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Penn West Petroleum Ltd (NYSE:PWE)
Cash Flow from Operations
$989 Mil (TTM As of Dec. 2013)

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

For the three months ended in Dec. 2013, Penn West Petroleum Ltd's Net Income From Continuing Operations was $-665 Mil. Its DDA was $905 Mil. Its Change In Working Capital was $118 Mil. Its cash flow from deferred tax was $-197 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. And its Cash Flow from Others was $140 Mil. In all, Penn West Petroleum Ltd's Cash Flow from Operations for the three months ended in Dec. 2013 was $301 Mil.


Definition

Cash flow from operations refers to the cash brought in through a company’'s normal business operations. It is the cash flow before any investment or financing activities. It is the cash version of net income.

Penn West Petroleum Ltd's Cash Flow from Operations for the fiscal year that ended in Dec. 2013 is calculated as:

Cash Flow from Operations(A: Dec. 2013 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=-765.996343693+1677.3308958+46.6179159049+-215.722120658
+Cash Flow from Discontinued Operations+Cash Flow from Others
+0+207.495429616
=950

Penn West Petroleum Ltd's Cash Flow from Operations for the quarter that ended in Dec. 2013 is

Cash Flow from Operations(Q: Dec. 2013 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=-665.447897623+904.936014625+117.915904936+-196.526508227
+Cash Flow from Discontinued Operations+Cash Flow from Others
+0+139.853747715
=301

Penn West Petroleum Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was 251.226692836 (Mar. 2013 ) + 191.346153846 (Jun. 2013 ) + 246.138996139 (Sep. 2013 ) + 300.731261426 (Dec. 2013 ) = $989 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

Cash flow from operations contains six items:

1. Net Income From Continuing Operations:
Net Income From Continuing Operations indicates the net income that a firm brings in from ongoing business activities. These activities are expected to continue into the next reporting period. It excludes extraordinary items, income from the cumulative effects of accounting changes, non-recurring items, income from tax loss carry forward, and preferred dividends.

Penn West Petroleum Ltd's net income from continuing operations for the three months ended in Dec. 2013 was $-665 Mil.

2. Depreciation, Depletion and Amortization:
Depreciation is a present expense that accounts for the past cost of an asset that is now providing benefits.
Depletion and amortization are synonyms for depreciation.
Generally:
• The term “depreciation” is used when discussing man made tangible assets
• The term “depletion” is used when discussing natural tangible assets
• The term “amortization” is used when discussing intangible assets

Penn West Petroleum Ltd's depreciation, depletion and amortization for the three months ended in Dec. 2013 was $905 Mil.

3. Change In Working Capital:
Working Capital is a measure of a company's short term liquidity or its ability to cover short term liabilities. It is defined as the difference between a company's current assets and current liabilities. Changes in Working Capital is reported in the cash flow statement since it is one of the major ways in which net income can differ from operating cash flow.

Penn West Petroleum Ltd's change in working capital for the three months ended in Dec. 2013 was $118 Mil. It means Penn West Petroleum Ltd's working capital increased by $118 Mil from Sep. 2013 to Dec. 2013 .

4. Deferred Tax:
It is the cash flow generated from deferred tax.

Penn West Petroleum Ltd's cash flow from deferred tax for the three months ended in Dec. 2013 was $-197 Mil.

5. Cash Flow from Discontinued Operations:
Cash received by a company that comes from the sale of part of business.

Penn West Petroleum Ltd's cash flow from discontinued operations for the three months ended in Dec. 2013 was $0 Mil.

6. Cash Flow from Others:
These are cash differences caused by the change of inventory, accounts payable, accounts receivable etc. For instance, if a company pays its suppliers slower, its cash position will build up faster. If a company receives payments from its customers slower, its account receivables will rise, and its cash position will grow more slowly (or even shrink).

Penn West Petroleum Ltd's cash flow from others for the three months ended in Dec. 2013 was $140 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Cash Flow from Others, Cash Flow from Investing


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Penn West Petroleum Ltd Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
NetIncomeFromContinuingOperations 222499566174997-3161,034630150-766
CF_DDA 3373785578881,3011,4901,1761,1431,5921,677
ChangeInWorkingCapital 19-2-37-38-160-2686-483747
CF_DeferredTax 89-1-9075110-362-102-22464-216
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -1-68-54131-407556-970-112-640207
Cash Flow from Operations 6678069411,2301,8421,3421,2241,3891,203950

Penn West Petroleum Ltd Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
NetIncomeFromContinuingOperations 13555359232-68-79-95-3826-665
CF_DDA 286304314312324625274270264905
ChangeInWorkingCapital 9582-8023-861797-69-13118
CF_DeferredTax 73-472482-29-15-2605-197
Cash Flow from Disc. Op. 0000000000
Cash Flow from Others -170-414-83-372100-2669129-37140
Cash Flow from Operations 420478236276241445251191246301
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