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Scotia Howard Weil Energy Conference – PDC Energy, Inc.

PDC Energy, Inc. · Mar 26, 2019 · 28 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. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 1
    HOWARD WEIL ENERGY CONFERENCE March 26, 2019
  2. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 2
    PDC ENERGY Company Overview 3.0B Market Cap(1) 4.2B Enterprise Value(1) 545 Core Wattenberg Delaware Basin 96,000 net acres(2) 42,000 net acres(3) 425 MMBoe proved reserves 120 MMBoe proved reserves YE18 Proved…
  3. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 3
    FINANCIAL STRENGTH Balance Sheet, Leverage and Liquidity As of December 31, 2018 1,500 Debt Maturity Schedule Leverage and Liquidity (millions) YE18 leverage ratio improved to 1.4x Revolver from 1.9x at YE17 1,250 30 million…
  4. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 4
    CORE STRATEGIC PRIORITIES Built to Deliver Sustainable, Long-Term Value PRIORITIZE HEALTH, SAFETY & THE PROVIDE TOP-TIER FINANCIAL ENVIRONMENT & PERFORMANCE METRICS Maintain top-tier Balance Sheet PDCs top priority. Be a good…
  5. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 5
    STRATEGIC PRIORITIES Adapting to the Changing Landscape Multi-Year Planning Focused to Achieve Specific Targets at 50 Oil & 3 Gas 1 Sustainable FCF Year-over-year growth in FCF of 50MM Consideration of opportunities to return…
  6. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 6
    PDC ENERGY 2019 Plan Expected to Deliver Differentiating Results 50/Bbl WTI and 3/Mcf NYMEX Prices 1000 Adj. Cash Flow Capital 2019 Guidance Overview from Ops Investment(1) (840 - 890MM) (810 - 870MM) Plan targets free cash flow…
  7. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 7
    FINANCIAL GUIDANCE 2019 Full-Year Guidance 2019 Guidance LOE/Boe 4.00 Production: 46 50 MMBoe 2.85 - 3.15 Capital Investments: 810 870 3.00 2019e Price Realizations Commodity Mix 2.00 (% NYMEX) (ex. TGP) Oil: 90 95% 1.00 Gas:…
  8. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 8
    2019-2020 OUTLOOK Prioritizing Free Cash Flow & Debt-Adj. Per Share Growth 2019 Highlights Production and Leverage Ratio Outlook 80 2.0x Production Commitment to capital discipline 70 Leverage Ratio Capital investments reduced…
  9. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 9
    ASSET OVERVIEW
  10. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 10
    CORE WATTENBERG Prolific Asset in Development Mode 96,000 4Q18 Results Prairie Area Net Acres(1) 97,080 Boe/d Kersey Area 16% Q/Q Growth 425 YE18 Proved Reserves (MMBoe) 40 Spuds 40 TILs Plains Area March 2019 (1)…
  11. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 11
    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…
  12. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 12
    Core Wattenberg 2019 Plan Significantly Enhances Efficiencies Capital investment of 500 MM TILs by Lateral Length 2018 2019 Three rigs and one completion crew SRL/MRL/XRL well costs of 3/4/5 MM with average spud to spud drill times…
  13. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 13
    CORE WATTENBERG Production Unbundling with Midstream Expansions DCP Midstream 1.05 Bcf/d Plant 10 (Mewbourne 3): In-service August 1, 2018 Prairie Area Plant 11 (OConnor 2): 200 MMcf/d (expected start-up in June 2019) 100 MMcf/d…
  14. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 14
    DELAWARE BASIN Primary Focus in Two Oil-Rich Areas 42,000 Net Acres(1) 4Q18 Results 30,840 Boe/d 19% Q/Q Growth 120 YE18 Proved Reserves (MMBoe) 9 Spuds 4 TILs (1) 2018 Year-End net acreage count of 51,400. 9,500…
  15. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 15
    DELAWARE BASIN Focused on Continued Execution Delaware Production (Boe/d) 35,000 Anticipate a 2.5 rig pace and part-time completion crew in 2019 31,000 30,000 26,000 Successful marketing and midstream efforts ensure 25,000…
  16. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 16
    Delaware Basin Steady Progress Towards Development Mode Capital investment of 350 MM TILs by Lateral Length 2018 2019 Includes 40 MM of planned midstream investment (portion of which expected to be refunded if divested) Project 20%…
  17. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 17
    Delaware Basin 2019 Plan Focused on Oily Areas of Block 4 Continue to Test Optimal Spacing Design 2019 Program Block 4 Wolfcamp A Focus on multi-well pads, longer-laterals and spacing design Continue to refine Area boundaries and…
  18. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 18
    PDC ENERGY Delivering Strong Value in 2019 at 50 Oil 50/Bbl WTI and 3/Mcf NYMEX Prices Returns Results Responsibility 810- 46-50 870 Strong Returns on Core Wattenberg and Delaware basins projects generate solid debt- adjusted…
  19. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 19
    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,…
  20. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 20
    APPENDIX
  21. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 21
    EXECUTIVE COMP. New Metrics Demonstrate Commitment to Capital Efficiency 50% Qualitative & 50% Quantitative Free Cash Flow Margin 1 Percentage measurement of free cash flow divided by capital investments Proposed 2 New 0 Debt-Adj.…
  22. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 22
    Strong Improvements in Quarterly Production and LOE/Boe Strong Wattenberg performance due to steady third- Declining LOE per Boe coincides with unbundled party processing throughput Wattenberg production Kersey line pressures still…
  23. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 23
    PDC ENERGY Exiting 2018 with Strong Momentum Returns Results Responsibility 40.2 2018 Production 130 Dec. 18 Exit Rate Strong Results drive 4Q18 growth of 17% compared to 3Q18 with a December exit rate (MMBoe) (Mboe/d) of…
  24. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 24
    PDC ENERGY Solid Growth in 2018 SEC Proved Reserves 20% increase in proved reserves 2017 2018 Liquids 329% all-sources reserve replacement(1) (MMBoe) (MMBoe) (2018) 66% increase in before-tax SEC PV-10(2) to 5.3 billion Wattenberg…
  25. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 25
    PDC ENERGY Corporate Social Responsibility SAFE OPERATIONS EMPLOYEES MATTER COMMUNITY OUTREACH March 2019 26
  26. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 26
    Hedge Position Hedges in Place as of 12/31/18 CRUDE OIL NATURAL GAS 2019 2020 2019 Volumes (MMBbls) Volumes (BBtu) Collar 2.6 3.6 Collar - Swap 8.4 5.0 Swap 26,008 Total Crude Oil Hedged 11.0 8.6 Total Natural Gas Hedged…
  27. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 27
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted Net Income (Loss) Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 Adjusted net income (loss): Net income (loss) 178.9 77.6 2.0…
  28. Scotia Howard Weil Energy Conference – PDC Energy, Inc. – slide 28
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDAX Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 Net income (loss) to adjusted EBITDAX: Net income (loss) 178.9 77.6 2.0…

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