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IPAA OGIS New York – PDC Energy, Inc.

PDC Energy, Inc. · Apr 12, 2016 · 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. IPAA OGIS New York – PDC Energy, Inc. – slide 1
    IPAA OGIS NEW YORK April 12, 2016
  2. IPAA OGIS New York – PDC Energy, Inc. – slide 2
    PDC Energy Company Overview Utica Shale 2.7B 65,000 net acres Market Cap(1) 3.1B Enterprise Value(1) 273 YE15 Proved Reserves (MMBoe) 2,150 2P Horizontal Locations 20 22 Core Wattenberg 2016 Production…
  3. IPAA OGIS New York – PDC Energy, Inc. – slide 3
    Track Record of Operational Execution 2P Watt. Locations/Section Middle Core SRL(1) EURs (MBoe) Avg. Feet Drilled/Day/Well 30 500 2,100 20 400 1,400 10 300 700 0 200 0 2012 2013 2014 2015 2016e 2012 2013 2014 2015 2016e 2012…
  4. IPAA OGIS New York – PDC Energy, Inc. – slide 4
    2016 Capital and Production Outlook Targeting cash flow neutrality 425 2016e capital budget: 410 440 2016e Capex Midpoint Further reduction in completed well costs (CWC) 35% production growth yearoveryear Initiating new…
  5. IPAA OGIS New York – PDC Energy, Inc. – slide 5
    Financial Strength and Discipline Debt / EBITDAX(1) Debt / Flowing Boe 4.0x 40,000 3.1x 3.0x 30,000 2.7x 2.0x 1.8x 20,000 1.4x 1.15x 1.0x 10,000 0.0x 0 2012 2013 2014 2015 2016e 2012 2013 2014 2015 2016e Strong…
  6. IPAA OGIS New York – PDC Energy, Inc. – slide 6
    Low Costs Continue to Drive Margins Source: Wells Fargo Securities, LLC 20142016e AllIn Cash Cost Decrease/Boe(1) PDCE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 0% 10% 20% 30% 40% 50% 2016e AllIn Cash Costs/Boe(1) 25.00…
  7. IPAA OGIS New York – PDC Energy, Inc. – slide 7
    Pro Forma Debt and Liquidity As of 12/31/15, Pro Forma for March 2016 Equity Offering Pro Forma Debt Maturity Schedule (millions) Pro Forma 1,000 Available liquidity of 949 million(1) YE15 Debt / EBITDAX of 1.3x Current Borrowing…
  8. IPAA OGIS New York – PDC Energy, Inc. – slide 8
    Crude Oil and Natural Gas Hedging Summary Full-Year 2016 Hedge Volumes Including Hedges in Place as of March 7, 2016 60% of crude oil volumes at weighted average floor price of 76.29/Bbl 2016 67% of natural gas volumes at weight…
  9. IPAA OGIS New York – PDC Energy, Inc. – slide 9
    ASSET OVERVIEW 10
  10. IPAA OGIS New York – PDC Energy, Inc. – slide 10
    Core Wattenberg Asset Summary Wattenberg 2P Inventory 96,000 Inner Middle Net Acres Outer 100% 2016e TIL Breakdown SRLs Acreage HBP MRLs XRLs 135/160 Spuds TILs 2,150 2P Hz Locations (4,700 avg. lateral…
  11. IPAA OGIS New York – PDC Energy, Inc. – slide 11
    2015 Downspacing Projects 20 Wells/Section Sustained well performance over 10 months MRL downspacing test 6,700 laterals 10 wells 1 plugnperf well 9 sliding sleeve wells 22 Wells/Section Consistent performance from all…
  12. IPAA OGIS New York – PDC Energy, Inc. – slide 12
    Solidifying Development Outlook Successful downspacing tests enable focus on true potential of Core Wattenberg Vertical development, GOR data and leaseholds are key variables in spacing design Well spacing of 2024 wells per section…
  13. IPAA OGIS New York – PDC Energy, Inc. – slide 13
    Monobore Drilling Gains To-Date Current Implementation Monobore drilling saves 1 day in spudtospud times 50100k savings per well realized todate All 2016 SRL and MRL wells expected to be drilled using monobore 95/8 casing…
  14. IPAA OGIS New York – PDC Energy, Inc. – slide 14
    Middle Core Increased SRL EUR to 490 MBoe Increased Type Curve from 440 MBoe Majority of PDCs Middle Core inventory Middle Core Net Acres: 60,000 Oil: 2P Locations: 1,350 3640% Over 1,300 locations with IRRs 30%(1) Avg. Lateral…
  15. IPAA OGIS New York – PDC Energy, Inc. – slide 15
    Middle Core Increased MRL EUR to 685 MBoe Increased Type Curve from 600 MBoe Nearly 200 locations under current plans Middle Core Net Acres: 60,000 Oil: 2P Locations: 180 3640% Average drill times of 10 to 12 days Avg. Lateral…
  16. IPAA OGIS New York – PDC Energy, Inc. – slide 16
    Middle Core Initial XRL EUR of 850 MBoe Based on Industry Data 70 locations with current lease Middle Core Net Acres: 60,000 Oil: 2P Locations: 70 configurations Avg. Lateral Length: 9,500 3640% Expected drill times of 13 to 15…
  17. IPAA OGIS New York – PDC Energy, Inc. – slide 17
    Middle Core Inventory Provides Resilient Returns Type Well Profile Comparison Type Well IRR Comparison(1) 35 Flat 37 / 45 / 55 45 / 55 / 65 2.00 Flat 2.13 / 2.50 / 2.75 2.50 / 3.00 / 3.50 NYMEX Pricing NYMEX Pricing NYMEX…
  18. IPAA OGIS New York – PDC Energy, Inc. – slide 18
    Moving Beyond Wattenberg Line Pressure Constraints 2013 Processing AKA/APC DCP 2014 Processing AKA/APC DCP 2015 Processing AKA/APC Lucerne 2 plant provided significant relief to line pressure DCP during 2H 2015 2016e…
  19. IPAA OGIS New York – PDC Energy, Inc. – slide 19
    Utica Asset Summary Producing Pads 65,000 2016 Pad Locations Net Acres 52% Acreage HBP 23 Hz Net Producing Wells 35mm 2016e Capex 5/5 Spuds TILs 4/12/16 20
  20. IPAA OGIS New York – PDC Energy, Inc. – slide 20
    Utica Testing New Areas & Designs in 2016 Approximately 35 million capital plan for 2016 Mason 2well pad Delineate condensate fairway in southern acreage Test new completion design from Cole & Dynamite wells Miley 2well pad Well…
  21. IPAA OGIS New York – PDC Energy, Inc. – slide 21
    PDC Energy Vision and Strategy Delivering Stakeholders Delivering value added growth Value Community involvement/education Dedicated, highlyvalued employees Corporate Corporate Development Development Longterm/multiyear focus…
  22. IPAA OGIS New York – PDC Energy, Inc. – slide 22
    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,…
  23. IPAA OGIS New York – PDC Energy, Inc. – slide 23
    APPENDIX 24
  24. IPAA OGIS New York – PDC Energy, Inc. – slide 24
    2016 Financial Guidance 2015 2016 Guidance(2) Actual Low High Production 15.4 20.0 22.0 Crude oil, natural gas and NGLs sales 379 366 402 Realized gain on derivatives 239 251 251 Other Income 2 1 1 Adjusted total revenue 620 618…
  25. IPAA OGIS New York – PDC Energy, Inc. – slide 25
    2016 Corporate Marketing and Pricing Summary 2016 Strip Pricing as of 03/23/16 with 3 Months of Actuals; Percentages May Vary Due to Rounding CRUDE OIL NATURAL GAS NGLs Wattenberg Wattenberg Wattenberg NYMEX Oil Price: 41/Bbl NYMEX…
  26. IPAA OGIS New York – PDC Energy, Inc. – slide 26
    Updated 2016 Core Wattenberg EUR Analysis Based on Evaluation of Public Production Data 2,500 2016 EUR ANALYSIS Wells Included in Study Inner Core Represents 1,800+ Middle Core Hz Niobrara wells Outer Core CO DJ Niobrara…
  27. IPAA OGIS New York – PDC Energy, Inc. – slide 27
    Significant Long-Term Crude Oil Takeaway in Wattenberg Multiple takeaway options (refinery, pipeline, trucking and rail) Expected takeaway capacity exceeds production forecasts for the basin well past 2020 PDC has firm capacity of…
  28. IPAA OGIS New York – PDC Energy, Inc. – slide 28
    PDC Energy Modest Price Recovery Case Stable Capital Development Plan Production (MMBoe) 35 23% 3Year Production CAGR (midpoint) 30 Oil: 40% Gas: 40% NGLs:…
  29. IPAA OGIS New York – PDC Energy, Inc. – slide 29
    PDC Energy Price Rebound Case Increasing Capital Development Plan Production (MMBoe) 35 27% 3Year Production CAGR (midpoint) 30 Oil: 40% Gas: 40% NGLs:…
  30. IPAA OGIS New York – PDC Energy, Inc. – slide 30
    PDC Energy Balance Sheet Preservation Case (35/2 FLAT) Decreasing Capital Development Plan Debt / EBITDAX 5.0x 31% Average Annual DebttoCap 4.0x 3.0x 10mm Revolver balance YE18e 2.0x 1.0x 300 Spuds 0.0x 2016e 2017e…
  31. IPAA OGIS New York – PDC Energy, Inc. – slide 31
    PDC Energy 3-Year Outlook Recap Wide Range of Inputs High Oil Price Volatility 35 /Bbl 65 Gas Market Assumed 2.00 /Mcf 3.50 Spud Management 300 Total Spuds 515 Narrow Range of Outcomes ValueDriven Growth 10% 27% 3year…
  32. IPAA OGIS New York – PDC Energy, Inc. – slide 32
    Year-End 2015 Proved Reserves Summary YE2014 Proved Reserves 250 MMBoe 2015 15.4 Significant Wattenberg production Production MMBoe growth through technical improvements Dominated by moving Outer Core PUDs in Reserve…
  33. IPAA OGIS New York – PDC Energy, Inc. – slide 33
    Established Acquisition Strategy High Threshold for Potential Acquisitions TopTier Expanded Portfolio Corporate Assets Inventory Optionality Accretion Must compete with Wattenberg Existing base production Provides new core area…
  34. IPAA OGIS New York – PDC Energy, Inc. – slide 34
    Reconciliation of Non-GAAP Financial Measures In millions, except per share data Three Months Ended Year Ended Adjusted EBITDA from net income (loss): December 31, December 31, 2015 2014 2015 2014 Net income (loss) 3.0 131.8 (68.3)…
  35. IPAA OGIS New York – PDC Energy, Inc. – slide 35
    Reconciliation of Non-GAAP Financial Measures In millions, except per share data Three Months Ended Year Ended Adjusted net income (loss) from net income (loss): December 31, December 31, 2015 2014 2015 2014 Net income (loss) 3.0…
  36. IPAA OGIS New York – PDC Energy, Inc. – slide 36
    Production Costs Details In millions, except per share data Previous Method Current Method Three Months Ended Three Months Ended December 31, December 31, 2015 2014 2015 2014 Lease Operating Expense 13.2 10.8 14.2 11.1 Production…

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