Pengrowth Energy Corporation announced earnings and production results for the second quarter and year to date ended June 30, 2018. For the quarter, the company announced average daily production of 22,600 boe per day against 49,349 boe per day a year ago. Bitumen was 15,876 bbl/d against 13,657 bbl/d a year ago. Natural gas was 34,064 Mcf/d against 118,939 Mcf/d a year ago. Light oil was 769 bbl/d against 9,322 bbl/d a year ago. Natural gas liquid was 278 bbl/d against 6,547 bbl/d a year ago.

For the year to date, the company announced average production of 21,079 boe per day.

For the quarter, the company announced capital expenditures of CAD 23.1 million against CAD 36.7 million a year ago. Adjusted funds flow was CAD 10.1 million against CAD 29.3 million a year ago. Adjusted funds flow per share was CAD 0.02 against CAD 0.05 a year ago. Net loss was CAD 27.5 million against CAD 242.4 million a year ago. Net loss per share was CAD 0.05 against CAD 0.44 a year ago. Adjusted net loss was CAD 22.9 million against CAD 250.6 million a year ago. Revenues were CAD 138.2 million against CAD 181.9 million a year ago. Operating loss was CAD 14.2 million against CAD 326.1 million a year ago. Loss before taxes was CAD 32.4 million against CAD 320.2 million a year ago. Cash flow from operating activities was CAD 12.8 million against CAD 36.5 million a year ago.

For the year to date, the company announced capital expenditures of CAD 49.5 million against CAD 56.1 million a year ago. Net loss was CAD 54.7 million against CAD 328.7 million a year ago. Net loss per share was CAD 0.10 against CAD 0.60 a year ago. Adjusted funds flow was CAD 17.3 million against CAD 56.2 million a year ago. Adjusted net loss was CAD 39.5 million against CAD 380.1 million a year ago. Revenues were CAD 271.6 million against CAD 417.8 million a year ago. Operating loss was CAD 30.8 million against CAD 369.3 million a year ago. Loss before taxes was CAD 66.8 million against CAD 437.9 million a year ago. Cash flow from operating activities was CAD 0.5 million against CAD 102.2 million a year ago.

The company revised production and capital expenditures guidance for the full year 2018. For the year, the company now expects average production of 22,500 - 23,500 boe per day and capital expenditures of CAD 65 million against average production of 22,500 - 23,500 boe per day and capital expenditures of CAD 65 million as previously forecasted. Royalty expenses are expected to be 8.5%.

The company expects to have free funds flow after capital expenditures in the second half of 2018, which together with the collection of the approximately CAD 18 million of deferred disposition proceeds will be applied to decrease the outstanding debt.

At a WTI price of USD 65/bbl, capital spending is expected to increase to a range of CAD 120 to CAD 125 million in 2019 and be fully funded with generated cash flows. Pengrowth expects free funds flow under this scenario to be used for debt repayment.