Post by Michele on Aug 19, 2009 20:20:25 GMT -5
By The Canadian Press
Thu Aug 13, 2009
CALGARY - Provident Energy Trust (TSX:PVE.UN) has bought an additional interest in an Ontario processing plant operated by BP Canada and, as a result of the increased capacity, has deferred construction of a plant in Michigan.
The Calgary-based energy producer and processor said Thursday its stake in the Sarnia, Ont., fractionator is now 16.5 per cent, after purchasing an additional 6.15 per cent for $14.8 million up front and $3.7 million later.
The trust also increased the 2009 earnings guidance for Provident Midstream, the division that includes the Sarnia plant, and slightly reduced the 2009 production guidance for Provident Upstream as the result of a sale of non-strategic oil-producing fields in Saskatchewan and elsewhere.
The announcements were contained with Provident's second-quarter financial report, which showed a loss of $80 million as revenue fell 27 per cent compared with last year. Distributions to unitholders were cut in half.
Provident said its loss amounted to 31 cents per unit. That's an improvement on the loss of 72 cents per unit or $184 million in the second quarter of 2008.
However, total distributions to unitholders fell to $47 million or 18 cents per unit, down from $91.7 million or 36 cents per share a year ago and revenue dropped to $305.9 million from $420.2 million.
"Provident's second-quarter results were as expected given weak commodity prices and the challenging economic climate," said Provident president and CEO Tom Buchanan.
During the quarter, the trust completed a strategic review process that Buchanan said will increase the value of its Upstream and Midstream businesses.
Provident Midstream sold approximately 102,800 barrels per day (bpd) of natural gas liquids during the quarter, a decrease of seven per cent from the second quarter of 2008.
The trust attributed the decline to weaker petrochemical demand and reduced output at Sarnia due to the expiry of a capacity-leasing agreement with BP Canada.
The company said Thursday that it had agreed buy, rather than lease, the additional propane production capacity and deferred plans to build a previously announced depropanizer plant in Michighan because of the Sarnia transaction. It still has the opportunity to begin construction in Michigan if conditions improve.
Provident also announced it intends to sell non-strategic oil and gas production assets, primarily in Saskatchewan. During the second quarter, those assets produced the equivalent of 6,320 barrels per day of oil. About 16 per cent of that was natural gas and the rest was crude oil.
Net proceeds from the sale will be reinvested in long-term growth initiatives, such as the Pekisko and Dixonville oil plays as well as in the Midstream business unit.
ca.news.yahoo.com/s/capress/090813/business/provident_energy_1
Thu Aug 13, 2009
CALGARY - Provident Energy Trust (TSX:PVE.UN) has bought an additional interest in an Ontario processing plant operated by BP Canada and, as a result of the increased capacity, has deferred construction of a plant in Michigan.
The Calgary-based energy producer and processor said Thursday its stake in the Sarnia, Ont., fractionator is now 16.5 per cent, after purchasing an additional 6.15 per cent for $14.8 million up front and $3.7 million later.
The trust also increased the 2009 earnings guidance for Provident Midstream, the division that includes the Sarnia plant, and slightly reduced the 2009 production guidance for Provident Upstream as the result of a sale of non-strategic oil-producing fields in Saskatchewan and elsewhere.
The announcements were contained with Provident's second-quarter financial report, which showed a loss of $80 million as revenue fell 27 per cent compared with last year. Distributions to unitholders were cut in half.
Provident said its loss amounted to 31 cents per unit. That's an improvement on the loss of 72 cents per unit or $184 million in the second quarter of 2008.
However, total distributions to unitholders fell to $47 million or 18 cents per unit, down from $91.7 million or 36 cents per share a year ago and revenue dropped to $305.9 million from $420.2 million.
"Provident's second-quarter results were as expected given weak commodity prices and the challenging economic climate," said Provident president and CEO Tom Buchanan.
During the quarter, the trust completed a strategic review process that Buchanan said will increase the value of its Upstream and Midstream businesses.
Provident Midstream sold approximately 102,800 barrels per day (bpd) of natural gas liquids during the quarter, a decrease of seven per cent from the second quarter of 2008.
The trust attributed the decline to weaker petrochemical demand and reduced output at Sarnia due to the expiry of a capacity-leasing agreement with BP Canada.
The company said Thursday that it had agreed buy, rather than lease, the additional propane production capacity and deferred plans to build a previously announced depropanizer plant in Michighan because of the Sarnia transaction. It still has the opportunity to begin construction in Michigan if conditions improve.
Provident also announced it intends to sell non-strategic oil and gas production assets, primarily in Saskatchewan. During the second quarter, those assets produced the equivalent of 6,320 barrels per day of oil. About 16 per cent of that was natural gas and the rest was crude oil.
Net proceeds from the sale will be reinvested in long-term growth initiatives, such as the Pekisko and Dixonville oil plays as well as in the Midstream business unit.
ca.news.yahoo.com/s/capress/090813/business/provident_energy_1