- Penn West Petroleum (PWE -13%) plunges after reporting a Q4 loss of C$3.20/share and cash flow per share of $0.01.
- PWE says it is in talks with lenders about possible amendments of covenants, selling assets and hedging positions, as it anticipates breaching debt covenants by the end of Q2.
- Debt is the “overriding concern” for PWE, says Desjardins analyst Kristopher Zack, noting that the company has a covenant that requires its senior debt to be no more than 5x EBITDA.
- PWE reaffirms its 2016 production guidance of 60K-64K boe/day after averaging 86,357 boe/day in 2015, as well as a C$50M capital budget adopted in January that was 90% less than last year.