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1Q 2019 Earnings Presentation – PDC Energy, Inc.

PDC Energy, Inc. · May 2, 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. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 1
    2019 1ST QUARTER EARNINGS CALL May 2019
  2. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 2
    BART BROOKMAN President & CEO
  3. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 3
    PDC ENERGY Unlocking Tremendous Value in the First Quarter Solid production of 11.2 MMBoe (125,000 Boe/d) Wattenberg volumes increased 30% year-over-year Delaware volumes increased 20% year-over-year Key Takeaways Committed to…
  4. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 4
    PDC ENERGY Strong Execution Drives Long-Term Value Operating trends highlight track-record of excellence Well costs in both basins at or below expectations Further strengthens well-level returns Improved drilling and completion…
  5. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 5
    SCOTT MEYERS Chief Financial Officer
  6. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 6
    FINANCIAL RESULTS Summary U.S. GAAP 400 Net Cash from Operating Activities Three Months Ended 300 Measure March 31, millions (millions except per share and price per Boe data) 2019 2018 % 200 Production (MMBoe) 11.2 8.9…
  7. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 7
    FINANCIAL RESULTS Summary Non-U.S. GAAP See Appendix for Reconciliation Adjusted EBITDAX 300 80 Avg. NYMEX Oil 250 70 NYMEX Oil (/Bbl) 200 60 millions Three Months Ended 150 50 Measure March 31, (millions except per…
  8. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 8
    FINANCIAL RESULTS Production Cost Summary Three Months Ended Production Costs per Boe vs Production Measure March 31, 8 (MMBoe) 12 Production Costs (per Boe) 2019 2018 % Production (MMBoe) 6 10 Production (MMBoe) 11.2…
  9. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 9
    FINANCIAL RESULTS Steady G&A Improvements G&A per Boe 2019 G&A per Boe guidance in-line with peers 6.00 5.85 2019 guidance includes cash and non-cash G&A 5.07 4.25 Successful effort accounting with minimal capitalized G&A 3.78…
  10. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 10
    FINANCIAL STRENGTH Balance Sheet, Leverage and Liquidity As of March 31, 2019 1,500 Debt Maturity Schedule Leverage and Liquidity (millions) TTM leverage ratio of 1.5x Revolver 1,250 Total liquidity of 1.2 billion 125 million…
  11. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 11
    FINANCIAL GUIDANCE 2019 Full-Year Guidance 2019 Guidance LOE/Boe 4.00 Production: 46 50 MMBoe 2.85 - 3.15 Capital Investments: 810 870 million 3.00 2019e Price Realizations Commodity Mix 2.00 (% NYMEX) (ex. TGP) Oil: 90 95%…
  12. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 12
    FINANCIAL STRATEGY Returning Capital to Shareholders Key Considerations in Stock Repurchase Program Board approved program Up to 200 million program, dependent upon market conditions Near-term value-creation Execution of program…
  13. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 13
    2019-2020 OUTLOOK Prioritizing Free Cash Flow & Debt-Adj. Per Share Growth Adjusted Outlook to Reflect 55/3 NYMEX 2019 Highlights Production and Leverage Ratio Outlook 80 2.0x Production Commitment to capital discipline 70 Leverage…
  14. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 14
    SCOTT REASONER Chief Operating Officer
  15. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 15
    OPERATIONS Efficiency Gains Evident in 1st Quarter Results 125,000 Production (Boe/d) 20% Oil Production Increase (1Q19 v 1Q18) Core Wattenberg Delaware Basin 20% 96,000 net acres(1) 42,000 net acres(2) 100,000 Boe/d…
  16. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 16
    OPERATIONS Wattenberg Performance Drives Steady Improvements Strong Wattenberg performance due to steady third- Declining LOE per Boe coincides with increased party processing throughput Wattenberg production associated with 3rd party…
  17. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 17
    WATTENBERG Efficiency Gains & Commitment to Capital Discipline Operational Efficiencies Well Costs Below Budget 5.0 5.0 4.8 Core Wattenberg benefiting from consolidated acreage position Track record as best-in-class operator…
  18. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 18
    WATTENBERG Expected to Benefit from Upcoming 3rd Party Midstream Expansions Consistent run-time benefits core acreage line pressures and PDC volumes Plant 11 (OConner 2) 200 MMcf/d expected June Prairie Area 2019 start-up…
  19. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 19
    DELAWARE Efficiency Gains & Commitment to Capital Discipline Operational Efficiencies Well Costs Below Budget Delaware Basin continued operational improvements 14.0 13.0 12.9 Faster drill times More completion stages per day 12.0…
  20. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 20
    DELAWARE Systematic Improvements Quarter-Over-Quarter Drilling Completions Consistent improvements in average drill times over past Modified completion design over time delivers consistent two years improvements in completion costs…
  21. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 21
    DELAWARE 2019 Plan Focused on Oily Areas of Block 4 Continue to Test Optimal Spacing Design Windy Mountains Block 4 Wolfcamp A 2-well XRL pad Lower WCB GOR and performance above Area 3 expectations Average 30-day peak IP 167…
  22. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 22
    LANCE LAUCK EVP Corporate Development & Strategy
  23. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 23
    DELAWARE MIDSTREAM PDC Executes Definitive Monetization Agreements Estimated Closing of Transactions in Mid-2019 Entered definitive agreements to sell its gas and water-related midstream infrastructure and assets to two premium…
  24. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 24
    DELAWARE MIDSTREAM PDC Executes Definitive Monetization Agreements Premier Midstream Provider Proceeds Incentives Additional Service Agreement Provisions 100 MM at closing Up to 60 MM through 20-year contract term beginning in 2022 82…
  25. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 25
    Investor Relations Mike Edwards, Senior Director Investor Relations michael.edwardspdce.com Kyle Sourk, Manager Investor Relations kyle.sourkpdce.com Corporate Headquarters Website PDC Energy, Inc. www.pdce.com 1775 Sherman…
  26. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 26
    APPENDIX
  27. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 27
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted Net Income Three Months Ended March 31, 2019 2018 Adjusted net income: Net loss (120.2) (13.1) Loss on commodity derivative instruments 190.1 47.2 Net settlements on…
  28. 1Q 2019 Earnings Presentation – PDC Energy, Inc. – slide 28
    Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDAX Three Months Ended March 31, 2019 2018 Net loss to adjusted EBITDAX: Net loss (120.2) (13.1) Loss on commodity derivative instruments 190.1 47.2 Net settlements…

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