Brutto

Penn West Energy Trust: My $50 Price Target

With regard to hedging, PWE has hedged 42K barrels of its daily production of 109k barrels (excluding Natural Gas) with a cap of $81 until the end of 2008. Assuming they can sell the uncapped 67K BOE at an average of $120, they should achieve an average income of $107/barrel though to December. Jack, presumably your analysis already reflects this.