Fri, Aug. 14, 12:47 PM
- The Obama administration will allow limited sales of crude oil to Mexico for the first time, Reuters reports, citing a senior administration official who says the U.S. Commerce Department is "acting favorably on a number of applications" to export U.S. crude in exchange for imported Mexican oil.
- The shipments, likely to be lighter, high-quality shale oil, would help Mexico's aging refineries produce more premium fuels, while U.S. refiners would continue to get Mexican heavy oil, a better match for them than the light oil coming from Texas and North Dakota.
- Although limited in scope, the move toward freeing up trade will please U.S. oil producers such as Pioneer Natural Resources (NYSE:PXD) and ConocoPhillips (NYSE:COP), which say the restrictions force them to sell oil at below global market rates, and may add momentum to efforts mostly to repeal what advocates see as a relic of the 1970s.
- Among relevant oil stocks: XOM, CVX, BP, RDS.A, RDS.B, OAS, NOG, CLR, WLL, EOX, SM, SFY, PVA, GST, SN, CRK, BBG, CWEI
- Relevant refining stocks: VLO, HFC, MPC, TSO, WNR, ALJ, PSX, PBF, DK, NTI, ALDW
- ETFs: XLE, XOP, XES, IEO, IEZ, PXE, NDP
Thu, Aug. 13, 5:58 PM
- The median North American independent producer can survive at a ~$42/boe price, according to a new analysis by Moody’s that found that many producers can handle low commodity prices thanks to significant cost savings and continued production growth.
- EQT Corp. (NYSE:EQT) had the lowest costs at $13.07/boe, and Penn Virginia (NYSE:PVA) had the highest full-cycle costs at $135/boe, according to the study.
- E&Ps paid an average $13.68 to bring one barrel of oil equivalent to the surface, Moody's says, with production costs higher among companies that mainly produced oil while gas companies drilled for less; EQT had the lowest production costs and Canadian Oil Sands (OTCQX:COSWF) had the highest.
- The largest expense among producers is finding and acquiring new oil and gas, but Moody’s cautions that its numbers here are not definitive, since the study only examined a single year of expenses and companies usually spend money and book reserves over a years-long period.
Fri, Aug. 7, 11:58 AM
- Penn Virginia (PVA +0.8%) is higher despite receiving a downgrade to Neutral from Outperform with a $1 price target, slashed from $4, at Credit Suisse, which notes the company is operating only one rig in the Eagle Ford after operating eight rigs in 2014 and does not expect to add a second rig until early 2016.
- The firm says PVA's initial 2016 budget infers a cash flow deficit of ~$147M at today's strip, and expects the company to end 2015 with $200M in projected liquidity, implying further capital markets activity will be required to fund more drilling activity.
Tue, Aug. 4, 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.
Thu, Jul. 30, 12:47 PM
Thu, Jul. 30, 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.
Wed, Jul. 29, 4:23 PM
Wed, Jul. 22, 12:45 PM
Mon, Jul. 20, 5:39 PM
Mon, Jul. 20, 4:42 PM
- Penn Virginia (NYSE:PVA) says Baird Whitehead plans to retire as President and CEO after four years in the position and 14 years at the company, and the company has retained a recruiting firm to help find potential candidates.
- PVA says Whitehead will continue to serve until a successor is named and the CEO transition is complete.
Wed, Jul. 15, 4:49 PM
- Penn Virginia (NYSE:PVA) agrees to sell its east Texas assets to an undisclosed buyer for $75M.
- PVA says the properties to be sold had net production of ~1,870 boe/day during Q2, consisting mostly of natural gas; as a result of the sale, PVA expects its reported FY 2015 production to decrease by ~200K boe.
Wed, Jul. 15, 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.
Wed, Jul. 15, 12:45 PM
Mon, Jun. 29, 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."
Fri, Jun. 26, 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.
Thu, Jun. 25, 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.
PVA vs. ETF Alternatives
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.
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