("=ARC Energy 3Q Cash Flow Drops On Lower Commodity Prices," published on Nov. 6, 2009, incorrectly said that trust would convert to a dividend-paying corporation on Jan. 1, 2010. It will make that conversion on Jan. 1, 2011. The correct version follows:)
DOW JONES NEWSWIRES
ARC Energy Trust (AET.UN.T) recorded a sharp decline in third-quarter earnings, cash flow and revenue, largely reflecting lower commodity prices.
The Calgary oil and gas trust said cash flow from operating activities fell to C$126 million or 53 Canadian cents a unit from C$251 million or C$1.16 a year earlier.
Revenue before royalties was down 51% to C$239 million, and net income fell 78% to C$69 million. On a per-unit basis, net income of 29 Canadian cents was down from C$1.46 a year earlier.
The Thomson Reuters mean earnings estimate was 8 Canadian cents a unit.
Third-quarter production was 62,824 barrels of oil equivalent a day, down 2% from 64,325 barrels a year earlier.
The trust continues to expect that 2009 production will average 63,000 to 64,000 of barrels of oil equivalent a day.
In the third quarter, the average price was C$41.31 per barrel of oil equivalent, down nearly 50% from a year earlier.
ARC now sees capital spending for 2009 at C$365 million, up from its forecast of C$350 million in the second-quarter report. Its board has approved a capital-spending program of C$575 million for 2010, to be financed through a combination of cash flow, credit facilities, DRIP proceeds and the potential sale of minor assets.
The trust plans to convert to a dividend-paying corporation on Jan. 1, 2011.
carolyn.m.king@dowjones.com
Copyright 2009 Dow Jones Newswires
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