Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on PENN WEST PETROLEUM LTD. We currently have 35 research reports from 1 professional analysts.
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PENN WEST PETROLEUM LTD
PENN WEST PETROLEUM LTD
Reports 2Q16 Results, Revises Guidance, Announces Further Non-core Asset Sales
05 Aug 16
Penn West reported second quarter results that came in slightly ahead of our thinking, although in isolation we view the results as somewhat of a non-event in light of material disposition activity to date. More importantly we believe focus will be placed on the uplift to corporate guidance and operating cost reductions, which have resulted in positive moves to our forecast. As part of its “Phase II” asset sale initiatives, Management has shed a further 6,000 boe/d of production for proceeds of $75 mm that will be used to further shore up the balance sheet. With the Company continuing to make strides in its restructuring process, we have revised our ranking to Market Perform on an elevated target price of $1.75 per share.
ANNOUNCES 2Q16 RESULTS
04 Aug 16
Impact: Slightly positive. We view second quarter results in isolation as somewhat of a non-event in light of material disposition activity to date, and believe more focus will be placed on the uplift to corporate guidance and operating cost reductions, which should help to buoy our estimates going forward.
2Q16e Quarterly Preview
26 Jul 16
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
Penn West Announces $1.1 Billion in Asset Sales, Including the Sale of its Saskatchewan Assets, Removes Debt Overhang
14 Jun 16
It comes as no surprise that the sale of Penn West’s Saskatchewan assets was viewed positively by the market, with the stock surging ~40% on the day, as the transaction materially reduces the Company’s outstanding debt position while ensuring it stays onside with its debt covenants for the foreseeable future. That said, it comes at the expense of parting with one of its prized assets, while further non-core dispositions will be required in order to improve the long-term outlook for the Company and allow it to be competitive within its peer group. With further action needed, we prefer to take a wait and see approach and thus see no reason to own the stock in the here and now. We maintain our Underperform ranking on a revised target price of $1.00 per share.
ANNOUNCES $1.1 BILLION IN ASSET SALES, INCLUDING THE SALE OF ITS SASKATCHEWAN ASSETS
12 Jun 16
Impact - positive as the transaction materially reduces the Company's outstanding debt position while ensuring it stays onside with its debt covenants that were set to be breached by the end of 2Q16, although comes at the expense of parting with its best asset with further non-core dispositions required in order improve the long-term outlook for the Company and allow it to be competitive within its peer group.
Weekly U.S. Natural Gas Storage Update
17 May 16
Our forecast for this week’s report is for an injection of 77 bcf. Last week was probably one of the most weather neutral weeks so far this year, as demand slipped modestly in all the major categories, while supplies held firm for the most part. With such slack conditions, we think the market can hold more in the 70s bcf range for injections, but still well below year ago injection rates, and below 5-year average injection rates for this time of year. This will prove critical in keeping storage levels more on track to reach average levels by the end of October.
27 Mar 17
Elecosoft* (ELCO): Steadily building profits (CORP) | Bioventix* (BVXP): Interim results lead to upgrades (CORP) | Hurricane Energy (HUR): Halifax discovery (BUY) | KBT Business Technology* (KBT): interims and contract win (CORP) | Independent Oil & Gas* (IOG): Licence updates (CORP)
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
GMP FirstEnergy ― UK Energy morning research package
27 Mar 17
Amerisur Resources (AMER LN)6; HOLD, £0.30: Reduced 2017e production outlook and year-end 2016 reserves | Condor Petroleum (CPI CN)8 ; BUY, C$3.50: Reports 4Q16 results and remains on track for first production from Turkey in mid-2017e | Hurricane Energy (HUR LN) (not covered): Halifax well update in the UK | Cairn Energy (CNE LN): BUY, £2.90: Update on the VR-1 well in Senegal by Far (FAR AU) (Not covered) | Royal Dutch Shell (RDSA/B LN) (not covered): Divestment of Gabonese assets
Strong trading leads to upgrades
22 Mar 17
On the back of today’s positive trading update and slightly upgraded profit forecasts for FY2017, FY2018 and FY2019 we have reviewed our DCF analysis. This has led to an increased DCF valuation per share of 1500p (from 1200p) which we have made our new target price (from 1200p). Both TFP and JC Paper have contributed to the upgrades shown in the table below as have favourable currency movements. With the potential for further upgrades due to capitalising 3DP costs to come we maintain our Add recommendation.