Author Topic: PWE - Penn West Petroleum  (Read 514451 times)

Spekulatius

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Re: PWE - Penn West Petroleum
« Reply #1540 on: October 08, 2019, 05:47:59 PM »
The word on the streets is that all banks are trimming loans.    With OBE almost maxed out, that could explain the action and strategic alternatives.  Banks gave them a heads up.    Line is reaffirmed in November.

The sector will become a great field for distressed debt and bankruptcy investing. We had a already a mini credit market freeze for E&P and related industries in late 2015 and ai think we are going a more severe version of this coming back.
To be a realist, one has to believe in miracles.


SharperDingaan

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Re: PWE - Penn West Petroleum
« Reply #1541 on: October 11, 2019, 11:38:45 AM »
Just a disclosure that we added again at recent prices.
Beyond stunning that we were able to acquire significant quantity at such a steep discount to value.
.... and without having to use the option market.

SD
« Last Edit: October 11, 2019, 11:40:26 AM by SharperDingaan »

Liberty

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Re: PWE - Penn West Petroleum
« Reply #1542 on: October 11, 2019, 12:18:46 PM »
Just a disclosure that we added again at recent prices.
Beyond stunning that we were able to acquire significant quantity at such a steep discount to value.
.... and without having to use the option market.

SD

Stunning indeed!
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Joe689

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Re: PWE - Penn West Petroleum
« Reply #1543 on: October 22, 2019, 07:18:20 AM »
CFO resigned. 

Liberty

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Re: PWE - Penn West Petroleum
« Reply #1544 on: October 22, 2019, 08:47:24 AM »
"Most haystacks don't even have a needle." |  I'm on Twitter  | This podcast episode is a must-listen

Joe689

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Re: PWE - Penn West Petroleum
« Reply #1545 on: October 22, 2019, 09:01:44 AM »
Generally.  But market is not reading it that way....*yet.

The posture and events of this company shout it is already good as sold... imo

SharperDingaan

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Re: PWE - Penn West Petroleum
« Reply #1546 on: October 22, 2019, 09:34:56 AM »
Agreed, but a sale/merger still has to offer 'highest and best value', and still has to pass the legal 'due diligence' requirements of the OBE board. There is nothing wrong with a sale under these conditions; it's really just a question of the cash/paper consideration, and whether the buyer can accrete enough stock to force a mandatory tender.

Hopefully, we read an announced proposal in the next little while.

SD

Joe689

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Re: PWE - Penn West Petroleum
« Reply #1547 on: October 22, 2019, 09:48:14 AM »
Will help to have TPH on board.  They will be offering the opinion. 

Valuations are not so cut and dried do to oil volatility,  and long term oil outlooks.  Not to mention, egress risks.

My guess is that TPH would bless quite a few combinations, but in the end, it will have to go to vote....

Got consider our three largest holders.  Kernwood (> 7 cost basis), FF (>7 cost basis), and our new 8% Chinese friend (unknown basis).   Most objective funds understand the concept of mark to market. 

A lot of plays out there just like this one.   In theory, take cash, and redeploy to capture the other majority of the upside that the macro market created. 




Liberty

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Re: PWE - Penn West Petroleum
« Reply #1548 on: October 22, 2019, 12:28:17 PM »
Seems unlikely the CFO would resign if there was a great deal anywhere near on the horizon.
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Spekulatius

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Re: PWE - Penn West Petroleum
« Reply #1549 on: October 22, 2019, 03:54:26 PM »
Seems unlikely the CFO would resign if there was a great deal anywhere near on the horizon.

Itís always worrisome, if the guy running the numbers decides itís not worth it.
To be a realist, one has to believe in miracles.