Canadian oil and gas producer Penn West Petroleum Ltd. (PWT.TO: Quote,PWE: Quote) Friday reported 13 percent decline in second-quarter profit, reflecting a fall in prices. The company also cut its capital expenditure and production outlook for full year 2012, citing uncertainties in commodity price realizations and macro-economic issues.
In the second quarter, WTI crude oil prices declined to $93.54 per barrel from $102.55 per barrel in the previous year. The company expects Canadian crude oil prices to strengthen over the next 12 months.
Average sales price of Light oil and NGL dropped 20 percent to C$75.2 per bbl and heavy oil price per bbl was C$61.36, down 16 percent from a year ago. Average sales price of Natural gas was C$1.98 per mcf, 51 percent lower than last year.
The company's quarterly net income declined to C$235 million or C$0.50 per share from C$271 million or C$0.58 per share reported last year.
Oil and natural gas sales declined to C$770 million from C$953 million in the prior-year period.
Total production for the quarter grew 5 percent to 163,181 barrels of oil equivalent, or boe, per day. Light oil and NGL was 87,536 bbls/d, up 8 percent from last year, while heavy oil production declined 3 percent to 17,222 bbls/d. Daily production of Natural gas improved 2 percent to 351 mmcf/d.
Capital expenditures, net of property dispositions, totaled C$310 million, compared to C$240 million a year earlier.
The company currently expects average production for 2012 to be between 165,000 and 168,500 boe per day, compared to the prior forecast of between 168,500 and 172,500 boe per day.
Exploration and development capital spending is anticipated to be in the range of C$1.2 billion to C$1.25 billion, lower than the previous outlook range of $1.3 billion to $1.4 billion.
On August 9, the board declared a third-quarter 2012 dividend of C$0.27 per share, to shareholders of record on September 28, 2012, payable on October 15.
PWE is currently trading at $14.5, down 1.29 percent on the NYSE.
PWT.TO trades lower 1.03 percent at C$14.39 on the Toronto Stock Exchange.
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by RTT Staff Writer
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