August 5, 2010 / 12:15 PM / 7 years ago

UPDATE 1-Penn West posts Q2 profit on higher crude oil prices

* Q2 profit C$0.44/unit vs loss C$0.10/unit yr ago

* Q2 production avg 163,700 boe/d vs 180,601 boe/d yr ago

* Sees 2010 capital spending in upper range of forecast

Aug 5 (Reuters) - Penn West Energy Trust PWT_u.TO on Thursday reported a quarterly profit on higher crude oil prices, and said it expects 2010 capital spending to be at the upper end of its forecast.

In May, Penn West had forecast 2010 exploration and development capital expenditures of C$700 million ($688.3 million) to C$850 million.

“We expect production to increase in the second half of this year from our delayed second quarter completions and our planned second half 2010 drilling program,” Penn West said in a statement. For the second quarter, the company reported net income of C$195 million, or 44 Canadian cents per trust unit, compared with a net loss of C$41 million, or 10 Canadian cents per trust unit, in the year ago.

Gross revenue for Penn West, which is an oil-weighted company, fell 9 percent to C$718 million.

Analysts on average were expecting the company to post a loss of 10 Canadian cent per unit, on revenue of C$747.4 million, according to Thomson Reuters I/B/E/S.

Second-quarter production averaged 163,700 barrels of oil equivalent (boe) per day, compared with 180,601 boe per day in the year-ago quarter.

The company said crude oil prices averaged West Texas Intermediate (WTI), the U.S. benchmark, $77.99 per barrel, compared with WTI US$59.62 per barrel last year.

For the full year, the trust still sees production of between 164,000 and 172,000 boe per day.

Penn West units closed at C$20.16 Wednesday on the Tonronto Stock Exchange.

$1=1.017 Canadian Dollar Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal

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