NEW YORK (TheStreet) -- Penn West Petroleum (PWE) was falling 10.33% to $7.38 on Wednesday after the company announced it expects lower output in 2014 as it shuts down or sells some of its wells.
The company said it expects to average between 101,000 and 106,000 barrels of oil equivalent per day, which marks a decrease from its previous outlook of between 105,000 and 110,000 barrels. Penn West lowered its estimates after the company shut in 3,200 barrels of oil equivalent per day that it deemed unprofitable to produce.
Penn West is one of Canada's greatest producers of conventional oil. The company recently reached a production sharing agreement on properties that would produce 6,700 barrels of oil equivalent per day to raise $159.4 million but did not name partner in the deal, according to Reuters. The site reports that this is part of new CEO Dave Roberts' plan to sell nearly $2 billion Canadian in assets in order to change operations.
TheStreet Ratings team rates Penn West as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PENN WEST PETROLEUM LTD (PWE) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself."