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CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc.

PDC Energy, Inc. · Jan 18, 2014 · 31 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. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 1
    CREDIT SUISSE: UTICA SHALE JUNE 18, 2014 NASDAQ:PDCE
  2. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 2
    Company Overview NASDAQ:PDCE Strategic Core Areas Market cap 2.5 Billion (1) Colorado and Appalachian Basin Enterprise value 3.0 Billion WATTENBERG UTICA Proved reserves (YE2013) 266 MMBoe 97,000 Net Acres Liquid 54,000 Net Acres…
  3. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 3
    PDCs Transition to Horizontal Drilling Potential Vertical Locations Potential HZ Locations 2,000 4,000 3,600 1,800 3,500 1,600 2,800 1,430 1,354 3,000 1,400 1,200 2,500 1,000 2,000 800 1,500 600 966 400 1,000 189 131 200…
  4. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 4
    Utica Operations Geology Overview 6/18/2014 5
  5. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 5
    What is the Point Pleasant The Big Picture and Historical Context Productive for more than 100 years Well-known Source Rock with many Marathon HQ Standard HQ published studies SPE, AAPG, etc. Source Rock for an 1.2 billion…
  6. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 6
    What is the Point Pleasant Its really old (not just from a geologic perspective) 6/18/2014 7
  7. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 7
    Utica: Regional Stratigraphic Column The Ordovician aged Point Pleasant is an admixture of mudstones and carbonates characterized by low water saturations (5-15%), moderate clay content (15-30%), and high TOCs (2.5-4.8%, across…
  8. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 8
    The Point Pleasant What it is & Where it is Core showing shale and interbedded limestone Patchen et al., 2006; Pope and Read, 1997; and Wickstrom et al. (2012) 6/18/2014 9
  9. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 9
    Utica: Local Stratigraphy Southern Ohio 1. Queenston Shale Classic Mudstone Null TOC & low resistivity 2. Upper Utica Shale Mudstone with null limestone content Some TOC & low resistivity High clay content Lower Youngs Modulus…
  10. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 10
    Utica Open Hole Log Response Comparison Onega Palmer Hickenbottom A Morgan County Commissioners Belmont County A Guernsey County Utica Pt. Pleasant Trenton Resistivity (ohmm) 800 2,000 1,000 2,000+ 1,000 2,000+ Rock…
  11. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 11
    Micro CT & SEM 2 Well Comparison from Joel Walls, DUG East 2012 6/18/2014 12
  12. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 12
    Why We Are Active Where We Are Specifically, why the South and Washington County Historical Data Well drilled in 1994 for deeper target that was wet Patricia Hein Well Northern Washington County, Ohio Wet Gas Window Operator…
  13. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 13
    Why We Are Active Where We Are Specifically, why the South Seismic Data Seismic data confirms the presence of numerous faults over Southern portion of the play Natural fracturing and higher permeabilities very likely Next…
  14. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 14
    Geothermal Gradient Image Courtesy of Dolan Integration Group (DIG) 6/18/2014 15
  15. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 15
    Summary & Conclusions The Southern portion of the play, particularly Northern Washington County, is more structurally complex than more Northern portions of the play This is evident in: An elevated Geothermal Gradient The…
  16. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 16
    Utica Operations Drilling & Production 6/18/2014 17
  17. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 17
    Utica Update drilled and/or completed planned 2014 spud New Type Curve Areas 54,000 net acres OIL CONDENSATE WET GAS DRY 300 Horizontal locations in inventory WINDOW WINDOW GAS 20% acreage in Guernsey & Noble Commissioners…
  18. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 18
    Current Type Curve Estimates Condensate Window Estimates Wet Gas Window Estimates Average Production Rate Average Production Rate Type Curve Estimate Type Curve Estimate Condensate Estimated Economics Wet Gas Estimated…
  19. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 19
    Flowback Management Enhancing Results New Well Average Production Rate Old Well Average Production Rate Commissioners Pad Detweiler Pad Old Wells New Wells Commissioners 2H Onega Commissioners 1425H Commissioners 3H…
  20. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 20
    Neill 1H Learnings: Landing Zone is Critical Utica Type Log Landed Neill 1H out of Pt. Pleasant target zone Analysis shows lateral permeability orders of 7,150 magnitude lower than other PDC Utica wells Palmer wells drilled to the…
  21. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 21
    Midstream Options MarkWest (MWE) MWE PDC volumes flow to Seneca Plant Cadiz Plant MWE has current capacity of 585 MMcf/d with MWE Hopedale planned expansion to 1.0+ Bcf/d by 2015 Fractionator Access to all major NGL…
  22. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 22
    Solid Exposure to High-Return Plays PDC positioned in two of the top PDC Horizontal Inventory As of 4/17/14 3,700 three basins in U.S. onshore Locations Wattenberg Focused on liquidrich shale plays 2,800 locations Marcellus 600…
  23. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 23
    Investor Relations Mike Edwards, Senior Director Investor Relations michael.edwardspdce.com Marti Dowling, Manager Investor Relations marti.dowlingpdce.com Corporate Headquarters PDC Energy, Inc. 1775 Sherman Street Suite 3000…
  24. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 24
    Appendix 6/18/2014 25
  25. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 25
    PDCE + PDCM = PDC Consolidated In Millions Except For Per Share Data PDC Year Ended 12/31/2013 PDCE Net PDCM Consolidated (1) Statement of Operations Natural gas, NGL and Crude oil sales 334 25 359 Commodity price risk management…
  26. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 26
    Reconciliation of Non-GAAP Financial Measures in millions, except share and per share data Year Ended December 31 Adjusted net income (loss) from net income (loss): 2011 2012 2013 Net income (loss) 13.4 (130.7) (22.3) (Gain) loss on…
  27. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 27
    Reconciliation of Non-GAAP Financial Measures in millions, except share and per share data Year Ended December 31 Adjusted EBITDA from net income (loss): 2011 2012 2013 Net income (loss) 13.4 (130.7) (22.3) (Gain) loss on commodity…
  28. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 28
    Reconciliation of Non-GAAP Financial Measures in millions, except share and per share data Year Ended December 31 Adjusted EBITDAX from net income (loss): 2011 2012 2013 Net income (loss) 13.4 (130.7) (22.3) (Gain) loss on…
  29. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 29
    2014 Consolidated Financial Guidance (from continuing operations) In Millions, Except for Per Share Data YE 2013 2014 Guidance (3) Actual Low High Production (MMBoe) 7.4 (1) 9.5 10.0 Crude oil, natural gas and NGLs sales 359 458…
  30. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 30
    Debt Maturity Schedule in Millions 115 million 3.25% convertible Debt Maturity Schedule debentures mature in May 2016 3.25% Convertible Notes due 2016 600 Drawn 03/31/2014 PDCM PDCM: 53 million revolver matures in Undrawn Revolver…
  31. CREDIT SUISSE: UTICA SHALE – PDC Energy, Inc. – slide 31
    Crude Oil and Natural Gas Hedges Hedges in place as of April 15, 2014 Apr Dec Crude Oil (includes NGL) FY2015 FY2016 2014 NYMEX Average (1) 98.58 90.69 84.98 WeightedAverage Hedge Price With Ceilings 93.55 89.35 94.50…

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