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PDC Turns on Taps at 41 Wells in Q1, Up +14% YOY; Sees Production Grow 26%

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PDC Energy, Inc. reported its Q1 2019 results. Here are highlights from its report and presentation.

As previously reported, PDC is currently at odds with investor Kimmeridge Energy (click here to read more about that).

• Q1 Spending: The Company's capital investment for the quarter was approximately $282 million (including $21 million of Delaware Basin midstream related capital). Several operating efficiencies have led to a slightly accelerated capital pace; however, the Company has reaffirmed its full-year capital investment range of $810 million to $870 million, excluding corporate capital.

Q1 Drilling Activity

- PDC Energy turned-in-line (TIL) 41 wells during Q1 2019 - this is up +14% YOY

All spuds and TILs were mid- or extended-reach laterals with average well costs approximately 5% below budget in both operating areas (see charts below).

• DJ Basin: 32 TILs

• Delaware Basin: 9 TILs - including its first Bone Spring well, which has yet to record its IP30

DJ Basin - Completions Ahead of Schedule

In the Wattenberg Field, the Company spud 38 wells and TIL'd 32 wells with average working interests of 93%.

The Company's completion crew is currently 10% ahead of schedule, resulting in improved capital efficiency and higher than anticipated first quarter capital investments.

Delaware Basin - 20% Spud-to-Release Improvement

In the Delaware Basin, the Company spud ten wells and TIL'd nine wells with average working interests of approximately 96 percent. This improvement in operational efficiency, which has largely been offset by higher than anticipated working interests, is primarily due to a seven day, or approximately 20%, improvement in spud-to-rig release drill times compared to its 2019 budget.

Due to a lack of completion activity at the end of 2018, TILs and new production were weighted towards the back half of the first quarter. Notable early-time data include:

• The Windy Mountain pad two lower Wolfcamp B wells located in close proximity to the Company's Grizzly pad in Area 3' of Block 4. Current production is above internal expectations through early flowback, averaging approximately 165 Boe per day per thousand feet and 60% crude oil.
  
  
• Argentine B4 Lower Wolfcamp B extended-reach lateral well testing an accelerated flowback technique. Current production is averaging approximately 240 Boe per day per thousand feet and 75% crude oil.
  
  
• Argentine S5 The Company's first 3^rd Bone Spring well. This well has yet to reach a peak 30-day average IP; however, early data is encouraging with average production averaging approximately 190 Boe per day per thousand feet and 70% crude oil.

Production Up +26% YOY

- Q1 Production: 125 MBOEPD - up +26% YOY

Crude oil, natural gas and NGLs sales of approximately $320 million, a 5% increase from the first quarter of 2018 despite a 16% decrease in average per Boe prices between periods.