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Penn Virginia Reports Third Quarter 2020 Results
Generated Net Cash Provided by Operating Activities of $61 Million and Free Cash Flow of $34 Million for the Third Quarter 2020
HOUSTON, November 5, 2020 (GLOBE NEWSWIRE) Penn Virginia Corporation (Penn Virginia or the Company) (NASDAQ:PVAC) today announced its financial and operational results for the third quarter 2020.
Recent Significant Highlights
Entered into strategic agreements with certain affiliates of Juniper Capital Advisors, L.P. (Juniper) whereby Juniper would acquire equity in Penn Virginia for (1) a cash investment of $150 million and (2) the contribution of $38.4 million of complementary oil and gas assets;
Generated net cash provided by operating activities of $61 million and free cash flow (FCF)(1) of $34 million for the third quarter of 2020;
Sold 18,383 barrels of oil per day (BOPD) and 24,295 barrels of oil equivalent per day (BOEPD) for the third quarter of 2020;
Realized oil price for the third quarter of 2020 of $48.28 per barrel including hedge settlements;
Reported net loss of $243 million (includes a non-cash impairment of oil and gas properties of $236 million and non-cash unrealized losses on derivatives of $7 million), or $16.03 per share, and adjusted net income(2) of $17 million, or $1.14 per diluted share, for the third quarter of 2020;
Generated adjusted EBITDAX(3) of $64 million for the third quarter of 2020;
Reduced debt by $35 million; and
Recorded a mark-to-market value of the Companys commodity hedge position of approximately $27.8 million as of November 4, 2020.
Generating free cash flow is a top priority for Penn Virginia. To achieve that goal, we continue to focus on driving down our capital costs, increasing operational efficiencies, and protecting our margins by prudent risk management, said Darrin Henke, President and Chief Executive Officer of Penn Virginia. During the third quarter, we generated significant free cash flow, and we judiciously used that cash to reduce our outstanding debt. Given our Gulf Coast pricing, low-cost structure, strong hedge positions, and resumption of our drilling program, we anticipate living within cash flow in the fourth quarter.
Mr. Henke continued, Our history of solid performance and premier asset base in the Eagle Ford make Penn Virginia an attractive investment opportunity as evidenced by the recently announced pending transaction with Juniper. Once completed, the transaction will immediately improve the Companys balance sheet as it will allow us to more than double our equity market capitalization, pay down well over $100 million of debt, extend the maturity of our second-lien term loan by two years to September 2024, and reduce annual interest expense by an estimated 20%. We are also excited about the opportunities provided by folding in Junipers adjacent acreage, which includes complementary oil and gas assets that add production, cash flow, and additional drilling locations. Finally, this transaction will allow us to more effectively maneuver through a potential lower for longer oil price environment. As we have shown consistently throughout 2020, we strive to leverage our robust hedge book to mitigate lower oil prices while maintaining significant upside exposure to an eventual oil price recovery. We look forward to working closely with the Juniper team as we continue to focus on long-term value creation for all of our shareholders.
The following information was filed by Penn Virginia Corp (PVAC) on Friday, November 6, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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