Re: Penn Virginia Corp. (PVA)
Started a position in PVA. Looking to eventually write some covered calls to supplement the 1.3% quarterly dividend. PVA has a BV of $22.00/share, 1 years Gross profit covers their LT debt so their large LT debt is quite manageable out of the income they generate from the operating companies they own and/or control, there has been recent large insider buys from Black Rock, and they recently have completed four producing wells located in the Hansville Shale area.
November 17, 2010
Penn Virginia Corporation - Haynesville Shale Update - Q3 2010
shale.typepad.com
Penn Virginia Corporation (PVA) reported the completion of four gross wells into the Haynesville Shale during the third quarter of 2010. These wells had initial production rates ranging from 5.3 million to 8.7 million cubic feet equivalent per day.
Although Penn Virginia Corporation is encouraged by the results of its development program here, the company has decided to defer further drilling until natural gas prices recover sufficiently to provide better returns to the company.
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The company is well diversified with three operating segments: Oil and Gas, Coal and Natural Resource Management, and Natural Gas Midstream. They have a lot of land that they have owned for decades. They manage timber (above ground assets), oil & NG mineral rights (below ground assets) and NG gathering assets (pipe line and processing facilities.
I really like their Midstream business that throws off a lot of cash flow. This segment should benefit from the increased NG production in the area that they service.
From their annual report: "...The Natural Gas Midstream segment provides natural gas processing, gathering, and other related services. As of December 31, 2009, it owned and operated 6 natural gas processing facilities; and approximately 4,118 miles of natural gas gathering pipelines in Oklahoma and Texas. The company was founded in 1882 and is headquartered in Radnor, Pennsylvania with additional offices in Oklahoma, Tennessee, Texas, and West Virginia...."
Penn Virginia are three interrelated Radnor, Pennsylvania-based companies that trade separately on the New York Stock Exchange and control 916.4 Bcfe of oil and gas deposits, 827 tons of coal [1] and have 400 million cubic feet per day (MMcfd) midstream oil and natural gas pipeline and processing operations.[2]
The original company was split into three separate companies in 2006. PVA kept large equity interests in BOTH PVG & PVR.
finance.yahoo.com
* Penn Virginia Corporation (NYSE: PVA) (owns natural gas and oil and has large ownership interest in the other two companies)
* Penn Virginia GP Holdings, L.P. (NYSE: PVG) (controlled by Penn-Virginia Corporation and is the largest shareholder of Penn Virginia Resources)
* Penn Virginia Resources (NYSE: PVR) (controls the coal and pipeline operations)
Therefore, you get controlling interests in PVG & PVR that include many undervalued domestic natural resource assets.
I am looking for PVA to trade back to it's 2007-2008 trading range of $45.00-$65.00 price level.
EKS |
