At least four top executives at Penn West (PWE) are heading for the exit door, apparently paying...


At least four top executives at Penn West (PWE) are heading for the exit door, apparently paying the price for steep Q3 losses. PWE gives no reason for the departures, but they come just days after reporting hedging losses and a lower production forecast for the year due to wet weather and plant outages. PWE -0.7% premarket.

Comments (2)
  • Uncle Pie
    , contributor
    Comments (4322) | Send Message
     
    Sadly, the wheels appear to be coming off this one. Shares have lost about a third of their value in the past few days. Company has not earned its cost of capital for about five years, according to Morningstar. They have $3.2 billion in long term debt, and another $3 billion in "current liabilities", including an item called "deferred income tax" of $1.2 billion, for a grand total of over $6 billion in liabilities (according to the FT website). Unfortunately, some folks are still attracted to the shares for their stated dividend. Clearly, the dividend is at great risk. They have assets on the block to reduce their debt but the company is not revealing the exact status of any possible sales.

     

    No position in PWE
    6 Nov 2012, 10:14 AM Reply Like
  • 1GreatCFA
    , contributor
    Comments (1354) | Send Message
     
    Here here. This one is an avoid for me. Stock will probably come under heavy tax loss selling pressure for the rest of this year and my guess is the CEO is next to go....if that happens I would suggest the dividend is in big trouble. Somewhat surprised that Foulkes got her walking papers??? Didn't Nunns describe her as a "wizard" of the industry???
    6 Nov 2012, 05:01 PM Reply Like
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