Penn Virginia (PVA) Misses Q3 EPS by 11c; Issues Prelim. FY16 Outlook

Penn Virginia (NYSE: PVA) reported Q3 EPS of ($0.60), $0.11 worse than the analyst estimate of ($0.49). Revenue for the quarter came in at $112 million versus the consensus estimate of $91.21 million.

Full-Year 2015 Guidance Update and Preliminary 2016 Guidance

Full-year 2015 guidance highlights are as follows:

• Production of approximately 21,300 to 21,800 BOEPD, compared to previous guidance of approximately 20,700 to 22,600 BOEPD.
  • 2015 crude oil production of approximately 13,200 to 13,500 barrels of oil per day (BOPD), compared to previous guidance of 13,050 to 14,350 BOPD.
  • Production in the fourth quarter of 2015 is expected to range between approximately 16,200 and 18,100 BOEPD, compared to previous guidance of between 16,300 and 19,600 BOEPD.
• Product revenues, excluding the impact of any derivatives, are expected to be $264 to $269 million, compared to previous guidance of $284 to $307 million.
  • Our crude oil revenue estimate assumes realized pricing of West Texas Intermediate (WTI) crude oil benchmark pricing of approximately $45 per barrel, compared to previous guidance of $55 per barrel. Benchmark (Henry Hub) natural gas pricing is assumed to be $2.56 per Mcf, compared to previous guidance of $2.88 per Mcf, while NGL pricing is assumed to be 19% of the WTI price.
  • Cash receipts from the settlement of derivatives are expected to be $134 million, based on the foregoing assumptions, compared to previous guidance of $127 million.
• Adjusted EBITDAX, a non-GAAP measure, is expected to be $280 to $284 million, compared to previous guidance of $285 to $310 million.
• Capital expenditures are expected to be $316 to $324 million, compared to previous guidance of $325 to $345 million.
  • Drilling and completion capital expenditures are expected to be $296 to $302 million, compared to previous guidance of $305 to $320 million.
  • Pipeline, gathering, facilities, seismic and other capital expenditures are expected to be $6 to $7 million, compared to previous guidance of $5 to $8 million.
  • Lease acquisition capital expenditures are expected to be $14 to $15 million, essentially unchanged compared to previous guidance.

Please see the Guidance Table included in this release for guidance estimates for fourth quarter and full-year 2015.

Preliminarily, and based on crude oil prices, specifically $48 to $52 per barrel WTI, we expect to spend $140 to $160 million in capital expenditures during 2016, with fourth quarter 2016 oil production approximately 5% lower than the midpoint of fourth quarter 2015 oil production guidance (overall production approximately 10% lower). This compares to previous preliminary guidance, which assumed a $55 to $60 per barrel WTI crude oil pricing, of $200 to $250 million in capital expenditures during 2016. The 2016 preliminary capital budget will be funded by anticipated year-end 2015 liquidity and 2016 cash flows from operating activities.

2015 estimates and 2016 preliminary estimates are meant to provide guidance only and are subject to revision as the operating environment changes.

For earnings history and earnings-related data on Penn Virginia (PVA) click here.

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