Penn Virginia Corp. (fka PVAHQ)

[Timothy Smith]

Key points I like $PVA:

Penn Virginia, a company which dates back to 1882, has paid dearly over the last five years for its dependence on natural gas (82% of reserves); shares are down 90% from 2008 highs.

In the last couple of years, the company has shifted its focus toward liquids in the Eagle Ford.

The company's website claims 25,100 net acres in the Eagle Ford oil window with 250 well locations - 51 producing.

Penn Virginia's second quarter news release noted that oil and liquids now account for 45% of production, $100 million sale of Appalachian assets, and the discontinuance of the dividend.

Insiders have been buying recently and optimism for a turnaround have driven shares up nearly 80% from the lows of last April.

Penn Virginia's financials show that, as of the second quarter of 2012, quarterly revenue growth is 4.2% year-over-year, total debt is $779 million, and total debt/equity is 94.

In addition to its Eagle Ford assets, Penn Virginia has large legacy natural gas holdings in the Marcellus and Haynesville Shale, and Cotton Valley Sands of East Texas.

Now, if only the price of natural gas can continue its recent upswing, things might look very good for Penn Virginia.