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|
2010 Guidance*
| Summary of 2010 Expectations |
Target |
Comments |
| Average annual production |
86,000 BOE/day |
|
| Exit rate 2010 production |
88,000 BOE/day |
Assumes $425 million development capital spending, net of $33 million of Alberta DRC credits |
| 2010 production mix |
57% gas
43% liquids |
|
| Average royalty rate |
20% |
Percentage of gross sales |
| Operating costs |
$10.90/BOE |
|
| G&A costs |
$2.45/BOE |
Includes non-cash charges of $0.20/BOE (trust unit rights incentive plan) |
| Average interest and financing costs |
8% |
Based on current fixed rate contracts, forward interest rates and anticipated credit facility renewal costs |
| Corporate conversion and simplification |
$3 million or $0.10/BOE |
Fees related to our conversion from a trust to a corporation and simplification of our underlying corporate structure |
| Development capital spending |
$425 million, net of Alberta DRC credits of $33 million |
Within the context of current commodity prices
|
| Marcellus carry commitment |
$64 million |
Will be reported as a property acquisition |
* Does not include any further potential acquisitions or divestments.
Sensitivity Table
February 16, 2010
| Sensitivity Table |
Estimated Effect on
2010 Cash Flow per
Trust Unit (1) |
| Change of $0.50 per Mcf in the price of AECO natural gas |
$0.12 |
| Change of US$5.00 per barrel in the price of WTI crude oil |
$0.14 |
| Change of 1,000 BOE/day in production |
$0.07 |
| Change of $0.01 in the US$/CDN$ exchange rate |
$0.06 |
| Change of 1% in interest rate |
$0.01 |
(1) Assumes constant working capital and 177,061,000 units outstanding
The impact of a change in one factor may be compounded or offset by changes in other factors. This table does not consider the impact of any inter-relationship among the factors.
The sensitivities above reflect all commodity contracts as listed in Note 11 of our 2009 MD&A and Financial Statements and are based on forward markets as at February 16, 2010. To the extent the market price of crude oil and natural gas change significantly from current levels, the sensitivities will no longer be relevant as the effect of our commodity contracts will change.
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