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Penn West Petroleum Ltd. Message Board

  • wpcqe wpcqe Oct 22, 2009 3:43 PM Flag

    PWE Will not be bought

    I am selling today. C'ant resist the profit in hand. Who is going to buy them? PWE has almost 4 billion in debt

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    • Well, the question is why did HTE get bought? I'm guessing the price of oil and nat gas will continue higher and that can only benefit PWE. I doubt most investors here are holding PWE in anticipation of buyout anyway. Most are here because of the dividend and to ride it up with the price of oil.

    • HTE also has billions in debt. But the assests (oil + gas) fas exceed the debt. Also, the debt is in fixed rates, so as the dollar inflates, the debt will go to zero. Not the assets !!

    • I wouldn't say never. PWE really doesn't require a buyer. Would it be nice? Yeah. Is it the end of the world if we don't get scooped up by the Chinese, Koreans or some other foreign interest? No.

      All PWE shareholders need is for the dollar to keep dropping and oil and natty gas to keep rising.

      Ask yourself, do you think we will ever see $100.00 barrels of oil again? Yes.

      Do you think once natty gas stockpiles decrease the price will rise? Yes.

      Do you want to collect a serious dividend yield on a monthly basis for the next 14 months? Yes.

      If the share price drops significantly would you buy more PWE shares on the cheap? Yes.

      • 1 Reply to johngregor1977
      • At $80 oil this company is significantly undervalued. Far more so than Harvest. The debt is being paid down and about 2.5-3 billion in debt would be about the right size based on cash flows at $50 oil (from management). PWE has vast assets and the ability to double their production for a sustain long period (20 years) and still get a good return on their investment in a $60 oil climate. At $80 or above it will all be gravy. Most oil companies can not say that. The oil issue with PWE is whether the Canadian government would let a foreign quazi state owned company buy them. They are substatnialy larger in asset base than Harvest (5-8 times) and they may not allow that to happen. Primwest and Harvest did not bring so much as whipper from Canada. My guess the next to fall maybe something larger to see if their is any reaction from Canada. PWE is the plum for foreign quazi owned companies like Petro China. They have major assets in almost all the Canadian basins in oil. For the person making statements about their debt, in their investment meeting a few days ago they hinted about selling Seal, because they felt that the capital cost to develop seal could be better spent on their Bakken type oil assets. Seal has about 6-10 billion bbl oil and at 20% recovery that gives about 1.5 billion bbl of recoverable oil. If Seal is sold they could payoff all their debt and still money left over.

    • Look at the math posts. Debt? Who cares... The world is awash in dollars, Chinese have trillions to spend and they don't want any more treasuries they want hard assets. Same with the South Koreans and all the other creditor nations who have helped us spend ourselves silly.

 
PWE
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