August 6, 2010 / 11:20 AM / 7 years ago

UPDATE 2-Enerplus posts Q2 profit, raises spending

* Q2 profit C$0.18/unit vs yr-earlier loss C$0.02

* Cash flow from operations C$163.4 mln vs C$210.6 mln

* Raises 2010 capital spending view by C$60 mln

* Trims production guidance (Recasts, add details and updates unit prices)

CALGARY, Alberta, Aug 6 (Reuters) - Enerplus Resources Fund ERF_u.TO posted a quarterly profit on Friday on higher oil and natural gas prices after reporting a loss in the year-before quarter, but trimmed its 2010 production outlook after selling off assets.

Enerplus, the No. 4 Canadian oil and gas trust, said net second-quarter income rose to C$31.3 million ($30.4 million), or 18 Canadian cents a unit, from a loss of C$3.6 million, or 2 Canadian cents, in the second quarter of 2009.

The trust benefited from higher commodity prices in the quarter, selling its oil for an average price of C$68.72, up 15 percent from a year earlier, while it sold gas for C$3.78 per thousand cubic feet, up 8.3 percent.

The trust, which is revamping its operations to focus on growth properties ahead of switching to a corporate format at the beginning of next year, said cash flow fell 22 percent to C$163.4 million, or 92 Canadian cents a unit, from C$210.6 million, or C$1.27, in the year-before quarter, when results were boosted by hedging gains.

For the year, Enerplus expects production volumes to average 85,000 barrels of oil equivalent per day (boed), down from a previous estimate of 86,000 boed as it sold off producing properties to focus on its holdings in the Bakken oil field in Saskatchewan and North Dakota and Pennsylvania’s Marcellus shale-gas region.

It sees 2010 exit rates of 86,000 boed versus its previous forecast of 88,000 boed.

The trust said it plans to raise its capital spending by C$60 million to C$485 million, with the majority of the increase going to boost output from its Bakken lands.

Production in the quarter averaged 84,909 barrels of oil equivalent per day (boed), compared with 94,501 boed a year earlier.

Enerplus units were down 21 Canadian cents at C$23.71 at midafternoon on Friday on the Toronto Stock Exchange.

$1=$1.03 Canadian Reporting by Scott Haggett and Bhaswati Mukhopadhyay; editing by Peter Galloway

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