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Canaccord Weighs On Penn Virginia Corporation’s 4Q’14 Results


In a research report released today, Canaccord Genuity analyst Stephen Berman maintained a Buy rating on Penn Virginia Corporation (NYSE:PVA) with a $9.00 price target, after the company released its fourth-quarter results. The company reported adjusted EPS/CFPS of ($0.35)/$0.83 compared to Berman’s estimates of ($0.11)/$0.97 and consensus of ($0.10)/$0.91, respectively.

Berman stated, “PVA has built a sizable ~102K blocky and contiguous net acre position in the volatile oil window of the Eagle Ford (EF) and has generated solid results through the drillbit while bringing down costs at the same time. We also consider PVA to be the most likely takeover candidate in our coverage universe.”

Furthermore, “PVA is more convinced than ever that the Upper and Lower EF are separate reservoirs, having turned 20 Upper EF wells to sales to date, with a 30-day average IP rate of over 900 Boe/d. Although preliminary, the early performance and lower initial decline rates for the Upper EF wells are, while gassier, an improvement over what PVA typically sees in the Lower EF.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Stephen Berman has a total average return of -16.4% and a 34.4% success rate. Berman has a -38.6% average return when recommending PVA, and is ranked #3463 out of 3483 analysts.