* Cuts Q4 production outlook by 1.5-1.7 Bcfe
* Reduces forecast due to delay in well completion
* Shares down as much as 7 pct
Dec 13 Penn Virginia Corp cut its
fourth-quarter production outlook due to a delay in the
completion of its wells in the Eagle Ford shale, sending its
shares down as much as 7 percent.
The oil and gas producer now expects production of 10.7-11.0
billion cubic feet of natural gas equivalent (Bcfe) for the
quarter. Earlier, it had forecast 12.2-12.7 Bcfe.
Howard Weil, which has a "market-perform" rating on Radnor,
Pennsylvania-based Penn Virginia, cut its share-price target to
$12 from $19 and said the lower production will raise concerns
about the company's liquidity.
"The most concerning part about the production shortfall is
that the Eagle Ford is the most promising asset in PVA's
portfolio and is expected to drive growth in 2012," the
brokerage said in a note to clients.
Another brokerage, Capital One, cut its rating on the
company's stock to "neutral" citing the production cut and said
it was expecting an output of 12.5 Bcfe.
"(Penn Virginia is) already one of the worst performing E&P
(exploration and production) names this year." Capital One said
in a note.
Shares of Penn Virginia have lost about 65 percent
year-to-date, while the S&P 1500 Oil and Gas Exploration and
Production Sub-Industry Index has fallen only 1.5
percent in the same period.
The Penn Virginia stock was down 2 percent at $5.79 in
morning trading on the New York Stock Exchange.