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Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc.

PDC Energy, Inc. · Feb 28, 2022 · 30 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. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 1
    Year-End Earnings & Core Wattenberg Acquisition February 2022
  2. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 2
    Key Takeaways Accretive Core Wattenberg acquisition Top-tier shareholder return framework Strong finish to 2021 2022 program highlighted by significant FCF February 2022 3
  3. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 3
    Significant and Accretive Core Wattenberg Acquisition 230,000 Pro Forma Net Acres Adding material scale through 1.3 billion Core Wattenberg acquisition of Great Western Petroleum, LLC - 185 MMBoe proved reserves - 55,000 Boe/d (42%…
  4. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 4
    Tremendous Accomplishments Throughout 2021 1. Continued Focus on Efficient Execution - Reinvestment rate(1) below 40% while reaching 3 years without a lost time incident in each basin 2. Sustainable FCF - Generated FCF of 950…
  5. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 5
    Positioned for Industry-Leading Shareholder Returns in 2022 1. Continued Focus on Efficient Execution - Reinvestment rate(1) below 40% while reaching 3 years without a lost time incident in each basin - Maintaining operational…
  6. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 6
    Committed to Further Improving ESG Performance 15+% Key 2022 ESG Priorities 80 Plan to invest 80 million to further improve environmental 3.0 million performance(1) million - - Aim to reduce GHG emission intensity 10%…
  7. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 7
    Financial Positioning 8
  8. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 8
    Preserving Fortress Balance Sheet Prioritizing debt reduction in 2021 positioned PDC for accretive M&A opportunities - 75% of 2021 FCF allocated towards debt reduction - Reduced total debt by 40% - Improved leverage ratio from 1.7x…
  9. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 9
    Committed to Significant Shareholder Returns Doubling quarterly base dividend to 0.25/share with plans to increase to 0.35/share upon closing Committed to returning 60+% of annual post-dividend FCF to shareholders via systematic…
  10. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 10
    Focused on Preserving Operating Efficiencies 2022 capital program focused on maximizing efficiencies through consistent operating programs 2022e Capital Investments (millions) 1,200 900 - 1,000 Anticipated 2022 capital investments…
  11. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 11
    Significant, Sustainable FCF and Shareholder Returns Significant Acquisition Benefits (2022 2023 Cumulative(1)) Multi-year development plan centered around FCF Base Dividend Total SH Returns (millions) (millions) (millions)…
  12. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 12
    Operations Overview 13
  13. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 13
    Carrying Strong Operating Momentum into 2022 584 million of 2021 capital investments - 134 million invested in 4Q21 Maintained best-in-class cost structure in 4Q - LOE of 2.62/Boe - Cash + non-cash G&A of 1.62/Boe Full-year…
  14. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 14
    Significant Scale in Best-of-Class Core Wattenberg 230,000 Pro Forma Net Acres YE21 SEC proved reserves of 738 MMBoe - 14% increase compared to YE20 Prairie LARIMER - WELD Pro forma YE21 SEC proved reserves of 925 MMBoe…
  15. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 15
    Continued Momentum Towards CAP Approval What is a CAP (Comprehensive Area Plan) Industry-leading, comprehensive development plan with multi-faceted collaboration from key stakeholders: - Local municipalities and community members -…
  16. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 16
    Successfully Securing Permits in OGDP Process Permits Issued to PDC Under New Rules Br y (16 s) we s) Multiple OGDPs at Various Stages of Planning Process ne well (30 well s) lls) no well (70 (8 a ey sh…
  17. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 17
    Focused on Execution in the Delaware YE21 SEC proved reserves of 78 MMBoe - 11% decrease compared to YE20 due to relaxed spacing development plan Anticipate investing 150 million in 2022 - Full-time drilling rig (15 20 spuds) -…
  18. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 18
    Acquisition Highlights 19
  19. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 19
    Honoring PDCs Acquisition Criteria Highly economic, core inventory in area of expertise Enhances sustainable FCF generating ability Increases shareholder returns Accretive to all key per share financial metrics Maintains…
  20. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 20
    Accretive Transaction Solidifies Core Wattenberg Position Anticipated Closing in 2Q22 230,000 Pro Forma Net Acres 1.3 billion Core Wattenberg acquisition - 543 million of cash plus direct issuance of 4.0 million shares - Assumption…
  21. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 21
    Strong Economics Complement Existing Portfolio Internal Rate of Return All areas deliver highly economic IRRs at or above 100%+ 100%+ 100%+ 99% 100% at current budget prices 100% 96% - 75/bbl WTI, 4/Mcf, 27.50/bbl NGLs 80% 75%…
  22. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 22
    Significant Operational and Financial Accretion with Margin Expansion Production Oil Production DUCs + Permits Operational scale drives efficiencies (Mboe/d) (Mbbls/d) (YE21) - 25% increase in total production 250 - 260 82 - 87 500…
  23. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 23
    Strong Pro-Forma Financial Positioning Amongst Peers 2023e TOTAL SHAREHOLDER RETURN YIELD 16% 14% 13% 12% 9% 7% 7% 7% 6% 6% 6% 3% 2% 1% 0% 0% 0% 0% PDC Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer 11…
  24. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 24
    Appendix 25
  25. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 25
    Investor Relations Kyle Sourk, Director Corporate Finance & Investor Relations kyle.sourkpdce.com Corporate Headquarters PDC Energy, Inc. 1775 Sherman St. Suite 3000 D e nv e r, C O 8 0 2 0 3 303.860.5800 www.pdce.com 26
  26. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 26
    th 4 Quarter and Full-Year Financial Results Three Months Ended Twelve Months Ended Measure December 31, December 31, (millions except per share and price per Boe data) 2021 2020 % 2021 2020 % Production (MMBoe) 19.4 16.6 17% 71.3…
  27. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 27
    Acquisition Further Improves Best-in-Class Cost Structure PDC Standalone Maintaining best-in-class lifting cost - Anticipate 2022 LOE per Boe of 2.70 - 2.90 - Includes uptick in Delaware LOE due to ESP program LOE + G&A per Boe…
  28. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 28
    Detailed Hedging PDC Standalone Hedges as of February 24, 2022 February 2022 30
  29. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 29
    Non-U.S. GAAP Reconciliations Cash Flows from Operations to Adjusted Cash Flows From Operations and Adjusted Free Cash Flow Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Cash flows from operations to…
  30. Year End Earnings & Core Wattenberg Acquisition – PDC Energy, Inc. – slide 30
    Non-U.S. GAAP Reconciliations Adjusted EBITDAX Three Months Ended Year Ended December 31, December 31, 2021 2020 2021 2020 Net income (loss) to adjusted EBITDAX: Net income (loss) 473.1 (6.7) 522.3 (724.3) Loss (gain) on commodity…

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