PDC Energy PDC + SRC = Top-Tier Mid-Cap E&P Company Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. PDC Standalone / PDC + SRC Pro Forma 2.0B…
PDC + SRC The Right Combination at the Right Time Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. COMBINATION OVERVIEW Core Wattenberg Creates…
PDC + SRC Transaction Overview Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. All stock transaction valued at 1.7bn, including the assumption…
PDC + SRC Combined Company Strengthens Strategic Priorities Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. 1 2H19 2021 estimated FCF…
PDC + SRC A Colorado Champion with a Culture of Responsible Development Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. Clear leader in Colorado…
PDC STRATEGIC RATIONALE
PDC Pro Forma Premier E&P with Increased Size, Scale & Financial Strength Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. Increased size and…
PDC Pro Forma Leading FCF Generation with Commitment to Shareholder Returns Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. Anticipate…
PDC Pro Forma Highly-Efficient, Peer-Leading Cost Structure Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. Project NPV of G&A synergies of 300…
PDC Pro Forma Delivering FCF, Shareholder Returns & Reasonable Growth Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. 2020 Outlook Significant…
PDC Pro Forma Delivering Strong Value Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. 800MM 2H2019 2021 Free Cash Flow (Assuming 55/2.70…
DELAWARE OVERVIEW
Delaware Basin Primary Focus in Two Oil-Rich Areas 2Q19 Results 36,000 Loving County 31,500 Boe/d Net Acres(1) 27% Y/Y Growth 10 Spuds 120 N. Central 8 TILs YE18 Proved Reserves (MMBoe) 3.76 LOE/Boe Reeves County…
Delaware Basin Steady Progress Towards Development Mode Capital investment of 350 MM TILs by Lateral Length 2018 2019 Drilling & Completion capital investments of 300 million 30 million of midstream investment in 1H 20 million for…
Delaware Basin Systematic Drilling Improvements 2019 activity has been largely focused in North Central area Average Drill Days Typically more difficult drilling in Block 4 due to total depth and (Spud to Rig Release) geologic…
PDC + SRC The Right Combination at the Right Time Expected to close 4Q19, subject to customary closing conditions & regulatory approvals; including approval by both PDC & SRC shareholders. Creates a premier E&P company with enhanced…
APPENDIX
PDC ENERGY Corporate Social Responsibility SAFE OPERATIONS EMPLOYEES MATTER COMMUNITY OUTREACH Sept. 2019 20
PDC Energy Strong Balance Sheet with Low Leverage and Ample Liquidity As of June 30, 2019 Leverage and Liquidity Debt Maturity Schedule TTM leverage ratio of 1.4x (millions) 1,500 Total liquidity of 1.3 billion Borrowing base…
PDC Energy Implementing Key Steps to Deliver Shareholder Value Creation Focused on Timely Execution and Commitment to Capital Discipline OPERATIONS Delivering on capital discipline Decreased full-year capital investment range to 810…
PDC Energy Updated 2019 Plan Indicates Strong 2nd Half Performance 55/Bbl WTI and 2.70/Mcf NYMEX Prices Adj. Cash Flow Capital 2019 Updated Guidance Overview from Ops Investment(1) (825 - 875MM) (810 - 840MM) 900 Full-year plan…
Core Wattenberg Prolific Asset in Development Mode 2Q19 Results 96,000 Net Acres(1) 105,000 Boe/d Prairie Area 34% Y/Y Growth Kersey Area 43 Spuds 425 YE18 Proved Reserves (MMBoe) 27 TILs 2.46 LOE/Boe Plains Area…
Core Wattenberg 2019 Plan Significantly Enhances Efficiencies Capital investment of 475 MM TILs by Lateral Length 2018 2019 Plan to reduce rig count from 3 to 2 in September SRL/MRL/XRL well costs of 3/4/5 MM with average spud to…
PDC Pro Forma 3rd Party Midstream Expansions Improve Operating Outlook DCP Projected Processing & Bypass Expansion Timeline(1) Throughput Details (MMcf/d) 1,100 Current capacity (1H19) 200 Plant 11 Start-up in August 2019(2) 100…
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…
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 New 2 Metrics 0 Debt-Adj.…
PDC Pro Forma Value-Enhancing Transaction Across the Board Creates a premier E&P company with Combination creates a new E&P sector leader built for long-term success with materially enhanced financial enhanced size and scale and…
Operations Strong Sequential Production Growth Contributes to Reduced LOE Consistent level of Delaware TILs leads to sequential Successfully achieved target LOE of less than 3 per Boe production increase of 25+% Strong sequential…
Financial Results Detailed G&A Breakdown Reduced 2019 G&A guidance to 3.00 - 3.20 per Boe Cash + Non-Cash G&A per Boe Includes cash and non-cash G&A 5.00 4.25 4.00 3.49 3.00 - 3.20 2.60 - 2.80 3.00 Revised guidance includes all…
PDC Energy Demonstrating Commitment to Capital Discipline Full-Year 2019 Capital Investment Range Decreased to 810 million - 840 million(1) EVENT IMPACT PDC ACTION Drilling Efficiencies Lower well costs Reallocate completion dollars to…
Financial Overview Updated Guidance Indicates Strong 2nd Half of 2019 2H19 Outlook Reflects 55/2.70 NYMEX 2H19 Estimates Previous Updated (based on midpoints of Metric Guidance Guidance 1H19 Actual production & capital) 5-10% growth…
Reconciliation of Non-U.S. GAAP Financial Measures Adjusted Net Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Adjusted net income (loss): Net income (loss) 68.5 (160.3) (51.6) (173.4)…
Reconciliation of Non-U.S. GAAP Financial Measures Adjusted EBITDAX Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net income (loss) to adjusted EBITDAX: Net income (loss) 68.5 (160.3) (51.6) (173.4)…
Loading...
