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Q2 2015 Earnings Call – PDC Energy, Inc.

PDC Energy, Inc. · Aug 10, 2015 · 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. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 1
    August 10, 2015 2015 SECOND QUARTER RESULTS
  2. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 2
    BART BROOKMAN President and Chief Executive Officer PAGE August 10, 2015 3
  3. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 3
    Second Quarter Delivers Value Added Growth 37,001 Boe/d (3.4MMBoe) total production 15% daily rate increase over 1Q 15 46% increase from 2Q14 17,390 Bbls/d crude oil production (47% of total) 20% daily rate increase over 1Q…
  4. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 4
    Updated 2015 Full-Year Guidance Production forecast: 14.7 to 15.0 MMBoe 2015 Category Apr 9, Aug 10, 60% increase from 2014 continuing operations (Mid-Point) 2015 2015 65% liquids mix; 47% oil Capex (MM) 473 535 Increased range from…
  5. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 5
    SCOTT REASONER SVP Operations PAGE August 10, 2015 6
  6. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 6
    Operational Overview From Continuing Operations Utica Utica Core Wattenberg Wattenberg Utica Q2 2015: 33,716 Boe/d Q2 2015: 3,285 Boe/d Q2 2014: 23,274 Boe/d Q2 2014: 2,092 Boe/d Total PDC Energy Q2 2015: 37,001 Boe/d…
  7. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 7
    Production Summary From Continuing Operations Q2 2015 Highlights Production growth of 15% (Boe/d) compared to Q1 2015 and 46% compared to Q2 2014 Oil mix accounted for 47% of Q2 production Experienced delays in TIL schedule as a…
  8. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 8
    Wattenberg Technical Development Progress Current Drilling Rig Location; All projects drilled on 16-wells per section equivalent unless otherwise noted Key Technical Updates: Currently Online - Extended Reach Lateral Projects:…
  9. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 9
    Wattenberg Early ERL Performance Update Niobrara and Codell ERL wells are outperforming the Niobrara ERL Type Curve after 50 days Both plug-n-perf and sliding sleeve completion techniques were used in the Chestnut and Churchill…
  10. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 10
    Wattenberg Plug-n-Perf Performance Update Early plug-n-perf completions continue to achieve 30-35% improvement in production versus sliding sleeve Expect to complete 39 additional wells in 2H 2015 using plug-n-perf completion…
  11. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 11
    Wattenberg AccessFrac/BioVert Performance Update AccessFrac/BioVert completions continue to achieve 7% improvement in production Expect to complete 36 additional wells in 2H 2015 using the AccessFrac completion technique Completed…
  12. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 12
    Wattenberg Midstream Update DCP Lucerne 2 Operational at the end of June Field-wide line pressure has been reduced in recent weeks Increased field-wide capacity by 200 MMcf/d to 850 MMcf/d Aka Kersey Station Operational early…
  13. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 13
    Utica Update Cole Pad Performance Dynamite performance tracking 15% above 680 MBoe type curve after 150 days Updated completion design showing significant improvements in performance Cole 4-well pad was TIL in May 2015 Currently…
  14. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 14
    Operations Highlights PDC Company Highlights Wattenberg: Q215 net production of 33,716 Boe/d Operated production 86% of total Q215 Wattenberg volumes HZ wells 73% of operated production TIL 25 horizontal Niobrara wells in Q215…
  15. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 15
    Wattenberg Substantial Drilling Efficiency Gains Average Ft./Day Drilled Current practices improving 1400 drilling time: 1,200 1200 New automated drillings rigs 1,012 (ADR) able to minimize 1000 911 915 downtime 830 800…
  16. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 16
    Increased Production Guidance for 2015 16.0 Total PDC Production Updated 2015 Production Guidance: 14.7 15.0 MMBoe Factors Leading to Increased 14.7 - 15.0 Production Guidance: 1. Drilling efficiencies 13.5- 14.5 155 spuds vs.…
  17. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 17
    Resilient Wattenberg IRRs in Current Pricing Environment 80% Wattenberg Type Well IRRs (1) 60% 60% 40% 40% 36% 31% 20% 25% 18% 0% Niobrara - Inner Niobrara - Middle Codell - Middle Niobrara - Middle ERL Niobrara - Outer…
  18. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 18
    2015 Capital Forecast Updated Guidance MM Updated 1H15 2H15 FY 2015 Area Capital Capital Capital Actuals Guidance Guidance Wattenberg 295 187-217 482-512 Utica 20 15 35 Other 2 1 3 Total 317 203-233 520-550…
  19. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 19
    Lease Operating Expense Updated Guidance Per Boe (From Continuing Operations) 6.00 EH&S charge 5.46 5.00 4.00 3.00 4.36 2.00 3.71 3.70 - 3.90 1.00 0.00 FY'14 Q1'15 Q2'15 FY'15 Updated Guidance Q215 LOE (/Boe) is down…
  20. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 20
    Updated 2015 Guidance Summary Slide 2015 Analyst Updated August 2015 Day Guidance Guidance Production 13.5 14.5 14.7 15.0 (MMBoe): Spuds: 119 155 TILs: 113 125 CAPEX (MM): 473 520-550 LOE (per Boe): 3.39 - 3.75 3.70 -…
  21. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 21
    Gysle Shellum Chief Financial Officer PAGE August 10, 2015 22
  22. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 22
    Summary GAAP Financial Results (from continuing operations) In millions, except per share data Three Months Ended Six Months Ended June 30, June 30, Measure 2015 2014 2015 2014 Total crude oil, natural gas and NGLs sales 96.9…
  23. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 23
    Summary Non-GAAP Financial Results In millions, except per share data Three Months Ended Six Months Ended June 30, June 30, Measure (1) 2015 2014 2015 2014 Adjusted net income (loss) 10.8 (1.5) 17.9 8.1 Adjusted net income…
  24. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 24
    Debt and Liquidity As of 6/30/15 Debt Maturity Schedule (in millions) 3.25% Convertible Notes due May 2016 115 million 3.25% convertible debt Undrawn Revolver matures in May 2016 Drawn 6/30/20015 7.75% Sr. Notes due October…
  25. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 25
    Crude Oil and Natural Gas Hedges Summary Hedges in place as of June 30, 2015 July Dec 72% of crude oil volumes at weighted average floor price of 88.99/Bbl 2015 72% of natural gas volumes at weighted average floor price of…
  26. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 26
    2015 Financial Guidance Update In millions, except per share data Analyst Day (1) Guidance Update (2,3) Guidance Low High Production (MMBoe) 13.5 - 14.5 14.7 15.0 Crude oil, natural gas and NGLs sales 361 - 400 374 394 Realized…
  27. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 27
    LANCE LAUCK EVP Corporate Development and Strategy PAGE August 10, 2015 28
  28. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 28
    Base Case Outlook Assumptions: Analyst Day vs. Current Base Case (Analyst Day) Updated Base Case Year NYMEX Crude NYMEX Gas Year NYMEX Crude NYMEX Gas 2015 51.72 2.86 2015 51.13 2.82 2016 57.47 3.19 2016 52.49 3.14 2017 61.24 3.41…
  29. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 29
    Base Case Outlook Results: Analyst Day vs. Current 2016 Convertible Notes assumes principal paid in cash with incremental value settled in shares Production 3.00 Debt to Adjusted EBITDAX 90,000 Analyst Day Updated Base Case Analyst…
  30. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 30
    Updated Pricing Summary CRUDE OIL NGLs NATURAL GAS Wattenberg Wattenberg Wattenberg Analyst Day Analyst Day Analyst Day 2H15 2H15 2H15 (FY) (FY) (FY) NYMEX NYMEX Oil 52/Bbl 49/Bbl 2.85/MMBtu 2.87/MMBtu NYMEX Oil 52/Bbl 49/Bbl Gas…
  31. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 31
    Reconciliation of Non-GAAP Financial Measures In millions, except per share data Three Months Ended Six Months Ended Adjusted EBITDA from net (loss): June 30, June 30, 2015 2014 2015 2014 Net (loss) (46.9) (28.2) (29.8) (30.3) (Gain)…
  32. Q2 2015 Earnings Call – PDC Energy, Inc. – slide 32
    Reconciliation of Non-GAAP Financial Measures In millions, except per share data Three Months Ended Six Months Ended Adjusted net income (loss) from net (loss): June 30, June 30, 2015 2014 2015 2014 Net (loss) (46.9) (28.2) (29.8)…

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