Penn Virginia: The Marl Fairway Confirmed Wider
Richard Zeits • 10 Comments
Richard Zeits • 10 Comments
Can Penn Virginia Really Be This Cheap?
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, May 17, 12:27 PM
- George Soros, who once called gold “the ultimate bubble,” has resumed buying the yellow metal after a three-year absence, disclosing during Q1 he bought 1.05M shares in the SPDR Gold Trust ETF (GLD +0.3%) valued at $123.5M, while also doubling his wager against the S&P 500.
- Soros Fund also made a big bet on miner Barrick Gold (ABX +3.1%), adding a $263.7M stake and raising its ownership to 19.4M shares, making it Soros’ largest U.S.-listed holdings and giving him a 1.7% stake.
- Otherwise, Soros continued to unwind his commodity exposure, selling off positions in Kinder Morgan (KMI +4.3%) and Baker Hughes (BHI +2.8%) - stakes which were just opened in Q4 - as well as Dow Chemical (DOW +0.9%) and Penn Virginia (NYSE:PVA).
- But other prominent investors have started to take profits; John Paulson’s hedge fund cut its stake in the SPDR Gold Trust to 4.8M shares from 5.8M and its stake in AngloGold Ashanti (AU -1%) to 15.2M shares from 22.9M.
Wed, Mar. 16, 9:55 AM
- Penn Virginia (PVA -26%) says it has reached a credit amendment with its reserve-based lenders to push back its default date until April 12, with a possible further extension to May 10.
- PVA says it will use the additional time to continue discussions with its creditors to reach agreement on a comprehensive debt restructuring.
Nov. 10, 2015, 2:34 PM
- Penn Virginia (PVA -21.2%) is sharply lower after reporting a wider than expected Q3 loss, guiding for Q4 2016 oil production to decline 5% Y/Y, and forecasting $140M-$160M in 2016 capex vs. prior guidance of $200M-$250M.
- Oppenheimer analyst Robert Du Boff says his biggest concern about PVA's future is the company’s troubling debt load, noting a debt/EBITDA ratio of 3.9x even after $74M in asset sales.
- Du Boff says PVA is on track to trip its revolver covenant (4.75x) during Q1 2016, and notes "substantial doubts about its ability to continue as a going concern” expressed in the latest 10-Q filing.
Nov. 9, 2015, 6:40 PM| Nov. 9, 2015, 6:40 PM | 1 Comment
Sep. 17, 2015, 9:10 AM
- Penn Virginia (NYSE:PVA) -7.4% premarket after suspending the Q3 dividend on its series A and B preferred depositary shares, citing the current commodity price environment and the need to preserve liquidity.
- Earlier this week, the struggling oil and gas explorer received a non-compliance notice from the NYSE regarding the exchange's $1 minimum price bid rule.
Sep. 15, 2015, 10:57 AM
- Penn Virginia (PVA +3.8%) says it had been notified by the NYSE of its non-compliance with the exchange's $1 minimum price bid rule.
- PVA says it will notify the NYSE of its intent to cure the deficiency and return to compliance with NYSE continued listing standards.
Aug. 4, 2015, 3:57 PM
- Penn Virginia (PVA +6.8%) is higher following news it hired Jefferies to advise it on how to best finance or monetize its holdings in the Eagle Ford shale after a sales process begun earlier this year failed to produce a viable bid.
- Earlier this year, PVA reportedly was working with Bank of America in exploring a sale of the company.
Jul. 30, 2015, 12:47 PM
Jul. 30, 2015, 11:59 AM
- Penn Virginia (PVA -30%) plunges to a new 52-week low after reporting a large Q2 loss, a 40% Y/Y drop in revenues and falling production.
- PVA says Q1 production from its Eagle Ford operations was 20,259 boe/day, a 5% Q/Q decline, as the play has underperformed as a result of using less proppant.
- PVA lowers full-year production guidance to 20.7K-22.6K boe/day from previous guidance of 23.8K-26.2K boe/day, with product revenues expected at $284M-$307M vs. previous guidance of $320M-$350M.
- Howard Weil downgrades PVA to Sector Perform from Focus Stock and cuts its price target to $4 from $9, as the quarter again failed to meet production expectations, which the firm thought were relatively conservative.
Jul. 22, 2015, 12:45 PM
Jul. 20, 2015, 5:39 PM
Jul. 15, 2015, 3:19 PM
- Penn Virginia (PVA -11.9%) tumbles as Imperial Capital downgrades shares to In-line from Outperform with a $3.75 price target, cut from $7.
- Imperial believes a no-acquisition scenario will include very scaled back capex for 2016, but the firm is concerned that PVA has not removed the risk of a reduced borrowing base.
- While there has been no announcement or discussion that PVA has hired a bank to explore strategic alternatives, the firm believe the company is prepared to entertain its possible sale but no agreement has yet to materialize despite the decline in PVA's stock price.
Jul. 15, 2015, 12:45 PM
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. 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.
May 21, 2015, 10:51 AM
- Penn Virginia's (PVA +3.1%) stock price target is cut to $7 from $9 at Imperial Capital, but the firm remains bullish on the Outperform-rated company and raises its 2015 estimates due to increased production guidance and a lower cost structure.
- The firm notes PVA is raising its 2015 crude oil production guidance due to an increased emphasis on Gonzales County, where the company has the highest returns, and that PVA looks to have turned the corner on completion issues that had hurt its development.
- The firm continues to believe that with its sizable inventory, PVA is an attractive acquisition candidate, and that dissident shareholders favor PVA being sold.
Penn Virginia Corp is an independent oil and gas company. The Company is engaged in the exploration, development and production of crude oil, natural gas liquids and natural gas in onshore regions of the United States.
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
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