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CALGARY, ALBERTA -- (Marketwire) -- 03/07/13 -- Crew Energy Inc. (TSX: CR) of Calgary, Alberta ("Crew" or the "Company") is pleased to present its financial and operating results for the three month period and year ended December 31, 2012.
Highlights
-- Funds from operations in the fourth quarter increased 20% over the prior quarter to $47.1 million or $0.39 per share which was an 18% increase over the prior quarter funds from operations per share;-- Net income in 2012 was $21.5 million or $0.18 per share versus a loss of $130.2 million in 2011;-- 2012 production averaged 27,963 boe per day representing a 25% increase over the 22,452 boe per day produced in 2011;-- Fourth quarter production of 27,027 boe per day was 3% higher than the 26,281 boe per day in the prior quarter;-- Initial drilling of the Mannville at Princess has been successful with the first producing well having an optimized rate after six months of production of 285 bbls per day of oil and the second more recent well with a 30 day rate of 305 bbls per day of oil;-- Completed a well at Kakwa, Alberta which tested at 10.5 mmcf per day with 35 bbls/mmcf of free condensate at a flowing casing pressure of 3,560 psi;-- Previously, Crew released 2012 reserves resulting in finding, development and acquisition costs of $8.17 per boe leading to a recycle ratio of 2.7x while increasing reserves per share by 11%;-- Crew now owns 292 sections and has an option to purchase 81 sections of land in northeast British Columbia on the Montney resource play; and-- Crew strengthened its balance sheet in the fourth quarter reducing debt by $81.3 million over the prior quarter.-------------------------------------------------------------------------------------------------------------------------------------------------------- Three months Three monthsFinancial ended ended Year ended Year ended($ thousands, except December 31, December 31, December 31, December 31, per share amounts) 2012 2011 2012 2011----------------------------------------------------------------------------Petroleum and natural gas sales 102,473 142,063 417,763 388,166Funds from operations (note 1) 47,110 64,841 186,604 172,103 Per share - basic 0.39 0.54 1.54 1.69 - diluted 0.39 0.54 1.54 1.67Net income (loss) 21,812 (148,529) 21,542 (130,162) Per share - basic 0.18 (1.24) 0.18 (1.28) - diluted 0.18 (1.24) 0.18 (1.28)Capital expenditures 55,173 108,854 258,791 375,874Property acquisitions (net of dispositions) (86,395) (13,203) (96,557) (25,492)Net capital expenditures (31,222) 95,651 162,234 350,382-------------------------------------------------------------------------------------------------------------------------------------------------------- As at As atCapital Structure December 31, December 31,($ thousands) 2012 2011----------------------------------------------------------------------------Working capital deficiency (note 2) 48,522 92,452Bank loan 242,834 230,676Net debt 291,356 323,128Bank facility 400,000 430,000Common Shares Outstanding (thousands) 121,620 119,993--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:(1) Funds from operations is calculated as cash provided by operating activities, adding the change in non-cash working capital, decommissioning obligation expenditures, the transportation liability charge and acquisition costs. Funds from operations is used to analyze the Company's operating performance and leverage. Funds from operations does not have a standardized measure prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculations of similar measures for other companies.(2) Working capital deficiency includes only accounts receivable and assets held for sale less accounts payable and accrued liabilities.-------------------------------------------------------------------------------------------------------------------------------------------------------- Three months Three months ended ended Year ended Year ended December 31, December 31, December 31, December 31,Operations 2012 2011 2012 2011----------------------------------------------------------------------------Daily production Conventional oil (bbl/d) 5,258 6,784 5,792 5,737 Heavy oil (bbl/d) 5,644 6,145 5,765 3,221 Natural gas liquids (bbl/d) 3,294 2,995 3,091 2,035 Natural gas (mcf/d) 76,983 84,657 79,889 68,756 Oil equivalent (boe/d @ 6:1) 27,027 30,034 27,963 22,452Average prices (note 1) Conventional oil ($/bbl) 68.46 86.34 72.66 78.05 Heavy oil ($/bbl) 60.00 77.47 62.93 70.30 Natural gas liquids ($/bbl) 47.14 64.15 50.06 62.68 Natural gas ($/mcf) 3.38 3.43 2.54 3.81 Oil equivalent ($/boe) 41.21 51.41 40.82 47.37Netback ($/boe) Operating netback (note 2) 22.14 26.03 21.35 23.61 G&A 1.83 1.70 1.79 1.72 Interest on bank debt 1.38 0.87 1.31 0.88 Funds from operations 18.93 23.46 18.25 21.01Drilling Activity Gross wells 24 37 112 158 Working interest wells 24.0 35.0 107.2 154.5 Success rate, net wells 98% 97% 98% 99%--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:(1) Average prices are before deduction of transportation costs and do not include hedging gains and losses.(2) Operating netback equals petroleum and natural gas sales including realized hedging gains and losses on commodity contracts less royalties, operating costs and transportation costs calculated on a boe basis. Operating netback and funds from operations netback do not have a standardized measure prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculations of similar measures for other companies.
