AvenEx Energy Corp.
TSX : AVF

AvenEx Energy Corp.

August 12, 2011 18:23 ET

AvenEx Energy Corp. Announces Second Quarter 2011 Results

CALGARY, ALBERTA--(Marketwire - Aug. 12, 2011) -

AvenEx Energy Corp. ("AvenEx" or the "Company") (TSX:AVF) is pleased to announce the financial and operational results for the second quarter ended June 30, 2011 and to announce they have filed the complete Management Discussion and Analysis and Unaudited Interim Consolidated Financial Statements. Certain selected financial and operational information is set out below and should be read in conjunction with AvenEx's financial statements and related Management Discussion and Analysis. These filings will be available on the Corporation's SEDAR profile at www.sedar.com.


TOTAL CONSOLIDATED FINANCIAL SUMMARY                                        
----------------------------------------------------------------------------
                                        For the three months ended June 30  
                                       -------------------------------------
(in thousands of dollars except for                                      % 
 per share amounts)                           2011         2010     Change  
----------------------------------------------------------------------------

Total Revenue                             $239,284     $116,178        106  
Funds From Continuing Operations                                            
 (FFCO)(1)                                 $11,986       $7,414         62  
FFCO(1)Per Share - Basic                     $0.23        $0.17         35  
Funds From Operations (FFO)(1)             $12,096       $8,007         51  
FFO Per Share(1)- Basic                      $0.23        $0.19         21  
Dividends                                   $7,139       $7,711         (7) 
Dividends Per Share - Basic                 $0.135        $0.18        (22) 
Dividend Payout Ratio(2)                        59%          96%        39  
Net Income from Continuing Operations                                       
 (NICO)                                    $14,521       $3,549        309  
NICO Per Share - Basic                       $0.27        $0.08        238  
Net Income (loss)                          $14,475       $3,848        276  
Net Income (loss) Per Share - Basic          $0.27        $0.09        200  
Total Assets                              $450,849     $324,032         39  
Working Cap. excluding assets held for                                      
 sale                                     ($38,050)     $14,044       (371) 
Mortgages (assets held for sale)            $5,512      $15,793         65  
Wtd. Avg. Shares Outstanding - Basic    52,877,930   42,789,014         24  
Shares Outstanding                      52,877,930   42,865,654         23  

TOTAL CONSOLIDATED FINANCIAL SUMMARY                                      
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                                         For the six months ended June 30 
                                      ------------------------------------
(in thousands of dollars except for                                     %  
 per share amounts                           2011         2010     Change
--------------------------------------------------------------------------

Total Revenue                            $449,264     $337,196         33 
Funds From Continuing Operations                                          
 (FFCO)(1)                                $26,384      $20,545         28 
FFCO(1)Per Share - Basic                    $0.50        $0.48          4 
Funds From Operations (FFO)(1)            $26,633      $21,732         23 
FFO Per Share(1)- Basic                     $0.50        $0.51         (2)
Dividends                                 $16,656      $15,358          8 
Dividends Per Share - Basic                 $0.32        $0.36        (11)
Dividend Payout Ratio(2)                       63%          71%        11 
Net Income from Continuing Operations                                     
 (NICO)                                   $12,550       $1,281        880 
NICO Per Share - Basic                      $0.24        $0.03        700 
Net Income (loss)                         $12,731       $1,629        651 
Net Income (loss) Per Share - Basic         $0.24        $0.04        500 
Total Assets                             $450,849     $324,032         39 
Working Cap. excluding assets held for                                    
 sale                                    ($38,050)     $14,044       (371)
Mortgages (assets held for sale)           $5,512      $15,793         65 
Wtd. Avg. Shares Outstanding - Basic   52,871,331   42,616,763         24 
Shares Outstanding                     52,877,930   42,865,654         23 
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(1) Funds from continuing operations ("FFCO"), funds from continuing operations per share, funds from operations ("FFO"), Funds from Operations per share are not recognized measures under International Financial Reporting Standards (IFRS). Funds from Operations is calculated by taking cash provided by operating activities on the statement of cash flows adjusted for the effect of changes in non-cash working capital and asset retirement costs incurred. Management believes that these measures are useful supplemental measures to analyze operating performance as they demonstrate AvenEx's ability to generate the Funds from Operations necessary to fund future dividends and capital investments. AvenEx's method of calculating these measures may differ from other issuers, and accordingly, they may not be comparable to measures used by other issuers. Investors should be cautioned that these measures should not be construed as an alternative to net income, cash flow from operating activities or other measures of financial performance calculated in accordance with IFRS.

(2) Dividend Payout Ratio is calculated by dividing the Monthly Dividends by the Funds from Operations. During the first quarter of 2011 there were four dividends declared versus three in the first quarter of 2010.

SECOND QUARTER 2011 RESULTS SUMMARY

The Corporation's second quarter 2011 results were in line with management expectations but significantly ahead of the prior year as the impact of higher oil production and prices offset production shut-ins and rail disruptions in a very wet second quarter. For the quarter ended June 30, 2011, the Corporation had net income of $14.5 million, funds from operations of $12.1 million and distributions of 59% of funds from operations. This compares to the second quarter of the previous year, where the Corporation had net income of $3.8 million, funds from operations of $8.0 million and distributions of 96% of funds from operations The payout ratio is on track with our annual 60% ratio target despite the fact that the second quarter is traditionally the weakest quarter due to the seasonal slowdown for the Elbow River Marketing Group. Of the second quarter 2011 funds from operations, the Oil and Gas Division provided 87%, with 15% coming from Elbow River, 1% from Real Estate and the Corporate Division used 3%.

In the Oil and Gas Division, second quarter 2011 production averaged 5,086 BOE per day, up 47% from the 3,471 BOE per day in the corresponding quarter of 2010 largely as a result of the acquisition of Great Plains Exploration Inc. in the fourth quarter of 2010. Production however was down 6% from first quarter 2011 levels as production was impacted by wild fires and pipeline restrictions in Randell in NW Alberta, an extended wet spring break-up delaying drilling plans, a scheduled plant maintenance in Noel and the permanent shut-in of 150 BOE per day of low netback natural gas in Liege due to a gas over bitumen ruling in June. Quarterly production volumes were split 45% oil and NGL and 55% natural gas. Second quarter oil and NGL prices were $87.16 up 30% over the previous year while natural gas prices were $4.35 per mcf down 19% from the previous year level. 2010 benefited from a natural gas hedging program at a significantly higher price than currently available and in place in 2011. Prices for the year averaged $82.08 per barrel for oil and NGL and $4.46 per Mcf for natural gas. Given the continued weakness in the natural gas markets, the Corporation has protected its 2011 cashflow with about 25% of its natural gas production hedged at prices of above $5.75 per Mcf for the year. Operating netbacks improved with the higher oil prices to $27.62 per BOE versus $21.77 per BOE in the comparable period last year and $24.11 per BOE in the first quarter of 2011.

The 2011 oil & gas capital budget remains at $34 million with an additional $8.9 million first quarter Southern Alberta property acquisition. Horizontal oil projects will be the focus of the balance of the year in the Cardium at Pembina, the Shaunavon and Viking in SW Saskatchewan and the Beaverhill Lake and Slave Point zones in NW Alberta. The capital program is 90% focused on oil projects with a view to increasing the oil/natural gas ratio closer to a 50%/50% per BOE weighting by year end. Although AvenEx has significant natural gas upside, natural gas development continues to be closely managed in view of current low natural gas prices. The capital program will also be weighted more heavily to the latter part of the year than originally forecast due the wet second and early third quarter field conditions and resulting drilling delays. Drilling is now underway in Pembina with completion results expected in September. Accordingly, given the delayed timing of summer drilling program and the 150 BOE per day shut-in at Liege the balance of the year is now expected to average between 5,000 - 5,200 BOE per day.

Overall, the Elbow River Marketing Group results were ahead of the prior year results but slightly behind internal expectations as flooding and rail disruptions impacted sales and inventory timing particularly in the crude and heavy fuel oil sales areas. The second quarter provided funds from operations of about $1.9 million versus last year's $1.5 million. The quarter included unrealized gains of financial instruments of $13.3 million on its hedged forward sales as a result of changes in the underlying product commodity prices. The gain impacts net income but not funds from operations as the gains or losses reverse in the coming periods when the physical transactions occur. The second and third quarters are traditionally Elbow River's weakest quarters as winter propane and butane demand subsides but with term sales ahead of last year's numbers and the second quarter rail issues behind us, the third quarter appears to be more in line with past year's sales levels rather than the weak 2010 levels.

The Corporation is continuing with the disposition of its real estate portfolio in order to focus on its more energy related divisions. Two portfolio properties remain, including an industrial property in Ontario and the "larger centre" Western Canadian theatre package. We are now targeting to have transactions in place on the remaining properties by the end of the fall 2011. Sale funds generated will be redeployed into growth opportunities in the energy divisions. The portfolio continues to be 100% leased and perform as expected.

In the second quarter, the Trust did not sell any of the EnerVest Diversified Income Trust units being held for investment purposes. The EnerVest units currently yield around 8.5%, but will be disposed of as opportunities arise for the redeployment of the capital into one of the Trust's core businesses. The Trust continues to maintain a strong balance sheet post the Great Plains acquisition, with a debt to cash flow ratio of less than 1:1 (exclusive of mortgages), undrawn bank lines in the Oil and Gas Division and remaining mortgages of about $5.5 million in the Real Estate Division.

The Corporation paid monthly dividends of $0.045 throughout the second quarter. The Avenex board of directors reviews the dividend level monthly and based on current commodity prices, tax pool balances operational forecast and balance sheet strength, the current forecast 2011 dividend payout ratio is targeted at 60% of funds from operations. This compares to a 70%-80% target distribution payout ratio of funds from operations when AvenEx was a Trust.

REVIEW OF FINANCIAL RESULTS

Net income from continuing operations for the quarter ended June 30, 2011 was $14.5 million, up from a net income of $3.5 million in the quarter ended June 30 2010. Net income for the quarter ended June 30, 2011 was $14.5 million, up from a net income of $3.8 million for the quarter ended June 30, 2010.

Funds from continuing operations were $12.0 million for the quarter ended June 30, 2011, higher than $7.4 million in the comparable quarter in 2010. Funds from operations were $12.1 million for the quarter ended June 30, 2011, up from funds from operations for the quarter ended June 30, 2010 of $8.0 million.

AvenEx declared dividends of $7.1 million ($0.135 per share) for the quarter ended June 30, 2011 which is down from the $7.7 million ($0.18 per share) distributed for the quarter ended June 30, 2010. The second quarter payout ratio was 59% of funds from operations compared to 96% at June 30, 2010. The six month dividend payout ratio of 63% was higher than long term targets of 60% due to an extra dividend being declared on January 4, 2011 as AvenEx transitioned to a corporation. This was followed by the normal monthly dividends for each of the first six months of 2011. Without this additional dividend, the dividend payout ratio would have been 54%.

The Common Shares of AvenEx trade on the Toronto Stock Exchange (the "TSX") under the trading symbol AVF. Previous historical references to "unitholders", "distributions", "trust units" and "per unit' have now been replaced by "shareholders", "dividends", "common shares" and "per share", respectively, where applicable. Despite the change in legal structure from a trust to a dividend paying corporation, AvenEx's business activities and business strategy remain unchanged and all officers and directors remain the same.

Adoption of International Financial Reporting Standards ("IFRS")

On January 1, 2011, AvenEx adopted IFRS for financial reporting purposes, using a transition date of January 1, 2010. The unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2011, including required comparative information, have been prepared in accordance with IAS 34, as issued by the IASB. Except as noted in the Selected Quarterly Information section of this MD&A, 2010 comparative information has been prepared in accordance with IFRS. Reconciliations between previous Canadian GAAP and IFRS can be found in Note 19 of the unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2011. The adoption of IFRS has not had an impact on the Corporation's operations, strategic decisions or cash flow. The most significant area of impact was the adoption of the IFRS accounting policies relating to property, plant and equipment, and income taxes. Further information on the impact of converting to IFRS is provided in the Critical Accounting Policies section of this MD&A, in Notes 3 and 23 of the Corporation's unaudited interim condensed consolidated financial statements for the three months ended March 31, 2011 and in Note 19 of the unaudited interim condensed consolidated financial statements for the three and six months ended June 30, 2011.

AvenEx Energy Corp. was created to provide stable, sustainable dividends to shareholders while providing modest growth. AvenEx is focused on energy with two distinct business units, namely Oil & Gas development and production and LPG marketing and logistics.

AvenEx trades on the TSX under the symbol AVF. For further information on AvenEx please go to our website at: www.avenexenergy.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Forward Looking Statements

Certain statements contained herein including, without limitation, financial and business prospects and financial outlook, the effect of government announcements, proposals and legislation, plans in its Oil and Gas Division regarding hedging, wells to be drilled, expected or anticipated production rates, timing of expected production increases, the weighting of production between different commodities, expected commodity prices, exchange rates, production expenses, transportation costs and other costs and expenses, maintenance of productive capacity and capital expenditures; plans in the Elbow River Marketing Limited Partnership ("Elbow River") business regarding plans for its ongoing Liquefied Petroleum Gas ("LPG") business and activities around the exit from marketing its bio-diesel product; plans in the Real Estate Division for the timing of selling assets and the nature of capital expenditures; and the timing and method of financing these businesses, may be forward looking statements. Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", "continue", "targeted" and similar expressions may be used to identify these forward looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Forward looking statements involve significant risk and uncertainties.

A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including, but not limited to, risks associated with oil and gas exploration: development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and the inability to retain drilling rigs and other services; risks associated with its Elbow River business including, but not limited to, counterparty risk in default, operational risks, hedging, access to credit, competitor risk, seasonality and impact of the global recession on overall economic activity; and risks associated with the Real Estate Division including, but not limited to the impact the overall economy has on valuations, future delinquencies, access to mortgages and impact on interest rates; as well as the risks associated with AvenEx's incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources and the risk factors outlined under "Risk Factors" and elsewhere herein. The recovery and reserve estimates of AvenEx's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although AvenEx believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because AvenEx can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which AvenEx operates; the timely receipt of any required regulatory approvals; the ability of AvenEx to obtain qualified staff, equipment and services in a timely and cost efficient manner; Divisional results; the ability of operators to operate the field in a safe, efficient and effective manner; the ability of AvenEx to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of AvenEx to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which AvenEx operates; and the ability of AvenEx to successfully market its products, fluctuations in foreign exchange or interest rates and stock market volatility, credit risk and the ability to realize on collateral in the event of default, failure of counter parties to perform on contracts, fluctuation in the value of real property, failure to produce income or revenue from real estate, failure of tenants to meet lease obligations, increase in property taxes and mortgage, maintenance, insurance, operating costs and decreases in occupancy and rental rates, and fixed costs in relation to variable revenue streams. Readers are cautioned that the foregoing list of factors is not exhausted.

Forward looking statements and other information contained herein concerning the Oil and Gas Division, Elbow River's business, the Real Estate Division and AvenEx's general expectations concerning these industries are based on estimates prepared by each Division's management and from using data from publicly available industry sources as well as from reserve reports, market research and industry analysis and on assumptions based on data and knowledge of these industries which AvenEx believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While AvenEx is not aware of any misstatements regarding any industry data presented herein, these industries involve risks and uncertainties and are subject to change based on various factors.

These forward looking statements are made as of the date hereof and AvenEx assumes no obligation to update or review them to reflect new events or circumstances except as required by applicable securities laws.


AvenEx Energy Corp.

CONSOLIDATED BALANCE SHEETS

(Unaudited)                

As at                                                                       
                                                    June 30,    December 31,
                                                        2011            2010
(in thousands of dollars)                                  $               $
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ASSETS                                                                      
Current                                                                     
Cash                                                       -           1,028
Marketable securities                                  7,361           7,595
Accounts receivable                                   73,068          64,659
Prepaid expenses                                       2,830           3,514
Inventory                                             31,098          25,591
Risk management assets                                13,260           4,950
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Current assets                                       127,617         107,337
Assets held for sale - Real Estate                    12,543          12,533
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                                                     140,160         119,870
Exploration and evaluation                            34,133          32,613
Property, plant and equipment                        217,233         204,731
Intangibles and other assets                          12,085          12,836
Goodwill                                              28,069          28,069
Deferred income taxes                                 19,169          24,492
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                                                     450,849         422,611
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LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current                                                                     
Bank indebtedness                                     77,233          58,380
Accounts payable and accrued liabilities              83,282          72,988
Dividend payable                                       2,380               -
Risk management liabilities                            2,772           5,461
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Current liabilities                                  165,667         136,829
Liabilities of assets held for sale - Real                                  
 Estate                                                5,640           5,862
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                                                     171,307         142,691
Decommissioning liabilities                           23,885          22,198
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                                                     195,192         164,889
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Shareholders' equity                                                        
Share capital                                        250,936         250,337
Contributed surplus                                    7,695           6,144
Deficit                                               (3,990)              -
Accumulated other comprehensive income                 1,016           1,241
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                                                     255,657         257,722
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                                                     450,849         422,611
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AvenEx Energy Corp.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)                                                                 

For the                            Three months ended      Six months ended 
                                              June 30               June 30,
                                      2011       2010       2011       2010 
(in thousands of dollars)                $          $          $          $ 
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REVENUE                                                                     
Oil and gas revenue                 25,293     14,718     50,045     30,858 
Royalties                           (4,354)    (1,893)    (9,048)    (4,198)
Unrealized gain (loss) on                                                   
 financial instruments               4,416         44       (111)       954 
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Total oil and gas revenue           25,355     12,869     40,886     27,614 
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Elbow River revenue                200,431    102,308    396,960    325,624 
Unrealized gain (loss) on                                                   
 financial instruments              13,345        320     11,109    (17,628)
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Total Elbow River revenue          213,776    102,628    408,069    307,996 
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Gain (loss) on sale of                                                      
 marketable securities                   -        383          -        848 
Interest and other revenue             153        298        309        738 
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Total revenue                      239,284    116,178    449,264    337,196 
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EXPENSES                                                                    
Oil and gas operating                7,642      5,477     15,347     10,725 
Oil and gas transportation costs       512        388      1,166        696 
Elbow River operating              197,290    100,090    387,574    314,963 
General and administrative           4,165      3,285      8,927      8,262 
Share based compensation             1,023       (299)     1,752      1,772 
Bad debt expense (recovery)           (289)      (261)      (797)      (316)
Finance costs                          848        (73)       927        334 
Capital taxes                           95         81        167        170 
Exploration and evaluation             320         41        534         98 
Depletion, depreciation and                                                 
 amortization                        7,656      4,779     15,774      9,623 
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                                   219,262    113,508    431,371    346,327 
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Income (loss) from continuing                                               
 operations before income tax       20,022      2,670     17,893     (9,131)
Deferred income tax recovery                                                
 (expense)                          (5,501)       879     (5,343)    10,412 
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Net income from continuing                                                  
 operations                         14,521      3,549     12,550      1,281 
Net income (loss) from                                                      
 discontinued operations - Real                                             
 Estate                                (46)       299        181        414 
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Net income for the period           14,475      3,848     12,731      1,695 
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Other comprehensive income:                                                 
 Change in fair value of                                                    
  marketable securities, net of                                             
  tax                                 (414)    (1,175)      (225)        60 
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Other comprehensive income            (414)    (1,175)      (225)        60 
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Comprehensive income for the                                                
 period                             14,061      2,673     12,506      1,755 
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Net income from continuing                                                  
 operations per share                                                       
Basic and diluted                     0.27       0.03       0.24       0.08 
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Net income from discontinued                                                
 operations per share                                                       
Basic and diluted                     0.00       0.01       0.00       0.01 
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Net income per share Basic and                                              
 diluted                              0.27       0.04       0.24       0.09 
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AvenEx Energy Corp.                                                         

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                 
(Unaudited)                                                                 

As at                                                                       
                                  Six months ended          Six months ended
                                     June 30, 2011             June 30, 2010
(in thousands of                                                            
 dollars)                      Number            $       Number            $
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Share capital                                                               
Balance, beginning of                                                       
 period                    52,783,690      250,337            -            -
Exercise of options            94,240          599            -            -
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Balance, end of period     52,877,930      250,936            -            -
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Unitholders' capital                                                        
Balance, beginning of                                                       
 period                             -            -   42,110,678      421,270
Exercise of options                 -            -      754,976        4,338
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Balance, end of period              -            -   42,865,654      425,608
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Contributed surplus                                                         
Balance, beginning of period                 6,144                        - 
Exercise of options                           (107)                       - 
Cash settlement of options                     (94)                       - 
Share based compensation expense             1,752                        - 
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Balance, end of period                       7,695                        - 
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Retained earnings (deficit)                                                 
Balance, beginning of period                     -                 (187,550)
Net income (loss)                           12,731                    1,695 
Distributions declared during the period         -                  (15,358)
Dividends declared during the period       (16,721)                       - 
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Balance, end of period                      (3,990)                (201,213)
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Accumulated other comprehensive income                                      
Balance, beginning of period                 1,241                      578 
Change in fair value of Marketable
 securities, net of tax                       (225)                      60 
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Balance, end of period                       1,016                      638 
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AvenEx Energy Corp.                                                         

CONSOLIDATED STATEMENTS OF CASH FLOWS                                       
(Unaudited)                                                                 

For the                                                                     
                                   Three months ended      Six months ended 
                                              June 30,              June 30,
                                      2011       2010       2011       2010 
(in thousands of dollars)                $          $          $          $ 
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OPERATING ACTIVITIES                                                        
Net income from continuing                                                  
 operations                         14,521      3,549     12,550      1,281 
Add (deduct) non-cash items:                                                
 Share based compensation            1,023       (299)     1,752      1,774 
 Non-cash general and                                                       
  administrative                       252        125        504        125 
 Exploration and evaluation            320         41        534         98 
 Depletion, depreciation and                                               
  amortization                       7,656      4,779     15,774      9,623 
 Accretion of decommissioning                                               
  liabilities                          468        281        872        570 
 Unrealized loss (gain) on                                                  
  financial instruments            (17,761)      (364)   (10,999)    16,674 
 Unrealized foreign exchange             6        181         53        812 
 Deferred income tax expense                                                
  (recovery)                         5,501       (879)     5,343    (10,412)
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Funds from continuing operations    11,986      7,414     26,383     20,545 
Funds from discontinued                                                     
 operations - Real Estate              110        593        249      1,187 
----------------------------------------------------------------------------
                                    12,096      8,007     26,632     21,732 
Asset retirement expenditures                                               
 during year                          (114)      (378)      (499)      (383)
Net change in non-cash working                                              
 capital                           (27,680)    (2,567)       773      4,169 
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Cash provided (used in) by                                                  
 operating activities              (15,698)     5,062     26,906     25,518 
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FINANCING ACTIVITIES                                                        
Issue of shares, net of issue                                               
 costs                                   -        685        354      2,130 
Cash settlement of options             (39)       (65)       (95)      (245)
Dividends paid                      (7,139)    (7,711)   (16,656)   (15,358)
Real estate repayment of                                                    
 mortgages                             (61)      (189)      (122)      (375)
Net change in non-cash working                                              
 capital                               (65)        19        (65)        45 
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Cash provided by (used in)                                                  
 financing activities               (7,304)    (7,261)   (16,584)   (13,803)
----------------------------------------------------------------------------
INVESTING ACTIVITIES                                                        
Oil and gas property                                                        
 acquisitions                         (114)      (174)    (9,247)      (660)
Oil and gas property disposals          45        (14)        47      3,413 
Oil and gas development                                                     
 expenditures                       (5,859)    (5,728)   (19,257)   (13,720)
Purchase of other assets              (192)      (123)      (310)      (218)
Purchase of financial services                                              
 royalty                                 -     (5,035)         -     (5,035)
Real estate dispositions                 -      1,100          -      1,100 
Net change in non-cash working                                              
 capital                             1,596      2,648     (1,505)     9,646 
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Cash provided by (used in)                                                  
 investing activities               (4,524)    (7,326)   (30,272)    (5,474)
----------------------------------------------------------------------------
Increase (decrease) in cash and                                             
 cash equivalents during the        
 period                            (27,526)    (9,525)   (19,950)     6,241 
Cash and cash equivalents (bank                                             
 indebtedness), beginning of       (49,733)     5,657    (57,354)   (10,152)
period                                                                      
Change in cash of assets held                                               
 for sale                               26       (162)        71       (119)
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Cash and cash equivalents (bank                                             
 indebtedness), end of period      (77,233)    (4,030)   (77,233)    (4,030)
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Supplemental information:                                                   
Cash taxes paid                         27         11         49         59 
Cash interest paid                     574        125        901        290 
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The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • AvenEx Energy Corp.
    William Gallacher
    President & CEO
    (403) 237-9949
    (403) 237-0903 (FAX)

    AvenEx Energy Corp.
    Gary H. Dundas
    Vice-President, Finance and CFO
    (403) 237-9949
    (403) 237-0903 (FAX)

    AvenEx Energy Corp.
    Suite 300, 808 - 1st Street S.W.
    Calgary, Alberta T2P 1M9
    www.avenexenergy.com