CREDIT SUISSE 23RD ANNUAL ENERGY SUMMIT February 12, 2018
PDC Energy Strategic Overview Strategic Overview Top-Tier Growth Profile 35% 2,600 3-year Drilling Production CAGR Inventory(3) Capital Efficient Drilling (2016-2019) Technical…
PDC Energy Premier Assets Provide Top-Tier Growth 3.0B Core Wattenberg 100,000 net acres(2) 1,800 identified locations(3) Market Cap(1) 351 MMBoe proved reserves 4.2B Enterprise Value(1) Utica Shale Delaware Basin…
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 (%)…
PDC Energy 2017 Year-End Proved Reserves 33% increase in proved reserves 2016 2017 Liquids 450% all-sources reserve replacement(1) (MMBoe) (MMBoe) (2017) 92% increase in before-tax SEC PV-10(2) to 3.2 billion Wattenberg 305.3 350.8…
PDC Energy 2018 Production and Capital Investment Guidance Capital Investment Details (All numbers approximate) Wattenberg (480MM) 2018e Production Mix 2018e Production 425MM operated D&C (MMBoe) 131 spuds & 139 TILs (85% avg.…
Robust Hedge Position Insulates Capital Program Hedges in Place as of 9/30/17 Plus Hedges Entered Into prior to 12/31/17 CRUDE OIL NATURAL GAS Q4 17 2018 2019 Q4 17 2018 2019 Volumes (MMBbls) Volumes (BBtu) Collar 0.6 1.5 -…
PDC Energy Balance Sheet Strength and Liquidity Leverage and Liquidity (as of 9/30/17) 1,000 836 million liquidity Debt Maturity Schedule (millions) 136 million cash balance Leverage ratio(1) of 1.8x 750 Borrowing base increased…
ASSET OVERVIEW
Core Wattenberg 2017 Overview Acreage Trades Closed in November and Bolt-On Acquisition Closed in January 2018 2017e TIL Breakdown (3) Net Acres(1) SRL 30% XRL 47% Acreage HBP MRL 23% Horizontal Locations(2) 351…
Wattenberg Transactions Consolidate Position Increase XRL Development Potential Acreage Trades Closed in November; Bolt-On Acquisition Closed in January 2018 Consolidated acreage positions favorable for XRL development Kersey: 30,000…
Core Wattenberg Drilling Efficiencies Continued improvement in spud-to-spud drill times 2017 Analyst Day 2Q17 Earnings Call SRL = 6 days All numbers approximate SRL MRL XRL SRL MRL XRL MRL = 8 days Lateral Length 4,200 6,900 9,500…
Core Wattenberg Midstream Overview Additional Capacity Enables Future Growth Objectives NATURAL GAS Multiple midstream providers (DCP and Aka-APC) DCP expected to gather and process 72% of 2017e gas volumes Prairie DCP current…
Delaware Basin 2017 Overview 2017e Capital Investment Details 285 million D&C budget Spud 24 wells Net Acres(1) 15 spuds in Eastern 7 spuds in Central 2 spuds in Western TIL 18 wells including 8 XRLs Average Working Interest…
Delaware Basin Gaining Operational Momentum Continued improvement in completion operations Eastern Area Block 4 Clustered perf design showing encouraging initial results Approximate Surface Locations Increased capital efficiency…
Delaware Basin Prolific Eastern Area Wolfcamp A Well Results Well Data as of 2/8/18 Eastern Area Wolfcamp A Eastern Area Wolfcamp A 500,000 500,000 Keyhole Gross Cumulative 2-Phase Production per 5,000' PDC Average (8 wells)…
Delaware Basin Initial Eastern Area Wolfcamp B Well Results Limited Sample Size as of 2/8/18 Eastern Area Wolfcamp B Elkhead & Kenosha Daily Performance Comparison 250,000 10000 Triangle Hermit 1000 Elkhead Elkhead Kenosha…
Delaware Basin Recent Central Area Wells Exceeding Type Curve Well data as of 2/8/18 Central Area Well Highlights Central Area Wolfcamp A/B 300,000 Liam State cumulative production outperforming 1,050 MBoe EUR normalized type…
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…
Long-Term Delaware Midstream Vision Roadmap to Incremental Value Creation Key Objectives Create separate fee structures for in-field midstream services Build out PDC midstream assets & infrastructure to support development plans…
PDC Energy Key Takeaways Strategic Overview Top-Tier Growth Profile 35% 2,600 3-year Production CAGR Drilling Inventory Capital Efficient Drilling (2016-2019) Technical…
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,…
APPENDIX
PDC Energy 2017 Production & Capital Guidance (Does Not Reflect Potential Effect of Wattenberg Transactions Announced on 9/25/17) Wattenberg 2017e Production Mix 2017e Production (MMBoe) Operated 3-4 rigs 30% annual production…
PDC Energy Capital Efficiency in a 50 and 3 World 50/Bbl and 3/Mcf NYMEX Prices Held Flat (Does Not Reflect Actual 2018 Production & Capital Guidance on 12/11/17) 2017 - 2019: Mid-Year 50/3 Case vs. 80 Production and Leverage Ratio…
PDC Energy Third Quarter 2017 Results 92,500 2017 Third Quarter Highlights Continued execution in Wattenberg drives strong results (Boe/d) 77,580 Boe/d 3Q17 production 47% 46 gross operated spuds (18 SRL; 20 MRL; 8 XRL) 39…
Kersey Area Growing Oil Volumes Based on Previous Analyst Day Type Curves Oil volumes per well continue to grow Oil Volume per Well(1) 350 (MBbls) 305 GOR typically stabilizes after 18-36 months 255 SRL potential 250 245 MRL…
Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDAX Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net loss to adjusted EBITDAX: Net loss (292.5) (23.3) (205.1) (190.3) (Gain)…
Reconciliation of Non-U.S. GAAP Financial Measures Adjusted Net Income (Loss) Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Adjusted net loss: Net loss (292.5) (23.3) (205.1) (190.3) (Gain)…
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