Penn West reports first quarter loss of $98 million, down from year-earlier profits

By The Canadian Press

CALGARY - Penn West Energy Trust (TSX: PWT-UN.TO) said Wednesday it was holding its distribution level steady despite falling to a loss in the first quarter of 2009.

The Calgary-based oil and gas trust reported net loss of $98 million or 25 cents per unit for the quarter ended March 31, reversing year-earlier profit of $78 million or 22 cents per unit.

Quarterly revenue fell by nearly a third, slipping 31 per cent to $781 million from $1.14 billion recorded during the corresponding quarter of 2008.

Penn West said average oil and gas production exceeded preliminary forecasts at 180,100 barrels of oil equivalent per day.

The trust said it would maintain current distribution levels of 15 cents per unit.

"Given crude oil and natural gas play a highly prominent role in the functioning of the global economy, we believe the fundamental outlook for our business remains sound," the company said in a statement.

"Penn West believes the best approach during difficult economic times is to ensure effective performance of our assets and staff while continuing to advance key long-term projects and reducing cost structures to levels commensurate with current commodity prices."