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Strategies & Market Trends : Value Investing

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From: E_K_S4/3/2013 3:39:15 PM
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Penn Virginia Corporation (PVA) - opened a new exploratory position (very small compared to MHR holdings which I am reducing)

Magnum Hunter's $401 Million Eagle Ford Sales To Penn Virginia Helps Both Companies' Growth Plans

From the article:

The Eagle Ford will continue to be the near-term growth driver for the company with approximately 92% of the company's revised $457 million 2013 CAPEX expected to be allocated to the play. PVA plans to run a total of four operated rigs, two on existing PVA acreage and two rigs on the operated MHR acreage. Additionally, PVA will have two non-operated rigs running in the paly. In PVA's current presentation, the company shows the compelling economics they are generating across their acreage. The company is breaking even, producing an IRR of 10%, at a WTI oil price between $47 and $57 per barrel. The near month WTI price closed on April 1, 2013 at $97.07 per barrel.
Perhaps MHR's loss will be PVA's gain.

EKS
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