CAPITAL ONE SECURITIES 15TH ANNUAL ENERGY CONFERENCE December 2020
PDC Strategy Focused on Significant Value-Creation Focus on Execution Sustainable Adjusted Wattenberg Field FCF(1) Generation Top Priorities in 161,000 Boe/d(2) Demand Destruction Through-the-Cycle World Delaware Basin 31,500…
Third Quarter Results Emphasize Valuation Disconnect 3rd Quarter Highlights Permit Update 280 million of net cash from operating activities Generated 225 million of adjusted free cash flow (FCF)(1) 32 additional permits approved in…
Resilient Balance Sheet with Strong Hedge Book Liquidity Update (as of September 30, 2020) Borrowing base and commitment level of 1.6 billion as of 10/31/20 (post-Fall redetermination in October 2020) 2,000 Borrowings under…
Project Significant FCF at 35 Oil Capital investment range to 500 - 550 million 2020e Capital Investments Expect 110 million in 4Q (millions) Wattenberg one rig and one completion crew planned Delaware minimal planned activity…
Multi-Year Focus on Sustainable FCF Generation All Numbers Approximate 2020 + 2021 Highlights Significant FCF Generation (millions) 350+ Anticipate 2-year cumulative capital investments of 1.1 billion 300 200 850 million of…
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 3Q20 Production Kersey Area (Boe/d) Plains Area 33% 3Q20 Crude Oil (Production) 180,000 Net Acres -…
Current Colorado Permit Process Average 12 Months from Permit Submittal to Approval (steps 3-4) 1. Site Selection Process Surface Owner 3. Submit Form 2A Application COGCC 5. PERMIT APPROVED - Field land and surface owner agree on…
Current COGCC Rulemaking Update SB-181 Rules Related to Setback and Siting Requirements Expected to be Finalized in Late November Current proposal of new rules viewed as extremely similar to existing Directors Objective Criteria 500…
Attaining Colorado Permits Amidst Ongoing Rulemaking Discussions Project to exit 2020 with 275 well permits (Form 2) secured through 23 approved surface location permits (Form 2A) 85% of approved surface locations were approved under…
Rural Weld County Position with Low Building Unit (BU) Density PDC acreage is 100% in Weld County, Colorado PDC Inventory in Relation to Nearest BU 80% in unincorporated Weld County (not within Municipal (Does Not Include DUCs)…
Capital Efficiency Gains Contributing to Lower Projected Well Costs Wattenberg Completions Efficiency(1) (Hours per day Completing) Continued improvements to Wattenberg completions 85% 82% Recent completion activity averaging 20…
Delaware Basin Overview Key Statistics Loving County 120 YE19 Proved Reserves (MMBoe) 31,500 3Q20 Production N. Central (Boe/d) 39% 3Q20 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 adjusted free cash flow Project to…
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
Continued Emphasis on Cost Management Targeting combined LOE + G&A of < 5/Boe LOE + G&A (/Boe) LOE G&A 8.00 7.51 Merger synergies and focus on costs reflected through 6.60 6.15 anticipated year-over-year reduction of 20+% in…
Detailed Hedge Positions Hedges as of October 31, 2020 December 2020 22
Modified 2020 STI Compensation Metrics PDC Board of Directors modified 2020 executive STI quantitative metrics in May 2020 in response to demand destruction Reduced target payout and maximum payout percentages Maintain current…
Adjusted Free Cash Flow & Adjusted Earnings Reconciliations Cash Flows from Operations to Adjusted Cash Flows from Operations and Adjusted Free Cash Flow (Deficit) Three Months Ended Nine Months Ended September 30, September 30, 2020…
Reconciliation Non-U.S. GAAP Metrics Adjusted EBITDAX Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Net income (loss) to adjusted EBITDAX: Net income (loss) (30.8) 15.9 (717.6) (35.7) Loss…
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): 3Q19…
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