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2017 JP Morgan Energy Equity Conference – PDC Energy, Inc.

PDC Energy, Inc. · Jun 26, 2017 · 40 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. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 1
    JP MORGAN ENERGY EQUITY CONFERENCE June 26, 2017
  2. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 2
    PDC Energy Strategic Overview Strategic Overview TopTier Growth Profile 30+% 2,600 4year Production CAGR Drilling Inventory Capital Efficient Drilling (20162020) Technical Innovations 2020 80+% LongTerm Weighted Avg.…
  3. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 3
    PDC Energy Premier Assets Provide Top-Tier Growth Core Wattenberg 3.0B Market Cap(1) 95,500 net acres 1,800 identified locations(2) 305 MMBoe proved reserves 4.1B Enterprise Value(1) Utica Shale Delaware Basin 62,500 net…
  4. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 4
    PDC Energy Track Record of Delivering Value Operating Costs (/Boe) Gross Margin(2) Oil Production (MMBbls) LOE per BOE TG&P Production Taxes G&A 100% Gross Margin NYMEX Oil 100 25 15 80% 80 20 NYMEX Oil (/Bbl) Gross Margin (%)…
  5. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 5
    PDC Energy Flexibility to Execute Long-Term Plan Base and Resilient Case Details Can Be Found in Appendix Base Case Highlights Production (MMBoe)(1) 70 32% estimated 4year production CAGR (2016 2020) 60 200 MBoe/d 2020 exit rate…
  6. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 6
    Robust Hedge Position Insulates Capital Program Hedges in Place as of 3/31/17 Plus Hedges Entered Into prior to June 20, 2017 Oil Volumes Hedged Gas Volumes Hedged 3,000 60.00 16,000 4.00 2,500 50.00 14,000 3.50 Henry Hub…
  7. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 7
    PDC Energy Balance Sheet Strength and Liquidity As of March 31, 2017 Leverage and Liquidity 1,000 946 million liquidity Debt Maturity Schedule (millions) 258 million combined cash balance & shortterm investments 750 Leverage…
  8. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 8
    PDC Energy First Quarter Results 73,866 2017 First Quarter Highlights Continued Wattenberg execution drives strong production growth (Boe/d) 64,285 Boe/d; 40 TILs (28 in March); 29 spuds Recently updated Wattenberg MRL and XRL…
  9. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 9
    PDC Energy 2017 Production & Capital Guidance Wattenberg 2017e Production Mix 2017e Production (MMBoe) 4th rig arrived in May Anticipate Top Third of Range 30% annual production growth 139 Spuds 139 TILs with 6,800 avg. lateral…
  10. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 10
    PDC Energy 2017 Capital Investment Program and Financial Guidance Capital Investment Details 2017e Capital Investments 2017e Capital Investment Anticipate capital investment program (millions) in the top half of range Wattenberg:…
  11. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 11
    ASSET OVERVIEW
  12. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 12
    Core Wattenberg Asset Overview (2) 2017e TIL Breakdown Net Acres Outer Core Kersey XRL Middle Core Area SRL 36% 35% Inner Core Acreage HBP MRL 29% Horizontal Locations(1) 305 139 139 6,800 YE16 Proved…
  13. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 13
    Core Wattenberg Kersey Area Performance Tracking Updated Type Curves Type Well Profile Comparison(1) LDS Project (MRL) AD2016 SRL Type Curve AD2017 MRL Type Curve Pad Average (Older Style Completion) 490 MBoePreTrade SRL Type Curve…
  14. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 14
    Core Wattenberg Economic Summary SRL Performance MRL Performance XRL Performance 490 MBoe SRL Type Curve 800 MBoe MRL Type Curve 1,100 MBoe XRL Type Curve Older PDC Operated Wells Updated Completion & Flowback Type Curve Type…
  15. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 15
    Core Wattenberg Midstream Overview Additional Capacity Enables Future Growth Objectives NATURAL GAS Multiple midstream providers (DCP and AkaAPC) DCP expected to gather and process 72% of 2017e gas volumes DCP current capacity 850…
  16. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 16
    Delaware Basin Asset Overview Western Central Net Acres Western Central Eastern Net Acres 16,000 28,900 17,600 Eastern EUR (MBoe) 1,200 1,000 1,400 750 1,000 Average Working Interest Locations(1) 40 335 410 Working Int.…
  17. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 17
    Delaware Basin 2017 Planned Activity Western Central PDC/Fortuna HSS State Targeted Well Costs (millions) 225 million D&C budget Wolfcamp A (DUC) 7,500 laterals Lateral Length 2/28/17 PDC Phillips State Spud 31 wells Wolfcamp A…
  18. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 18
    Delaware Basin Encouraging Recent Well Results Eastern Area Wolfcamp A Central Area Wolfcamp A/B Early production from recent completions performing Multiple wells currently on flowback (yet to reach above acquisition type curve…
  19. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 19
    Marketing & Midstream Gas Throughput and Processing Overview Gas delivered to both El Paso and Waha markets Added 40,000 MMBtu/d firm transportation basin to Waha through 2020 3rd Party Midstream Western Central Central Delivery…
  20. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 20
    Long-Term Delaware Midstream Vision Roadmap to Incremental Value Creation Key Objectives Create separate fee structures for infield midstream services Build out PDC midstream assets & infrastructure to support development plans…
  21. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 21
    PDC Energy Key Takeaways Strategic Overview TopTier Growth Profile 30+% 2,600 4year Production CAGR Drilling Inventory Capital Efficient Drilling (20162020) Technical Innovations 2020 80+% LongTerm Weighted Avg.…
  22. 2017 JP Morgan Energy Equity Conference – 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. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 23
    APPENDIX
  24. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 24
    PDC Energy 2020 Vision Base Case 4/20/17 Base Case Range Production (MMBOE) Adj. Cash Flow (MM) 75 1,800 200 50 1,500 1,200 MBoe/d Exit Rate in 2020 900 1.5B+ 25 600 YE Rig Count (Watt./Del.) 300 4/3 5/5 5/6 5/7 0 0…
  25. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 25
    2020 Vision Key Outlook Factors Key Considerations Utilizes Delaware Basin acquisition type curves Potential for Wattenberg SRL type curve improvement from completion enhancements Variability of timing on first production…
  26. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 26
    PDC Energy 2020 Vision Resilient Case 4/20/17 Resilient Case Range Production (MMBOE) Adj. Cash Flow (MM) 21% 75 1,800 1,500 4Year Production CAGR 50 1,200 900 90% 25 YE Rig Count (Watt./Del.) 600 300 2020 Liquidity…
  27. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 27
    Core Wattenberg Continued Type Curve Improvements Type curve EUR increases reflect new completion design and flowback techniques XRL 30% increase to 1,100 MBoe (from 850 MBoe) MRL 15% increase to 800 MBoe (from 685 MBoe) EUR…
  28. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 28
    Core Wattenberg Growing Oil Volumes Based on Previous Analyst Day Type Curves Oil volumes per well continue to grow Oil Volume per Well(1) 350 GOR typically stabilizes after 1836 months (MBbls) 305 MRL and XRL wells represent…
  29. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 29
    Wattenberg Kersey Area XRL Type Curve Increasing 30% to 1,100 MBoe Increased Type Curve from 850 MBoe Approximately 210 currently identified Middle Core (1) locations Base Case Type Well Details Increased inventory driven by 2016…
  30. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 30
    Wattenberg Kersey Area MRL Type Curve Increasing 15% to 800 MBoe Increased Type Curve from 685 MBoe Recently completed wells are outperforming type curve (1) Base Case Type Well Details Over 380 currently identified Middle Core…
  31. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 31
    Wattenberg Kersey Area SRL Type Curve of 490 MBoe Type Curve Remains 490 MBoe Most recent SRL wells completed in 1H16 using (1) historical completion design and flowback techniques Base Case Type Well Details Potential upside due to…
  32. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 32
    Reserves Continued Core Wattenberg Consistency 2,700 Inner Core Represents 1,900 Middle Core Hz Niobrara wells Outer Core CO DJ Niobrara Represents 800 Outside Core Hz Niobrara wells Wells Included in Study 2.7 Average…
  33. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 33
    PDC Energy Delaware Basin Inventory Detail 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…
  34. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 34
    Eastern Area Wolfcamp A Outperformance Provides Upside Early production from recent completions performing (1) above acquisition type curve Base Case Development Type Well Details 3 wells trending 25% above acquisition type curve 11…
  35. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 35
    Eastern Area Wolfcamp B Delivers Strong Early Results First Wolfcamp B test in Eastern area trending above (1) acquisition type curve of 750 MBoe Base Case Development Type Well Details PDCs Triangle well currently outperforming…
  36. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 36
    Central Area Encouraging Initial Results Multiple wells currently on flowback (yet to reach (1) peak production) Base Case Development Type Well Details Liam State XRL Wolfcamp B 3Phase EUR: 1,050 MBoe Capital Cost: 6.0MM HSS…
  37. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 37
    Western Area Acquisition Economic Summary Drill and complete two Wolfcamp A wells by 2Q17 (1) Using 2017 completion design Base Case Development Type Well Details Will hold entire block through 2018 3Phase EUR: 1,200 MBoe Capital…
  38. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 38
    Bond Trading History Notes due 2022 and 2024 PDC Senior Notes due 2022 and 2024 remain priced well above notes in similar tenor issued by peers Notes due 2022 Trading History Notes due 2024 Trading History Price Price 120 110 110…
  39. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 39
    Reconciliation of Non-U.S. GAAP Financial Measures Three Months Ended Net income (loss) to adjusted EBITDAX March 31, 2017 2016 Net income (loss) 46.1 (71.5) Gain on commodity derivative instruments (80.7) (11.1) Net settlements…
  40. 2017 JP Morgan Energy Equity Conference – PDC Energy, Inc. – slide 40
    Reconciliation of Non-U.S. GAAP Financial Measures Three Months Ended Net income (loss) to adjusted net income (loss) March 31, 2017 2016 Net income (loss) 46.1 (71.5) Gain on commodity derivative instruments (80.7) (11.1) Net…

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