Penn Virginia Corporation Announces Borrowing Base Increase to $500 Million and Financial Liquidity in Excess of $620 Million
8:00 AM ET, 10/24/2014 - GlobeNewswire
RADNOR, Pa., Oct. 24, 2014 (GLOBE NEWSWIRE) -- Penn Virginia Corporation (NYSE:PVA) announced today that its bank group has approved an increase in the borrowing base under PVA's senior secured credit facility from approximately $438 million to $500 million. PVA's financial liquidity, inclusive of the expanded borrowing capacity and its $124 million cash balance as of September 30, 2014, is in excess of $620 million. The 14 percent increase in the borrowing base is the result of PVA's ongoing and successful Eagle Ford Shale drilling program and the increased value of proved reserves.
Under the terms of the credit facility, which matures in September 2017, the bank group re-determines the borrowing base semi-annually utilizing the banks' estimates of reserves and future oil and gas prices.
H. Baird Whitehead, President and Chief Executive Officer stated, "We are very pleased to announce the increase in our borrowing base to $500 million, which was above our expectations. The increased borrowing base improves our liquidity position and enhances our ability to capitalize on the opportunities in the Eagle Ford Shale."
The bank group is comprised of 12 banks, led by Wells Fargo Bank, N.A., which serves as administrative agent of the credit facility.
Susquehanna Starts Penn Virginia (PVA) at Neutral
5:15 PM ET, 10/22/2014 - StreetInsider
Susquehanna initiated coverage on Penn Virginia (NYSE: PVA) with a Neutral rating and a price target of $9.00. For an analyst ratings summary and ratings history on Penn Virginia click here.
Magnum Hunter Resources Completes Production Test Results on Stewart Winland Pad in Tyler County, West Virginia
Wed October 22, 2014 7:00 AM|Marketwire | About: MHR
HOUSTON, TX -- (Marketwired) -- 10/22/14 -- Magnum Hunter Resources Corporation (MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the "Company" or "Magnum Hunter") announced today that the Company has completed test results on its 100% owned Stewart Winland Pad located in Tyler County, West Virginia. The Stewart Winland Pad has four 100% owned recently completed wells (3 Marcellus and 1 Utica).
The Stewart Winland 1301M was drilled and cased to a true vertical depth of 6,155 feet with a 5,762 foot horizontal lateral, and successfully fraced with 27 stages. The well tested at a peak rate of 17.0 MMCFE of natural gas per day (~23% Condensate and ~25% NGL) on an adjustable choke.
The Stewart Winland 1302M was drilled and cased to a true vertical depth of 6,147 feet with a 5,676 foot horizontal lateral, and successfully fraced with 29 stages. The well tested at a peak rate of 17.1 MMCFE of natural gas per day (~19% Condensate and ~26% NGL) on an adjustable choke.
The Stewart Winland 1303M was drilled and cased to a true vertical depth of 6,149 feet with a 5,762 foot horizontal lateral, and successfully fraced with 29 stages. The well tested at a peak rate of 16.8 MMCFE of natural gas per day (~20% Condensate and ~26% NGL) on an adjustable choke.
As previously reported on September 24, 2014, the Company's 100% owned Stewart Winland 1300U (Utica well) tested at a peak rate of 46.5 MMCF of natural gas per day (~7,750 BOE per day) on an adjustable rate choke with 7,810 psi FCP. The Stewart Winland 1300U well was drilled and cased to a true vertical depth of 10,825 feet with a 5,289 foot horizontal lateral, and successfully fraced with 22 stages.
Hedge fund Baker Street Capital discloses a 9.99% stake in Swift Energy (NYSE:SFY) via a 13D filing, and says it believes the intrinsic value of the company's assets is at least $15/share.
Waiting Game Continues For Others
There was a Bloomberg article (located here) last Wednesday which discussed possible targets for Encana. One analyst in the article highlighted Athlon Energy, but the other analysts discussed names such as Halcon Resources (NYSE:HK), Penn Virginia Corporation (NYSE:PVA) and RSP Permian (NYSE:RSPP). Halcon has been our favorite name among the junior explorers due to their acreage portfolios in various plays, but both Penn Virginia and RSP Permian are attractive acquisition candidates for acquirers looking to expand into the productive Texas shale plays.
With Encana now having used up their available firepower and needing to focus on meeting production goals for acquired acreage, it seems that Halcon, Penn Virginia and RSP Permian will all be left to wait for the next round of consolidation - which might be a while given the number of companies and projects available to the few buyers in the market. When we look at the projects that are listed for sale and/or available for joint ventures, we are shocked with the number of high quality properties available to buyers. Not only are companies listing undeveloped acreage, but also producing areas which are early in their producing lives. So long as this continues, we suspect the M&A market will consist more of individual purchases of projects rather than outright purchases of entire companies. We are, however, bullish of the long-term M&A market for oil and gas E&P companies.
Encana to buy Athlon Energy for $5.9 billionFont size: A | A | A
7:24 AM ET 9/29/14 | MarketWatch
4:02 PM ET 9/26/14
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By Carolyn King
Encana Corp. Monday said it has agreed to acquire Texas-based Athlon Energy Inc. for $5.93 billion, giving the Canadian company a large land position in the state's oil-rich Midland Basin.
Encana , which called the friendly deal transformative, said it would also assume Athlon's (ATHL) $1.15 billion of senior notes, putting the total transaction value at about $7.1 billon.
Encana has been an active buyer and seller this year as it seeks to rebalance its production and improve its bottom line after years of low natural-gas prices. Just last week, it raised about $2.3 billion from the sale of its stake in Canadian royalty company PrairieSky Royalty Ltd.
In June, it agreed to sell its Bighorn properties in Alberta to Apollo Global Capital Management LLC, a private-equity firm, for about $1.8 billion. That month, it also bought oil-producing assets in the Eagle Ford Shale in Texas from Freeport-McMoRan Copper & Gold Inc. for $3.1 billion.