Penn West revises 2014 guidance to include $175M in asset dispositions


Penn West Petroleum (PWE) says it sees Q4 production of 124K boe/day and FY 2013 production of 135.1K boe/day in-line with earlier guidance.

PWE's 2013 exit production rate - based on field estimates and including the impact of previously announced divestments of ~10.8K boe/day and weather related and other operational curtailments of ~4.5K boe/day - was ~113K boe/day.

Sees FY 2014 production 101K-106K boe/day vs. earlier guidance of 105K-110K boe/day, reflecting additional non-core asset dispositions for expected proceeds of ~$175M.

Comments (23)
  • Bob Carl
    , contributor
    Comments (335) | Send Message
     
    I think the is a liquidating ship, slowly sinking. Tell me why it is not.
    21 Jan 2014, 05:21 PM Reply Like
  • Ajayyy
    , contributor
    Comments (325) | Send Message
     
    That would be an insult to all ships.
    This company has done nothing but disappoint, disappoint, disappoint and put all the investors in red. Such losers deserve to be shunned.
    21 Jan 2014, 05:30 PM Reply Like
  • AContrarian
    , contributor
    Comments (153) | Send Message
     
    Bitter LT shareholder I presume... keep those emotions in check and re-evaulate the company on a go-forward basis.

     

    This isn't really news - other than the company is continuing to do what they said they were going to - sell non-core assets to de-lever.
    21 Jan 2014, 06:09 PM Reply Like
  • RASTA
    , contributor
    Comments (59) | Send Message
     
    Bob,This company has substantial assets over liabilities.Prior to the knew CEO ,PWE "grew" for the sake of growth---not profits.Further they were being eaten alive by two much pay-roll and interest debt.Now PWE is " rightsizing"-forming a solid foundation!Once the press understands-PWE will become a media darling-in the meantime there will be people trying to scare you and me out!but I believe that the new mgt.plus hopefully stable energy prices PWE is a gift!And just imagine what would happen if Keystone were approved!Rasta
    21 Jan 2014, 08:13 PM Reply Like
  • Ajayyy
    , contributor
    Comments (325) | Send Message
     
    No holder at all. I've been in and out of it but I've seen so many people get burnt over this. I just know a wreck when I see one. I've been covering it for a while waiting for the right entry point that has never really materialized because it is so full of bad news and lower lows.
    21 Jan 2014, 10:14 PM Reply Like
  • Bob Carl
    , contributor
    Comments (335) | Send Message
     
    Rasta,

     

    Thanks. I will restudy this in depth and reconsider.

     

    Bob
    22 Jan 2014, 12:28 AM Reply Like
  • RASTA
    , contributor
    Comments (59) | Send Message
     
    Very good.You are welcome.Rasta
    22 Jan 2014, 08:59 AM Reply Like
  • user 1869665
    , contributor
    Comments (102) | Send Message
     
    Actually, the news is good news.
    If you look at what was HES doing 1-2 years back, you will realize PWE is doing the exactly same thing as HES has been doing in the last 2 years. Basically selling assets to consolidate its business.

     

    I loaded HES around 1.5 years back when I saw insiders was buying. Now, my HES has near 2X gain. At the end of last year I switched 50% of my HES to PWE simply because PWE will have more upside potential. HES may have another 10-20% upside due to the spin off its gas station business, PWE can easily give me over 50% gain after they finish their business consolidation.

     

    Another thing is same as HES is the insider buying activities. HES insiders bought a lot of shares when it was traded at $45-$55. PWE insiders bought a lot when it was traded at around $10-11, and bought more at around $8.5. The management of the company knows what the company worth. Otherwise, they won't bet their big money to buy large amount of shares.
    21 Jan 2014, 05:45 PM Reply Like
  • ystock15
    , contributor
    Comments (165) | Send Message
     
    Yet another Canadian oil sand company I own. The Canadian oil sand industry itself is crap, I just can't wait to get rid of this junk!
    21 Jan 2014, 05:49 PM Reply Like
  • AContrarian
    , contributor
    Comments (153) | Send Message
     
    That is funny.

     

    A) They are not an "oil sand company"
    B) and why do you own them if you don't know that?
    21 Jan 2014, 06:12 PM Reply Like
  • Ajayyy
    , contributor
    Comments (325) | Send Message
     
    It is never a better time to get out of a bad trade than today itself. If you think this is a bad stock and you won't be getting your money's full potential, then invest that money where you consider it to be better utilized.
    21 Jan 2014, 10:17 PM Reply Like
  • user 1869665
    , contributor
    Comments (102) | Send Message
     
    With the quarterly update, and Q4 average price for the gas and oil. I think some analysts could figure out the revenue number and approximately income. The good news is that gas price is higher than many expected. PWE should be able to beat the income number quite easily.
    21 Jan 2014, 07:00 PM Reply Like
  • RASTA
    , contributor
    Comments (59) | Send Message
     
    PWE is doing exactly what they said they would do!Company is reducing debt proficiatley,cutting expenditures, enroute to extremely strong FFO!The decrease in production is minimal/marginalRasta
    21 Jan 2014, 07:27 PM Reply Like
  • FinancialIndependence
    , contributor
    Comments (4) | Send Message
     
    The fishing line has been thrown out several times by this company and no catch. I was really hoping to see some strong leadership by the new management team. Talking needs results, soon.......

     

    They have loads of acreage to get aggressive but no positive news so far just downgraded guidance. The 'plan' is not getting across nor working.

     

    PGH as an example is embracing new technology and looking forward and selling the progress. PWE can use some of these new technologies as well.... but I have not seen any updates ony dissapointments?

     

    Get on with it PWE!
    21 Jan 2014, 08:04 PM Reply Like
  • RASTA
    , contributor
    Comments (59) | Send Message
     
    The new CEO from Marathon has been there for less than eight months!!!!!!!!!!!!!Cut over 500 workers and sold appx $600 billion in extraneous assets-wish he would run for US President!Rasta
    21 Jan 2014, 08:29 PM Reply Like
  • BAUERS6116
    , contributor
    Comment (1) | Send Message
     
    That would be $600 Million>
    21 Jan 2014, 11:01 PM Reply Like
  • Brian McMorris
    , contributor
    Comments (1255) | Send Message
     
    I have been in and out of PGH and PWE for years. PGH was a doggie dog until the last year. Management changed and changed the strategy. So I bought at $4-5 and have been rewarded recently. Now, PWE is following the same script. Management changed and results will follow. I have been buying between $8-9.

     

    I really don't get all the sad sacks out there who want to put down PWE based on its history. Looking back has no place in investing. Who cares what the old management did in 2012. If you got burned by them, be glad they got the boot. The new team has a plan and since May last year has not done anything other than what they said they would do. There is no silver bullet, folks. The old management bought everyone else's crap leases and then tried to develop them, leading to big losses with poor efficiency. The first priority is get rid of those bad leases and pay down the debt incurred to buy them. THEN, the management team can start pumping money into developing the core properties in Cardium and other formations (Viking, Slave Point) that the new management knows and have stated are very productive. They key is to get break-even down and FFO up. They have plenty of property to do that. Look forward, not back.
    21 Jan 2014, 11:34 PM Reply Like
  • SteveOl
    , contributor
    Comments (29) | Send Message
     
    This is good news. Some assets were sold. What is the problem with that?
    21 Jan 2014, 10:45 PM Reply Like
  • SteveOl
    , contributor
    Comments (29) | Send Message
     
    Why has the stock oversold today and dropped 10%? The company is doing what it said it would do. The more it sells assets, the better it will be. They should be rewarded with a slight price increase in my opinion.
    22 Jan 2014, 10:55 AM Reply Like
  • Bob Carl
    , contributor
    Comments (335) | Send Message
     
    Steve,

     

    I think people are just losing their patience.

     

    I may be an idiot, but I just bought 10,000 shares at $7.43. This is purely a contrarian bet. I like to buy when others sell. But I have tried this before with PWE and lost a bunch of money. Hopefully, this time, with new management, things will be different.

     

    Best,

     

    Bob
    22 Jan 2014, 01:31 PM Reply Like
  • Ajayyy
    , contributor
    Comments (325) | Send Message
     
    Despite my better judgement you guys are making me want to buy PWE at these level. Stop it now. I'm losing my resolve.
    22 Jan 2014, 05:31 PM Reply Like
  • f7pitlife
    , contributor
    Comments (112) | Send Message
     
    Do not forget the massive short interest number. They might be driving it down again today. Remember, most of the shareholders here are retail. The company has admitted in the past they run it for the income investor, not Wall Street. To my eye, that makes them as easy target for short sellers knowing there are no big back-up buy programs, just a bunch of freaked our retail people and automatic sell programs. One other thing, they are on record from a recent conference as planning on a 5 year minimum for the dividend. Previous management could never bring themselves to drive a stake like that. I think this stock is being crushed by short sellers who know it's vulnerability.
    22 Jan 2014, 08:15 PM Reply Like
  • Brian McMorris
    , contributor
    Comments (1255) | Send Message
     
    @User: As most know, I like PWE, but it does not have heavy short interest. The shorts are around 9M shares out of 480M. That is pretty light short interest as a percent of total. More likely, the institutions are driving down the price with sales. There are about 200M shares owned by institutions, around 40% of total public shares. Big cap stocks have more institutional ownership by percent, but this is fairly heavy ownership. The big institutions can sell a block of 5M without blinking an eye ($35-40M), but that is a very heavy selling day for PWE, with an average daily volume less than 2M shares, and will definitely force the price lower as the 12M and 8M volume days last week did.
    26 Jan 2014, 11:27 AM Reply Like
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