Pengrowth Energy Corporation reported unaudited consolidated earnings and operating results for the first quarter ended March 31, 2018. The company achieved first quarter average daily production of 19,541 boe per day, led by production volumes from Lindbergh, which averaged 15,118 bbl per day in the quarter at an average SOR of 2.9.

For the quarter, the company reported revenues of CAD 120.3 million compared to CAD 204.2 million a year ago. Operating loss was CAD 16.6 million compared to CAD 43.2 million a year ago. Loss before taxes was CAD 34.4 million compared to CAD 117.7 million a year ago. Loss and comprehensive income loss was CAD 27.2 million or CAD 0.05 per basic and diluted share compared to CAD 86.3 million or CAD 0.16 per basic and diluted share a year ago. Cash out flow from operating activities was CAD 12.3 million compared to cash flow from operating activities of CAD 65.7 million a year ago. Capital expenditures were CAD 26.4 million compared to CAD 19.4 million a year ago. The company reported funds flow from operations of CAD 7.2 million or CAD 0.01 per share, compared to funds flow of CAD 26.9 million or CAD 0.05 per share for the same period in 2017. The decrease in funds flow year over year was primarily due to the absence of production volumes from divested properties combined with higher diluent expenses at Lindbergh. The smaller net loss is primarily due to the absence of impairment charges and losses on the disposition of properties recorded in the first quarter of 2017. Adjusted net loss was CAD 16.7 million compared to CAD 129.4 million a year ago. Adjusted EBITDA was CAD 70.8 million.

For the year 2018, capital expenditure budget of CAD 65 million is unchanged and focused on adding production volumes from Lindbergh and Groundbirch.

The 2018 budget is expected to generate average annual production of 22,500 to 23,500 boe per day, with an estimated 2018 exit rate of approximately 24,000 boe per day, representing double-digit production growth for 2018.