Penn West profit plunges on weak natural gas prices

Penn West Petroleum Ltd (PWT-T) reported an 80-percent fall in first-quarter profit on cheaper Canadian crude and decade-low natural gas prices.

Penn West, one of Western Canada's largest conventional oil and gas producers, has been spending more on light-oil areas such as the Carbonates, Cardium, Viking and Spearfish to ward off weak natural gas prices.

The price of the fuel fell 40 percent in the January-March quarter.

Net income for the company fell to $59 million, or 12 cents per share, from $291 million, or 63 cents per share, a year ago.

Production averaged at 167,420 barrels of oil equivalent per day (boe/d), nearly flat from the year-ago period.

Average liquids production in the quarter was more than 107,000 boe/d, of which about 90 percent was oil, the company said in a statement.

Funds flow fell 5 percent to $337 million, or 71 cents per share.

Gross revenue, however, rose 3 percent to $870 million.

The company reaffirmed its production and capital budget forecast for the year.

It still expects production to average 168,500 boe/d to 172,500 boe/d, and capital budget of $1.3 billion to $1.4 billion, net of asset acquisition and disposition.