Post-Earnings Review - Pengrowth Energy

LONDON, November 20, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on Pengrowth Energy Corp. (NYSE: PGH). On October 30, 2014, the company announced its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Pengrowth Energy Corp. (Pengrowth). During Q3 FY14, the company reported earnings of CDN$0.10 per share, and recorded strong and consistent results from its Lindbergh pilot. Derek Evans, President and Chief Executive Officer of Pengrowth, stated that the company's conventional business is firing on all cylinders, the first phase completion of its Lindbergh thermal commercial project is around the corner, and the company's cash flow is also well protected by its extensive hedge positions. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

Pengrowth's average daily production for Q3 FY14 was 72,472 barrels of oil equivalent per day (boe/d) compared to 73,823 (boe/d) in the Q2 FY14. The company had expected this drop in its average daily production, and attributed it primarily to the following: the absence of a Sable Island condensate shipment in Q3 FY14, a small property disposition and natural declines. Partly offsetting this decline was the continued strength from the Cardium development program. The strong performance from the Cardium formation's wells over the past two years enabled the company to rationalize small pieces of its asset portfolio while still achieving its guidance targets. The free research on PGH can be downloaded as in PDF format at:

www.Investor-Edge.com/PGHFreeReport

Mr. Evans said that Pengrowth continues to deliver on its strategic plan and remains confident in its future. He added that it is an exciting time for the company and Pengrowth has been in the best shape for some time in terms of the visibility and robustness of the go forward plan and its growth prospects.

For Q3 FY14, the company's operating expenses decreased by 18% Y-o-Y to CDN$102.4 million, and on a per boe basis, operating expenses declined by 6% Y-o-Y to CDN$15.36. During the reported quarter, Pengrowth reported a net income of CDN$52.2 million, compared to a net loss of CDN$107.3 million in Q3 FY13. The company's net income for Q3 FY14 surpassed Bloomberg analysts' forecasts of CDN$3.3 million. On an adjusted basis, Pengrowth's Q3 FY14 net income stood at CDN$3.4 million, compared to a net loss of CDN$108.2 million in Q3 FY13. Sign up and read the free analyst's notes on PGH at:

www.Investor-Edge.com/PGH-20112014

During the reported quarter, Pengrowth increased its capital expenditure to CDN$191.9 million from CDN$176.2 million in Q3 FY13. Moreover, Pengrowth invested approximately 58% or CDN$111 million of its Q3 FY14 capital towards the construction of the first commercial phase of Lindbergh.

For FY14, Pengrowth expects to deliver near the top end of its production guidance of 71,000 boe/d to 73,000 boe/d. The company's FY14 capital expenditures are expected to remain on track with its previous guidance of between CDN$740 million and CDN$770 million. Operating expenses for FY14 are also anticipated to remain within the company's guidance of between CDN$15.20 per boe and CDN$15.80 per boe. Further, cash G&A (general & administrative) expenses are expected to meet FY14 guidance of between CDN$3.15 per boe and CDN$3.25 per boe. Looking forward to FY15, the start of production from the Lindbergh commercial project is expected to generate significant cash flow growth and ultimately position Pengrowth as a sustainable, low decline, dividend paying energy producer. Visit Investor-Edge and access the latest research on PGH at:

www.Investor-Edge.com/PGHEarningsCoverage

Stock Performance  

On the day following the earnings release, October 31, 2014, Pengrowth's stock ended the session at $4.03, up 2.81%. Although the stock has moved both ways since then, the losses have outweighed the gains so far. Furthermore, on the last close, Wednesday, November 19, 2014, it finished at $3.75, down 1.32%, after vacillating between $3.72 and $3.85. A total of 2.36 million shares were traded, which was above its three months average volume of 2.25 million shares. Over the previous three trading sessions and over the last one month, the company's shares have lost 1.06% and 9.64%, respectively. Further, the stock has plummeted 39.52% since the start of this year. Shares in Pengrowth closed below their 50-day and 200-day moving averages of $4.55 and $5.99, respectively. Furthermore, the stock has a Relative Strength Index (RSI) of 38.36.

Sneak Peek to Corporate Insider Trading 

In the last one month Pengrowth Energy Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on PGH is available at:

www.Investor-Edge.com/PGHInsiderTrading

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