Comments on: Penn West Energy Becoming a “Show-Me” Company http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company One person's quest to make sense of a senseless American economy and society. Sat, 13 Mar 2010 01:18:43 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: The Enlightened American » Penn West Energy: More Questions Than Answers After Q1 2008 Earnings http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/comment-page-1#comment-245 The Enlightened American » Penn West Energy: More Questions Than Answers After Q1 2008 Earnings Wed, 21 May 2008 18:16:17 +0000 http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/#comment-245 [...] my last posting on PWE, I put the company on notice, so to speak. The company’s Q1 report did little to ease my [...] [...] my last posting on PWE, I put the company on notice, so to speak. The company’s Q1 report did little to ease my [...]

]]> By: JD http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/comment-page-1#comment-112 JD Thu, 24 Apr 2008 16:28:13 +0000 http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/#comment-112 Davy, As you know, if these trusts used regular corp accounting, then they would have to bring all capex, maintenance and exploratory, under the cost side, which would change things as most trusts don't keep distributions and capex within cash flow. I know of one trust ,PMT, that is now able to bring distributions and all capex under cash flow. Do you know of others? I ask this because I think it important as 2011 approaches and these trusts may need to account for their operations differently, especially if they change to a corp. take care, JD Davy,
As you know, if these trusts used regular corp accounting, then they would have to bring all capex, maintenance and exploratory, under the cost side, which would change things as most trusts don’t keep distributions and capex within cash flow. I know of one trust ,PMT, that is now able to bring distributions and all capex under cash flow. Do you know of others? I ask this because I think it important as 2011 approaches and these trusts may need to account for their operations differently, especially if they change to a corp.

take care,
JD

]]> By: Davy Bui http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/comment-page-1#comment-108 Davy Bui Wed, 23 Apr 2008 14:32:31 +0000 http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/#comment-108 Hi JD, I agree. As I mention above, cash flow is projected @ $2.05B with around $1.9B or so in capex + distributions. They should have a ratio of 0.93 (anything below 1 is sufficient coverage). They have also picked up a habit of not meeting projections lately so that's why I put meeting this FCF projection as the top performance measurement. Hopefully, management will make it happen. Hi JD,

I agree. As I mention above, cash flow is projected @ $2.05B with around $1.9B or so in capex + distributions. They should have a ratio of 0.93 (anything below 1 is sufficient coverage).

They have also picked up a habit of not meeting projections lately so that’s why I put meeting this FCF projection as the top performance measurement.

Hopefully, management will make it happen.

]]> By: JD http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/comment-page-1#comment-107 JD Wed, 23 Apr 2008 13:45:22 +0000 http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/#comment-107 If you look at the most recent presentation, they show cash flow sensitivities at various oil and gas prices. At current levels, they will have enough cash flow to cover distributions, capex and a little left over to reduce debt. If you look at the most recent presentation, they show cash flow sensitivities at various oil and gas prices. At current levels, they will have enough cash flow to cover distributions, capex and a little left over to reduce debt.

]]> By: Susan Kishner http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/comment-page-1#comment-102 Susan Kishner Mon, 21 Apr 2008 16:55:25 +0000 http://enlightened-american.com/2008/04/21/penn-west-energy-becoming-a-show-me-company/#comment-102 Nice writing style. I will come back to read more posts from you. Susan Kishner Nice writing style. I will come back to read more posts from you.

Susan Kishner

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