Investor Relations
Toll free: 1-855-813-0313
LONGVIEW OIL CORP.
700, 400 -3rd Avenue SW
Calgary, Alberta
T2P 4H2
Phone: (403) 718-8000
Fax: (403) 718-8300
Web Site: www.longviewoil.com
E-mail: ir@longviewoil.com
Three months ended | |||||||
March 31, 2013 | December 31, 2012 | March 31, 2012 | |||||
Financial ($000, except as otherwise indicated) |
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Sales including realized hedging | $ | 33,729 | $ | 36,388 | $ | 40,425 | |
per share (1) | $ | 0.72 | $ | 0.78 | $ | 0.86 | |
per boe | $ | 61.40 | $ | 62.70 | $ | 65.93 | |
Funds from operations | $ | 14,813 | $ | 15,639 | $ | 19,572 | |
per share (1) | $ | 0.32 | $ | 0.33 | $ | 0.42 | |
per boe | $ | 26.97 | $ | 26.95 | $ | 31.93 | |
Net income and comprehensive income | $ | 1,470 | $ | (21,466) | $ | 5,561 | |
per share (1) | $ | 0.03 | $ | (0.46) | $ | 0.12 | |
Dividends declared | $ | 7,029 | $ | 7,025 | $ | 7,016 | |
per share (2) | $ | 0.15 | $ | 0.15 | $ | 0.15 | |
Expenditures on property, plant and equipment | $ | 14,080 | $ | 11,763 | $ | 18,596 | |
Working capital deficit (3) | $ | 13,010 | $ | 11,712 | $ | 15,522 | |
Bank indebtedness | $ | 116,900 | $ | 111,895 | $ | 101,632 | |
Shares outstanding at end of period (000) | 46,858 | 46,837 | 46,774 | ||||
Basic weighted average shares (000) | 46,856 | 46,837 | 46,771 | ||||
Operating | |||||||
Daily Production | |||||||
Crude oil and NGLs (bbls/d) | 4,819 | 4,887 | 5,119 | ||||
Natural gas (mcf/d) | 7,706 | 8,526 | 9,713 | ||||
Total boe/d @ 6:1 | 6,103 | 6,308 | 6,738 | ||||
Average prices (including hedging) | |||||||
Crude oil and NGLs ($/bbl) | $ | 72.45 | $ | 74.94 | $ | 82.44 | |
Natural gas ($/mcf) | $ | 3.33 | $ | 3.44 | $ | 2.29 | |
(1) | Based on basic weighted average shares outstanding. | |||||
(2) | Based on shares outstanding at each dividend record date. | |||||
(3) | Working capital deficit includes trade and other receivables, prepaid expenses and deposits, trade and other accrued liabilities and due to parent. |
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Production and Funds from Operations
Commodity Hedging Program
Looking Forward
Average daily production | 6,200 boe/d to 6,300 boe/d | ||||||||||||||||
Oil & liquids % | 79% | ||||||||||||||||
Royalty rate | 19% to 21% | ||||||||||||||||
Operating expenses | $19.00/boe to $20.00/boe | ||||||||||||||||
Funds from operations | $60 million (1) | ||||||||||||||||
Dividends | $28 million | ||||||||||||||||
Capital expenditures | $36 million |
(1) Based on Edmonton light $82.00/bbl, WTI US$89.50/bbl, $US/$Canadian exchange rate $1.00, AECO $3.58/mcf. |
Interim Financial Statements and MD&A
Approval of Advance Notice By-Law
Forward-Looking Statements
Certain information regarding Longview set forth in this press release, including management’s assessment of the Corporation’s future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe” and similar expressions are intended to identify forward looking statements. Such statements represent Longview’s internal projections, estimates or beliefs concerning, among other things, an outlook on the estimated amounts and timing of capital expenditures or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions and actual events or results may differ materially. Although Longview believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Longview’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Longview.
In particular, forward-looking statements included in this press release include, but are not limited to, statements with respect to the Corporation’s dividend policy; Longview’s anticipated average daily production, product mix, royalty rates, operating expenses and capital expenditures for the year ended December 31, 2013; the Corporation’s 2013 capital program; the Corporation’s anticipated drilling and recompletion activities; anticipated growth in total corporate production related to crude oil and NGLs in 2013; crude oil and natural gas production levels; Longview’s business strategy; and the Corporation’s plans to monitor funds from operations, its dividend policy and capital expenditure commitments to ensure that are substantially balanced. In addition, statements relating to “reserves” are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably produced in the future.
These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Corporation’s control, including the impact of general economic conditions; volatility in market prices for crude oil and natural gas; industry conditions; volatility of commodity prices; currency fluctuation; imprecision of reserve estimates; liabilities inherent in crude oil and natural gas operations; environmental risks; incorrect assessments of the value of acquisitions and exploration and development programs; competition from other producers; the lack of availability of qualified personnel or management; changes in tax laws, royalty regimes and incentive programs relating to the oil and gas industry; changes to legislation and regulations and how they are interpreted and enforced; hazards such as fire, explosion, blowouts, cratering, and spills, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury; unexpected drilling results; changes or fluctuations in production levels; delays in anticipated timing of drilling and completion of wells; stock market volatility; ability to access sufficient capital from internal and external sources and the other risks considered under “Risk Factors” in Longview’s Annual Information Form, which is available on www.sedar.com and www.longviewoil.com.
With respect to forward-looking statements contained in this press release, Longview has made assumptions regarding: current commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil and natural gas; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; royalty rates; future operating costs; that the Corporation will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that the Corporation’s conduct and results of operations will be consistent with its expectations; that the Corporation will have the ability to develop the Corporation’s properties in the manner currently contemplated; current or, where applicable, proposed assumed industry conditions, laws and regulations will continue in effect or as anticipated; and the estimates of the Corporation’s production and reserves volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects.
Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide shareholders with a more complete perspective on Longview’s future operations and such information may not be appropriate for other purposes. Longview’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Corporation will derive there from. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this press release and the Corporation disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
“boes” may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 Mcf: 1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
SOURCE: Longview Oil Corp.
Investor Relations
Toll free: 1-855-813-0313
LONGVIEW OIL CORP.
700, 400 -3rd Avenue SW
Calgary, Alberta
T2P 4H2
Phone: (403) 718-8000
Fax: (403) 718-8300
Web Site: www.longviewoil.com
E-mail: ir@longviewoil.com