Penn Virginia CorporationOTCPK - Current
Penn Virginia: The Marl Fairway Confirmed Wider
Richard Zeits • 10 Comments
Richard Zeits • 10 Comments
Jun. 29, 2015, 11:12 AM
- Penn Virginia (PVA -7.9%) has lost the entire bounce it gained from last week's chatter about a BP takeover offer, and WSJ reports no such offer or rejection occurred between the two.
- Instead, it appears the report gained traction thanks to still-online documentation of a takeover tussle from exactly 13 years earlier involving PVA and another suitor with a name similar to BP’s.
- Nevertheless, SunTrust maintains its Buy rating and $10 price target, still seeing PVA as an interesting acquisition candidate since the oil and gas explorer is among the "largest attractive acreage positions versus the corresponding enterprise value."
- SunTrust calls PVA "an embattled Eagle Ford player with what we deem as a valuable contiguous acreage/asset position... though high leverage and relatively tight liquidity limit near-term activity/cash flow/catalysts."
Jun. 26, 2015, 2:21 PM
- Penn Virginia (PVA +0.8%) shareholder Lone Star Value Management issues a letter calling on the company to immediately consider strategic alternatives to explore "all credible proposals."
- Lone Star's statement comes a day after a report that BP had offered to buy PVA for $8/share.
- "If it is true that [PVA] could be sold for an 80% premium or more to a credible buyer, the board has a fiduciary duty to fully explore such an offer," says the statement from Lone Star, which owns a 2.8% stake in PVA.
Jun. 25, 2015, 12:17 PM
- Penn Virginia (PVA +7.8%) spikes higher after a report that BP (BP +0.3%) has offered $8/share in a takeover bid for the company, and that PVA has hired BofA to help it search for potential buyers.
- PVA is said to have rejected the offer because it believes the terms offered undervalue the company, and is holding out for at least $10/share, according to U.K. publication Proactive Investors.
- BP rivals such as Exxon Mobil (XOM -0.1%) and Chevron (CVX -0.1%) also may be interested in buying PVA, the report says.
Jul. 10, 2014, 4:34 PM
- Penn Virginia (PVA) agrees to acquire Eagle Ford acreage for $45M from an unnamed seller.
- The acquired acreage is adjacent to PVA's Shiner area, and is estimated to contain ~150 gross potential drilling locations, most of which should be prospective in the Upper Eagle Ford Shale.
- PVA says the deal will bring its total Eagle Ford acreage position to ~142.5K acres.
Jan. 22, 2014, 4:40 PM
- American Midstream Partners (AMID) agrees to acquire a ~120-mile natural gas gathering and redelivery system in the Eagle Ford shale from a subsidiary of Penn Virginia (PVA) for ~$100M.
- Upon closing the acquisition, AMID also will enter into a long-term, fee-based gathering agreement where PVA will dedicate for 25 years all current and future natural gas production from the areas served by the system.
- To help pay for the deal, AMID announces a public offering of 3.4M of its common units.
Nov. 20, 2013, 5:30 PM
- Analysts say the $6B deal for GeoSouthern will give Devon Energy (DVN) a better balance between oil and natural gas.
- Canaccord says oil currently accounts for 12% of DVN's total volume, and the deal likely significantly increases DVN's oil production, as GeoSouthern is the fourth largest oil producer in the Eagle Ford.
- "The deal makes them more of an oil company and grows their production," says a Hodges Capital analyst. "A lot of people still have the idea that they are too much of a gas company and this deal will change that right away."
- The investor reaction to the deal was tempered by the high price paid, which Richard Zeits says sets a new record in the Eagle Ford play in terms of price paid per net undeveloped acre in a major transaction; the major beneficiary today was Penn Virginia (PVA), whose shares surged 4% thanks to its strong presence in the area.
Apr. 3, 2013, 7:20 AM