Petrobank Energy and Resources Ltd. (TSX:PBG - News) is pleased to announce 2011 first quarter financial and operating results highlighted by funds flow from operations of $1.57 per diluted share.
This is right in-line with my forecast model. I'm expecting PBG to generate over $6.20/share in cash flow this year and accelerate to over $8.00/share in 2012. I will work on my forecast model tomorrow and get it posted to the website ASAP.
Dan
PetroBank 1st quarter results
PetroBank 1st quarter results
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: PetroBank 1st quarter results
PetroBank Highlights:
Funds flow from continuing operations increased eight percent to $168.4 million, or $1.58 per basic
share, compared to the fourth quarter of 2011 primarily as a result of PetroBakken’s higher operating
netbacks. < This is in-line with my forecast model. Full year cash flow per share should be ~ $6.25
PetroBakken’s operating netback (excluding hedging activity) of $52.42 per barrel of oil equivalent
(“boe”) increased nine percent, compared to the fourth quarter of 2010, primarily as a result of higher
pricing, and decreased slightly by one percent from the prior year period, primarily due to increased
production expenses.
Net income attributable to Petrobank shareholders from continuing operations increased
$20.3 million to $20.6 million in the first quarter of 2011 compared to the first quarter of 2010. The
increase is due mainly to a non-cash gain arising from the revaluation of PetroBakken’s convertible
debentures derivative financial liability.
Capital expenditures were $361.7 million in the first quarter, up 73 percent from a year ago and
20 percent from the fourth quarter of 2010. The increases were primarily driven by PetroBakken’s
aggressive drilling program and extensive facility investments, and the Heavy Oil Business Unit’s
10 well-pair expansion project at Kerrobert.
On January 4, 2011, Petrobank entered into a new three year $200 million credit agreement with a
syndicate of lenders.
Heavy Oil Business Unit 2011 Operations Highlights
Start up of Kerrobert expansion project is on schedule with the first of the new production wells being
tied into the central processing facility. < This project is the first major step in proving to the Market that their THAI process really works.
A five year collaboration agreement has been signed with Pemex Exploración y Producción, a
subsidiary entity of the Mexican state oil company Petroleos Mexicanos (“Pemex”), as the first step
to licensing our THAI® technology in Mexico.
We have acquired and agreed to acquire a further seven sections of land in Saskatchewan on the
Kerrobert Waseca channel trend.
Our Dawson demonstration project is moving forward and we anticipate starting to drill in the third
quarter of 2011.
The Kerrobert demonstration project production averaged 110 barrels of oil per day (“bopd”) for the
first quarter and the two wells are now being prepared to be tied into the new production facility.
Funds flow from continuing operations increased eight percent to $168.4 million, or $1.58 per basic
share, compared to the fourth quarter of 2011 primarily as a result of PetroBakken’s higher operating
netbacks. < This is in-line with my forecast model. Full year cash flow per share should be ~ $6.25
PetroBakken’s operating netback (excluding hedging activity) of $52.42 per barrel of oil equivalent
(“boe”) increased nine percent, compared to the fourth quarter of 2010, primarily as a result of higher
pricing, and decreased slightly by one percent from the prior year period, primarily due to increased
production expenses.
Net income attributable to Petrobank shareholders from continuing operations increased
$20.3 million to $20.6 million in the first quarter of 2011 compared to the first quarter of 2010. The
increase is due mainly to a non-cash gain arising from the revaluation of PetroBakken’s convertible
debentures derivative financial liability.
Capital expenditures were $361.7 million in the first quarter, up 73 percent from a year ago and
20 percent from the fourth quarter of 2010. The increases were primarily driven by PetroBakken’s
aggressive drilling program and extensive facility investments, and the Heavy Oil Business Unit’s
10 well-pair expansion project at Kerrobert.
On January 4, 2011, Petrobank entered into a new three year $200 million credit agreement with a
syndicate of lenders.
Heavy Oil Business Unit 2011 Operations Highlights
Start up of Kerrobert expansion project is on schedule with the first of the new production wells being
tied into the central processing facility. < This project is the first major step in proving to the Market that their THAI process really works.
A five year collaboration agreement has been signed with Pemex Exploración y Producción, a
subsidiary entity of the Mexican state oil company Petroleos Mexicanos (“Pemex”), as the first step
to licensing our THAI® technology in Mexico.
We have acquired and agreed to acquire a further seven sections of land in Saskatchewan on the
Kerrobert Waseca channel trend.
Our Dawson demonstration project is moving forward and we anticipate starting to drill in the third
quarter of 2011.
The Kerrobert demonstration project production averaged 110 barrels of oil per day (“bopd”) for the
first quarter and the two wells are now being prepared to be tied into the new production facility.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group