Switch to:
Penn West Petroleum Ltd (NYSE:PWE)
Cash Flow from Operations
$958 Mil (TTM As of Sep. 2014)

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 Sep. 2014, Penn West Petroleum Ltd's Net Income From Continuing Operations was $-14 Mil. Its DDA was $173 Mil. Its Change In Working Capital was $66 Mil. Its cash flow from deferred tax was $20 Mil. Its Cash Flow from Discontinued Operations was $0 Mil. Its Stock Based Compensation was $2 Mil. And its Cash Flow from Others was $18 Mil. In all, Penn West Petroleum Ltd's Cash Flow from Operations for the three months ended in Sep. 2014 was $265 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
=-760.338345865+1631.57894737+46.0526315789+-212.406015038
+Cash Flow from Discontinued Operations+Stock Based Compensation+Cash Flow from Others
+0+14.0977443609+190.789473684
=910

Penn West Petroleum Ltd's Cash Flow from Operations for the quarter that ended in Sep. 2014 is

Cash Flow from Operations(Q: Sep. 2014 )
=Net Income From Continuing Operations+DDA+Change In Working Capital+Deferred Tax
=-13.6227408955+172.554718009+66.2973390246+19.98001998
+Cash Flow from Discontinued Operations+Stock Based Compensation+Cash Flow from Others
+0+1.81636545273+18.1636545273
=265

Penn West Petroleum Ltd Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 295.112781955 (Dec. 2013 ) + 199.819981998 (Mar. 2014 ) + 197.599261311 (Jun. 2014 ) + 265.189356098 (Sep. 2014 ) = $958 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 Sep. 2014 was $-14 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 Sep. 2014 was $173 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 Sep. 2014 was $66 Mil. It means Penn West Petroleum Ltd's working capital increased by $66 Mil from Jun. 2014 to Sep. 2014 .

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 Sep. 2014 was $20 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 Sep. 2014 was $0 Mil.

6. Stock Based Compensation:
It is a way corporations use stock options to reward employees. It provides executives and employees the opportunity to share in the growth of the company and, if structured properly, can align their interests with the interests of the company's shareholders and investors, without burning the company's cash on hand.

Penn West Petroleum Ltd's stock based compensation for the three months ended in Sep. 2014 was $2 Mil.

7. 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 Sep. 2014 was $18 Mil.


Related Terms

Net Income From Continuing Operations, Depreciation, Depletion and Amortization, Change In Working Capital, Cash Flow from Discontinued Operations, Stock Based Compensation, 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 223497577175989-3131,020623126-760
CF_DDA 3393775688951,2921,4761,1601,1311,5651,632
ChangeInWorkingCapital 19-2-37-38-159-2684-483746
CF_DeferredTax 90-1-9275109-359-100-22259-212
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation 0000364915073-1814
Cash Flow from Others -1-68-56132-440501-1,106-184-630191
Cash Flow from Operations 6708039601,2391,8281,3291,2071,3741,138910

Penn West Petroleum Ltd Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
NetIncomeFromContinuingOperations 229-69-103-112-5133-634-80132-14
CF_DDA 307327596276267258856176181173
ChangeInWorkingCapital 22-871807-70-13119-31-7166
CF_DeferredTax 81-30-20-30-68-185232420
Cash Flow from Disc. Op. 0000000000
Stock Based Compensation -2911-113543322
Cash Flow from Others -33890-2637720-41136108-7018
Cash Flow from Operations 272243379221165250295200198265
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK