penn virginia corp (PVA) Snapshot

Penn Virginia Corporation announced that its bank group has voted unanimously to increase the borrowing base under PVA's senior secured credit facility from $275 million to $350 million. The 27% increase in the borrowing base is the direct result of PVA's recently announced acquisition of Eagle Ford Shale reserves for approximately $400 million, as well as continued success in its Eagle Ford Shale drilling program. Under the terms of the credit facility, which matures in September 2017, the bank group re-determines the borrowing base semi-annually utilizing the banks' estimates of reserves and future oil and gas prices.

Penn Virginia Corporation announced that it has redeemed the remaining approximately $127 million, or 42%, of the original $300 million aggregate principal amount of its outstanding 10.375% senior notes due 2016 (Notes). For each $1,000 principal amount of Notes, the redemption price was $1,061.31 in cash, plus accrued and unpaid interest, up to, but excluding, the redemption date of May 10, 2013. The other approximately $173 million, or 58%, of Notes were repurchased pursuant to PVA's previously announced tender offer, which expired on May 8, 2013.

Penn Virginia Corporation reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported total revenues of $83.2 million compared to $84.4 million a year ago. The $3.0 million operating loss in the first quarter of 2013 was $78.1 million lower than the $81.1 million loss in the fourth quarter of 2012, due primarily to a $75.2 million decrease in impairment expense (none in the current quarter), a $6.2 million increase in total product revenues, a $2.8 million decrease in depreciation, depletion and amortization (DD&A) expense, a $1.1 million decrease in exploration expense and a $1.0 million decrease in share-based compensation expense. Loss before income taxes was $25.2 million compared to $18.5 million a year ago. Loss applicable to common shareholders was $18.1 million compared to $11.9 million a year ago. Basic and diluted los per share was $0.33 compared to $0.26 a year ago. Net cash provided by operating activities were $45.6 million compared to $70.7 million a year ago. Capital expenditures-property and equipment was $86 million compared to $94.4 million a year ago. Loss, as adjusted, attributable to common shareholders was $10.4 million compared to $7.1 million a year ago. Diluted net loss per share as adjusted was $0.19 compared to $0.15 a year ago. EBITDAX was $48.3 million compared to $56.7 million a year ago. Adjusted EBITDAX was $60.3 million compared to $64.2 million a year ago. The company’s production of 1.4 million BOE (MMBOE) or 15,857 BOE per day (BOEPD), in the first quarter of 2013, compared to 1.4 MMBOE, or 15,444 BOEPD, in the fourth quarter of 2012 (a 3% increase in the daily rate). Eagle Ford Shale net production was 7,523 BOEPD in the first quarter of 2013, compared to 6,872 BOEPD in the fourth quarter of 2012 (a 9% increase in the daily rate). Oil and NGL production was 58% of production in the first quarter of 2013 compared to 56% in the fourth quarter of 2012. For 2013, production is expected to be 6.7 to 7.3 MMBOE, or approximately 18,200 to 20,000 BOEPD, compared to previous guidance of 6.5 to 7.2 MMBOE, or approximately 17,800 to 19,600 BOEPD. Crude oil production is expected to increase by 60% to 78% over 2012 levels, compared to previous guidance of 57% to 76% growth. Crude oil and NGLs are expected to comprise 65% to 69% of total production, unchanged compared to previous guidance. Product revenues, excluding the impact of any hedges, are expected to be $414 million to $469 million, compared to previous guidance of $403 million to $447 million. Adjusted EBITDAX, a non-GAAP measure, is expected to be $300 million to $360 million, compared to previous guidance of $295 to $350 million. Capital expenditures are expected to be $445 to $505 million, compared to previous guidance of $432 million to $482 million. Approximately 94% of capital expenditures are expected to be allocated to the Eagle Ford Shale. 2013 capital expenditures include $400 million to $450 million for drilling and completions ($390 million to $430 million of previous guidance), $23 million to $30 million for lease acquisitions ($25 million to $31 million of previous guidance) and $22 to $25 million for pipeline, gathering, seismic and facilities (unchanged from previous guidance). Product revenues are expected to be $340 million to $385 million for 2013, with about 88% of it derived from oil and NGL sales. The company expects fourth quarter 2013 oil production rate to be approximately 12,500 to 13,000 barrels per day. This would be about double the rate that produced in the fourth quarter of 2012.