Penn West Energy Trust (PWE)

[LoveItInBishop]

Good day for all longs. Congrats!!!

[Fortrav]

New here...took a position this morning. Looks like a 'keeper'.

[legalizeMJ]

PWE(Oil stock)is UPGRADED to OUTPERFORM right after it Announces $1.1 Billion In Asset Sales on 6/10/16

PWE(Oil stock)= Strong BUY.

[legalizeMJ]

PWE(Oil stock) Announces $1.1 Billion In Asset Sales, Including The Sale Of Its Saskatchewan Assets For $975 Million

http://ih.advfn.com/p.php?pid=nmona&article=71709974

The total cash consideration from asset dispositions to date in 2016 is approximately $1.3 billion, reducing our pro forma Net Debt to approximately $600 million from $2.1 billion at year-end 2015. As a result, we expect to be comfortably in compliance with all of our financial covenants at the end of the second quarter and the remainder of 2016.

PWE(Oil stock)= Strong BUY.
Go PWE $$$$$$$$$$$$$$

[LoveItInBishop]

A nice piece on the yahoo board.

From stock house..good analysis and pretty darn close...

Per the call, PWE will improve by $3 BOE on operating and $5 per BOE on financing versus last qtr, a combined $12 per BOE versus guidance and a combined $18 per BOE versus 2015....(financing, operating, G&A, Royalties, and transportation)...this translates to crazy low BE...
Basically, going forward, all in cost (royalties, transportation, operating, G&A and finance will be $16-$17 per BOE or less...so the poster is right..even at $25 dollar oil, PWE is making $7-9 netback's...
(The poster cited below has $9 dollars in savings per BOE but the actual is $5 per BOE..At 50 WTI, PWE will have $34 in netback's going forward...$60WTI, PWE as $44 in netback's going forward...)..still think this is $1.3 stock?

"Alternative method to estimate revised netbacks
So, we have 63,000 boepd as the original guidance for 2016.

Average netbacks were estimated to be $17 to $18 per boe

Of this, 20,000 boepd had zero or negative netbacks.

By iteration, it can be calculated that removing these 20,000 boepd, average netbacks for the remaining 43,000 boepd were $27 per boe.

To this, you can add the $9 per boepd gained from interest rate reductions.

By this method, netbacks for the residual retained production of 30,000 boepd for 2016 would be above $30 per boe.

Conclusion

PWT will dispose of at least 20,000 boepd of zero netback production and also gain $9 per boe in reduced interest costs due to debt reduction.

THAT IS......AND SUPPPORTING MANAGEMENTS ASSERTION.....PWT WILL BE A VERY LOW COST PRODUCER CAPABLE OF BEING PROFITABLE AT OIL PRICE OF WTI $25 PER BOE AND PERHAPS LOWER Less

[LoveItInBishop]

this should rip once institutions pile in. and that should be any day now.

[legalizeMJ]

PWE(Oil stock)= Strong BUY.
Go PWE $$$$$$$$$$$$$

[legalizeMJ]

Link: PWE is Upgraded to OUTPERFORM on 6/13/16.

https://finance.yahoo.com/q/ud?s=PWE

PWE(Oil stock)= Strong BUY.
Go PWE $$$$$$$$$$$$$

[legalizeMJ]

Link:GOOD NEWS,PWE Announces $1.1 Billion In Asset Sales, Including The Sale Of Its Saskatchewan Assets For $975 Million

http://ih.advfn.com/p.php?pid=nmona&article=71709974

The total cash consideration from asset dispositions to date in 2016 is approximately $1.3 billion, reducing our pro forma Net Debt to approximately $600 million from $2.1 billion at year-end 2015. As a result, we expect to be comfortably in compliance with all of our financial covenants at the end of the second quarter and the remainder of 2016.

Corporate Update and Transformation to a Leading Alberta Oil Producer.
As we continue to monetize our non-core assets over the balance of the year, our remaining operations will be focused in Alberta as follows:

Our redefined Cardium area will be focused on our unsurpassed land position encompassing 700 net sections and 1,500 drilling locations, or over 20 years of drilling activity. Our first quarter production in the Cardium area was approximately 19,500 boe/d with operating costs of $10/boe and netbacks of $17/boe. We expect the Cardium to continue driving profitable liquids growth through a combination of waterflood programs, infill drilling and new development for the foreseeable future. Recent production results from Cardium wells in both the Pembina and Willesden Green areas over the last two quarters continue to exceed expectations with production volumes meaningfully above historical type curves. Additionally, this transaction gives Penn West the financial flexibility to begin exploiting the multi horizon potential in our Cardium area. We hold approximately 500 net sections in the Belly River and Mannville formations that we believe are highly prospective. These plays will form part of our development strategy that we will be executing over the next several years.

Link: PWE is Upgraded to OUTPERFORM on 6/13/16.

https://finance.yahoo.com/q/ud?s=PWE

PWE(Oil stock)= Strong BUY.
Go PWE $$$$$$$$$$$$$

[John Kent]

Thanks

[Lone Wolf]

The craziness Friday was the result of the news being released late in the AH session when traders had already 'packed their bags' for the weekend. The only shares largely available were the GTC shares...thus the Friday move was very exaggerated.that said, PWE is a good portfolio stock after the work they've done to manage their debt. Buy and hold.

[jones99]

It will trade sideways until the deal is closed , many got out today jumping the gun , new trading range will emerge, no position.

[John Kent]

What are your thoughts here it was going crazy after hours Friday but I waited for a pull back.

[Sibware]

PWE:Sold many p/m Riding freebies for the moment...

[ANIA77]

Nice..

[ANIA77]

Nice..

[crudeoil24]

Penn West Raised to Outperform From Underperform by Raymond James >PWE *Monday 06/13/2016 10:34 AM ET - Dow Jones News

[ANIA77]

Agreed. . Low short volume, higher OS, and overall market sentiment regarding commodities. .. is not going to help to create buying pressure that we would like to see... however yes, I agree that it is a very safe oil company that is positioning themselves to survive and do well so recent good news should be definitely enough to start nice uptrend here. I'm not in.. yet.. I'll be watching for a good entry that I like.

[LoveItInBishop]

nice dd, thanks for sharing:)

[Lone Wolf]

Nice DD Ania. Wish short interest was bigger and float was smaller...makes it hard to call en entry point as a result. What I can say, as you pointed out, this has now become one of the safest plays in the sector relative to pps. IMO, it's a great 'portfolio stock'. Thinking any shares around a buck-and-a-half might represent a good entry with the option to average down if such an opportunity presents itself.

Looking good this AM...that's for sure!

$PWE

[ANIA77]

Ok, so I just looked quickly through news and balance sheet.. first of all I think it is safe to say that company definitely is NOT going bk. Management has made all necessary steps to cut down drastically on debt by selling assets and I see also huge improvement in operation costs and other expenses. ..
Even though they sold a chunk of assets, I see they should still have over $ 4B in assets AND debt down to only $600mln per that last PR ..
That's huge.. Loss was already cut down significantly on last Q showing only $100mln loss.. Didn't I just read that by paying off chunk of debt they will save like $100mln on interest? Anyway.. revenue obviously smaller than previously but still pretty good imo.. and most importantly they are on a good track to be profitable. .
Am I right? What else do you know?
OS 500M.. TD Ameritrade shows 20% held by institutions. .. hmm.. I have to think what I would like as en entry here. .
I see CC tomorrow?

[coachvw]

Wondering the same here!? I think I'm going to get out
at the open, and just be satisfied with the big pop:)!!

[ANIA77]

Wow, thanks Wolf for bring it up to me.. I stopped really watching oil ticks after series of Qs.. so what exactly is happening here ? What is your guess on where pps is heading? AH is already way up.. pre market could be equally crazy. .
What's good entry/exit here and why?
Thanks!

[Star Gazer]

Kinda makes me glad I took the chance....

[ClearlyStocks]

Wow

[Lone Wolf]

It's 'game on'!!

$PWE

[kpisme]

Seeking Alpha article sums it up.

http://seekingalpha.com/article/3975917-penn-west-covenant-breach-seems-unlikely?auth_param=ihsrl:1bjof10:b92c21e4860600a50eeed2ab3804724b

[mikoli007]

Thanks, I'm now extremely gun shy thanks to sdocq. Everything was moving along very well for everyone. The restructure was not a shock but not including the shareholders was. Their was a statment in their filing that says all shares will be cancelled at the end of BK.

[Lone Wolf]

Earnings beat...and that was before oil bottomed out. Should provide some support during negotiations with creditors. We'll see.

[mikoli007]

Thanks for the update, I got caught with sdoc, thinking they would restructure and include their shareholders. Their history and financials looked ok because they had enough cash to ride out their debt for awhile plus a lot of it was not due for a few years. Add in that oil is up over 70%.. He would have been a hero if he rode it out. GLTY

[kpisme]

Not yet, but look at the financials and see if they don't look close.

Makes me scared to buy more.

[mikoli007]

Did this company file BK?

[Lone Wolf]

I'll buy any company that will make me money!!!

[kpisme]

Why you like to buy BK companies?

Where is the strength?

[Lone Wolf]

There's an 'opportunity' here for folks. Hope they see it!

[Lone Wolf]

Looking excellent here bro!!

$PWE

[ClayTrader]

* * $PWE Video Chart 05-16-16 * *

Link to Video - click here to watch the technical chart video

[Chance]

PWE slow climb continuing..

maybe to a buck and a quarter
or even near a buck fifty ..

some indies > http://stockcharts.com/h-sc/ui?s=PWE&p=D&b=5&g=0&id=p26894623754

========================================================================

[40thPOTUS]

I rode PWE south from $2 in Feb of 15; finally averaged down w new 3X position @ .73 early last month. Fortunate to cash out on 3/7 @ 1.25 for a nice (though hard fought) profit!

IMO this stock has legs to run so I established a new position on Thursday's low after earnings. I think it can move thru $1.30 and see $1.50 w the current catalysts and cost cutting measures. Downside is oil's $ volatility but I'd see that as another buying opportunity...

[OTCRIDER]

On Watch...

[kvnmcdd]

I covered at .90 like an idiot

[hereandthere]

Climbing again!

[RB_79]

not if you got in 3 weeks ago!!! BOOOYA!!!

[John_Paul]

just sit back and watch it plummet... Rate it a sell

[John_Paul]

Feel bad for anyone with shares in this shit company.

[Rogerthat1]

Took position today. Purely technical play for me. GL whomever is left on this board lol.

[HUDDUH]

[legalizeMJ]

PWE vs REN(It's oil industry comparison)

1)Both PWE, REN are oil and gas companies.

2)PWE sold one(1) of its asset and it has been up 300%

3)REN sold one(1) of its asset for $55ML on 10/8.

http://finance.yahoo.com/news/resolute-energy-corporation-announces-closing-110000449.html

The above is oil and gas industry comparison.

[Star Gazer]

The Opening Gap is filled.
200 day MA within striking range. Blow thru that and sky's the limit...

[RB_79]

What an amazing week!!!

Go PWT