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Penn Virginia Corp. (PVAC) Stock Continues to Trend Up as Public Offering is Deferred

DNAY Stock

DNAY Stock

Penn Virginia Corp. (PVAC) stock prices were up 2.48% as of market close on May 7th 2021, bringing the price per share up to USD$16.97 at the end of the trading day.

Barrels of Oil Sales

PVAC exceeded expectations by reporting having sold 16,324 barrels of oil per day for over the first quarter of 2021, surpassing the high end of the guidance range for that period. Total sales volume reported for Q1 2021 were 20,534 barrels of oil equivalent per day. The average total production for the seven days ended March 31st, 2021 was more than 20,000 barrels of oil per day and 25,000 barrels of oil equivalent per day.

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Q1 2021 Net Loss

The company reported USD$20 million in net loss, with USD$27 million in non-cash loss on derivatives, for the first quarter of the fiscal year 2021. The net loss attributable to common shareholders came out to USD$14 million representing a net loss of USD$0.89 per share and per diluted share. Q1 2021 reported USD$15 million in adjusted net income, representing an adjusted net income of USD$0.39 per diluted share of common stock.

PVAC’s Free Cash Flow

The first quarter of the fiscal year 2021 also saw the company report net cash generated by operating activities in the amount of USD$32 million. Free cash flow for the fiscal quarter was reported to be USD$6 million, which was comprised partially of a prepaid capital expenditure total of USD$12 million. As a result of these incurred expenses, the company locked in lower service costs and prepayment discounts.

Lagging Performance in Capital Expenditures

Total capital expenditures for Q1 2021 were roughly USD$54 million, with 99% drilling and completion. These numbers were below the low end of the company’s guidance range for the quarter. Nevertheless, PVAC reported adjusted EBITDAX in the amount of USD$47 million for the first quarter of the fiscal year 2021.

Deferred Capital Generation

The company reported a proposed offering of USD$350 million, in aggregate principal amount, of senior unsecured notes which would be due in 2028. Offered through the indirect, wholly-owned subsidiary Penn Virginia Holdings, the funds generated were intended to be allocated towards the full repayment of a second lien term loan and to further repay outstanding borrowings. May 7th, 2021 saw the company announce that it would be deferred this offering indefinitely.

Future Outlook for PVAC

With the company having reported strong numbers in the financial reports for Q1 2021, PVAC has exhibited a strong start to the fiscal year after a prior year that proved economically devastating. The deferral of the dilution of shares is also likely to have been promising for investors, who look to the company to capitalize the resources it has at its disposal to leverage significant and sustained increases in shareholder value.

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