Pulse Seismic Inc. Reports 2012 Results and Declares Quarterly Dividend
(firmenpresse) - CALGARY, ALBERTA -- (Marketwire) -- 03/18/13 -- Pulse Seismic Inc. ("Pulse" or "the Company") (TSX: PSD) (OTCQX: PLSDF) reports the financial and operating results of the Company for the year ended December 31, 2012. The year-end audited financial results were in line with the preliminary unaudited financial results announced in the Company's news release on January 30, 2013. The audited consolidated financial statements, accompanying notes and MD&A are being filed on SEDAR () and will be available on Pulse's website at .
Pulse has declared a quarterly dividend of $0.02 per common share. This dividend will be paid on April 11, 2013 to shareholders of record at the close of business on March 28, 2013. Dividends are designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse's dividends are subject to Canadian withholding tax.
HIGHLIGHTS FOR THE 12 MONTHS ENDED DECEMBER 31, 2012
Pulse achieved the following record results:
Record levels of cash generated in 2012 have allowed Pulse to:
HIGHLIGHTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2012
OUTLOOK
Western Canada's oil and natural gas industry faced largely the same array of risks entering 2013 as it had a year earlier. Natural gas prices were in the range of Cdn$3 per mcf at AECO, high regional crude oil price differentials were reducing Canadian oil producers' revenues, political uncertainty surrounded the crucial Keystone XL and Northern Gateway oil export pipeline projects, and many producers' share prices were weak. Internationally, numerous regions faced profound economic uncertainty and some regions were experiencing geopolitical instability.
Notwithstanding these risks, Pulse's management team and Board of Directors view 2013 with greater optimism and confidence than any of the previous four years. The unprecedented strength of Pulse's finances, including the recently closed new credit facility, is the first of two main reasons for this outlook. The Company will have increased flexibility to direct its capital spending in 2013 in pursuit of those initiatives that it anticipates will generate the greatest returns.
Field operations for both the 541 square km McKinley and the 487 square km Fox Creek 3D participation surveys have been completed. The 153 square km Pembina 3D participation survey began in January and field operations are expected to be completed by the end of March. The Company anticipates opportunities for additional participation surveys in the Duvernay and Montney plays, areas that remain highly active and also contain multiple other prospective zones, creating the sought-after prospect of future re-licensing sales.
Pulse anticipates western Canada's producing sector's continued repositioning into unconventional liquids-rich natural gas and oil play areas. It cannot be predicted whether the high level of licensing sales and transfer (change of control) fees related to transactions among Pulse's customers in 2012 was exceptional or indicative of the future. The high capital needs and technical risks of these plays, plus pressure from mineral lease expiries, do help encourage companies to reduce their risks and access outside capital through joint ventures, farm-outs, asset sales or outright corporate sale.
Pulse is hopeful of seeing further such transactions in areas where it holds or is shooting data. As always, the Company cautions that seismic data library sales levels have intrinsically poor visibility and can be very uneven from quarter to quarter. Pulse can generate solid shareholder free cash flow and continue to pay its dividend under moderately low year-over-year data sales.
Commodity prices remain uncertain. There are signs that the multi-year ramp-up of U.S. natural gas production is decelerating, and the U.S. Energy Information Administration is forecasting essentially flat overall production for 2013. Any subsequent price effects will depend on the demand side and continued gradual draw-down of natural gas storage. Pulse does not have a view of natural gas prices in 2013. On the crude oil side, numerous Canadian producers and marketing organizations are reporting efforts to transport oil by rail into the U.S. and to eastern Canadian markets. If successful on a reasonable scale, this could help to ease the regional price differential somewhat. Producers' netbacks will still depend on the movement of international benchmark prices interacting with the regional differential.
In its annual drilling forecast for the year ahead, issued in November 2012, the Petroleum Services Association of Canada forecast that 11,400 oil and natural gas wells would be drilled across Canada in 2013, little changed from 11,250 in 2012. Of the total, approximately 70 percent will be horizontal wells and 87 percent will target crude oil. According to the Canadian Association of Oilwell Drilling Contractors, the number of active drilling rigs in November 2012, December 2012 and January 2013 was lower than in each of the corresponding months one year earlier.
For the longer term, Pulse regards the planned construction of one or more export terminals for liquefied natural gas (LNG) on Canada's West Coast as a long-term strategic opportunity for the energy industry and western Canada's economy. The Government of Canada's recent approvals of major foreign investment in the energy sector, including by a major international LNG participant, are highly positive. The export volumes of even the smaller proposed LNG plants would require a considerable increase in western Canada's natural gas-related drilling. The largest of these projects would require more than 2 billion cubic feet per day or roughly 15 percent of western Canada's current production. Each quarter of progress towards construction increases the impetus for the producing sector to accelerate natural gas development. The LNG facilities depend on concluding firm long-term sales agreements with international customers, which cannot be predicted.
With a significant amount of recently shot 3D seismic data, the significant dataset acquisition in 2010, wide coverage over some of western Canada's most promising unconventional oil and liquids-rich gas plays, plus the financial strength to pursue a range of opportunities, Pulse is positioned to thrive in both the short and longer terms. As industry capital spending and field activities go up and down along with business conditions and opportunities, Pulse will continue to focus on generating as much sales revenue, cash EBITDA and shareholder free cash flow per share as conditions allow, while seeking opportunities to grow. The Company's proven four-pronged approach to capital allocation - investment in capital programs (participation surveys and dataset acquisitions that meet key criteria), repurchase of Pulse shares, payment of a sustainable dividend, and to a lesser extent this year, debt reduction - will continue to guide Pulse's business throughout 2013.
ADVANCE NOTICE REQUIREMENT FOR NOMINATING DIRECTORS
Pulse's board of directors has approved the adoption of an Advance Notice Bylaw of the Company, which requires advance notice to Pulse by shareholders who wish to nominate a person for election as a director of the Company (other than pursuant to a requisition of a meeting or a shareholder proposal made pursuant to the provisions of the Canada Business Corporations Act).
Among other things, the By-law fixes a deadline by which shareholders must submit a notice of director nominations to Pulse prior to any annual or special meeting of shareholders where directors are to be elected and sets forth the information that a shareholder must include in the notice for it to be valid.
In the case of an annual meeting of shareholders, notice to Pulse must be given not less than 30 nor more than 65 days prior to the date of the annual meeting; provided, however, that if the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be given not later than the close of business on the 10th day following such public announcement.
In the case of a special meeting of shareholders (that is not also an annual meeting), notice to Pulse must be given not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.
The By-law is effective immediately. At the annual and special meeting of shareholders on May 22, 2013, shareholders will be asked to confirm the By-law. A copy of the By-law is being filed and will be available under Pulse's profile at .
Pulse believes that adopting the By-law is considered to be good corporate governance. The By-law facilitates an orderly and efficient annual or special meeting process and it ensures that all shareholders receive adequate notice of director nominations with sufficient information with respect to all nominees. This allows Pulse and its shareholders to evaluate the proposed nominees' qualifications and suitability as directors, which further allows shareholders to cast an informed vote for the election of directors.
CONFERENCE CALL FOR THE 2012 YEAR END RESULTS
Pulse will host a conference call on Tuesday, March 19, 2013 at 11:00 am MT (1:00 pm ET) to discuss the Company's results for the fourth quarter and year-end 2012. Neal Coleman, President & CEO will chair the call with Pamela Wicks, VP Finance & CFO taking part. A question-and-answer period will follow an update on the Company's strategies and outlook.
To participate please dial 416-340-2216 or 866-226-1792 approximately 10 minutes before the commencement of the call. To listen to the webcast of the conference call please visit the Company's website at .
An archival recording of the conference call will be available approximately one hour after the completion of the call until March 26, 2013. To access the replay, please dial 905-694-9451 or 800-408-3053 and enter the pass code 1025519.
CORPORATE PROFILE
Pulse is a market leader in the acquisition, marketing and licensing of 2D and 3D seismic data to the western Canadian energy sector. Pulse owns the second-largest licensable seismic data library in Canada, currently consisting of approximately 27,630 net square kilometres of 3D seismic and 340,000 net kilometres of 2D seismic. The library extensively covers the Western Canada Sedimentary Basin where most of Canada's oil and natural gas exploration and development occur.
Forward Looking Information
This news release contains information that constitutes "forward looking information" or "forward looking statements" (collectively, "forward looking information") within the meaning of applicable securities legislation. This forward looking information includes, among other things, statements regarding:
Often, but not always, forward looking information uses words or phrases such as: "expects", "does not expect" or "is expected", "anticipates" or "does not anticipate", "plans" or "does not plan", "estimates" or "estimated", "projects" or "projected", "forecasts" or "forecasted", "believes" or "does not believe", "intends" or "does not intend", "likely" or "unlikely", "possible", "probable", "scheduled", "positioned", "goal", "objective", "hopes", "optimistic" or states that certain actions, events or results "should", "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Undue reliance should not be placed on forward-looking information. Forward looking information is based upon current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to vary and in some instances to differ materially from those anticipated in the forward looking information.
The material risk factors that could cause actual results to differ materially from the forward-looking information include, but are not limited to:
The foregoing list of risks is not exhaustive. Additional information on these risks and other factors which could affect the Company's operations or financial results are included in the Risk Factors section of the Company's MD&A for the most recent calendar year and interim periods. Forward looking information is based upon the assumptions, expectations, estimates and opinions of the Company's management at the time the information is presented.
Contacts:
Pulse Seismic Inc.
Neal Coleman
President and CEO
(403) 237-5559 or Toll-free: 1-877-460-5559
Pulse Seismic Inc.
Pamela Wicks
VP Finance and CFO
(403) 237-5559 or Toll-free: 1-877-460-5559
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 18.03.2013 - 20:00 Uhr
Sprache: Deutsch
News-ID 240501
Anzahl Zeichen: 3998
contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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