Pengrowth has expanded its hedging activities to mitigate commodity price risk and provide a measure of stability and predictability to cash flows. Hedging activities have resulted in Pengrowth having 65 percent of its expected 2013 oil production hedged at Cdn$93.84 and 64 percent in 2014 at Cdn$94.51 per barrel. Natural gas hedges account for 61 percent of expected 2013 gas production at Cdn$3.32 per Mcf and 33 percent in 2014 at Cdn$3.79 per Mcf.
Additional details of Pengrowth's risk management contracts in place for 2013, 2014 and 2015 are outlined in the Management's Discussion and Analysis and Notes to the March 31, 2013 unaudited Financial Statements.
Pengrowth's total long-term debt was approximately $1.6 billion as at March 31, 2013, comprising $1.4 billion of fixed rate term notes and $0.2 billion of convertible debentures.
Pengrowth remains on track to achieve its objectives of becoming a long term sustainable, dividend paying energy producer. The development of the first phase of the Lindbergh thermal project is proceeding on time and on budget, with EPEA approval expected this summer. The pilot performance continues to exceed expectations, with current production surpassing 1,700 bbl/d at a stable ISOR of 1.7x.
Estimated full year 2013 average production is expected to meet guidance (85,000 to 87,000 boe/d). While full year guidance remains intact, the company expects that second quarter production will be 3,000 to 4,000 boe/d lower than in the first quarter due to the Weyburn disposition, planned downtime and plant turnarounds across operated and non-operated properties including Lindbergh, Quirk Creek, Sable Island, Dunvegan, and Lochend.
Pengrowth's outlook for cash flow remains on track despite the volatile commodity price environment in recent weeks, as a result of its hedging program.
Pengrowth continues to make strong progress on non-core asset sales. The pipeline of asset sale opportunities is extensive and designed to tap multiple pools of capital.
"We look forward to updating you on the progress we have made on our non-core asset sales, at our Annual General Meeting on June 25, 2013," said Derek Evans, President and Chief Executive Officer of Pengrowth.
Pengrowth's unaudited Financial Statements for the three months ended March 31, 2013 and related Management's Discussion and Analysis can be viewed on Pengrowth's website at www.pengrowth.com. They have been filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.
Pengrowth will conduct a conference call and webcast with investors on Thursday, May 2, 2013 at 6:30 AM Mountain Time (8:30 AM Eastern Time). Participants should call 1-866-226-1792 ten minutes before the start of the call or can listen in online via the webcast using the link
A replay of the call will be made available until midnight Eastern Time on May 9, 2013 by calling 1-800-408-3053. The passcode is 3687857.
Notice of Annual General Meeting:
Pengrowth's 2013 annual meeting of shareholders will be held on June 25, 2013 at 3:00 P.M. Mountain Time at the Metropolitan Conference Centre, located at 333 - Fourth Avenue SW, Calgary, Alberta. Information circulars and proxy forms pertaining to this meeting are expected to be mailed in late May to shareholders of record as of May 24, 2013.
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