Enterra Energy Posts Quarterly Results for Q1 2009
Enterra Energy Trust announced its financial and operating results for the three months ended March 31, 2009.
"In the first quarter of 2009 we have been able to further strengthen our balance sheet to the point that we find ourselves in a stronger financial position than we've been in for sometime", commented Don Klapko, Enterra's Chief Executive Officer. "We believe that through our continued efforts to live within our means and effectively balance debt reduction with capital reinvestment, we were able to reduce our net debt by a further 25 percent from the end of Q4 2008 to $39.1 million while funds from operations for the quarter were $17.9 million or $0.29 per unit. The Enterra team is committed to continuing with a conservative, straightforward approach to identifying and exploiting both internal and external strategic growth opportunities."
Q1 2009 Highlights
- Net debt was reduced to $39.1 million from $52.4 million at December 31, 2008. This represents a decrease of 25 percent.
- Total bank debt was decreased to $80.0 million, a reduction of $15.5 million from December 31, 2008.
- Production averaged 9,968 boe per day, a decrease of 9 percent from Q1 2008 as a result of property dispositions which took place in Q1 and Q2 2008.
- Funds from operations for Q1 2009 were $17.9 million, 26 percent lower when compared to Q1 2008 of $24.3 million as a result of lower commodity prices.
Enterra's bank borrowing of $80.0 million represents less than 73 percent of its expected senior credit facility of $110.0 million. The credit maximum is expected to decrease from $135.0 million to $110.0 million after the Trust's Bank Syndicate completes its borrowing base review in May 2009. The borrowing base review is expected to result in Enterra's reserves supporting a borrowing base of $110.0 million at this time based on current commodity prices, which are significantly lower than the prices used when the credit facility was first negotiated in May 2008. Year over year, Enterra has a much improved balance sheet and management has confidence that the Trust has sufficient cash and adequate availability in its debt facility to manage through the current uncertain economic environment.