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IPAA TIPRO Luncheon – PDC Energy, Inc.

PDC Energy, Inc. · Feb 8, 2017 · 35 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 TIPRO Luncheon – PDC Energy, Inc. – slide 1
    IPAA/TIPRO LEADERS IN INDUSTRY LUNCHEON February 8, 2017
  2. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 2
    PDC Energy Asset History Assets 1969 West Virginia Shallow Upper Devonian 2/8/2017 3
  3. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 3
    PDC Energy Asset History Assets 1999forward Bakken Wyoming Michigan New York Piceance NECO OH Utica Shallow Upper CO Wattenberg Devonian WVMarcellus Tennessee Barnett Midland 2/8/2017 4
  4. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 4
    PDC Energy Asset History Assets 2017 OH Utica CO Wattenberg TX Delaware 2/8/2017 5
  5. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 5
    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…
  6. IPAA TIPRO Luncheon – 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. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 7
    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…
  8. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 8
    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…
  9. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 9
    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,…
  10. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 10
    WATTENBERG OVERVIEW 11
  11. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 11
    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) 2/8/2017 12
  12. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 12
    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…
  13. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 13
    Core Wattenberg Ongoing Enhancement Tests PDC Acreage LDS (MRL/Proppant) Cockroft (Tighter Spacing) OUTER CORE MIDDLE CORE Loloff Farms (XRL) Sater (Slickwater) INNER CORE 2/8/2017 14
  14. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 14
    Core Wattenberg Monobore Drilling Gains Current Implementation Monobore drilling saves 1 day in spudtospud times 50100k savings per well All wells expected to be drilled using monobore technology 95/8 casing cemented to surface…
  15. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 15
    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…
  16. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 16
    DELAWARE OVERVIEW 17
  17. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 17
    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…
  18. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 18
    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 785 Currently Identified…
  19. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 19
    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…
  20. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 20
    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%…
  21. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 21
    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…
  22. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 22
    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…
  23. IPAA TIPRO Luncheon – 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. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 24
    APPENDIX 25
  25. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 25
    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…
  26. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 26
    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…
  27. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 27
    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…
  28. IPAA TIPRO Luncheon – 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. IPAA TIPRO Luncheon – 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. IPAA TIPRO Luncheon – 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. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 31
    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…
  32. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 32
    Pro Forma 3-Year Outlook Organic Base Case Range Pro Forma Acquisition Range 55 Production (MMBOE) 100 3Year CAGR Stand Alone 20% 45 Pro Forma 31% Est. Combined 2018 Daily Production (Mboe/d) 35 40% 25 Est. Pro…
  33. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 33
    Utica Update PDC Acreage 65,000 net acres; 50% HBP 27MM capital plan in 2016 Neff well: May TIL o 10,000 lateral testing efficiency improvements o Best PDC Utica results per lateral foot todate Mason pad: June TIL o 6,000…
  34. IPAA TIPRO Luncheon – 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 EBITDA from net income (loss): Sept 30, Sept 30, 2016 2015 2016 2015 Net loss (23.3) (41.5) (190.3)…
  35. IPAA TIPRO Luncheon – PDC Energy, Inc. – slide 35
    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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