.5 million. The positive change was
primarily a function of the aforementioned increase in funds flow, in
addition to the absence of any impairment on Trilogy's assets in the
current quarter.
-- Operating costs for the quarter averaged $7.86 /Boe, a decrease of 3
percent from the previous quarter of $8.13 /Boe.
-- Realized additional economic value for the natural gas liquids in its
liquids-rich natural gas stream originating from the Kaybob area
effective January 1, 2011 under the NGL Recovery Agreement.
-- Announced a significant Montney oil pool development in the Kaybob area.
-- Drilled and completed a horizontal Duvernay shale gas/oil well.
FINANCIAL AND OPERATING HIGHLIGHTS TABLE
(In thousand Canadian dollars except per share amounts and where stated otherwise)
Three Months Ended
March 31, Dec. 31,
2011 2010 Change %
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FINANCIAL
Petroleum and natural gas sales 79,998 67,033 19
Funds flow
From operations(1) 45,586 34,886 31
Per share - diluted 0.39 0.30 30
Earnings
Earnings (loss) before tax 262 (9,483) 103
Per share - diluted - (0.07)
Earnings (loss) after deferred
income tax (211) (7,576) 97
Per share - diluted - (0.07) -
Dividends declared 12,105 12,077 -
Per share 0.105 0.105 -
Capital expenditures
Exploration, development and land 135,826 46,286 193
Acquisitions, (dispositions) and
other - net (3,050) 15 -
Net capital expenditures 132,776 46,301 187
Total assets 1,175,054 1,081,448 9
Net debt(1) 413,233 312,095 32
Shareholders' equity 533,384 541,119 (1)
Total shares outstanding (thousands)
- As at end of period(3) 114,925 114,741 -
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OPERATING
Production
Natural gas (MMcf/d) 113 101 12
Crude oil and natural gas liquids
(Bbl/d) 6,501 4,666 39
Total production (Boe/d @ 6:1) 25,362 21,544 18
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Average prices
Natural gas (before financial
instruments) ($/Mcf) 4.03 3.82 5
Natural gas ($/Mcf)(2) 4.03 3.96 2
Crude oil and natural gas liquids
(before financial instruments) 66.53 73.24 (9)
($/Bbl)
Crude oil and natural gas liquids
($/Bbl)(2) 66.08 73.24 (10)
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Drilling activity (gross)
Gas 19 12 58
Oil 2 2 -
D&A - - -
Total wells 21 14 50
Success rate 100% 100% -
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(1) Funds flow from operations and net debt are Non-GAAP terms. Please
refer to the advisory on Non-GAAP measures below.
(2) Includes realized but excludes unrealized gains and losses on
financial instruments.
(3) Excluding shares held in trust for the benefit of Trilogy's officers
and employees under the Company's Share Incentive Plan. Includes Common
Shares and Non-voting Shares. Refer to the notes to the interim
consolidated financial statements for additional information.
EVENTS AFTER THE BALANCE SHEET DATE
In April 2011 Trilogy executed a forward sales contract for 500 Bbl/d from May 2011 through to December 2011 at a price of U.S. $110.22/Bbl.
On May 17, 2011, Trilogy executed an amended and restated credit facility agreement with its lenders. Commitments under this credit facility total $470 million. Refer to the long-term debt section of the MD&A for additional information.
OUTLOOK
Trilogy's revised guidance for 2011 is as follows:
Average production 30,000 Boe/d Average operating costs $7.75 /Boe Capital expenditures excluding acquisitions $285 million
ADDITIONAL INFORMATION
A copy of Trilogy's March 31, 2011 quarterly report to the Shareholders, including the Management's Discussion and Analysis and unaudited interim consolidated financial statements and related notes can be obtained at https://media3.marketwire.com/docs/519tet.pdf. This report will also be made available through Trilogy's website at www.trilogyenergy.com and SEDAR at www.sedar.com.