Dahlman Rose Starts Penn West Energy (PWE) at Buy; An Oil Growth Execution Story

Dahlman Rose initiates coverage on Penn West Energy (NYSE: PWE) with a Buy. PT $27.00.

Dahlman analyst says, "Penn West stumbled as it transited from an energy trust to an E&P, but the company is well positioned to improve results...In our view, Penn West Exploration offers an attractive exposure to light oil development plays across Western Canada. Additionally, through two joint ventures where PWE’s capital costs are largely carried over the next several years, the company has a cheap option on sizable potential resource additions. PWE plans to maintain its current annual dividend of $500MM (yielding ~6%), which provides investors a defensible return and helps PWE maintain capital discipline."

For an analyst ratings summary and ratings history on Penn West Energy click here. For more ratings news on Penn West Energy click here.

Shares of Penn West Energy closed at $18.46 yesterday.

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