Hi too_much_boostYou had asked about PVAC going up 78% about a...

Hi too_much_boost

You had asked about PVAC going up 78% about a week ago, especially that big jump on 29/30 April



IMO undoubtably due to their business update released to market on Apr 30
https://www.globenewswire.com/news-release/2020/04/30/2025805/0/en/Penn-Virginia-Announces-Business-Update.html

Among the many things in that update were:
1. Announcement of reduced borrowing base (from $500M to $400M with a further reduction to $375M on Jul 1, 2020)
2. Halting of all drilling and completion activities in early April
3. Secured 250,000 Bbls of oil storage
4. Further restructuring of Q2/Q3 hedges.

They also announced their Q1 call date, which happened yesterday. 10Q here
https://ir.pennvirginia.com/all-sec-filings/content/0000077159-20-000034/0000077159-20-000034.pdf


Keep in mind, with the hedging, that PVAC is hedged over 100% of production (so the cheaper oil is the more than make). And still the BB was reduced by 20% ... will SNDE suffer that fate? The $375M BB also requires a $25M minimum balance so really on $350M AND in addition the leverage ratio has been reduced to 3.5X (from 4.0X) of EBITDA

One action that has occurred since the update and Q1 release is the filing of shelf registration to raise up to $535M through the sale of of various securities such as common stock, preferred stock, debentures etc (i.e.capital raising)
https://www.sec.gov/Archives/edgar/data/77159/000119312520137713/d904574ds3.htm