Value Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Paul Senior who wrote (50447)	1/10/2013 10:01:53 AM
From: E_K_S	of 78748

Penn West Petroleum Ltd. (PWE) - upped position by 20% (new 52wk low) The company is challenged with generating sufficient cash flow while maintaining an aggressive drilling schedule. They have been selling off non-core assets to raise cash. Stock appears to me to have sold off more than is justified based on their 2013 production projections. Company sold off today as they announced their CapeX budget for 2013. I suspect it was lower than the market expected at $900M but have provisioned another $300M if certain benchmarks are hit. They still own some quality land assets but it is still still not clear to me how efficient a driller they are. They have targeted an IRR minimum of 20% and $35K/boed cost. 2013 production forecast is lower per their presentation. That puts them in the middle of the pack when compared to their competitors so if they can bring in the new wells at these costs, then they should do ok. To view their most recent forecast (1/10/2013) here is the link. EKS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next