Pengrowth Energy Corporation announced unaudited consolidated earnings and operating results for the third quarter and nine months ended September 30, 2017. For the quarter, the company's total revenues were CAD 85.4 million against CAD 135.6 million a year ago. Operating loss was CAD 151.5 million against CAD 27.3 million a year ago. Loss before taxes was CAD 201.7 million against CAD 67.8 million a year ago. Net loss and comprehensive loss was CAD 144.7 million against CAD 52.9 million a year ago. Basic and diluted loss per share was CAD 0.26 against CAD 0.10 a year ago. Negative funds flow from operations was CAD 0.3 million against funds flow from operations of CAD 122.7 million a year ago. The decrease in funds flow year over year was primarily due to the decrease in production resulting from asset sales carried out in 2017 and lower realized commodity risk management gains, as a result of Pengrowth having substantially higher volumes hedged at materially higher prices in the same period in 2016 compared to 2017. Cash flow from operating activities was CAD 11.8 million against CAD 143.9 million a year ago. Capital expenditures were CAD 33.6 million against CAD 15.3 million a year ago. Adjusted net loss was CAD 148.3 million against net income of CAD 18.6 million a year ago. The CAD 166.9 million decrease in adjusted net income was primarily due to the PP&E impairment charge from asset dispositions and subsequent impairment of the remaining assets in the WCU, Northern and Southern CGUs, lower funds flow from operations, higher loss on property dispositions and restructuring costs pertaining to an onerous office lease contract that was recorded in the third quarter of 2017. This was partly offset by lower DD&A expenses resulting from property divestments.

For the nine months, the company's total revenues were CAD 367.4 million against CAD 371.1 million a year ago. Operating loss was CAD 520.8 million against CAD 207.3 million a year ago. Loss before taxes was CAD 639.6 million against CAD 284.8 million a year ago. Net loss and comprehensive loss was CAD 473.4 million against CAD 201.3 million a year ago. Basic and diluted loss per share was CAD 0.86 against CAD 0.37 a year ago. Funds flow from operations was CAD 55.9 million against funds flow from operations of CAD 318.0 million a year ago. Cash flow from operating activities was CAD 114.0 million against CAD 361.6 million a year ago. Capital expenditures were CAD 89.7 million against CAD 36.0 million a year ago. The company posted a year to date 2017 adjusted net loss of CAD 528.4 million compared to adjusted net income of CAD 2.7 million in the same period last year primarily driven by year to date PP&E impairment charges related to asset dispositions, lower funds flow from operations, higher loss on property dispositions and restructuring costs pertaining to an onerous office lease contract partly offset by lower DD&A expenses. Funds flow from operations per share was CAD 0.10 against CAD 0.58 a year ago.

For the quarter, the company's average daily production was 35,072 boe per day, compared to average daily production of 55,137 boe per day in the third quarter of 2016. The decrease in production year over year is attributed to the absence of volumes related to sold properties, natural declines, as well as lower volumes due to planned maintenance activities on existing properties. Production at the company's Lindbergh thermal project averaged 12,086 bbl per day at an average steam oil ratio of 2.9 times during the third quarter. The Company conducted its first major turnaround of the central processing facility which resulted in significant production downtime in the quarter. Production levels have stabilized after the turnaround at approximately 14,500 bbl per day at an average steam oil ratio of 2.6.

For the nine months, the company achieved average daily production of 45,727 boe per day, compared to average daily production of 57,966 boe per day in the third quarter of 2016.

For the quarter, the company reported an impairment charge of CAD 127.1 million (approximately CAD 93.0 million after-tax) in the quarter resulting from the sale of the non-core Alberta assets, additional impairments of other non-core legacy assets coupled with lower funds flow from operations.

For the year 2017, following the closing of the announced Quirk Creek sale, the company anticipates that its annual 2017 production guidance to be in a range of 39,500 to 41,500 boe per day, with fourth quarter average production of 24,500 boe per day, compared with previous annual 2017 production guidance to be in a range of 41,500 to 43,500 boe per day. The company anticipates that December 2017 production rates will be approximately 20,000 boe per day, after completion of all announced divestments.

For the year, the company expects total capital expenditures to be CAD 125 million. Funds flow from operations to be CAD 65 million, compared with previous guidance of CAD 90 million.

In addition to updating its 2017 guidance, the company is also providing an outlook for its preliminary production and capital expenditure estimates for 2018. The company anticipates a 2018 capital program of between CAD 50 million and CAD 60 million which is expected to support an annual production rate of 22,500 to 24,500 boe per day representing a production growth rate of approximately 18% (based on mid-point of guidance) from anticipated 2017 December production of 20,000 boe per day.