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4Q 2017 and Year End Results – PDC Energy, Inc.

PDC Energy, Inc. · Feb 27, 2018 · 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. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 1
    2017 Fourth Quarter & Year-End Results February 27, 2018
  2. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 2
    BART BROOKMAN President and Chief Executive Officer
  3. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 3
    Strong 2017 Execution Builds Momentum Total production of 31.8 MMBoe (87,200 Boe/d) 44% increase year-over-year (December exit rate of 97,000 Boe/d) 48% increase in oil production to 12.9 MMBbls (41% of total production) Continued…
  4. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 4
    2018 Focused on Unlocking Potential Total production of 38 42 MMBoe 25% annual production growth at mid-point 2018e Commodity Mix 35% annual oil production growth at mid-point December exit rate of 130,000 Boe/d 19 22% Capital…
  5. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 5
    SCOTT REASONER Chief Operating Officer
  6. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 6
    PDC Energy 2017 Operational Overview 87,200 Core Wattenberg 100,000 net acres(1) 76,195 Boe/d 4Q17 production Total Production (Boe/d) 19 gross operated TILs in 4Q17 44% Production Increase (2017 over 2016) Utica Shale…
  7. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 7
    PDC Energy 2017 Capital Investment Summary Quarterly Details (MM) Area 1Q17 2Q17 3Q17 4Q17 FY17 2017 Capital Investment Highlights Wattenberg 135 130 117 74 457 Delaware 63 87 86 95 331 Wattenberg: Operated three plus rigs…
  8. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 8
    PDC Energy Quarterly Production and LOE Summary Total production increased 35% (4Q17 v 4Q16) Oil production increased 49% (4Q17 v 4Q16) Oil production accounted for 43% of total production (4Q17) LOE per Boe of 2.83 (4Q17) Net…
  9. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 9
    Wattenberg Field Production Unbundled in 2018 Plan to invest 470 - 500 million in 2018 Expect to spud and TIL 135 150 wells Majority of focus in Kersey Area Average Line Pressures on DCP Gathering Initial Prairie wells to be…
  10. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 10
    Delaware Basin Gaining Operational Momentum Positive well results and steady development ramp lead to strong quarterly production growth Delaware Production (Boe/d) 20,000 Focus on artificial lift, choke management and 16,030…
  11. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 11
    Delaware Basin Gaining Operational Momentum Continued improvement in completion operations Fit-for-purpose rigs beginning to improve spud-to-TD drill times Grizzly pad averaging 255 Boe/d per 1,000 (73% oil) 40% improvement in…
  12. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 12
    Delaware Basin Continued Execution in Eastern Area Six well downspacing test (testing 12 wells per section Eastern Area Block 4 equivalent spacing in Wolfcamp A) Approximate Surface Locations Initial Wolfcamp C test planned…
  13. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 13
    Delaware Basin Unlocking Potential Value in Central Area 2018 TILs: 10 in Central Area North Central Area Three-well Greenwich pad expected to TIL in 1Q18 Approximate Surface Locations State Lazy Acre State Lazy Acre non-op well…
  14. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 14
    PDC Energy Focused on Executing in 2018 2017 Accomplishments XRL/MRL Development in Wattenberg 48% < 3 Begin Transferring Wattenberg Expertise to Delaware Oil Growth (2017 v 2016) 2018e LOE/Boe Delaware Delineation…
  15. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 15
    Scott Meyers Chief Financial Officer
  16. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 16
    Summary U.S. GAAP Financial Results 200 Net Cash from Operating Activities 150 Three Months Ended Twelve Months Ended December 31, December 31, millions Measure 100 (millions except per share and price per Boe data) 2017…
  17. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 17
    Summary Non-U.S. GAAP Financial Results 250 Adjusted EBITDAX(1) MK Note Proceeds (40.2 mm) 200 150 millions Three Months Ended Twelve Months Ended December 31, December 31, 100 Measure (millions except per share data)…
  18. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 18
    Production Cost Summary Three Months Ended Twelve Months Ended December 31, December 31, Measure 2017 2016 % 2017 2016 % Production (MMBoe) 8.7 6.4 35% 31.8 22.2 44% Production Costs per Boe vs Production (MMBoe) Operating Costs…
  19. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 19
    Balance Sheet Strength, Liquidity and Hedge Portfolio As of December 31, 2017 1,000 Debt Maturity Schedule Leverage and Liquidity (millions) 881 million liquidity 700 million pro forma Bayswater Acquisition(1) 181 million cash…
  20. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 20
    2018 Financial Guidance 2018 Guidance LOE/Boe 4.00 Production: 38 42MMBoe Capital Investments: 850 - 920MM 3.00 2.75 - 3.00 Price Realizations (% NYMEX) (ex. TGP) 2.00 2018e Commodity Mix Oil: 91 95% 1.00 Gas: 55 60% NGL:…
  21. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 21
    PDC Energy Focused on Executing in 2018 2017 Accomplishments Top-Tier Leverage Ratio 21% 1.4x Y/Y Increase in 2018e Leverage Net Cash from Ratio Improvement of Corporate Ratings Ops. Restructure Debt to Better Position…
  22. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 22
    LANCE LAUCK EVP Corporate Development and Strategy
  23. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 23
    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…
  24. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 24
    Wattenberg Inventory Update Increased Liquid-Rich Inventory 2017 acreage trades and acquisition transformed SRL inventory to MRL and XRL locations Maintained 9.5 million gross lateral feet Increased net lateral feet year-over-year…
  25. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 25
    Delaware Basin Inventory Update Focused on Highest Return, Oil-Rich Areas Inventory Based on 1.5 mile Lateral Equivalents Key Initiatives: Meet drilling obligations and convert inventory from 1 mile to 1.5 mile equivalent Focus…
  26. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 26
    PDC Energy Transaction Update Recent Business Development Details Bayswater Acquisition 200 million (186 million plus 15 million to complete 12 DUC wells) Closed January 5, 2018 7,400 net acres and 975 Boe/d production 24…
  27. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 27
    PDC Energy 2019 Outlook: Strong Balance Sheet, Capital Efficient Growth 80 Production and Leverage Ratio Outlook 4.0x Production Range Leverage Ratio Capital efficient production growth 60 3.0x Leverage Ratio 3-Year Production…
  28. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 28
    PDC Energy Focused on Executing in 2018 2018 Initiatives Delaware Downspacing Tests 100+% 1.4x 2018e Y/Y Growth in Operational Execution in Two Focus Total DE Volumes Leverage Ratio Areas in Delaware Maintain Focus on…
  29. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 29
    QUESTIONS & ANSWERS
  30. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 30
    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,…
  31. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 31
    APPENDIX
  32. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 32
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDAX Three Months Ended Twelve Months Ended December 31, December 31, 2017 2016 2017 2016 Net income (loss) to adjusted EBITDAX: Net income (loss) 77.6 (55.6) (127.5)…
  33. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 33
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted Net Income (Loss) Three Months Ended Twelve Months Ended December 31, December 31, 2017 2016 2017 2016 Adjusted net income (loss): Net income (loss) 77.6 (55.6) (127.5)…
  34. 4Q 2017 and Year End Results – PDC Energy, Inc. – slide 34
    Robust Hedge Position Insulates Capital Program Hedges in Place as of 12/31/17 Plus Hedges Entered Into prior to 2/26/2018 CRUDE OIL NATURAL GAS 2018 2019 2018 2019 Volumes (MMBbls) Volumes (BBtu) Collar 2.2 0.4 Collar 5,230 -…

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