Penn West reduces Q3 loss to $232M, adjusts outlook in line with asset sales

Penn West Petroleum Ltd. says its third-quarter revenue was less than half what it was a year ago, but its loss for the period was reduced by nearly 70 per cent as it slashed operating costs.

The Calgary-based company's lost $232 million or 46 cents per share in the three months ended Sept. 30, an improvement from a $764-million loss or $1.52 per share in the third quarter of 2015.

Oil and natural gas sales and other income totalled $115 million, down from $273 million.

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Penn West's production of oil, gas and natural gas liquids was down 50 per cent, at the equivalent of 41,233 barrels per day, from 82,198 oil-equivalent barrels per day a year earlier.

Meanwhile, the company cut operating costs to $13.40 per barrel of oil equivalent compared with $20.45 a year ago.

In May, the Penn West warned it was facing the possibility of defaulting on its debt by the end of June, but the problem was averted by the sale of all its assets in Saskatchewan for $975 million cash.

As of Sept. 30, Penn West's net debt was about $484 million, down from $2.1 billion, at the end of 2015.

The company also adjusted its full year 2016 production guidance to between 52,000 and 55,000 barrels, from the previous range of 55,000 to 57,000 barrels per day.

It was the company's first financial report since it named David French of Bankers Petroleum to be its new president and chief executive, succeeding David Roberts.