Penn West records $728-million loss

Penn West Petroleum Ltd. had a $728-million net loss in the fourth quarter, mostly due to non-cash asset impairment charges related to the company’s disposal of natural gas assets late last year as it focuses on light oil production in Western Canada. The loss amounted to $1.49 per share and compared with a year-earlier net loss of 16¢ per share, when the overall loss was $78-million. Funds flow from operations also declined, dropping 27% to $216-million, or 44¢ per share, mainly due to lower crude oil prices and lower production volumes as a result of asset dispositions in the fourth quarter of 2013. “To date in 2014, we have benefited from stronger than planned commodity prices and a favourable currency climate; however, we remain conservative in our commodity outlook for the remainder of the year,” Penn West said. The company said it will pay a quarterly dividend of 14¢ per share on April 15. It has been at that level since Penn West cut the payout from 27¢ per share last summer.