Enterra Energy Trust Announces Q2 2009 Financial and Operating Results

NYSE: ENT

TSX: ENT.UN, ENT.DB, ENT.DB.A

CALGARY , Aug. 14 /CNW/ - Enterra Energy Trust ("Enterra", "We", "Our" or the "Trust") announces its financial and operating results for the three and six months ended June 30, 2009 .

"During the second quarter of 2009 we have continued to strengthen our balance sheet and also further reduced operational and overhead costs as we remained focused on living within our means", commented Don Klapko, Enterra's Chief Executive Officer. "We also purchased additional production of approximately 270 boe per day in our existing Hunton development operation in Oklahoma together with higher working interest in future drilling in the area which will further improve the solid economics in the area for us."

Q2 2009 Highlights

    
    -   Net debt was decreased 30% to $36.8 million at June 30, 2009 from
        $52.4 million at December 31, 2008 and decreased 6% from
        $39.1 million at March 31, 2009.

    -   Total bank debt decreased 18% to $78.3 million at June 30, 2009 from
        $95.5 million at December 31, 2008 and decreased 2% from
        $80.0 million at March 31, 2009.

    -   Production was essentially steady at 10,059 boe per day in Q2 2009
        compared to 9,968 boe per day in Q1 2009. Of the Q2 2009 production
        of 10,059 boe per day, 48 percent, or more than 4,800 bbl per day,
        was oil and NGL increasing over last year as a result of our new
        marketing contracts that recognize more value for the NGL in the
        production stream.

    -   On July 28, 2009, Enterra acquired additional working interest in
        certain wells in the Oklahoma area from joint venture partners, other
        than Petroflow Energy Ltd. The acquired working interest produced
        approximately 270 boe per day upon acquisition.
    

The Trust's complete unaudited consolidated financial statements, accompanying notes and MD&A for the quarter are available on Enterra's website at www.enterraenergy.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov/edgar.shtml.

Enterra will be hosting a conference call and webcast on Friday, August 14, 2009 at 9:00 a.m. MT ( 11:00 a.m. ET ) to discuss the Trust's Q2 2009 results. To access the call, please dial 1-866-223-7781 or 416-340-8018 in Toronto . A live audio webcast of the conference call will be available on the home page of Enterra's website at www.enterraenergy.com. A replay of the conference call will be available until 11:59 p.m. MT , August 21, 2009 . The replay may be accessed on Enterra's website in the Investor Relations section, or by dialing 800-408-3053 or 416-695-5800, followed by passcode 4470187 followed by the number sign.

    
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    Q2 2009 Financial
     and Operations    Three months ended  Six months ended        Year ended
    Summary                       June 30           June 30           Dec. 31
    (in thousands
     except for
     volumes,
     percentages
     and per unit
     and boe
     amounts)      2009     2008   Change     2009     2008   Change     2008
    -------------------------------------------------------------------------
    FINANCIAL
    Revenue
     before
     mark-to-market
     adjust-
     ment(1)     31,208   71,004     (56%)  73,097  131,319     (44%) 255,268
    Funds from
     opera-
     tions(1)     8,561   31,588     (73%)  26,476   55,844     (53%) 107,345
     Per unit -
      basic ($)    0.14     0.51              0.43     0.91              1.74
     Per unit -
      diluted ($)  0.14     0.51              0.43     0.91              1.70
    Net income
     (loss)     (14,383) (11,855)          (22,881) (13,762)            7,061
     Per unit -
      basic ($)   (0.23)   (0.19)            (0.37)   (0.22)             0.11
     Per unit -
      diluted ($) (0.23)   (0.19)            (0.37)   (0.22)             0.11
    Total
     assets     508,588  572,738           508,588  572,738           587,018
    Net debt(2)  36,784   78,822            36,784   78,822            52,389
    Convertible
     deben-
     tures      114,315  112,529           114,315  112,529           113,420
    Unitholders'
     equity     259,595  216,456           259,595  216,456           294,416
    -------------------------------------------------------------------------
    SHARES AND
     UNITS
     OUTSTANDING
    Weighted
     average units
     outstanding -
     basic
     (000s)      62,280   61,480            62,209   61,458            61,661
    Weighted
     average units
     outstanding -
     diluted
     (000s)      62,280   61,480            62,209   61,458            63,012
    Units
     outstanding
     at period
     end
     (000s)      62,525   61,552            62,525   61,552            62,159
    -------------------------------------------------------------------------
    OPERATIONS
    Average daily
     production
     Oil and NGL
      (bbls per
      day)        4,824    3,688      31%    4,519    3,855      17%    3,756
     Gas (mcf
      per day)   31,407   38,465     (18%)  32,972   39,846     (17%)  39,162
    -------------------------------------------------------------------------
     Total (boe
      per day)   10,059   10,099       0%   10,014   10,496       5%   10,283
    -------------------------------------------------------------------------
    Exit
     production
     Oil and NGL
      (bbls per
      day)        5,138    3,665      40%    5,138    3,665      40%    4,250
     Gas (mcf per
      day)       29,232   37,269     (22%)  29,232   37,269     (22%)  33,321
    -------------------------------------------------------------------------
     Total (boe
      per day)   10,010    9,877       1%   10,010    9,877       1%    9,804
    -------------------------------------------------------------------------
    Average sales
     price
     Oil and NGL
      ($ per bbl) 48.76    99.02     (51%)   48.80    88.26     (45%)   92.05
     Gas ($ per
      mcf)         3.43    10.85     (68%)    5.56     9.57     (42%)    8.98
    -------------------------------------------------------------------------
    Cash flow
     netback(1)
     ($ per boe)
     Revenue(3)   34.09    77.48     (56%)   40.33    68.74     (41%)   67.83
     Royalties     5.92    18.72     (68%)    6.58    15.87     (59%)   15.50
     Production
      expenses    12.19    12.87      (5%)   12.34    13.23      (7%)   14.80
     Transportation
      expenses     0.78     1.15     (32%)    0.71     0.93     (24%)    0.66
    -------------------------------------------------------------------------
    Operating
     netback      15.20    44.74     (66%)   20.70    38.71     (47%)   36.87
    General and
     admini-
     strative      3.61     5.12     (29%)    3.80     4.87     (22%)    4.21
    Cash interest
     expense       2.24     4.84     (54%)    2.29     4.48     (49%)    4.04
    Other cash
     costs            -     0.52    (100%)       -     0.13    (100%)    0.10
    -------------------------------------------------------------------------
    Cash flow
     netback       9.35    34.37     (73%)   14.61    29.23     (50%)   28.52
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) Revenues before mark-to-market adjustment, funds from operations and
        cash flow netback are non-GAAP financial measures.
    (2) Net debt is a non-GAAP term and includes total bank debt, long-term
        receivables, current assets and current liabilities (excluding
        commodity contracts and future income taxes).
    (3) Price received excludes unrealized mark-to-market gain or loss.
    

About Enterra Energy Trust

Enterra is an exploration and production oil and gas trust based in Calgary , Alberta, Canada with its United States operations office located in Oklahoma City , Oklahoma. Enterra's trust units and debentures are listed on the Toronto Stock Exchange under the symbols (TSX:ENT.UN) (TSX:ENT.DB) (TSX:ENT.DB.A) and Enterra's trust units are listed on the New York Stock Exchange under the symbol (NYSE:ENT). The Trust portfolio of oil and gas properties is geographically diversified with producing properties located principally in Alberta, British Columbia, Saskatchewan and Oklahoma. Current production is comprised of approximately 55 percent natural gas and 45 percent crude oil and natural gas liquids. Enterra has compiled a multi-year drilling inventory for its properties.

Barrels of Oil Equivalent

Barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward-Looking Statements

Certain information in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may," "should," "anticipate," "expects," "seeks" and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with oil and gas production; marketing and transportation; loss of markets; volatility of commodity prices; currency and interest rate fluctuations; imprecision of reserve estimates; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions or dispositions; inability to access sufficient capital from internal and external sources; changes in legislation, including but not limited to income tax, environmental laws and regulatory matters. Readers are cautioned that the foregoing list of factors is not exhaustive.

Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

Additional information on these and other factors that could affect Enterra's operations or financial results are included in Enterra's reports on file with Canadian and U.S. securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), the SEC's website (www.sec.gov), Enterra's website (www.enterraenergy.com) or by contacting Enterra. Furthermore, the forward looking statements contained in this news release are made as of the date of this news release, and Enterra does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.

For further information: Enterra Energy Trust, Blaine Boerchers, Chief Financial Officer, [phone] or 1-877-263-0262, Email: [email protected], Website: www.enterraenergy.com