Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Penn Virginia Offers Near-Term Risk, But Long-Term Reward

When a stock goes from about $4.50 to almost $13 in the space of a year, and analyst price targets have more than doubled in the trailing six months, something pretty dramatic is going on. That seems like a fair summary of Penn Virginia (PVA) as this once gas-heavy small-cap E&P has transitioned to an oil-oriented company with exceptional real estate in the Eagle Ford.

It's not all Beverly Hillbillies yet, though. As the last couple of quarters have shown, hitting production and earnings targets is still a challenge. The company also has a significant amount of debt on the balance sheet and ambitious spending goals for 2014 and beyond. I do believe that further drilling in the Eagle Ford...

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