Parallel Energy Trust Announces Unaudited Financial and Operating Results for the First Quarter Ended March 31, 2014; Announces Operating Results for the Month of April and First Nine Days of May 2014; Reaffirms Operating and Cash Flow Guidance for 2014
May 12, 2014 at 05:30 pm IST
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Parallel Energy Trust announced unaudited financial and operating results for the first quarter ended March 31, 2014. For the quarter, the company reported funds from operations of $11.49 million and net income of $0.73 million on revenues, net of royalties of $28.97 million compared to funds from operations of $8.6 million and net loss of $1.71 million on revenues, net of royalties of $20.92 million reported a year ago. Capital expenditures excluding acquisitions were $5.55 million compared to $5.47 million reported a year ago. Funds from operations per basic unit were $0.21. Funds from operations were slightly above the Trust's expectations as higher commodity prices more than offset the lower production levels. Cash flow for the quarter slightly exceeded its expectations as its lower production levels were more than offset by higher than expected commodity prices.
During the first quarter of 2014, the company recorded average daily production of 6,607 boe/day (64% natural gas liquids and condensate) compared to 6,803 boe/day reported a year ago. The company produced natural gas of 14,316 mcf/day compared to 14,349 mcf/day reported a year ago. The company produced condensate of 1,669 bbls/day compared to 1,720 bbls/day reported a year ago. The company produced natural gas liquids of 2,552 bbls/day compared to 2,692 bbls/day reported a year ago.
Based on field data, Parallel's average daily production in April 2014 was approximately 7,000 boe/day. During the month of April, the Trust continued to experience lingering effects from the aforementioned extreme winter weather including unscheduled maintenance at certain third-party gas processing facilities and on third-party infrastructure. For the first nine days of May, the Trust's daily production levels averaged approximately 7,400 boe/day based on field data, which is more reflective of the production capacity of the Trust's operating areas.
Given that the Trust's production has returned to expected levels and that the drilling results to date have exceeded expectations, the company is reconfirming its production guidance of 7,100 to 7,300 boe/day for the full year 2014. The company remains well positioned to meet its production and cash flow guidance for the year.
Parallel Energy Trust (Parallel or the Trust) is a Canada-based distribution-paying energy income trust. The Trust's assets and operations are located in Texas and Oklahoma in the United States and its portfolio consists of mature, liquids-rich natural gas assets. The Trust's business strategy is focused on acquiring and developing long-life, conventional oil and natural gas assets. The Trust manages five operating areas located in Texas and Oklahoma. The Trust operates 100% of its Texas assets, which are located in the Carson, Hutchinson, Moore, Potter, Gray and Roberts counties and it holds a 30% non-operated interest in a Mississippian Lime play located in Garfield County, Oklahoma. The Trust's Carson, Sneed and Cargray operating areas are located in the Greater Panhandle/Hugoton Gas Field, a conventional gas field in North America.
Parallel Energy Trust Announces Unaudited Financial and Operating Results for the First Quarter Ended March 31, 2014; Announces Operating Results for the Month of April and First Nine Days of May 2014; Reaffirms Operating and Cash Flow Guidance for 2014