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Jefferies Energy Conference – PDC Energy, Inc.

PDC Energy, Inc. · Nov 12, 2015 · 29 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. Jefferies Energy Conference – PDC Energy, Inc. – slide 1
    November 12, 2015 JEFFERIES ENERGY CONFERENCE
  2. Jefferies Energy Conference – PDC Energy, Inc. – slide 2
    PDC Energy High Quality Assets Core Wattenberg Company Highlights Market Cap: 2.4 Billion(1) Enterprise Value: 3.0 Billion(1) YE 2014 proved reserves 250 MMBoe 64% liquids, 30% proved developed Stress tested to 50/Bbl only 9%…
  3. Jefferies Energy Conference – PDC Energy, Inc. – slide 3
    PDC Energy Strong Results, Great Positioning Third quarter highlights 47,000 Boe/d production (84% growth y/y, 27% q/q) Adj. cash flow from operations of 123 million (exceeds capex of 104 million) LOE of 2.87/Boe (37% decrease…
  4. Jefferies Energy Conference – PDC Energy, Inc. – slide 4
    PDC Energy Delivering Value Through Execution VALUE DRIVER 2015 Guidance 2016 Outlook PRODUCTION 60% 35% GROWTH DRILLING 14+ days 10 or less days EFFICIENCIES spudtospud spudtospud HIGHRETURN 3060% IRRs on 2015 1,000+ locations…
  5. Jefferies Energy Conference – PDC Energy, Inc. – slide 5
    PDC Energy Resilient 3-Year Outlook 2016 Convertible Notes assumes principal paid in cash with incremental value settled in shares see slide 29 for assumptions Production(1) 3.00 Debt to Adjusted EBITDAX 90,000 Analyst Day Updated…
  6. Jefferies Energy Conference – PDC Energy, Inc. – slide 6
    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 (YE 2014) Based on 16 Niobrara &4 Codell per section 1,000…
  7. Jefferies Energy Conference – PDC Energy, Inc. – slide 7
    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…
  8. Jefferies Energy Conference – PDC Energy, Inc. – slide 8
    Wattenberg High-Return Projects Throughout Acreage 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 Codell Outer…
  9. Jefferies Energy Conference – PDC Energy, Inc. – slide 9
    Wattenberg Strong, Repeatable Results 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 data…
  10. Jefferies Energy Conference – PDC Energy, Inc. – slide 10
    Wattenberg Technical Development Progress Current Drilling Rig Location; All projects drilled on 16 wells per section equivalent unless otherwise noted Key Technical Updates: 47 Extended Reach Lateral Wells Currently Producing:…
  11. Jefferies Energy Conference – PDC Energy, Inc. – slide 11
    Wattenberg 2015 Downspacing Projects 20 Wells/Section HalfSection (2,640) Chesnut (2015 TIL) 480acre unit ERL downspacing test 6,700 laterals 10 wells 5 NIO (64acre spacing) 5 CDL (64acre spacing) 22 Wells/Section HalfSection…
  12. Jefferies Energy Conference – PDC Energy, Inc. – slide 12
    Wattenberg Early Chesnut Downspacing Results Early Downspacing Results Chesnut (Sec. 28) Pad 1,000 Gross 2Phase Daily Production (Boe/d) 100 Avg. Niobrara ERL Avg. Codell ERL Niobrara ERL Type Curve 600 Mboe 10 1 31 61…
  13. Jefferies Energy Conference – PDC Energy, Inc. – slide 13
    Wattenberg Plug-n-Perf Performance Update 1,000 Dataset includes: Gross 2Phase Daily Production per 8 Standard length PnP wells 8 Standard length Sliding Sleeve wells 1,000' of Lateral (Boe/d) 100 440 Mboe Middle Core…
  14. Jefferies Energy Conference – PDC Energy, Inc. – slide 14
    Wattenberg Midstream Update DCP Lucerne 2 Operational at the end of June Fieldwide average pipeline pressures significantly lower compared to 2014 Increased fieldwide capacity by 200 MMcf/d to 850 MMcf/d Current system…
  15. Jefferies Energy Conference – PDC Energy, Inc. – slide 15
    Utica Position Summary 680 MBoe Condensate Window(1) Net Acres: 67,000 % HBP: 50% Producing Hz Wells: 23 Oil 50% Potential Hz Locations: 220 NGL 24% 2015 Est. Capital: 35MM Gas 26% 1,200 MBoe WetGas Window(1) Oil 10%…
  16. Jefferies Energy Conference – PDC Energy, Inc. – slide 16
    Utica Update Dynamite and Cole Pad Performance Dynamite and Cole 4well pads both performing above 680 MBoe type curve after 150 days Updated completion design showing significant improvements in performance PAGE November…
  17. Jefferies Energy Conference – PDC Energy, Inc. – slide 17
    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…
  18. Jefferies Energy Conference – PDC Energy, Inc. – slide 18
    Production Growth Drives Operational Efficiency 3-Year Base Case from 2015 to 2017 (1) (2) Actual 20% decrease in Operating Costs/Boe from 20122014 Project 5055% decrease in Operating Costs/Boe from 20122017 Operational…
  19. Jefferies Energy Conference – PDC Energy, Inc. – slide 19
    Debt and Liquidity As of 9/30/15 115 million 3.25% convertible debt Debt Maturity Schedule (in millions) matures in May 2016 3.25% Convertible Notes due May 2016 1,000 Undrawn Revolver Fall redetermination: 700 million Drawn…
  20. Jefferies Energy Conference – PDC Energy, Inc. – slide 20
    Crude Oil and Natural Gas Hedges Summary Hedges in place as of September 30, 2015 plus hedges entered into prior to October 30, 2015 Oct Dec 69% of crude oil volumes at weighted average floor price of 88.99/Bbl 2015 70% of natural…
  21. Jefferies Energy Conference – PDC Energy, Inc. – slide 21
    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 NYMEX Oil 52/Bbl 49/Bbl 2.85/MMBtu 2.87/MMBtu…
  22. Jefferies Energy Conference – PDC Energy, Inc. – slide 22
    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…
  23. Jefferies Energy Conference – PDC Energy, Inc. – slide 23
    PDC Energy Differentiating Factors 2016e and 2017e are based on updated base case assumptions see slide 29 for assumptions PAGE November 12, 2015 24
  24. Jefferies Energy Conference – PDC Energy, Inc. – slide 24
    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,…
  25. Jefferies Energy Conference – PDC Energy, Inc. – slide 25
    Appendix PAGE November 12, 2015 26
  26. Jefferies Energy Conference – PDC Energy, Inc. – slide 26
    Reconciliation of Non-GAAP Financial Measures In millions, except per share data Three Months Ended Nine Months Ended Adjusted EBITDA from net income (loss): September 30, September 30, 2015 2014 2015 2014 Net income (loss) (41.5) 54.0…
  27. Jefferies Energy Conference – PDC Energy, Inc. – slide 27
    Reconciliation of Non-GAAP Financial Measures In millions, except per share data Three Months Ended Nine Months Ended Adjusted net income (loss) from net income (loss): September 30, September 30, 2015 2014 2015 2014 Net income…
  28. Jefferies Energy Conference – 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. Jefferies Energy Conference – PDC Energy, Inc. – slide 29
    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…

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