Penn West +2% as investors await turnaround

Penn West Petroleum (PWE +2%) is on the rise despite reporting a Q4 loss of C$1.49/share, mainly due to C$742M in impairment charges, as investors seem willing to wait past the early stages of a turnaround with a new focus on its industry-leading light-oil position in western Canada.

Backing out the loss, funds flow of $0.44/share was 29% lower than $0.62 reported in the year-ago quarter mostly due to asset sales completed over the past year, as well as a shrinking capital budget.

A shrinking asset meant lower production volumes; in Q4, production was ~124K boe/day, down 19% Y/Y.

Forecasts 2014 output of 101K-106K boe/day, with a planned $900M capital budget.

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