Sector Perform, $2.50 Analyst Actions: RBC Capital Maintains Sector Perform, $2.50 TP on Penn West Petroleum
MT Newswires
02:12 PM EDT, 06/16/2017 (MT Newswires) -- RBC Capital said its recent meetings with institutional investors in New York with David French, Penn West President and CEO, and Tony Berthelet, VP, Development & Operations, were "constructive" and honed in on the company's five-year game plan. Pending a shareholder vote at its upcoming annual general meeting on June 26, Penn West will officially adopt the name Obsidian Energy.
RBC said that anchored by the Cardium and Peace River, Penn West appears well prepared to "flex its capital as oil market conditions warrant." If WTI prices retreat, Penn West would seek to dial back capital in the Viking (Alberta), followed by Peace River, and finally its Cardium program. Still, RBC does not expect Penn West to deviate from its 2017 capital program of $180 million (including $20 million of decommissioning expenditures).
Maintain Sector Perform, $2.50 TP.