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2Q 2018 Earnings Conference Call – PDC Energy, Inc.

PDC Energy, Inc. · Aug 8, 2018 · 30 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. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 1
    2018 SECOND QUARTER EARNINGS CALL August 9, 2018
  2. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 2
    BART BROOKMAN President and Chief Executive Officer
  3. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 3
    OPERATIONAL EFFICIENCIES Enhance Near-Term Outlook Total production of 9.4 MMBoe (103,000 Boe/d) Key Takeaways 20% growth over 2Q17 volumes from Wattenberg and Delaware Continued execution through 2nd quarter Oil production of 3.9…
  4. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 4
    OPERATIONAL EFFICIENCIES Enhance Near-Term Outlook 2018e production guidance updated to 40 42 MMBoe Midpoint increased 1 MMBoe from prior guidance Represents year-over-year production growth of 25-30% Maintain 42-45% anticipated oil…
  5. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 5
    SCOTT REASONER Chief Operating Officer
  6. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 6
    PDC ENERGY 2018 Second Quarter Overview 103,000 Production (Boe/d) 20% Production Increase(1) (2Q18 v 2Q17) Core Wattenberg Delaware Basin 78,300 Boe/d (41% oil) 24,800 Boe/d (45% oil) 25% Oil Production Increase(1) 43…
  7. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 7
    PDC ENERGY Updated Capital Investment Summary Original 850 - 920 = Midpoint Well Cost Overview Guidance Wattenberg Increased WI 35 Drilling efficiencies lead to increased spud count Expect 150 165 spuds (up from 135 150) Addl…
  8. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 8
    PDC ENERGY Quarterly Production and LOE Summary Delaware production continues to outperform Wattenberg LOE double hit by field-wide midstream environment Wattenberg 2Q production negatively impacted by tough midstream conditions High…
  9. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 9
    CORE WATTENBERG Addl Productivity Benefits of Consolidated Acreage Modified completion design enhances ability to access additional resource Completing through the bend and drilling to edge of lease boundary enable additional 1,000 of…
  10. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 10
    DELAWARE BASIN Continued Execution Delaware Production (Boe/d) 30,000 Daily production of 25,000 Boe/d (45% oil) 20% increase sequentially compared to 1Q18 25,000 Delaware accounted for 25% of PDC corporate volumes 25,000 21,000…
  11. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 11
    DELAWARE BASIN Prolific Results Continue in Block 4 Block 4 wells consistently delivering results above Eastern Area Block 4 internal expectations Approximate Surface Locations Elkhead Recently completed wells averaging 290 Boe/d…
  12. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 12
    DELAWARE BASIN Oil Gathering System Enhances Operational Efficiency Map Reflects Anticipated Oil Gathering System at Year-End 2018 Oil gathering provides significant operational efficiencies Eastern Area Block 4 Reduced transportation…
  13. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 13
    DELAWARE BASIN North Central Well Results Seven 1H18 TILs in North Central delivering solid results North Central Area Averaging 220 Boe/d per 1,000 53% oil State Lazy Acre Sunnyside (2) Incremental 10 MM midstream infrastructure…
  14. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 14
    SCOTT MEYERS Chief Financial Officer
  15. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 15
    FINANCIAL RESULTS Summary U.S. GAAP 250 Net Cash from Operating Activities 200 millions Three Months Ended Measure June 30, (millions except per share and price per Boe data) 150 2018 2017 % Production (MMBoe) 9.4 8.0…
  16. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 16
    FINANCIAL RESULTS Summary Non-U.S. GAAP See Appendix for Reconciliation 250 Adjusted EBITDAX(1) MK Note Proceeds (40.2 mm) 200 millions Three Months Ended Measure(1) June 30, (millions except per share data) 2018 2017 %…
  17. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 17
    FINANCIAL RESULTS Production Cost Summary Three Months Ended June 30, Measure 2018 2017 % Production (MMBoe) 9.4 8.0 17% Production Costs per Boe vs Production (MMBoe) 10 10 Operating Costs (millions) Production Costs (per…
  18. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 18
    FINANCIAL STRENGTH Balance Sheet, Leverage and Liquidity As of June 30, 2018 Leverage and Liquidity 1,000 Debt Maturity Schedule Leverage ratio of 1.6x (millions) 680 million liquidity 20 drawn on revolver Anticipate exiting 2018…
  19. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 19
    FINANCIAL GUIDANCE Updated Full-Year Guidance 2018 Guidance LOE/Boe 4.00 Production: 40 42MMBoe 3.00 - 3.15 Capital Investments: 950 - 985MM 3.00 2018e 2.00 Price Realizations (% NYMEX) (ex. TGP) Commodity Mix Oil: 91 95% 1.00…
  20. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 20
    LANCE LAUCK EVP Corporate Development & Strategy
  21. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 21
    CORE WATTENBERG Production Unbundled with Midstream Expansions DCP Midstream (75% of 2018e gas volumes) Plant 10: In-service August 1, 2018(1) Increases system throughput 200 MMcf/d or 25% Anticipate maintaining current share of DCP…
  22. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 22
    DELAWARE BASIN Significant Flow Assurance with Competitive Pricing Delaware oil and gas production expect to account for 20-25% of total PDC 2018e volumes Oil Downstream Marketing Gulf Coast 5.5 year firm sales agreement effective in…
  23. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 23
    DELAWARE BASIN MIDSTREAM Potential Value Creation Initiated formal process to evaluate a potential strategic midstream asset transaction PDC Owned Gathering Lines Includes infield oil and gas gathering, gas compression, water Oil Gas…
  24. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 24
    2020 OUTLOOK Anticipate Strong Growth & Free Cash Flow Generation . Steady-state 6 Rig Scenario Production and Leverage Ratio Outlook 80 4.0x Production (6 Rig Scenario) Capital efficient production growth Leverage Ratio 3-Year…
  25. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 25
    QUESTIONS & ANSWERS
  26. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 26
    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,…
  27. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 27
    APPENDIX
  28. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 28
    COLORADO POLITCAL UPDATE Proposed 2,500 Setback Details No New Oil & Gas Development Within 2,500 of Occupied Structures and Broadly Defined Vulnerable Areas Industry Viewpoint WELD Confident resources are in place to defeat this…
  29. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 29
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDAX Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income (loss) to adjusted EBITDAX: Net income (loss) (160.3) 41.2 (173.4) 87.4…
  30. 2Q 2018 Earnings Conference Call – PDC Energy, Inc. – slide 30
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted Cash Flows from Operations Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Adjusted cash flows from operations: Net cash from operating…

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