CALGARY, March 18 /CNW/ - Breaker Energy Ltd. ("Breaker" or "Company")
(TSX: wav) is pleased to announce its financial and operating results for the
quarter and year ended December 31, 2008.
Financial and Operating Summary
Year Quarter
ended % ended %
December December Change December December Change
31, 31, 31, 31,
2008 2007 2008 2007
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Financial ($000s
except per
share amounts)
Petroleum sales 113,702 48,949 132 19,740 13,968 41
Natural gas sales 52,507 36,623 43 12,388 8,966 38
Processing sales 1,983 1,061 87 597 306 95
Total petroleum
and natural gas
revenue 168,192 86,633 94 32,726 23,240 41
Funds from
operations(1) 94,947 41,384 129 14,376 9,833 46
Per share
basic ($) 2.46 1.13 118 0.35 0.27 30
Per share
diluted ($) 2.43 1.11 119 0.35 0.26 35
Net earnings 32,166 3,999 704 321 2,057 (84)
Per share
basic ($) 0.83 0.11 655 0.01 0.06 (83)
Per share
diluted ($) 0.82 0.11 645 0.01 0.06 (83)
Capital
expenditures(2) 183,512 61,954 196 34,211 19,258 78
Net debt
(end of period) 99,700 51,155 95 99,700 51,155 95
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Operating Highlights
Production:
Crude oil
(bbls per day) 3,141 1,833 71 3,503 1,845 90
Natural gas
(mcf per day) 17,404 15,444 13 19,192 16,066 20
Total (boe
per day) (6:1) 6,041 4,407 37 6,702 4,523 48
Average realized price:
Crude oil
($ per bbl) 98.91 73.17 35 61.25 82.29 (26)
Natural gas
($ per mcf) 8.24 6.50 27 7.02 6.07 16
Hedging
($ per boe) - (0.34) nm - - -
Combined average
($ per boe) 76.07 53.52 42 53.08 55.85 (5)
Netback ($ per boe)
Petroleum and
natural gas
sales 76.07 53.52 42 53.08 55.85 (5)
Royalties (14.89) (9.64) 54 (9.89) (9.25) 7
Operating
expenses (11.09) (11.52) (4) (12.37) (14.14) (13)
Transportation
expenses (2.97) (1.87) 59 (3.38) (2.31) 46
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Operating netback 47.11 30.49 55 27.44 30.15 (9)
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G&A expenses (2.65) (2.99) (11) (2.56) (3.36) (24)
Interest
expense (1.29) (1.41) (9) (1.15) (1.56) (26)
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Corporate netback 43.17 26.09 65 23.73 25.23 (6)
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Common Shares (000s)
Shares outstanding,
end of period 41,028 37,144 11 41,028 37,114 11
Weighted average
Class A shares 38,609 35,192 10 40,508 35,529 14
Weighted average
Class B shares - 900 nm - 900 nm
Conversion of
Class B shares
- weighted
average(3) - 1,500 nm - 1,500 nm
Weighted average
basic shares
outstanding(3) 38,609 36,692 5 40,508 37,029 9
Stock option
dilution
(treasury method) 533 469 14 193 351 (45)
Weighted average
diluted shares
outstanding(3) 39,142 37,161 6 40,701 37,380 9
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(1) Management uses funds from operations (before changes in non-cash
working capital) to analyze operating performance and leverage. Funds
from operations as presented does not have any standardized meaning
prescribed by Canadian GAAP and, therefore, may not be comparable
with the calculation of similar measures for other entities.
(2) Capital expenditures includes cash additions for the period,
including acquisition additions net of dispositions.
(3) For the period ended December 31, 2007 the Class B shares were
converted at the quarter-end Class A share price of $6.00 and added
to the Class A shares to calculate basic shares outstanding. On
August 13, 2008, the Company converted all of its Class B shares to
Class A shares. Each Class B share was exchanged for 0.8675 of a
Class A Share, resulting in the issuance of 780,753 Class A shares.
Overview and Highlights
- Breaker is proud to have continued its consistent track record of
rapidly building shareholder value in 2008. Breaker increased
production per share, reserves per share and funds from operations per
share in 2008.
- In 2008 Breaker achieved a success rate of 90 percent (gross) in
drilling 48 gross (42.8 net) wells.
- Breaker's inventory of well locations that make use of horizontal
multi-frac technology continues to grow with a total of more than 160
horizontal multi-frac locations at Fireweed, Provost and Irricana.
- Production grew by 37 percent to an average of 6,041 boe per day from
the 2007 average of 4,407 boe per day, with an oil weighting of
52 percent.
- Proved plus Probable reserves grew by 51 percent, to 27.2 million boe
at December 31, 2008 from 18.0 million boe at year-end 2007.
- Funds from operations grew by 129 percent to $94.9 million in 2008
from $41.4 million in 2007.
- Production per basic share grew by 29 percent, Proved plus Probable
reserves per share grew by 43 percent and funds from operations per
share grew by 118 percent in 2008.
- Breaker continued its track record of achieving exceptional finding,
development and acquisition (FD&A) costs in 2008. Breaker's proved
plus probable FD&A costs before change in future development capital
for 2008 were $16.09 per boe.
