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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (40550)	12/23/2010 12:55:21 PM
From: E_K_S	Read Replies (4) \| Respond to of 78495

Re: Eagle Ford Shale Penn Virginia Corp. (PVA) Hi Paul - I have been going through your earlier post in October on the Eagle Ford Shale plays. Penn Virginia Corp. (PVA) came up on that list and caught my eye. oilshalegas.com The company has a lot of good producing assets but quite a bit of debt which seems to have adequate coverage from their cash flow. One of their best producing assets is their Natural Gas Midstream segment which 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. In August 2010 they bought 6,800 acres (@ $4,500/acre) in the Eagle Ford Shale area. The acreage is contiguous to the company's existing acreage in the area. The new acreage comprises at least forty locations that can be used for horizontal drilling. The company said that the properties contain mostly oil. The company seems like it is undervalued based on their market cap vs the assets they own (and the revenue generated used to service their debt) when compared to many of the other smaller E&O drillers in the area. I scanned through about 10 of the other companies on the list w/ similar market caps and they seem to be priced about 30% higher. Any opinion on PVA? Did I miss something like a hidden liability or has the market just overlooked this company? I have it on my watch list and am looking at possibly starting a tracking position. EKS