For those interested in this company. Review Q3 results and judge for yourself.
David French- Meet The New CEO -Video:
https://www.bnn.ca/video/ceo-of-penn-west-on-reviving-the-company~987760
CC Transcrip:
https://seekingalpha.com/article/4018667-penn-west-petroleums-pwe-ceo-david-french-q3-2016-results-earnings-call-transcript?part=single
CC Slides (must view):
https://seekingalpha.com/article/4018668-penn-west-petroleum-ltd-2016-q1-results-earnings-call-slides?app=1&auth_param=4i15t:1c1ll4i:49adddc415e28146e062537756366421
TD: Q3/16 Beat Signals New Era for Penn West:
Penn West Petroleum Ltd.
(PWT-T) C$2.13
Q3/16 Beat Signals New Era for Penn West
Event
Penn West announces Q3/16 financial results, updated 2016 guidance, and
preliminary 2017 capex guidance.
Impact: POSITIVE
Production and CFPS were ahead of TD and Street expectations. Q3/16
production came in at 41,233, 4% above our estimate and 1% above consensus
(Analyst survey). CFPS was $0.06 relative to our estimate of $0.05 and consensus
of $0.04. Driving the beat were higher revenues and lower opex than we
anticipated. That said, operating costs were helped by a delay in workovers into
Q4/16.
2016 guidance has been updated to reflect YTD dispositions and the
company provided a preliminary 2017 capex scenario. Production guidance
as a result of recent dispositions now stands at 52,000-55,000 BOE/d (from
55,000-57,000 BOE/d prior). The company spent less than we had anticipated in
Q3/16; however, FY16 capex remains unchanged at $90mm. Preliminary 2017
capex guidance stands at $150mm (including ARO) which the Company expects
will deliver 10% core area production growth from Q4/16 to Q4/17. We expect
this profile to generate $207mm of cash flow next year which results in an all-in
payout ratio of 65%.
Incremental 2017 growth will be focused in the Cardium (both Pembina
and Willesden Green) and will include additional waterflood initiatives.
The majority of 2017 capex will be spent on Cardium production adds through
new drills and increased voidage replacement on the J-Lease (Pembina) and
Willesden Green properties. The company will also direct capital to the Viking and
Peace River areas which will provide the cash flow necessary to drive growth in
the Cardium which will continue to be Penn West's main operational focus.
Potential for near-term cost structure improvements on the back of further
non-core asset dispositions. The company continues to expect further noncore
dispositions (14,000 BOE/d that could fetch $25-125mm) by year end
which should provide further opex reductions and mitigate future asset retirement
obligations.
TD Investment Conclusion
Q3/16 was a solid beat in our view, and should provide investors comfort that the
'new' Penn West is indeed better than the 'old' Penn West. Both leverage and
operating costs are down significantly -- key given Penn West's history. Our 2017
ca
sh flow estimates and NAV increase our target to $2.50 (from $2.25 prior)
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Penn West On The List Of The top 10 upstream M&A deals in Canada in 2016 so far
3. C$975 million - Teine Energy acquires Penn West Petroleum’s Saskatchewan assets
Energy Ltd., with funds from its own existing credit facilities and significant financial backing from the Canada Pension Plan Investment Board, acquired Penn West Petroleum Ltd.’s (TSXPWT) Dodsland Viking assets in Saskatchewan for C$975 million.
This is the biggest deal outside of Alberta and British Columbia so far this year.
Since Q4 2014, when the price downturn really began, Penn West has sold assets in deals worth a total of C$25 billion, all aimed at reducing total debt.
This single C$975 million asset sale resulted in a markedly improved capital structure; Penn West now says that the company is in the top tier of its peers in terms of all significant debt metrics.
Full report – June 2016.
https://www.jwnenergy.com/article/2016/11/top-10-upstream-m-deals-canada-2016-so-far/
Here is another opinion:
https://seekingalpha.com/article/4015608-new-look-penn-west-petroleum-reviewing-value#alt1