LONDON, UK / ACCESSWIRE / October 5, 2016 / Active Wall St. blog coverage looks at the headline from Penn West Petroleum Ltd. (NYSE: PWE) as the company announced that David French will be joining the company as President and Chief Executive Officer and will join the Board of Directors with effect from October 24, 2016, succeeding Dave Roberts who has been the CEO from June, 2013. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.
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The Appointment
Mr. French, 47, most recently served as President and CEO of Bankers Petroleum Ltd, a Calgary-based publicly-traded oil and gas company with operations in South-eastern Europe. He has worked a wide range of reservoir rock types, and primary, secondary and tertiary development throughout Canada, the lower 48 United States and Europe. Prior to joining Bankers Petroleum in 2013, Mr. French held several executive roles at Apache Corp. (NYSE: APA) including Regional Production Manager for the western Canadian business, and Global Vice President of Business Development.
"I am thrilled to have this opportunity to join Penn West and help deliver the promise of our new core business. This is an exciting time for the company as we focus on the future and build an engine for growth", said Mr. French.
Rick George, Chairman of the Penn West board commented:
"We are extremely pleased to have David French join us as our new CEO. David has the right combination of technical, executive management, and business development skills to lead Penn West in its evolution into a best in class light oil growth company with a solid balance sheet."
Mr. Roberts will continue to lead Penn West in October 2016 working with Mr. French and the Board of Directors to ensure a seamless leadership transition.
Offer to Prepay Debt
On October 3rd, 2016, Penn West Petroleum announced that it has offered $448 million of cash on hand to its senior note-holders to prepay amounts owing to them at par and on a pro-rata basis. The total principal amount of the senior notes outstanding was approximately $576 million prior to the prepayment offer. The company expects to complete the prepayment process prior to releasing its Q3 2016 earnings results in early November.
Penn West Petroleum stated that the company had $448 million of cash from previously completed asset this year, excluding the sale of all of its Saskatchewan assets, with the most recent asset sales representing proceeds of approximately $75 million completed in the third quarter.
Penn West Petroleum expects its pro-forma Senior Debt at the end of Q3 2016 to be reduced to approximately $470 million from $2.0 billion at year-end 2015 and its Senior Debt to EBITDA to be 2.0 times relative to a 4.5 times covenant threshold. The company informed that it expects to remain in full compliance with all of its financial covenants going forward into 2017.
Penn West Petroleum stated that in the event the prepayment offer is not fully accepted by its note-holders, the company will use the unallocated cash to reduce the amount outstanding under its revolving bank credit facility. The company has net debt of $566 million as per its Q2 2016 earnings results reported on August 4th, 2016.
Stock Performance
On Tuesday, the stock closed the trading session at $1.83, falling 1.61% from its previous closing price of $1.86. A total volume of 2.97 million shares have exchanged hands, which was higher than the 3-month average volume of 2.01 million shares. Penn West Petroleum's stock price advanced 10.91% in the last month, 25.34% in the past three months, and 101.10% in the previous six months. Furthermore, on a year to date basis, the stock surged 117.86%. The stock has a dividend yield of 1.64%.
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