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Delaware Basin Acquistion – PDC Energy, Inc.

PDC Energy, Inc. · Aug 24, 2016 · 24 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. Delaware Basin Acquistion – PDC Energy, Inc. – slide 1
    TRANSFORMATIVE CORE DELAWARE BASIN ACQUISITION 8/24/2016
  2. Delaware Basin Acquistion – PDC Energy, Inc. – slide 2
    Transformative Core Delaware Basin Acquisition Acquisition Attributes Large-scale acquisition of operated core NEW MEXICO acreage in top-tier Delaware basin Significant inventory of highly economic(1) Wolfcamp A, B and C wells with…
  3. Delaware Basin Acquistion – PDC Energy, Inc. – slide 3
    Key Delaware Basin Acquisition Highlights Deal Overview 1.5 billion purchase price privately negotiated Culberson with Kimmeridge Energy Management Company Loving 590 million privately placed equity to the seller and 915 million of…
  4. Delaware Basin Acquistion – PDC Energy, Inc. – slide 4
    Premier Portfolio Scalability in Two Top-Tier Basins Pro Forma Core Wattenberg & Core Delaware Basins Portfolio Multiple years of highly economic drilling in Core Wattenberg and Core Delaware Internal rates of return extremely…
  5. Delaware Basin Acquistion – PDC Energy, Inc. – slide 5
    PDC Energy Pro Forma Company Overview 5B Est. Pro Forma Enterprise Value Core Wattenberg 96,000 net acres 40% Est. Oil Production…
  6. Delaware Basin Acquistion – PDC Energy, Inc. – slide 6
    ACQUISITION DETAILS 8
  7. Delaware Basin Acquistion – PDC Energy, Inc. – slide 7
    Established Acquisition Strategy Originally Presented at April 2016 Analyst Day Top-Tier Expanded Portfolio Corporate Assets Inventory Optionality Accretion Must compete with Wattenberg Existing base production Provides new core…
  8. Delaware Basin Acquistion – PDC Energy, Inc. – slide 8
    Key Deal Terms Transaction Details 1.5 billion purchase price (22,000 per net acre(1)) 9.4 million shares privately placed to the seller valued at 590 million and 915 million of cash consideration 1.4 billion of current liquidity…
  9. Delaware Basin Acquistion – PDC Energy, Inc. – slide 9
    Core Delaware Basin Acreage Overview PDC Acreage 93% NM TX Average WI Western Central Central Basin Midland Loving Platform 100% Basin Delaware Basin Approximate Operated Position Eastern 710 Currently…
  10. Delaware Basin Acquistion – PDC Energy, Inc. – slide 10
    Eastern Acreage Block: 17,500 Net Acres PDC Acreage Existing Well Acquired Well Wolfcamp A Area Highlights Cumulative BOE per 5,000 of Lateral 17,500 net acres 91% WI 69% NRI (76% N/G) Oil: 50 70% Silverback Folk Rowling Wolfcamp…
  11. Delaware Basin Acquistion – PDC Energy, Inc. – slide 11
    Central Acreage Block: 23,500 Net Acres PDC Acreage Existing Well Acquired Well Wolfcamp A / Wolfcamp B Area Highlights Cumulative BOE per 5,000 of Lateral 23,500 net acres 87% WI 66% NRI (76% N/G) Capitan - Dorothy State Oil: 30…
  12. Delaware Basin Acquistion – PDC Energy, Inc. – slide 12
    Western Acreage Block: 16,000 Net Acres PDC Acreage Existing Well Acquired Well Wolfcamp A Area Highlights Cumulative BOE per 10,000 of Lateral 16,000 net acres 100% WI 78% NRI (78% N/G) Oil: 20 50% Gas: 30 50% NGLs: 20…
  13. Delaware Basin Acquistion – PDC Energy, Inc. – slide 13
    Expansive Inventory Upside Acquisition Model Assumes Maximum Density of Only 12 Wells per Section Well Spacing & Inventory Summary Max ACQ Peer Eastern Inventory Central Inventory Western Inventory Bench Spacing Tests (17,500 net…
  14. Delaware Basin Acquistion – PDC Energy, Inc. – slide 14
    Delaware Basin Netback Summary CRUDE OIL NGLs NATURAL GAS Key Highlights Key Highlights Key Highlights Currently trucked at competitive NGLs piped via multiple pipelines Strong relative basis pricing rates to Gulf Coast Limited…
  15. Delaware Basin Acquistion – PDC Energy, Inc. – slide 15
    Midstream Infrastructure 100% Owned & Operated Future Upside from Buildout of 100% Owned and Operated Midstream Infrastructure Midstream Assets: Current & Future Gas gathering systems to central delivery points (CDP) Water…
  16. Delaware Basin Acquistion – PDC Energy, Inc. – slide 16
    IMPLEMENTATION STRATEGY 18
  17. Delaware Basin Acquistion – PDC Energy, Inc. – slide 17
    Operations Summary Current Summary 7,000 Boe/d net production 21 horizontal wells online WESTERN Two additional wells in completion & flowback phase Five salt water disposal wells Producing Hz Well CENTRAL EASTERN First rig…
  18. Delaware Basin Acquistion – PDC Energy, Inc. – slide 18
    Competitive Returns Provide Portfolio Optionality Pro Forma Acquisition Portfolio 2,860 highly economic identified locations(1) Competitive returns across portfolio provides optionality Competition for capital drives innovation and…
  19. Delaware Basin Acquistion – PDC Energy, Inc. – slide 19
    Transferring Wattenberg Expertise to the Delaware Wattenberg Avg. Feet Drilled/Day/Well Efficiency 2,400 Drilling 1,600 800 0 2012 2013 2014 2015 2016e Improvements Wattenberg Middle Core SRL EURs (MBoe)…
  20. Delaware Basin Acquistion – PDC Energy, Inc. – slide 20
    Delaware Basin Asset Integration Plan Transfer technological expertise Begin downspacing initiatives Test various completion designs Successfully develop multiple benches Intense focus on maintaining reduced cost structure and LOE…
  21. Delaware Basin Acquistion – PDC Energy, Inc. – slide 21
    PRO FORMA CORPORATE OUTLOOK 23
  22. Delaware Basin Acquistion – PDC Energy, Inc. – slide 22
    Pro Forma 3-Year Outlook Organic Base Case Range Pro Forma Acquisition Range 55 Production (MMBOE) 100 3-Year CAGR Stand Alone 20% 45 Pro Forma 31% Est. Combined 2018 Daily Production (Mboe/d) 35 40% 25 Est. Pro…
  23. Delaware Basin Acquistion – PDC Energy, Inc. – slide 23
    Significant Step Towards a Top-Tier Mid-Cap Company Delivering Value Accretive to Company Corporate Development Strategic Entry to New Basin Operational Execution Transferring Expertise to Delaware Financial Discipline Balance…
  24. Delaware Basin Acquistion – PDC Energy, Inc. – slide 24
    Questions & Answers 8/24/2016 26

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