ANNUAL REPORT 2011 - Connacher Oil and Gas

AR 2011
PG 43
QUARTERLY HIGHLIGHTS
Fluctuations in results over the previous eight quarters are due principally to variations in oil and gas prices, production and sales volumes and foreign
exchange rates relative to U.S. dollar denominated debt. For comparability, the following table presents the financial information for all of the quarters
presented in the same format as was adopted in the quarter ended December 31, 2011.
FINANCIAL ($000 except per share amounts) 2010 2010 2010 2010 2011 2011 2011 2011
Three Months Ended Mar 31 Jun 30 Sept 30 Dec 31 Mar 31 June 30 Sept 30 Dec 31
Revenue, net of royalties $ 121,095 $ 132,877 $ 158,714 $ 177,245 $ 178,990 $ 234,556 $ 232,806 $ 226,454
Adjusted EBITDA (1) 14,440 20,173 25,642 31,951 15,845 37,608 37,323 39,095
Net earnings (loss) 8,505 (31,717) 4,159 (25,616) (14,101) (44,169) 3,642 (59,477)
Basic and Diluted per share 0.02 (0.07) 0.01 (0.06) (0.03) (0.10) 0.01 (0.13)
Capital expenditures 118,272 59,176 49,842 31,735 40,830 38,988 46,940 36,670
Cash on hand 118,382 69,412 51,120 19,532 42,865 31,525 81,744 117,045
Working capital surplus 127,416 100,202 62,047 138,644 80,902 18,954 50,801 16,876
Long-term debt 856,495 889,797 873,032 847,387 843,089 829,310 865,540 856,068
Shareholders’ equity $ 554,328 $ 530,086 503,251 523,187 $ 515,941 $ 467,057 $ 477,358 $ 421,076
OPERATIONAL
Upstream: Daily production volumes (2)
Bitumen – bbl/d 6,936 6,211 6,758 13,238 13,200 13,720 13,454 13,173
Crude oil – bbl/d 937 906 819 873 540 398 355 417
Natural gas – Mcf/d 9,662 9,278 9,158 8,318 6,805 3,755 3,036 2,955
Equivalent – boe/d (3) 9,483 8,663 9,103 15,498 14,874 14,744 14,315 14,083
Product sales prices (4)
Bitumen – $/bbl 51.98 43.13 42.68 45.08 41.78 54.49 40.98 53.04
Crude oil – $/bbl 71.08 61.90 62.45 66.72 71.70 90.93 80.63 89.57
Natural gas – $/Mcf 4.86 3.78 3.42 3.44 3.57 3.94 4.09 3.27
Selected highlights – $/boe (3)
Weighted average sales price (4) 49.99 41.44 40.74 44.09 41.31 54.15 41.39 52.96
Royalties 3.57 2.73 2.72 2.76 2.15 3.99 2.33 3.24
Operating costs 17.47 19.25 18.08 17.91 21.18 19.23 18.72 19.39
Netback (1) 28.95 19.46 19.94 23.42 17.97 30.93 20.33 30.33
Downstream: Refining
Crude charged – bbl/d 9,347 9,373 9,903 10,137 9,764 9,860 9,638 10,295
Refining utilization – % 98 99 104 107 103 104 101 108
Margins – % (8) 12 13 9 6 10 14 7
COMMON SHARES
Shares outstanding end of period (000) 428,246 429,103 429,120 447,168 447,858 448,058 448,260 448,260
Weighted average shares outstanding for the period
Basic (000) 427,830 429,023 429,106 442,941 448,457 447,992 448,204 448,260
Diluted (000) 430,077 429,023 431,487 442,941 448,457 447,992 449,351 448,260
Volume traded (000) 167,483 182,419 98,105 137,128 180,297 127,468 106,243 214,710
Common share price ($)
High 1.65 1.88 1.52 1.35 1.66 1. 59 1.12 1.00
Low 1.16 1.20 1.15 1.10 1.26 1.03 0.32 0.24
Close (end of period) 1.49 1.29 1.20 1.33 1.43 1.05 0.33 0.76
(1) A non-GAAP measure which is defined in the Advisory section of the MD&A. Reconciliations of Adjusted EBITDA on a quarterly basis are contained in the previously issued MD&A for the applicable quarter.
(2) Represents bitumen, crude oil and natural gas produced in the period. Actual sales volumes may be different due to inventory changes during the period.
(3) All references to barrels of oil equivalent (boe) are calculated on the basis of 6 Mcf: 1 bbl. This conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and dooes
may be misleading, particularly if used in isolation.
(4) Before royalties and risk management contract gains or losses and after applicable diluent and transportation costs divided by actual sales volumes.