Penn West Energy Trust Earnings: Here’s Why Shares are Down Now

Penn West Energy Trust (NYSE:PWE) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.61%.

Penn West Energy Trust Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.08 in the quarter versus EPS of $0.41 in the year-earlier quarter.

Revenue: Decreased 33.4% to $745 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Penn West Energy Trust reported adjusted EPS loss of $0.08 per share. By that measure, the company missed the mean analyst estimate of $-0.04. It beat the average revenue estimate of $722.86 million.

Quoting Management: Dave Roberts, President and Chief Executive Officer, commented, “In the second quarter, Penn West continued to deliver operating results in line with expectations as we focused on reliable and repeatable performance from our asset base. Total production for the quarter averaged 140,083 boe per day with 63 percent being liquids. Funds flow of $278 million for the second quarter of 2013 was higher than the prior year due to narrowing WTI to Edmonton light sweet oil pricing differentials, which more than offset lower production as a result of asset dispositions closed in late 2012. Based on our performance to date, we can reiterate our expected production guidance for the year to deliver an annualized 135,000 to 145,000 boe per day in 2013. Capital expenditures for the year are expected at $900 million.”

Key Stats (on next page)…

Revenue increased 8.77% from $684.96 million in the previous quarter. EPS increased to $-0.08 in the quarter versus EPS of $-0.20 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.09 to a profit $0.04. For the current year, the average estimate has moved up from a loss of $0.19 to a loss of $0.18 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)