In a new report, Oppenheimer analyst Robert Du Boff updated his outlook for Penn Virginia following the company’s disappointing Q3 earnings report.

Du Boff highlighted one particular red flag that he identified in Penn Virginia’s 10-Q filing.

The Numbers

Penn Virginia reported a Q3 loss of $0.60/share, more than consensus estimates of a $0.49/share loss. Q3 production of 21.0 million barrels oil equivalent per day (MBOED) was slightly above the guidance midpoint of 20.7 MBOED. However, the company’s mix of 62 percent oil, 21 percent gas and 17 percent NGLs was lighter on oil than Oppenheimer had predicted.

Price realizations on the quarter were $48.17/barrel of oil equivalent (BOE), down 13 percent from Q2.

The Concern

Du Boff’s biggest concern when it comes to the future of Penn Virginia is…

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