Market Chatter: Penn West Petroleum Board Mulls Breakup; Shares Add 3%


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Bloomberg is reporting that Penn West Petroleum Ltd. ( PWE ), a Canadian oil producer that recently overhauled management, is poised to break up the company to boost its depressed share price.

According to the report, the company's new CEO and board leadership will explore options to increase returns after a two-year stock plunge has left the energy company trading at a 42% discount to book value. The $5 billion company's assets should be valued at as much as C$18.20 a share, 73% more than its closing price yesterday, according to three analyst and investor estimates compiled by Bloomberg.

PWE shares are up 3.3% to $10.65, amid a day's range of $10.17 - $10.77, within a 52-week range of $8.59 - $16.70.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities


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