EP,
I don't know if you got into PWT.TO. I now think it could go to the $74 target I mentioned earlier. Institutions will love this. PWT.TO has already received an early favourable indication from the tax authorities on income trust conversion. They said they would do this before putting the idea to vote.
Cheers, T
Penn West management recommends conversion into income trust
8/20/04 †† ††
CALGARY, Aug 20, 2004 (The Canadian Press via COMTEX) --
Management at Penn West Petroleum Ltd. recommended late Friday that the energy producer be converted to an income trust, which would be the largest conventional oil-and-gas producer of its kind.
Speaking at Penn West's annual meeting, the company's management told shareholders that conversion will occur providing the company gets a favourable tax ruling from the federal tax agency.
Penn West's future has been up in the air since March when the company announced it would undertake a formal review of strategic alternatives. Those included maintaining the status quo, converting into an income trust, or the sale or merger of the company.
According to its latest financial report, Penn West's second-quarter profit fell to $65.5 million from $192.5 million a year ago despite record production. It cited the impact of a strengthening Canadian dollar as one of the causes.
Average daily production during the quarter was a record 109,280 barrels of oil equivalent, up six per cent.
On the Toronto stock market, Penn West shares (TSX:PWT) closed at $65.42, down 88 cent on Friday.
The online source for news sports entertainment finance and business news in Canada
Copyright (C) 2004 The Canadian Press (CP), All rights reserved |
