PDC Strategy Focused on Significant Value-Creation Focus on Execution Sustainable Wattenberg Field FCF(1) Generation Top Priorities in 161,000 Boe/d(2) Demand Destruction Through-the-Cycle World Delaware Basin 28,500…
Solid Second Quarter Results with Strong Updated 2020 Guidance 2nd Quarter Highlights 100 million of net cash from operating activities Updated 2020 Guidance Generated 60 million of free cash flow (FCF) Substantially increased…
Successful Execution STRATEGIC TRANSACTIONS Achieved significant scale through no-premium acquisition of SRC Energy Focus on G&A resulting in year-over-year improvement of 40% to 1.83/Boe(1) Strong operating efficiencies evident via…
Positioned to Deliver Differentiating Results Track Record to Trust Strong Projections FINANCIAL DISCIPLINE FREE CASH FLOW GENERATION RISK MITIGATION Maintain commitment to further improve cost structure Successfully transitioned…
Resilient Balance Sheet with Strong Hedge Book Liquidity Update Borrowing base and commitment level of 1.7 billion as of 8/31/20 Borrowings under revolver of 650 million at 2Q 2,000 Revolver Reduced borrowings by 150 million…
Delivering Differentiating Results in 2020 Project Significant Free Cash Flow at 35/Bbl Oil Reduced capital investment range to 500 - 550 million 2020e Capital Investments Expect 50 million in 3Q and 100 million in 4Q (millions)…
Multi-Year Focus on Sustainable FCF Generation All Numbers Approximate Significant FCF Generation 2020 + 2021 Highlights (millions) 300+ Anticipate 2-year cumulative capital investments between 250 1.0 - 1.2 billion 200…
Commitment to Corporate Social Responsibility Published Inaugural Sustainability Report in Alignment with SASB Standards Responsible Environmental Social Corporate Operations Stewardship Impact Governance 52% 84% 2,285 50%…
ASSET OVERVIEW
Wattenberg Overview Key Statistics 785 YE19 PF Proved Reserves Prairie Area (MMBoe) Summit Area 161,000 2Q20 Production Kersey Area (Boe/d) Plains Area 35% 2Q20 Crude Oil (Production) 180,000 Net Acres -…
Years of Continuous Industry Progress in Colorado 2019 2021+ - SB-181 implemented rule-making process begins - Oxy enters DJ Basin via purchase of Anadarko - 3+ years of TIL activity secured through combination - DCP Plant 11…
Balanced Development Prove Its Not All About Kersey Multiple development areas located in CORE of the Wattenberg Field Inventory of 1,600 locations as of year-end 2019 Recent and planned activity spread between Kersey, Summit and…
Realizing Benefits of Improved Wattenberg Operating Environment DCP infrastructure expansions and reduced activity basin-wide significantly improves operating conditions and lowers average line pressures Average line pressures of 310…
Delaware Basin Overview Key Statistics Loving County 120 YE19 Proved Reserves (MMBoe) 28,500 2Q20 Production N. Central (Boe/d) 40% 2Q20 Crude Oil Reeves County Block 4 Pecos (Production) 25,000 Net…
Consistent, Successful Execution of Transparent Strategy Track Record of Operational and Financial Execution Positions PDC for Sustainable Value-Creation Ability to generate consistent, sustainable free cash flow Project to generate…
Investor Relations Kyle Sourk, Sr. Manager Corporate Finance & Investor Relations kyle.sourkpdce.com Corporate Headquarters Website PDC Energy, Inc. www.pdce.com 1775 Sherman Street Suite 3000 Denver, Colorado 80203 303-860-5800
APPENDIX
Updated Wattenberg 2020 Overview 425 million planned capital investment 325 million reduction from original guidance Go-forward well costs of 2.5 - 4.0 million (SRL-XRL) Significant Activity Reductions Guidance (February) Updated…
Updated Delaware Basin 2020 Overview 100 million planned capital investment 200 million reduction from original guidance Significant Activity Reductions Guidance (February) Updated Forecast (August) Released completion crew in…
Continued Emphasis on Cost Management Targeting combined LOE + G&A of < 5/Boe Merger synergies and focus on costs reflected through anticipated LOE + G&A (/Boe) year-over-year reduction of 20+% in LOE+G&A/Boe LOE G&A 8.00 7.77…
Detailed Hedge Positions Hedges as of August 31, 2020 September 2020 23
Free Cash Flow & Adjusted Earnings Reconciliations Cash Flows from Operations to Adjusted Cash Flows from Operations and Free Cash Flow (Deficit) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cash flows…
Reconciliation Non-U.S. GAAP Metrics Adjusted EBITDAX Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net income (loss) to adjusted EBITDAX: Net income (loss) (221.8) 68.5 (686.8) (51.6) (Gain) loss on…
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): 2Q19…
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