GREY:PEYTF - Post by User
Post by
blondeBondon Oct 07, 2014 10:07am
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Post# 23005561
from RBC Capital Markets
from RBC Capital MarketsParallel Energy Trust (TSX: PLT.un; Sector Perform, Speculative Risk; $5.00 Price Target) reported average Q3/14 production of 7,400 boe/d, 2% better than our estimate. Based on field data, production for the first three quarters of 2014 has averaged 7,050 boe/d, and Parallel confirmed its annual production guidance of 7,100–7,300 boe/d. Parallel also closed a 100 boe/d tuck-in acquisition in its Garfield County operating area for US$2.1 million, which it plans to fund through temporary use of its Premium DRIP. With production slightly ahead of Q3 estimates and the tuck-in acqusition, Parallel remains well positioned to deliver its full-year production guidance and maintain a stable outlook on its distribution.
Details
Good 2014 well performance. Parallel drilled and completed three net wells in the Carson operating area plus one at Garfield County. The Trust’s 2014 wells have average 30-day IP rates of 60 boe/d, outperforming the company’s 35–40 boe/d type curve, which makes up for some of the weather-related production losses in Q1.
Bank debt down $1.4 million. Parallel’s bank debt at Q3/14 stood at US$ 158 million, down US$ 1.4 million during the quarter, reflecting the Trust’s planned slowdown in H2/14 capital spending. Parallel also expects to further reduce its bank debt in Q4/14.