Penn Virginia Earnings: Everything You Must Know Now

Penn Virginia Corp. (NYSE:PVA) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Penn Virginia Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.22 in the quarter versus EPS of $-0.14 in the year-earlier quarter.

Revenue: Decreased 2.8% to $78.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Penn Virginia Corp. reported adjusted EPS loss of $0.22 per share. By that measure, the company missed the mean analyst estimate of $-0.15. It missed the average revenue estimate of $79.07 million.

Quoting Management: H. Baird Whitehead, President and Chief Executive Officer stated, “In the fourth quarter, our operating cash flows remained strong and our margins continued to improve as a result of increased oil production, attractive oil prices and lower operating expenses. We expect oil production to increase further in 2013 and comprise over 85 percent of product revenues and over 60 percent of production.
“We also strengthened our balance sheet in 2012. At year-end 2012, we had over $300 million of financial liquidity and a leverage ratio of approximately 2.3 times Adjusted EBITDAX, so that we expect to be able to fund our 2013 capital program from operating cash flows and borrowings under our revolver. Moreover, we are considering the sale of a portion of our working interest in our Lavaca County Eagle Ford Shale acreage, which would further improve liquidity and reduce the outspend of cash flows.”
Mr. Whitehead concluded, “Our steadily improving results have been driven primarily by our oily Eagle Ford Shale play where we significantly increased our acreage and drilling inventory during 2012. Building on this success, we plan to commit approximately 88 percent of estimated 2013 capital expenditures to the Eagle Ford Shale, drilling approximately 38 (28.8 net) wells and focusing on expanding our Eagle Ford Shale position.”

Key Stats (on next page)…