Greg Pinelli

Penn West Energy: More Questions Than Answers

This is, to say the least, a biased and not very informative article..in spite of its plethora of statistics and "analysis." For those of you...and apparently we are in the majority since PWE shares have been steadily rising for over 4 months, more reasoned about PWE consider the following...
1. Funds flow was a diluted per unit of 1.74 (incl Canetic and Vault)
2. Production is up to 192,000 boe per day..and ALL FUTURE OIL/GAS WILL BE MUCH MORE PROFITABLE BECAUSE THE CEASELESS RISE IN OIL AND THE LARGE GAIN IN NAT GAS
3. Light oil production is up substantially..this is worth noting since this is easily the most valuable type of oil and commands the highest price
4. The long term debt of 3.6 billion will be overwhelmed by higher production at higher prices..that 160% debt increase will prove to be minor in 2 years.
5. In spite of much increased production and the melding of new structures and resource into a single entity operating expenses are only 9% higher..that hardly sounds like poor management...
6. The distribution is steady thru July at which time I predict it will be raised....

Mr. Bui, in most of his articles, fails to take anything like a strategic perspective on any investment he writes about..I'm not sure he even understands the very substantial moat a safe haven provider of a diminishing resource has.
Of course...what do I know..my return on PWE has only been 27%..Mr. Bui certainly has any number of less worrisome investments in mind that top that...