Skip to main content GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. Investor Presentation | Shale Experts
Loading...
Pm

GHS 100 ENERGY CONFERENCE – PDC Energy, Inc.

PDC Energy, Inc. · Jun 23, 2015 · 36 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. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 1
    June 23, 2015 GHS 100 ENERGY CONFERENCE
  2. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 2
    PDC Energy High Quality Assets Company Highlights Core Wattenberg Market Cap: 2.3 Billion(1) Enterprise Value: 2.8 Billion(1) YE 2014 proved reserves 250 MMBoe 64% liquids, 30% proved developed Stress tested to 50/Bbl only 9%…
  3. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 3
    2015 Executing on Value Added Growth Q1 15: 32,162 Boe/d (2.9MMBoe) total production; well-positioned to meet full-year guidance 15% quarterly growth rate over Q4 14 Q1 15: 14,519 Bbls/d crude oil production (45% of total) 16%…
  4. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 4
    PDC Energy Outstanding Growth Track Record PAGE (1) From continuing operations June 23, 2015 5
  5. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 5
    Core Wattenberg Position Summary 96,000 net acres, 100% HBP Third largest leaseholder and producer Strong, repeatable, lower risk projects 2,640 total 2P locations Based on 16 Niobrara &4 Codell per section 1,000 locations with…
  6. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 6
    Wattenberg Capitalizing on Lower Cost Structure 2014 Development Increased ERL Drilling Minimal ERL development Tighter Stage Spacing Traditional completion design Standard stage spacing Improved Completion Design 2014 Cost…
  7. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 7
    Wattenberg Industry-Leading Breakeven Prices Source: BAML Research; February 2015; Oil price needed for 10% rate-of-return PDC Outer Core 2P Inventory (NIO/CDL): 700/165 Avg. EUR: 310 MBoe Est. NYMEX Breakeven(1): 45/Bbl PDC…
  8. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 8
    Updated EUR Analysis Shows 2015 Improvements Based on Evaluation of Public Production Data (1) 1,400 industry Hz Niobrara wells included in updated analysis of CO DJ Basin EURs now range from 292 to 630 MBoe in Core Wattenberg (all…
  9. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 9
    Core Wattenberg Niobrara Type Curves Inner Core Niobrara Inner Core 2P Inventory IRRs(1) 60/3.25 Flat NYMEX Pricing Producing Wells: 9 wells 2P Locations: 100 3-Phase EUR: 625 MBoe IRR(1): 76% PV10: 3.7MM Middle Core Niobrara…
  10. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 10
    ERL Middle Core Niobrara Type Curve Updated Capital Cost(1): 4.4MM 3-Phase EUR: 600 MBoe (2) Potential 2P Locations : 1,000 IRR(2): 47% PV10: 3.3MM 6,700 lateral 2015 focus for PDC Similar IP rates to standard laterals…
  11. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 11
    New Codell Type Curves in Core Wattenberg Updated Economics Include Increased Stage Density and Updated Capital Costs Inner / Middle Codell Producing Wells: 27 wells Net Acres: 65,500 2P Locations: 372 3-Phase EUR: 440 MBoe…
  12. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 12
    2015 Expectations for Further Downspacing 20 Wells/Section Half-Section (2,640) Chesnut (2015 TIL) 480-acre unit ERL downspacing test 6,700 laterals 10 wells 5 NIO (64-acre spacing) 5 CDL (64-acre spacing) 22 Wells/Section…
  13. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 13
    Plug-n-Perf Completions Improving Performance Enhancements Not Included in 2015 Guidance or Updated Economics; results as of 3/15/15 Completion Design Comparison Sliding Sleeve Plug-n-Perf 2014 Maxey Project (Middle Core) (Middle…
  14. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 14
    Testing Additional Technological Enhancements Enhancements Not Included in 2015 Guidance or Updated Economics; results as of 3/15/15 AccessFrac BioVert(1) Completion Material Designed to divert frac fluid during completion Aimed…
  15. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 15
    DCP Midstream Expansion - Wattenberg Plants and compression strategically placed around PDC acreage Current midstream capacity 650 MMcf/d Expected YE2015 DCP system capacity of 850 MMcf/d growing to 890 MMcf/d by YE2016 Anticipate…
  16. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 16
    Substantial Long-Term Crude Oil Takeaway Additional Options and Capacity Provides Support for Long-Term Wellhead Deduct Estimated at 10 per Barrel Multiple takeaway options (refinery, pipeline, trucking and rail) Expected takeaway…
  17. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 17
    Utica Position Summary 680 MBoe Condensate Window(1) Net Acres: 67,000 % HBP: 50% Producing Hz Wells: 19 Potential Hz Locations: 220 2015 Est. Capital: 35MM 1,200 MBoe Wet-Gas Window(1) PAGE (1) Production data…
  18. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 18
    Dynamite Wells Continue to Impress As of March 15, 2015; Average Dynamite Lateral Length of 5,500 Appx. 15% above type curve Dynamite performance tracking above 680 MBoe type curve after 90 days Updated completion design…
  19. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 19
    Utica Gas Gathering Summary Two Primary Long-Term Processing Contracts MarkWest (MWE) PDC volumes flow to Seneca Plant Access to all major NGL takeaway projects in the northeast region MWE has current capacity of 1.1 Bcf/d with…
  20. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 20
    Operational Efficiency 3-Year Base Case from 2015 to 2017 Actual 20% decrease in Operating Costs/Boe from 2012-2014 Project 50-55% decrease in Operating Costs/Boe from 2012-2017 Operational Resilience deliver improving cash cost…
  21. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 21
    2015 Financial Guidance In millions, except per share data 2014 2015 Guidance (3) Actual Low High Production (MMBoe) 9.3 (1) 13.5 14.5 Crude oil, natural gas and NGLs sales 471 361 400 Realized gain (loss) on derivatives (1) 188…
  22. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 22
    Crude Oil and Natural Gas Hedges Summary Hedges in place as of March 31, 2015 plus hedges entered into prior to April 30, 2015 Apr Dec 85% of crude oil volumes at weighted average floor price of 88.82/Bbl 2015 75% of natural gas…
  23. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 23
    Debt and Liquidity As of 3/31/15 115 million 3.25% convertible debt Debt Maturity Schedule (in millions) matures in May 2016 700 million revolver matures May 2018 450 million elected commitment level 0 million drawn 12 million…
  24. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 24
    What Sets PDC Apart Source: Acreage Estimates from Company Filings PAGE (1) PDC data includes shares from recent equity issuance. June 23, 2015 25
  25. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 25
    Investor Relations Mike Edwards, Senior Director Investor Relations michael.edwardspdce.com Kyle Sourk, Manager Investor Relations kyle.sourkpdce.com Corporate Headquarters PDC Energy, Inc. 1775 Sherman Street Suite 3000 Denver,…
  26. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 26
    Appendix PAGE June 23, 2015 27
  27. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 27
    Summary GAAP Financial Results (from continuing operations) In millions, except per share data Three Months Ended March 31, Measure 2015 2014 Total crude oil, natural gas and NGLs sales 74.1 120.0 Production costs 24.2 18.1…
  28. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 28
    Summary Non-GAAP Financial Results In millions, except per share data Three Months Ended March 31, Measure (1) 2015 2014 Adjusted net income 7.0 9.6 Adjusted net income per diluted share 0.19 0.27 Adjusted cash flows from…
  29. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 29
    Reconciliation of Non-GAAP Financial Measures In millions, except per share data Three Months Ended March31 Adjusted EBITDA from net income (loss): 2015 2014 Net income (loss) 17.1 (2.1) (Gain) loss on commodity derivative…
  30. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 30
    Reconciliation of Non-GAAP Financial Measures In millions, except per share data Three Months Ended March31 Adjusted net income (loss) from net income (loss): 2015 2014 Net income (loss) 17.1 (2.1) (Gain) loss on commodity…
  31. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 31
    PDC Future Outlook Case Scenarios Resilient Case Base Case Upside Case Px NYMEX Crude NYMEX Gas Px NYMEX Crude NYMEX Gas Px NYMEX Crude NYMEX Gas 2015 50.00 3.25 2015 51.72 2.86 2015 50.00 3.25 2016 50.00 3.25 2016 57.47 3.19 2016…
  32. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 32
    PDC Resilient Case: 50 Crude / 3.25 Gas Flat 2015, 2016, 2017: 5 Wattenberg Rigs Shaded Areas Represent Guidance/Outlook Range Spend close to cash flow, grow production and maintain CFPS through 2017 PAGE (1) Range: base value…
  33. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 33
    PDC Base Case: Current Strip Price 2015, 2016, 2017: 5 - 6 - 7 Wattenberg Rigs; 0 - 0.5 - 1 Utica Rigs Shaded Areas Represent Guidance/Outlook Range Rig additions in Wattenberg - drilling Middle/Inner Core wells, resume drilling…
  34. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 34
    PDC Upside Case: 50 - 60 - 70 / BBL 2015, 2016, 2017: 5 - 6.5 - 8 Wattenberg Rigs; 0 - 0.5 - 1 Utica Rigs Shaded Areas Represent Guidance/Outlook Range Accelerate Wattenberg drilling with improved oil price outlook, deploy rig in…
  35. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 35
    Niobrara Gas-Oil Ratio (GOR) Discussion Niobrara GOR variation in Wattenberg critical for accurate forecasting Varying Liquids Content Across Core Areas Range of Area Type Curve Inner Middle Outer Producing GOR Stable After 1…
  36. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 36
    Codell GOR Variation in Wattenberg Codell GOR variation in Wattenberg critical for accurate forecasting Varying Liquids Content Across Core Areas Range of Area Type Curve Inner/Middle Outer Producing GOR Stabilizes After 1 2…

From the store

Browse maps, data & reports in the Shale Experts store