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IPAA OGIS: NEW YORK – PDC Energy, Inc.

PDC Energy, Inc. · Apr 16, 2013 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 1
    IPAA - OGIS: NEW YORK APRIL 16, 2013 NASDAQ:PDCE
  2. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 2
    Company Overview NASDAQ:PDCE Market cap 1.4 Billion(1) Strategic Core Areas Enterprise value 2.1 Billion(1) Colorado and Appalachian Basin Proved reserves 193 MMBoe (1.2 Tcfe)(2) WATTENBERG UTICAAPPALACHIAN BASIN Liquid- 48%…
  3. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 3
    Non-Core Colorado Asset Divestiture Enables PDC to Accelerate LiquidRich Horizontal Drilling Colorado Natural Gas Assets: Piceance, NECO, Krieger, SECO Offer Amount: 200 million(1) cash Includes certain PDC hedges for 2013-2015…
  4. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 4
    YE2012 Reserves Summary Solid Growth Despite Price Declines and Divestitures PDCE YE2012 YE2011 YE2012 Post NonCore CO SEC Pricing Comparison YE2011 YE2012 Reserves Comparison Asset Divestiture Total Proved 169.3 192.9 178.7…
  5. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 5
    Production by Area MBoe 2012 Commodity Mix 2011 2012 2013E Oil Wattenberg 3,880 4,458 5,489 25% Utica - - 392 Gas Appalachia 737 1,032 1,381 65% NGLs 10% Piceance 2,258 2,242 - NECO/ Other 626 537 - Total 7,501 8,269 7,262…
  6. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 6
    Lease Operating Expenses /Boe 2012 2013E Wattenberg 4.49 4.40 Utica - 5.36 PDCM (PDCE Share) 7.38 6.60 Piceance/ NECO 5.33 - Lifting Cost 5.11 4.88 Lease Operating Expense (MM) 42.2 35.4 Horizontal vs. Vertical LOE…
  7. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 7
    Core Horizontal Wattenberg Third largest leaseholder and producer in the Wattenberg Field 99,000 net acres(1) 70% 80% liquids Typical EURs from 300 to 500 MBoe Excellent returns IRR of 40% 140+%(2) 2,000 gross horizontal…
  8. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 8
    Wattenberg Field Stratigraphic Column Multiple Target Zones Current PDC Horizontal Program Data Drilling 3 to 5 well pads 4,000 average lateral length 16 frac stages per well Drill time of 12-15 days spud to spud Sliding sleeves,…
  9. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 9
    Wattenberg Project Inventory Proved HZ Inventory 2P HZ Inventory(1) 3P HZ Inventory(1) 4 Gross wells per 640 Ac. 10 Gross wells per 640 Ac. 16 Gross wells per 640 Ac. Gross HZ Inventory: 382 (8 Niobrara, 2 Codell) (12 Niobrara,…
  10. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 10
    Horizontal Production: Niobrara and Codell (2) EUR: 500 MBoe Capex: 4.2MM IRR(1): 140+% PV10: 7.5 MM EUR: 300 MBoe (2) Capex: 4.2MM IRR(1): 57% PV10: 3.2 MM (1) Flat Pricing: 90 NYMEX Oil, 3.50 NYMEX Gas. Excludes lease…
  11. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 11
    Horizontal Niobrara Performance Continued Delineation of Core Wattenberg OUTER CORE Stable GOR: 3.6 Mcf/Bbl INNER CORE Stable GOR: 10 Mcf/Bbl MIDDLE CORE Stable GOR: 9 Mcf/Bbl 4/16/2013 12
  12. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 12
    Horizontal Codell Development Strong Well Performance Shows Potential for Development Across Wattenberg Large exposure with nearly all acreage having horizontal Codell potential Eight producing Codell horizontals showing results…
  13. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 13
    3rd Party Midstream Expansion - Wattenberg One Bcfe per Day of Capacity Planned Plants and compression strategically placed around PDC PDC Acreage acreage Sullivan CS 2013 Compressor Site LaSalle plant start-up late Q313 (160…
  14. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 14
    Utica Leasehold and Asset Summary Leasehold and asset summary 45,700 net acres Average 95% WI, 16% royalty, 57% HBP 200 gross horizontal drilling locations (1,000 ft. spacing) Large resource potential with high liquids content…
  15. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 15
    Utica Cross Section Oil Wet Gas Condensate Dry A Palmer Onega Commisioners A Hickenbottom Gas Morgan County Guernsey County Belmont County A A Resistivity 800 2,000 1,000 2,000+ 1,000 2,000+ (Ohms) Porosity 6 11% 6 12%…
  16. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 16
    Appalachian Basin - Marcellus PDCM Marcellus Acreage Marcellus Overview Gross Productive Wells 47 Horizontal 32 Vertical 15 Net Acreage (Full JV) 125,250 West Virginia 116,250 Pennsylvania 9,000 Undeveloped Locations Core…
  17. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 17
    Marcellus Horizontal Marcellus Well Production Normalized to 5,000' Lateral 10,000 MCFD 1,000 CAPEX: 7 MM 3.50/MCF (Year 1) EUR: 9 BCF Type Curve F&D: 0.72/MCFE IRR: 32% EUR: 7 BCF Type Curve F&D: 0.93/MCFE IRR: 20% EUR:…
  18. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 18
    2013 Capital Budget Pro-Forma for Colorado Asset Sale 2013 Capex Budget by Region Operated Capital Budget Horizontal Area Horizontal (MM) New Drills Rigs 63% 22% Wattenberg 280(1) 2.5 69 Utica 96 1 11 13% 2% Other…
  19. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 19
    Strong Balance Sheet PDC has Maintained Relatively Low Leverage and Strong Liquidity Conservative Leverage Strong Liquidity (1) (MM) 4.0x 60% 600 525 50% 45% 47% 50% 500 3.0x 384 33% 3.1x 40% 400 357 2.8x 2.9x 2.0x 30% 300…
  20. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 20
    Crude Oil and Natural Gas Hedges Hedges in Place as of March 26, 2013 Crude Oil (includes NGL) FY 2013 FY 2014 FY 2015 NYMEX Average(1) 92.97 90.67 87.72 Weighted-Average Hedge Price With Ceilings 100.32 95.18 91.21…
  21. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 21
    Investment Highlights 2013 Utica Objectives Significant horizontal projects in inventory Core Wattenberg Niobrara and Codell / Colorado Utica Shale / Southeast Ohio Marcellus Shale / West Virginia Capital primarily allocated to…
  22. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 22
    Investor Relations Ron Wirth, Vice President Finance and Treasurer ron.wirthpdce.com Mike Edwards, Senior Director Investor Relations michael.edwardspdce.com Marti Dowling, Investor Relations Manager marti.dowlingpdce.com Corporate…
  23. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 23
    Appendix 4/16/2013 24
  24. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 24
    Adjusted EBITDA Reconciliation From Net Cash From Operating Activities in millions, except share and per share data Year Ended December 31, 2012 2011 Net cash from operating activities 174.7 166.8 Interest expense, net 48.3 36.9…
  25. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 25
    Adjusted EBITDAX Reconciliation in millions Full Year Full Year Full Year 2010 2011 2012 Net Income (loss) attributable to shareholders 6.2 13.4 (130.7) Unrealized loss (gain) on derivatives, net (1) (12.6) (28.6) 17.1…
  26. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 26
    Riteaway Pad: Codell and Niobrara A & C Bench 5N-67W-32 5N-67W-32 Map View Production (Boepd) 10,000 32 1,000 Vertical Well HZ Niobrara Stacked HZ Niobrara/ Codell 100 Side View Riteaway Pad Codell HZ Niobrara C…
  27. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 27
    Waste Management Pad Fall 2013 2N-64W-2 Map View Side View 4/16/2013 28
  28. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 28
    Utica Target Economics: Liquid-Rich Window & the Future IRR: (1) Flat Pricing: 90 NYMEX Oil, 3.50 NYMEX Gas; excludes lease acquisition and corporate-level costs Utica Type Curves 10,000 EUR: 750 MBoe Capex: 8.5MM IRR: 80%…
  29. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 29
    Significant 3P Reserves Growth (MMBoe) Large Gains in 3P Reserves Excluding Utica Potential Development of Wattenberg continues to add significant 3P reserves to PDCs portfolio Continued delineation of the horizontal Codell…
  30. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 30
    Wattenberg Marketing Netbacks Calculated After Gathering, Processing, POP Contracts, and Other Fees Expect access to Mt. Belvieu NGL market in 2014 via Front Range Pipeline NGL recoveries should improve as additional cryogenic…
  31. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 31
    Utica Marketing Netbacks Calculated After Gathering, Processing, POP Contracts, and Other Fees Current natural gas and NGL sales coming from refrigeration processing skid at location Longterm midstream services in Guernsey Co. via…
  32. IPAA OGIS: NEW YORK – PDC Energy, Inc. – slide 32
    PDCM Marcellus Netbacks & Midstream Continuing Building Large Diameter, High Pressure Midstream Solutions for Marcellus Acreage Existing pipeline 18 miles of 812 diameter 2013 Construction 3.5 miles of 16 diameter 2014…

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