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Increase to Eagle's credit facility
Effective April 22, 2013, the Trust announced an increase in the borrowing base under its credit facility, with a Canadian chartered bank acting as agent. The borrowing base was increased to $US 61.0 million from $US 48.5 million. In addition, the credit facility has been syndicated to include a second Canadian chartered bank as a new lender. As of the end of the first quarter 2013, the Trust had 38% undrawn on its expanded credit facility.
Summary of quarterly results
The following table shows selected information for the Trust's first fiscal quarter of 2013 and information for the comparative period in 2012.
------------------------------ ------------------------------ Q1/2013 Q1/2012----------------------------------------------------------------------------($000's except for boe/d and per unit amounts)----------------------------------------------------------------------------Sales volumes - boe/d 2,928 2,169Revenue, net of royalties 16,805 13,947 per boe 63.77 70.67Funds flow from operations 11,884 9,118 per boe 45.10 46.20 per unit - basic & diluted 0.40 0.50Income (loss) 4,080 (952) per unit - basic and diluted 0.14 (0.05)Cash distributions declared 7,828 5,024 per issued unit 0.2625 0.2625Current assets 9,913 16,447Current liabilities 11,982 20,319Total assets 283,112 156,477Total non-current liabilities 39,873 489Unitholders' equity 231,257 135,669Units outstanding for accounting purposes 29,960 (1) 18,847 (1)Units issued 30,066 19,234--------------------------------------------------------------------------------------------------------------------------------------------------------Notes:(1) Units outstanding for accounting purposes exclude those units issued due to the performance conditions that have to be met to enable such units to be released from escrow.
Working interest sales volumes for the first quarter 2013 averaged 2,928 boe/d (87% oil, 7% natural gas liquids, 6% natural gas), a 35% increase from the first quarter 2012 (which was 100% oil). The increase is attributable to the May 2012 Midland area acquisition, 9 (8.2 net) additional oil wells being tied-in in the Midland area and an additional 16 (12.8 net) oil wells being brought on stream in the Luling area since March 31, 2012.
The Trust's quarterly revenue is 99% derived from oil and natural gas liquids. Canadian dollar realized oil prices were 103% of benchmark $US WTI for the first quarter of 2013 while natural gas liquid prices were approximately 35% of benchmark $US WTI.
A key part of the Trust's strategy is to acquire US properties which are close to markets and, in so doing, realize premium sales prices compared to Canadian production. The Trust enters into marketing contracts in the field to obtain the most favorable pricing. For example, in the Luling area, the Trust had a marketing agreement in place from September 2012 through February 2013 where the Trust's reference price was set to Louisiana Light Sweet instead of WTI. This resulted in a premium to the WTI price of $US 3.53 per barrel (excluding transportation costs). Additionally, from March 2013 through August 2013, the Trust has a marketing agreement in place that sets the Trust's reference price to Louisiana Light Sweet instead of WTI, which results in a premium to the WTI price of $US 4.75 per barrel (excluding transportation costs).
