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Credit Suisse Energy Summit – PDC Energy, Inc.

PDC Energy, Inc. · Feb 15, 2017 · 34 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. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 1
    CREDIT SUISSE22NDANNUAL ENERGY SUMMIT February 15, 2017
  2. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 2
    PDC Energy Strategic Overview TopTier Growth Profile Capital Efficient Drilling Projects in Two Premier Basins Financial Discipline Technical Initiatives & Operational Enhancements LongTerm Focus on Value Creation…
  3. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 3
    PDC Energy Company Overview Core Wattenberg 6.0 Enterprise Value (Billions)(1) 96,000 net acres 1.8x YE17e Debt/EBITDAX(2) 30 33 2017e Production (MMBoe) 40% 2017e Annual Production Growth (Midpoint) Utica Shale…
  4. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 4
    PDC Energy Strong Financial Positioning As of 9/30/16, Pro Forma Delaware Basin Acquisitions Leverage and Liquidity YE16e Debt/ EBITDAX(1) of 2.2x Current Borrowing Base 700 million 200 million cash balance 890 million…
  5. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 5
    PDC Energy Proved Reserves Overview 25% increase in proved reserves 2015 2016 % Liquid 409% allsources reserve replacement(1) (MMBoe) (MMBoe) (2016) 25% increase in before tax PV10 using SEC pricing(2) Wattenberg 269.6 305.3 58%…
  6. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 6
    PDC Energy 2017 Production and Capital Budget 2017e PRODUCTION GUIDANCE 750mm 2017e Capex Midpoint 30.0 33.0 MMBoe 2017e Production Mix (66% Liquids) (725 775mm) 82,200 90,400 Boe/d NGL 97,000 Boe/d Dec. 2017 exit rate 1923%…
  7. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 7
    Asset Overview Scalability in Two Top-Tier Basins Core Wattenberg & Core Delaware Portfolio Multiple years of highly economic drilling in Core Wattenberg and Core Delaware Internal rates of return extremely competitive Estimated…
  8. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 8
    Asset Overview High-Return Portfolio Optionality Untapped upside present in both Wattenberg and Delaware assets Competition for capital drives innovation and enhanced results Allocation of capital split between two toptier basins,…
  9. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 9
    ASSET OVERVIEW 10
  10. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 10
    Core Wattenberg Asset Summary PDC Acreage 96,000 2017e TIL Breakdown Net Acres 100% Acreage HBP SRLs MRLs XRLs 145/150 2017e Spuds & TILs 7,300 2017e Avg. Lateral Length (Spud) 2/15/2017 11
  11. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 11
    Core Wattenberg Strategic Acreage Trade Trade with Noble Energy Closed September 2016 PDC Acreage Middle Core net acreage increased to 70,300 from 60,000 Adds incremental value through increased working interests, improved…
  12. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 12
    Core Wattenberg Ongoing Enhancement Tests PDC Acreage LDS (MRL/Proppant) Cockroft (Tighter Spacing) OUTER CORE MIDDLE CORE Loloff Farms (XRL) Sater (Slickwater) INNER CORE 2/15/2017 13
  13. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 13
    Core Wattenberg Midstream Overview OIL NATURAL GAS Source: Company reports; BTU Analytics production Multiple takeaway options Diversified gas takeaway (DCP/AkaAPC) (refinery, pipeline, trucking and rail) DCP current capacity 800…
  14. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 14
    Delaware Basin Asset Overview PDC Acreage 61,500 net acres in Reeves (42,050) and Culberson (19,450) Counties, TX Culberson Loving 32.5 MMBoe proved reserves at YE16; 68% liquids 580 MMBoe of estimated net reserves potential…
  15. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 15
    Delaware Basin 2017 Initiatives and Capital Budget Rig Location Waiting-on-Completion PDC Acreage 185 million D&C budget PDC/Fortuna HSS State Spud 28 wells Wolfcamp A (DUC) 7,500 laterals 12 spuds in Eastern 14 spuds in Central…
  16. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 16
    Delaware Basin Highly Productive Acreage Blocks PDC Acreage EASTERN 17,600 net acres 91% WI Wolfcamp EURs Oil: 50 70% A: 1,000 MBoe Gas: 20 30% B: 750 MBoe NGLs: 10 20% Inventory: 410 locations CENTRAL 27,900 net acres 87%…
  17. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 17
    Delaware Basin Eastern Acreage Outperformance Type Curve Estimates for 5,000 Lateral; Production Normalized to 5,000 Lateral Wolfcamp A 1,000 MBoe EUR Wolfcamp B 750 MBoe EUR Early wells outperforming acquisition type curves…
  18. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 18
    Delaware Basin 100% Owned & Operated Midstream Future Upside from Buildout of 100% Owned and Operated Midstream Infrastructure Midstream Assets: Current & Future Gas gathering systems to central delivery points (CDP) Water handling…
  19. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 19
    Delaware Basin Early Innings Upside Expansive inventory upside Industry testing significantly tighter spacing and additional horizons Early wells outperforming acquisition type curve Technical enhancements Executing longlateral…
  20. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 20
    PDC Energy Key Takeaways TopTier Growth Profile 40% 2017e Production Growth Capital Efficient Drilling 7,000 Projects Average 2017 TIL Lateral Length Financial Discipline 1.8x YE17e Debt:EBITDAX Technical &…
  21. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 21
    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,…
  22. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 22
    APPENDIX 23
  23. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 23
    PDC Energy Hedge Position Summary Hedges in place as of December 31, 2016 plus hedges entered prior to January 31, 2017 8.5 MMBbls crude oil volumes at weighted average floor price of 49.25/Bbl 2017 38,217 BBtu natural gas volumes at…
  24. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 24
    Core Wattenberg Updated 2016 EUR Analysis Based on Evaluation of Public Production Data PDC Acreage 2,500 Wells Included in Study 2016 EUR ANALYSIS 2.63.6 EUR Variability Ratio Range for Inner Core Middle Core Outer Core…
  25. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 25
    Core Wattenberg Resilient Returns Type Well Profile Comparison Type Well IRR Comparison(1)(2) 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 Pricing Lateral…
  26. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 26
    Core Delaware Acreage Overview PDC Acreage 93% NM TX Average WI Western Central Central Basin Midland Loving Platform 100% Basin Delaware Basin Approximate Operated Position Eastern 785 Currently Identified…
  27. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 27
    Delaware Basin 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…
  28. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 28
    Eastern Acreage Block: 17,600 Net Acres PDC Acreage Existing Well Acquired Well Wolfcamp A Area Highlights Silverback Folk Rowling Cumulative BOE per 5,000 of Lateral 17,600 net acres Wolfcamp A 91% WI IP30: 1,513 Boe/d Lateral…
  29. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 29
    Central Acreage Block: 27,900 Net Acres PDC Acreage Existing Well Acquired Well Wolfcamp A / Wolfcamp B Area Highlights Cumulative BOE per 5,000 of Lateral 27,900 net acres 87% WI 66% NRI (76% N/G) Capitan Ava State Oil: 30 50%…
  30. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 30
    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…
  31. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 31
    Delaware Basin Detailed Acreage Block Overview See Appendix For Additional Detail Eastern Wolfcamp A 1,000 MBoe Eastern Block Central Block Western Block Net Acreage 17,600 27,900 16,000 Working Interest 91% 87% 100% Commodity Mix…
  32. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 32
    Delaware Basin Strategic Bolt-On Acquisition Closed December 30, 2016 from Fortuna Resources Capitan Ava State Wolfcamp A 30day Peak IP: 1,250 Boe/d Lateral Length: 4,200 CULBERSON Capitan Dorothy State Wolfcamp A 30day Peak…
  33. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 33
    Reconciliation of Non-US GAAP Financial Measures In millions, except per share data Three Months Ended Nine Months Ended Adjusted EBITDA from net income (loss): Sept 30, Sept 30, 2016 2015 2016 2015 Net loss (23.3) (41.5) (190.3)…
  34. Credit Suisse Energy Summit – PDC Energy, Inc. – slide 34
    Reconciliation of Non-US GAAP Financial Measures In millions, except per share data Three Months Ended Nine Months Ended Adjusted net income (loss) from net income (loss): Sept 30, Sept 30, 2016 2015 2016 2015 Net loss (23.3)…

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