- Penn Virginia’s lower-than-expected production in Q2 appears to be related to execution and not to asset quality.
- The company’s three Marl wells are continuing to perform very strongly. PVA is moving to drill 19 additional Marl wells by year end.
- The Marl has the potential to have a very material impact on the company’s operating outlook and valuation.
- The balance sheet continues to improve steadily, the Leverage Ratio estimated at 2.4x by the end of the year.
- While execution needs to become more consistent, the stock’s risk/reward profile currently appears skewed strongly to the upside.