UPDATE: Barclays Maintains Penn Virginia at Underweight on 2013 Production Outlook
Barclays reiterated its Underweight rating and $5 price target on Penn Virginia (NYSE: PVA) as the quarterly production guidance declines.
Barclays noted, "Our UW rating reflects concern in achieving the 2013 production targets and continuing to fund the cash flow gap while relying almost entirely on the Eagle Ford play for growth. … Management issued FY13 production guidance of 34-37 Bcfe, an 8% decrease from its FY12 guidance of 38-39 Bcfe, partially due to asset sales. PVA expects oil production to grow 25% Y-o-Y and liquids production to comprise 55-65% of FY13 equivalent volumes. We are somewhat cautious on the guidance given the fact that oil volumes have been on a slower trajectory in 2012 with a similar capital program."
Penn Virginia closed at $4.41 on Tuesday.
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