"At the current share price, Penn West yields over 12%. The company has recently deleveraged its balance sheet through some non-core asset sales and has an acreage position in every unconventional oil play in Canada other than the Bakken.
I'm not expecting any short-term miracles, but over the next 10 years, I think buying and holding Penn West should be rewarding." From Seeking Alpha
I just read the article and I think he got some things right and some he was mistaken. First, does PWE even plan to use the Keystone pipeline? Isn't PWE going to use other pipelines like Flanagan?
He also didn't mention that PWE plans to significantly increase their capital efficiency which should greatly increase their cash flow. In the short run PWE ability to reduce their operating cost will have the biggest impact on the stock in my opinion as it will show that the dividend is safe and there will be cash for capital projects. Also not mentioned is that PWE can sell some more non-core assets for liquidity to develop their 4 main properties.