Economics : Rates of Return/ IRR

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PDC ENERGY Portfolio Value Creation MRL Equivalent Inventory Breakdown Robust inventory of 10-15 years at current development pace (1,950 total locations) Entire portfolio delivers strong economic results Weighted-average portfolio of MRL equivalents delivers F&D costs 225(2) of < 8/Boe and IRRs of 70% 400 Kersey 150 Plains XRL development further strengthens expected IRRs & NPVs Prairie Additional upside potential to current well performance 250 275 Block 4 Early-stage development in the Delaware Prairie and Plains Areas based on industry data North Central 650 Other Average NPV10 per well by Area (MRL Equivalent) 10.0 9.3 8.6 8.0 6.0 millions 4.4 4.0 3.2 2.1 2.0 0.0 IRR 50% IRR 40% IRR 100% IRR 60% IRR 60% Block 4 North Central Kersey Plains Prairie May 2018 (1) Economics assume current basin differentials curve applied to NYMEX forecast of approximately 62/Bbl and 2.85/Mcf for 2018; 55/Bbl and 2.75/Mcf in 2019+; excludes lease acquisition and corporate level costs. Target MRL CWC approximately 3.5 million in Wattenberg and 11 million in Delaware; (2) Approximately 175 Wattenberg and 50 Delaware MRL equivalent locations. 6
PDC Energy, Inc.
May 2018

Longer Laterals Lead to Increased Economics Niobrara average lateral length: 1.7 miles Codell average lateral length: 1.5 miles Niobrara (Standard Completions) Codell Lateral Length D&C Cost F&D Cost EUR Lateral Length D&C Cost F&D Cost EUR (ft) ( million) (/Boe)(1) (MBoe) (ft) (million) (/Boe)(1) (MBoe) 1 mile 4,200 2.9 10.96 325 1 mile 4,200 2.6 9.31 345 1.5 mile 6,800 4.0 8.61 575 1.5 mile 6,800 3.5 7.16 610 2 mile 9,400 4.9 7.41 825 2 mile 9,400 4.2 6.01 875 2.5 mile 12,000 6.0 7.02 1,075 2.5 mile 12,000 5.2 5.69 1,140 Niobrara (Standard) IRR by Lateral Length(2) Codell IRR by Lateral Length (2) 175% 175% 161% 150% 150% 149% 122% 117% 125% 125% 112% 108% 100% 87% 100% 108% 80% 75% 80% 84% 75% 58% 73% 77% 49% 70% 50% 52% 59% 54% 50% 34% 51% 48% 44% 37% 36% 25% 30% 25% 29% 29% 19% 20% 12% 0% 5% 0% 40 50 60 70 40 50 60 70 NYMEX WTI NYMEX WTI (1) F&D cost calculated as D&C cost / (EUR multiplied by NRI). Average NRI estimated as 80%. (2) IRR based on 5-year average forward gas NYMEX Strip pricing as of 12/31/16 of 3.08 / MMbtu. Gas subject to a 1.1x BTU adjustment, a (20%) POP differential, and a (0.16)/Mcf basin differential; NGLs assumed at 30% of NYMEX and subject to (20%) POP differential; Oil subject to (7) differential at all price levels. 26
Extraction Oil and Gas
May 2018

Delivering Long-Term Shareholder Value Full-Cycle NPV & IRR Per Well Economics NPV (MM) Acreage Cost 600 MBOE 800 MBOE 1 MMBOE 20k/acre 2.5 3.5 4.7 15k/acre 2.7 3.9 4.9 IRR Acreage Cost 600 MBOE 800 MBOE 1 MMBOE 20k/acre 45% 53% 57% 15k/acre 50% 59% 64% Full cycle, Wattenberg well economics are competitive with other major basins Note: Price Deck: Oil = 60 Flat, NGL = 30% of WTI, Natural Gas = 3.00 Flat Assumed differentials: oil = 6.50 / NGL = 17% / gas = 0.45 Full cycle NPV and IRR information assumes 4.2 MM ML lateral well costs and 5 MM LL lateral well cost. Rate of return and NPV estimates do not reflect corporate, general and administrative expenses. Estimated EURs may not correspond to estimates of reserves as defined under SEC rules. Production volumes reflect 3-stream equivalent 7
SRC Energy Inc
May 2018

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