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Goldman Sachs Global Energy Conference – PDC Energy, Inc.

PDC Energy, Inc. · Jan 7, 2019 · 29 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. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 1
    GOLDMAN SACHS GLOBAL ENERGY CONFERENCE January 7, 2019
  2. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 2
    PDC ENERGY Strategic Overview Returns Results Responsibility 40-42 130 2018e Production(1) Dec. 18e Exit Rate Strong Returns on inventory 1,950(2) (MMBoe) (Mboe/d) gross locations in the Core Wattenberg and Delaware basins 125…
  3. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 3
    PDC ENERGY Company Overview 2.0B Market Cap(1) 3.2B Enterprise Value(1) Core Wattenberg Delaware Basin 453 100,000 net acres(3) 55,000 net acres(4) 1,500 identified locations(3) 450 identified locations(5) YE17 Proved…
  4. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 4
    PDC ENERGY Track Record of Delivering Value Proven track record of value-added growth Production (MMBoe) 35+% 3-year production CAGR 50 40 Remain focused on balance sheet strength 30 40% decrease in debt per flowing Boe 20…
  5. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 5
    PDC ENERGY Portfolio Value Creation Inventory Breakdown Does Not Reflect Strategic Acreage Trade with Noble MRL Equivalent Inventory Breakdown Robust inventory of 10-15 years at current development pace (1,950 total locations)…
  6. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 6
    FINANCIAL GUIDANCE Updated Full-Year Guidance 2018 Guidance(1) LOE/Boe 4.00 Production: 40 42 MMBoe 3.00 - 3.15 Capital Investments: 950 - 985MM 3.00 2018e Price Realizations (% NYMEX) (ex. TGP) Commodity Mix 2.00 Oil: 91 95%…
  7. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 7
    FINANCIAL STRENGTH Balance Sheet, Leverage and Liquidity As of September 30, 2018 Leverage and Liquidity 1,500 Debt Maturity Schedule Leverage ratio of 1.6x (millions) 75 million drawn on revolver (9/30/18) Revolver(2) October…
  8. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 8
    PDC ENERGY Corporate Social Responsibility SAFE OPERATIONS EMPLOYEES MATTER COMMUNITY OUTREACH Jan. 2019 9
  9. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 9
    2020 OUTLOOK Prioritizing Free Cash Flow & Debt-Adj. Per Share Growth Steady-State 6 Rig Scenario (1) 2019 Considerations Production and Leverage Ratio Outlook 80 4.0x Production (6 Rig Scenario) Expect to have 200 approved permits…
  10. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 10
    ASSET OVERVIEW
  11. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 11
    CORE WATTENBERG Prolific Asset in Development Mode 100,000 Net Acres(1) 3Q18 Results Prairie Area 83,670 Boe/d 1,500 Horizontal Locations(2) 43 Spuds Kersey Area 22 TILs Plains Area 351 3.01 LOE/Boe YE17 Proved…
  12. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 12
    CORE WATTENBERG Completed Strategic Acreage Trade with Noble Energy Acreage Consolidation Strengthens Inventory Strategic acreage trade further consolidates Pre-Trade Post-Trade Wattenberg position and reduces surface impact PRAIRIE…
  13. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 13
    CORE WATTENBERG Safely Developing Rural Acreage in Weld County PDC has operated in the Wattenberg Field of the DJ Basin for almost 20 years Field office of 250 employees located in Evans Eaton Consolidated acreage position…
  14. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 14
    CORE WATTENBERG Production Unbundled with Midstream Expansions DCP Midstream(1) (75% of PDC 2018e gas volumes) Wattenberg Volumes Plant 10 (Mewbourne 3): Steady volume growth with DCP Plant 10 start-up In-service August 1, 2018 Pace of…
  15. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 15
    DELAWARE BASIN Primary Focus in Two Oil-Rich Areas 55,000 Net Acres(1) 3Q18 Results 26,110 Boe/d 450 Block 4 & North Central 8 Spuds MRL Equivalent Locations(2) 10 TILs 98 4.09 LOE/Boe YE17 Proved Reserves (MMBoe)…
  16. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 16
    DELAWARE BASIN Focused on Continued Execution Delaware Production (Boe/d) 30,000 Anticipate 2018 capital investments of 430 - 450MM Nine months investment of 375 million 26,000 25,000 80% allocated to spud and TIL 25 30 operated…
  17. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 17
    DELAWARE BASIN Initial Grizzly Bear Results Support WCA Inventory Six WCA wells (12 wells/section eq.) showing minimal Eastern Area Block 4 signs of communication through choke mgmt. tests Approximate Surface Locations (75% oil)…
  18. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 18
    DELAWARE BASIN North Central Well Results 2018 development plan successful step in North Central Area delineated North Central Focus Area State Lazy Acre 13 spuds and 10 TILs throughout position Rabbit Ears Sunnyside (3) Eight YTD…
  19. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 19
    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…
  20. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 20
    DELAWARE BASIN MIDSTREAM Potential Monetization PDC Owned Gathering Lines Potential Delaware Midstream Asset Monetization Oil Gas Water Process ongoing led by Jefferies Evaluating option to keep or sell any or all of PDCs…
  21. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 21
    PDC ENERGY Strategic Overview Returns Results Responsibility 40-42 130 2018e Production(1) Dec. 18e Exit Rate Strong Returns on inventory 1,950(2) (MMBoe) (Mboe/d) gross locations in the Core Wattenberg and Delaware basins 125…
  22. Goldman Sachs Global Energy 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. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 23
    APPENDIX
  24. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 24
    PDC ENERGY Quarterly Production and LOE Summary Wattenberg 3Q production beginning to unbundle Wattenberg LOE projected to decline as production despite only modest line pressure improvements volumes increase DCP Plant 10 expansion…
  25. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 25
    CORE WATTENBERG 2018 Activity Focused on Capital Efficient Development Plan to invest 520 - 535 million in 2018 9 months: investment of 405 million Expect to spud 150 165 wells and TIL 145 160 wells in 2018 9 months: 121 spuds…
  26. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 26
    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…
  27. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 27
    Hedge Position Hedges in Place as of 9/30/18, plus Hedges Entered into Prior to 11/1/18 CRUDE OIL NATURAL GAS Oct- Dec 2018 2019 2020 Oct- Dec 2018 2019 Volumes (MMBbls) Volumes (BBtu) Collar 0.5 2.6 3.6 Collar 120 - Swap 3.0…
  28. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 28
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDAX Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net loss to adjusted EBITDAX: Net loss (3.4) (292.5) (176.8) (205.1) (Gain)…
  29. Goldman Sachs Global Energy Conference – PDC Energy, Inc. – slide 29
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted Cash Flows from Operations Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Adjusted cash flows from operations: Net cash from…

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