Penn Virginia (PVAC) Update - Sept 23

[dan_s]

I have to head to the airport today at 4PM CT, but I want to get all of the Small-Cap Growth Portfolio companies' valuations updated before I go. I am raising the natural gas and NGL prices in all forecast/valuation models.

PVAC is trading at $22.50 at the time of this post. TipRanks valuation is $32.00 and my valuation increases to $40.00.
Penn Virginia is merging with Lonestar in a deal that is expected to close in October. Post merger Q4 production should be 38,000 to 40,000 Boepd, which compares to Penn Virginia's Q2 production of 24,844 Boepd.

If their 2022 guidance confirms my forecast assumptions, which today look too low, my valuation will go up.

My updated model of PVAC has been posted to the EPG website.