leumas

Penn West Energy Needs to Show Investors Its Worth

Good point. A strong positive, however, for PWE is the long term upward trend for natural gas price due to the rise in global demand. If the nat. gas price stays at current level, operating cash flow of $2.8B for this year is expected, even with somewhat lower oil price. In other words, rising tide seems to be lifting even some rickety ships --- in this case, PWE digesting its recent acquisitions. Bottom line is that PWE's Peace River property is not priced in its current stock price --- a huge plus in terms of valuation.