CALGARY, ALBERTA -- (Marketwired) -- 05/14/13 -- Harvest Operations Corp. (TSX: HTE.DB.G) announces its financial and operating results for the first quarter ended March 31, 2013. The unaudited financial statements, notes and MD&A pertaining to the period are available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com and are available on the Harvest website www.harvestenergy.ca. All figures reported herein are in Canadian dollars unless otherwise stated.
Harvest will be hosting a conference call to discuss our first quarter 2013 results at 9:00 a.m. Mountain Standard Time (11:00 a.m. Eastern Standard Time) on May 22, 2013. Mr. Les Hogan, Chief Operating Officer, will be hosting the call.
Those interested in participating in the conference call may dial 1- 877-240-9772 (international callers or Toronto local dial 416-340-8527) a few minutes prior to start and request the Harvest conference call.
The call will also be available for replay by dialing 1-800-408-3053 (international callers or Toronto local dial 905-694-9451) and entering the passcode 7865649.
-- Cash contribution from Upstream operations was $122.9 million for the first quarter of 2013, a $24.4 million decrease from the same period in 2012 as a result of lower realized prices and lower sales volumes.-- Upstream production volumes averaged 55,571 boe/d in the first quarter, a decrease of 8% over the first quarter last year due to a smaller drilling program and certain asset dispositions.-- Netbacks after hedging for the quarter averaged $28.00/boe, a decrease of 7% compared to the same quarter in 2012 of $29.97/boe.-- Upstream capital spending in the first quarter was $122.9 million, a decrease compared to $207.2 million in 2012, as a result of a smaller capital program for the year.-- During the quarter Harvest drilled 47.0 gross wells with a 96% success rate.-- In the first quarter of 2013, Harvest disposed of certain non-core producing properties in Alberta and British Columbia for proceeds of $9.5 million resulting in a gain of $6.6 million.-- In April, Harvest agreed to sell approximately 900 boe/d of production in west central Saskatchewan, for total proceeds of approximately $110 million. The sale is anticipated to close later this month.
-- Capital spending for BlackGold in the first quarter was $61.0 million, an increase of 95% compared to the same quarter in 2012 as the processing facility construction is scheduled for completion through 2013.-- The central processing facility is approximately 92% complete and the processing facility construction is approximately 50% complete.-- As at March 31, 2013, Harvest has spent $210.6 million on the EPC contract and has also invested $347.4 million in the project since acquiring the BlackGold assets in 2010.
-- Cash deficiency from Downstream operations was $33.0 million for the first quarter of 2013, compared to a cash deficiency of $23.9 million in the same period in 2012 mainly due to a 45% per barrel decrease of the average refining margin.-- First quarter refining margins averaged US$2.51/bbl compared to US$4.58/bbl in the same quarter of 2012 due to an unplanned power outage and minor equipment upsets which contributed to changes in product yield mix and lower product yields.-- Refinery throughput in the first quarter averaged 100,074 bbl/d flat from 100,000 bbl/d in the same quarter in the previous year.-- Capital expenditures during the quarter for our Downstream operations totaled $12.5 million and includes various capital and maintenance projects.