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EnerCom The Oil & Gas Conference – PDC Energy, Inc.

PDC Energy, Inc. · Aug 15, 2016 · 37 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. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 1
    ENERCOMS THE OIL AND GAS CONFERENCE August 15, 2016
  2. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 2
    PDC Energy Company Overview Core Wattenberg 2.8B 96,000 net acres Market Cap(1) 3.3B Enterprise Value(1) 273 YE15 Proved Reserves (MMBoe) 2,150 2P Horizontal Locations at YE15 Utica Shale 21 22 65,000 net acres…
  3. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 3
    Track Record of Operational Execution 2P Watt. Locations/Section Middle Core SRL(1) EURs (MBoe) 30 Avg. Feet Drilled/Day/Well 500 2,400 20 400 1,600 10 300 800 0 200 0 2012 2013 2014 2015 2016e 2012 2013 2014 2015 2016e 2012…
  4. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 4
    Financial Strength and Discipline Strong balance sheet discipline Maintain Debt/ EBITDAX(1) ratio below 2.0x and Debt to Capital below 40% (YE15 = 33%) 2016e debt per flowing Boe expected to decrease more than 75% from 2012 level…
  5. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 5
    Low Costs Continue to Drive Margins Source: Wells Fargo Securities, LLC 50% decrease in allin cash operating costs since 2014 (including interest expense) Substantial production increase drives reduced per Boe metrics Strong…
  6. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 6
    Strong Second Quarter Results Valueadd Wattenberg drilling prioritizes IRRs and 5.2 2Q16 Total Production (MMBoe) margins Average production of 57,112 Boe/d Reduced LOE to 2.63/Boe 34 TILs in 2Q Currently completing first batch…
  7. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 7
    Significant Drilling Efficiencies Improvements 2016 drill times improved by 75% since 2014 and 100% since 2013 2016 efficiency gains further improving drill times Original forecast of 1,900 feet drilled per day per well Feet…
  8. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 8
    2016 Re-Guided Capital and Production Outlook Increased production range to 21 22 MMBoe 410 40% increase over 2015 at midpoint 2016e Capex Midpoint Reduced Wattenberg rig count to three from four Reduced 2016e spuds and TILs…
  9. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 9
    Debt and Liquidity As of 6/30/16 Available liquidity of 797 million(1) Debt / LTM EBITDAX(2) of 1.1x Debt Maturities 115 million 3.25% convertible senior notes redeemed in May 2016 115 million in cash and 792,000 shares 700…
  10. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 10
    Crude Oil and Natural Gas Hedges Summary Hedges in place as of June 30, 2016 Jul Dec 60% of crude oil volumes at weighted average floor price of 73.92/Bbl 2016 68% of natural gas volumes at weighted average floor price of 3.45/Mcf…
  11. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 11
    ASSET OVERVIEW 12
  12. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 12
    Core Wattenberg Asset Summary Wattenberg 2P Inventory 96,000 Inner Middle Net Acres (pretrade) Outer 100% 2016e TIL Breakdown SRLs Acreage HBP MRLs XRLs 128/140 Spuds TILs 2,150 2P Hz Locations (4,700 avg.…
  13. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 13
    Core Wattenberg Strategic Acreage Trade with Noble Trade with Noble Energy expected to Close in Early 4Q 2016 Receive 13,500 net acres in Middle Core in exchange for 11,700 net acres Adds incremental value through increased working…
  14. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 14
    Middle Core Supporting Increased Type Curves Acreage Shown Reflects Post Noble Trade Peterson 16 wells/section OUTER CORE SRL Design TIL: 2Q15 320 acre unit 8 total wells 4 plugnperf 4 sliding sleeve MIDDLE CORE R&R/Trimar 20…
  15. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 15
    Recent Completion Tests Show Positive Early Results 2016 Analyst Day Type Curves; Pro Forma NBL Acreage Trade Land Map LDS Project OUTER CORE 10 well pad 20well per section equivalent MRL Design TIL: 2Q16 15 55% increase in…
  16. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 16
    Monobore Drilling Gains To-Date Current Implementation Monobore drilling saves 1 day in spudtospud times 50100k savings per well realized todate All wells expected to be drilled using monobore technology 95/8 casing cemented to…
  17. EnerCom The Oil & Gas Conference – 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. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 18
    Moving Beyond Wattenberg Line Pressure Constraints 2013 Processing AKA/APC DCP 2014 Processing AKA/APC Lucerne 2 plant online DCP 2015 Processing AKA/APC Lucerne 2 plant provided significant relief to line pressure DCP…
  19. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 19
    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…
  20. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 20
    Utica Asset Summary Producing Pads 65,000 2016 Pad Locations PDC Acreage Net Acres 52% Acreage HBP 26 Hz Producing Wells 35mm 2016e Capex 5/5 Spuds TILs 8/15/2016 21
  21. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 21
    Utica Update 65,000 net acres; 52% HBP 35MM capital plan in 2016 Neff well: May TIL o 10,000 lateral testing efficiency improvements o Encouraging early results Mason pad: June TIL o Delineate southern acreage; test completion…
  22. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 22
    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…
  23. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 23
    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,…
  24. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 24
    APPENDIX 25
  25. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 25
    2,500 Setback Details No New Oil & Gas Development Within 2,500 of Occupied Structures and Broadly Defined Areas of Special Concern Industry Viewpoint Colorado 90% off limits Confident that the resources are in place to defeat this…
  26. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 26
    Strategic Acreage Trade Pro Forma Estimates Trade with Noble Energy expected to Close in Early 4Q 2016 OUTER OUTER CORE CORE MIDDLE MIDDLE CORE CORE INNER INNER CORE CORE PreTrade PostTrade 2H16 Rig Count 4 Rig Count 3…
  27. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 27
    2016 Revised Financial Guidance 2015 2016 Guidance(2) Actual Low High Production 15.4 21.0 22.0 Capital Expenditures 559 400 420 Crude oil, natural gas and NGLs sales 379 449 487 Realized gain on derivatives 239 216 216 Other…
  28. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 28
    Updated 2016 Core Wattenberg EUR Analysis Based on Evaluation of Public Production Data 2,500 Wells Included in Study 2016 EUR ANALYSIS 2.63.6 EUR Variability Ratio Range for Inner Core Middle Core Outer Core Represents…
  29. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 29
    PDC Energy Modest Price Recovery Case Stable Capital Development Plan 23% 3Year Production CAGR…
  30. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 30
    PDC Energy Price Rebound Case Increasing Capital Development Plan 27% 3Year Production CAGR…
  31. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 31
    PDC Energy Balance Sheet Preservation Case (35/2 FLAT) Decreasing Capital Development Plan 31% Average Annual DebttoCap 10mm Revolver balance YE18e 300 Spuds 3.0x YE18e Debt / EBITDAX NYMEX 2016 2017 2018 Oil…
  32. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 32
    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…
  33. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 33
    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…
  34. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 34
    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…
  35. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 35
    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…
  36. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 36
    Reconciliation of Non-US GAAP Financial Measures In millions, except per share data Three Months Ended Six Months Ended Adjusted EBITDA from net income (loss): June 30, June 30, 2016 2015 2016 2015 Net (loss) (95.5) (46.9) (167.0)…
  37. EnerCom The Oil & Gas Conference – PDC Energy, Inc. – slide 37
    Reconciliation of Non-US GAAP Financial Measures In millions, except per share data Three Months Ended Six Months Ended Adjusted net income (loss) from net income (loss): June 30, June 30, 2016 2015 2016 2015 Net income (loss)…

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