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4Q 2019 and FY Earnings Presentation – PDC Energy, Inc.

PDC Energy, Inc. · Feb 27, 2020 · 32 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. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 1
    2019 4TH QUARTER AND FULL-YEAR EARNINGS February 2020
  2. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 2
    BART BROOKMAN President & CEO
  3. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 3
    PDC Achieved 2019 Objectives Highlighting Value-Proposition 2019 Results Reflect PDC Standalone Focus on Execution 2019 capital investments of 790 million well below full-year guidance Sustainable 40 million of FCF(1) in 2019…
  4. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 4
    2020 Plan Differentiates PDC All Numbers Approximate 2020 capital investments of 1.0 - 1.1 billion Focus on Execution 15% reduction in per well costs in each basin compared to 2019 Sustainable 250 million of projected FCF assuming…
  5. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 5
    SCOTT REASONER Chief Operating Officer
  6. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 6
    2019 Operational Overview 790 million of oil & gas capital investments Below full-year guidance range of 810 - 840 million(1) Full-year 2019 LOE of 2.88/Boe Toward low-end of 2.85 - 3.00/Boe guidance range Total production…
  7. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 7
    Key Fourth Quarter 2019 Highlights Improved operating environments in each basin drive Corporate LOE/Boe of 2.77 represents 10% improvement sequential production growth compared to 4Q18 Flatter than anticipated declines due to…
  8. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 8
    2020 Capital Plan Expected to Deliver Differentiating Results Assuming 52.50/Bbl WTI, 2.00/Mcf NYMEX, 11/Bbl NGLs Capital investment range of 1.0 - 1.1 billion Represents 15% decrease from 2019 PDC + SRC level Expect 55 - 60% of…
  9. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 9
    Wattenberg 2020 Overview 750 million planned capital investment SRL XRL well costs of 2.7 - 4.5 million Confidence in Executing 2-year Outlook 150 - 175 spuds with average lateral length of 8,900 2,000 Inventory Approved Permits…
  10. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 10
    Improved Midstream Operating Environment Significant improvements to average line pressures seen throughout PDC position in 4Q19 60-Day Average Line Pressures by Area (psi) Improved pressures result in flatter declines of PDP wells…
  11. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 11
    Delaware 2020 Overview 300 million planned capital investment MRL/XRL well costs (including facilities) of 9.5 - 11.0 million Equates to 1,100 - 1,200/ft. Focused on Value-Creating Inventory 33 spuds 9,200 avg. lateral Currently…
  12. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 12
    Delaware Basin Capturing Efficiency Gains Significant improvements to D/C/F Costs (/ft.) average drilling, completion & Demonstrating 2,000 1,700 facility costs per foot over past Improving 1,500 1,500 1,200 several years Capital…
  13. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 13
    SCOTT MEYERS Chief Financial Officer
  14. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 14
    U.S GAAP Metric Summary Three Months Ended Twelve Months Ended Measure December 31, December 31, (millions except per share and price per Boe data) 2019 2018 % 2019 2018 % Production (MMBoe) 13.1 11.8 11% 49.4 40.2 23% Realized…
  15. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 15
    Non-U.S. GAAP Metric Summary See Appendix for Reconciliations Three Months Ended Twelve Months Ended Measure December 31, December 31, (millions except per share data) 2019 2018 % 2019 2018 % Adjusted net income (loss) 37.2 (146.7)…
  16. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 16
    Production Cost Summary Production Costs per Boe Three Months Ended Twelve Months Ended 8 15 Measure December 31, December 31, Production Costs (per Boe) Production (MMBoe) (millions except per share and price per Boe…
  17. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 17
    Focused on Preserving and Improving Our Strong Financial Positioning As of 12/31/19, Pro Forma SRC Merger Key Financial Metrics Revolver TTM leverage ratio of 1.4x 1,800 (Commitment Level) Total liquidity of 1.1 billion(1) 1,600…
  18. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 18
    Improved Capital Efficiencies with 2020 Guidance Compared to Original Outlook All Numbers Approximate (Millions) Represent Mid-Point of Guidance Ranges Capital Investment Walk Acquisition Outlook to 2020 Guidance 1,300 (100) (75)…
  19. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 19
    2020 Financial Guidance Continued Emphasis on Cost Management Targeting combined LOE + G&A of less than 5/Boe Merger synergies reflected through anticipated year-over-year reduction of 20+% in LOE+G&A/Boe LOE + G&A (/Boe) Project…
  20. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 20
    LANCE LAUCK EVP Corporate Development and Strategy
  21. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 21
    Multi-Year Focus on Sustainable and Increasing FCF Generation All Numbers Approximate 2020 + 2021 Highlights Significant FCF Generation (millions) 500 Anticipate 2-year cumulative capital investments between 400 2.1 2.3 billion…
  22. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 22
    Project to Deliver Best-In-Class FCF Yield and Balance Sheet Strength 2020e FCF Yield Executed operating plan with capital discipline - generated 200 million 12% of FCF in 2H19 PDCs 2020 FCF Anticipate 2020 plan to deliver 7%…
  23. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 23
    Highlighting PDCs Value-Proposition All Numbers Approximate Focus on Execution Project to generate FCF in 7 of the next 8 quarters Sustainable FCF Yield 3x the S&P 500, nearly double the Select Large Caps and peer group FCF…
  24. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 24
    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…
  25. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 25
    APPENDIX
  26. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 26
    Commitment to Corporate Social Responsibility Three of PDCs Six Strategic Priorities PRIORITIZE HEALTH, SAFETY & BUILD A BEST-IN-CLASS DRIVE EFFICIENCY THROUGH THE ENVIRONMENT ORGANIZATION TECHNOLOGY & INNOVATION PDCs top…
  27. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 27
    Consistently Modifying and Improving to Align with Compensation Best Practices PDCs Board of Directors and management team have implemented several key changes to the executive compensation plan over the past two years to more closely…
  28. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 28
    2019 Full-Year PDC + SRC Combined PDC SRC Combined Production Crude oil (MBbls) 19,166 9,813 28,979 Natural Gas (MMcf) 115,950 49,471 165,421 NGLs (MBbls) 10,923 4,526 15,449 Crude oil equivalent (MMBoe) 49.4 22.6 72.0…
  29. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 29
    Free Cash Flow Reconciliation Cash Flows from Operations to Adjusted Cash Flows From Operations and Free Cash Flow (Deficit) Three Months Ended Twelve Months Ended December 31, December 31, 2019 2018 2019 2018 Cash flows from…
  30. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 30
    Reconciliation Non-U.S. GAAP Metrics Net Income (Loss) to Adjusted Net Income (Loss) and Adjusted Earnings Per Share, Diluted Three Months Ended Twelve Months Ended December 31, December 31, 2019 2018 2019 2018 Net income (loss)…
  31. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 31
    Reconciliation Non-U.S. GAAP Metrics Adjusted EBITDAX Three Months Ended Twelve Months Ended December 31, December 31, 2019 2018 2019 2018 Net income (loss) to adjusted EBITDAX: Net income (loss) (21.0) 178.9 (56.7) 2.0 (Gain)…
  32. 4Q 2019 and FY Earnings Presentation – PDC Energy, Inc. – slide 32
    Reconciliation of Non-U.S. GAAP Metrics Beginning in 3Q19, the Company modified its adjusted EBITDAX reconciliation to exclude (Gain) loss on sale of properties and equipment Net income (loss) to adjusted EBITDAX (in millions): 4Q18…

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