The company announced it is launching a review of financial statements of 2014 and the four previous years. Penn West said that its historical financial documents for the years that are under reviews are unreliable.
The voluntary accounting review may force the company to reduce its budget and royalty expense expectations for 2014 while increasing its operating cost expectations. The review may also delay Penn West's second quarter earnings release.
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TheStreet Ratings team rates PENN WEST PETROLEUM LTD 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 several 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, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself."