Penn West posts loss, cuts full-year production forecast

Fri Nov 2, 2012 10:01am EDT

(Reuters) - Penn West Petroleum Ltd (PWT.TO) reported a third-quarter loss on hedging losses and cut its production forecast for the year due to wet weather and plant outages.

Penn West, one of Canada's largest conventional oil and gas producers, now expects full-year production to average 161,000 to 163,000 barrels of oil equivalent per day (boe/d), down from its prior view of 165,000 to 168,500 boe/d.

The company raised its capital expenditure to C$1.3 billion to C$1.4 billion from C$1.2 billion to C$1.25 billion.

Penn West has been spending on light-oil areas such as the Cardium, Viking and Carbonates in Alberta as natural gas prices stay weak.

Net loss in the quarter was C$67 million ($67.2 million), or 14 Canadian cents per share, compared with a net income of C$138 million, or 29 Canadian cents per share, a year earlier.

The company said it recorded unrealized losses of C$176 million in the quarter compared with a gain of C$238 million a year earlier.

Gross revenue fell more than 2 percent to C$840 million. Production averaged 160,339 boe/d, down from 161,323 boe/d.

Penn West said earlier this month it had lined up buyers for Canadian oil and gas assets worth C$1.3 billion as it sells non-core properties and reduces debt.

The company said the properties it was selling produce about 12,000 barrels equivalent a day, or roughly 7 percent of total output.

Shares of Calgary-based Penn West, which has a market value of more than C$6 billion, fell more than 3 percent to C$12.59 on the Toronto Stock Exchange on Friday. ($1 = 0.9974 Canadian dollars)

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila)

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