Report was good and the lower cost structure and asset sales will in the future enhance earnings. Still a great buyout opportunity too for a large oil player. Yes it is manipulation.
Sentiment: Strong Buy
"Third quarter capital programs were reduced sharply to allow for the refocusing of investments to key future activities in the Cardium and Viking as well as ensuring our programs and execution going forward would be more efficient and effective. Development capital in the quarter was $69 million, down from $112 million in the previous quarter and dramatically below the $427 million in the first quarter. Not surprisingly, production in the quarter was down approximately 4.5 percent from the previous quarter reflecting a low volume of capital driven additions to offset natural declines. Minor impacts from planned maintenance in the quarter and the Company's decision to not restore production shut-in due to mechanical issues as a result of marginal economic returns also contributed to the decline. Of the 133,712 boe per day produced in the quarter, liquids weighting was approximately 63 percent."
"Capital spending in the fourth quarter is estimated at less than $300 million allowing Penn West to project a 2013 exit rate of between 128,000 and 130,000 boe per day with annual production guidance narrowed to 135,000 to 137,000 boe per day (in each case excluding the effects of potential asset dispositions). Full year development capital is now estimated to be below $900 million as we continue to drive to lower drilling and completion costs in all of our major development areas."
Roberts further remarked, "I continue to be pleased with the progress we are making as a Company and I am looking forward to discussing our forward path in our strategy update during our upcoming conference call this morning. In the last four months we have taken meaningful steps to improve our cost structure, continued to increase our capital performance and begun rationalizing our asset base through both sales activities and shutting in production with marginal economic returns. We clearly have a lot of work yet to do, but the new Penn West is committed to our ideals and excited to pursue our
Sounds like they decided not to sell the company, rather to continue to shrink it with lower capex leading to lower production, etc. The market apparently thinks the share price has to shrink along with the company. As the president himself says "We clearly have a lot of work yet to do".
The Special Committee of the Board of Directors recently completed its review of our strategic alternatives. After extensive analysis, the Committee and its advisors concluded that the Company's long-term plan to de-lever the balance sheet, continue operational and cost control improvements and focus on light-oil development integrated with waterflood programs concentrated in its Cardium, Slave Point and Viking plays is the best current strategy to maximize shareholder value. The Company's long-term plan aims to deliver to shareholders compound annual growth in oil production and funds flow subsequent to a de-levering period and provide shareholders a return through a sustainable dividend. The Board of Directors carefully considered the recommendations of the Special Committee and senior management and strongly endorsed the long-term plan.
We are planning $1.5 to $2 billion of non-core asset sales to reset our balance sheet, after which time the Company will target sustainability ratios (1) of approximately 110 percent. We expect approximately $485 million of asset dispositions under this program to close prior to December 31, 2013, subject to customary regulatory and other closing conditions. We have signed Purchase and Sale Agreements on $480 million of these dispositions.
I suppose the quarterly earnings release last night has nothing to do with it, right?
So you're saying that only the big boys are able to read the earnings release and listen to the conference call but you are not?
Got news for you, you could too if you weren't too lazy to actually follow the companies you invest in.
Follow doesn't mean simply checking whether the price is up or down today.
Here is ONE of the reasons.
In trading on Wednesday, shares of Penn West Petroleum Ltd (NYSE: PWE) crossed below their 200 day moving average of $10.78,
That triggers computer program selling which builds on itself.