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IPAA OGIS TORONTO – PDC Energy, Inc.

PDC Energy, Inc. · Jun 5, 2014 · 40 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. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 1
    IPAA OGIS - TORONTO JUNE 5, 2014 NASDAQ:PDCE
  2. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 2
    Company Overview NASDAQ:PDCE Strategic Core Areas Market cap 2.2 Billion (1) Colorado and Appalachian Basin Enterprise value 2.7 Billion WATTENBERG UTICA Proved reserves (YE2013) 266 MMBoe 97,000 Net Acres Liquid- 54,000 Net…
  3. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 3
    2014 Net Production Guidance 28% - 35% projected increase in production from continuing operations (9.5 10.0 MMBoe in 2014 versus 7.4 MMBoe in 2013) 2014 Quarter Comments Q1 2014 Strong Dec13 exit rate; overperformance of Waste…
  4. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 4
    2014 Capital & Year-End 2013 Reserves 2014 Capital Budget Allocation 647 million capital expenditure budget 467 million (72%) Wattenberg includes 100 million for nonop projects 162 million (25%) Utica includes 30 Utica Wattenberg…
  5. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 5
    Core Wattenberg 6/5/2014 6
  6. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 6
    Horizontal Program DJ Basin PDCs Core Wattenberg Field Position Regional Horizontal Development Overview(1) 97,000 net acres, 97% HBP Third largest leaseholder and producer Strong repeatable lower risk projects 2,000 horizontal…
  7. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 7
    DJ Basin Stratigraphic Column Multiple Target Zones Current PDC Operations Currently have spud 37 gross Hz wells in Wattenberg Field in 2014 - 24 operated, 13 non-operated 2,300 net producing vertical wells (1) 126 operated…
  8. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 8
    Three Niobrara Core Areas in Wattenberg Continued Development Supporting Horizontal Niobrara Type Curve Boundaries Inner Core Type Well Summary 3Phase EUR: 500 Mboe Net Acres: 5,500 Gross 3P Locations: 90 46 IRR(1): 125% PV10:…
  9. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 9
    Quantifying Consistency in Core Wattenberg Niobrara Horizontals Inside and Outside Core Wattenberg EUR Variability Ratio Inner Core Represents 650+ ( P10 / P90 ) Middle Core Hz Niobrara wells Outer Core Calculated EURs on 800…
  10. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 10
    Codell Geologic Summary Considered same petroleum system as Niobrara Composition is silty, shaly, very fine grained, claycemented sandstone Source of deposition was a shallow marine environment Average depth of 7,300 (Base of…
  11. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 11
    Niobrara & Codell Hz Results Comparable Strong Codell results across entire PDC acreage position Avg NIOBRARA Hz Type Well PDC second in horizontal Codell development Net acres: 97,000 Gross 3P Locations: 2,013 Provides second tier…
  12. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 12
    Comparison of Well Performance Waste Management Section 16 Well Downspacing Project N 5280 Middle Core Type Well 3Phase EUR: 400 MBoe Well Capital: 4.2MM IRR(1): 75% PV10: 4.2MM Undiscounted Payout: 16 months…
  13. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 13
    Key PDC Projects Testing Tighter Downspacing PDC aggressively testing downspacing in multiple areas of Core Wattenberg Evaluating resource potential beyond current 3P inventory spacing Planned Wells per Section Equivalent 2014…
  14. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 14
    Crude Oil Takeaway & Gas Processing Crude Takeaway Optionality Provides Support for Long-Term Wellhead Deduct Estimated at 9-11 per Barrel New Crude Oil Takeaway Tampa Rail Expansion Multiple delivery points 70,000 Bbl/d Delivery…
  15. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 15
    Utica Operations Drilling & Production 6/5/2014 16
  16. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 16
    Utica: Building a Core Asset PDCs LiquidRich Utica Position Currently Producing Wells 54,000 net acres Recently added 6,000 net acres Commissioners 1425H 3,950 lateral Commissioners 2H 4,300 lateral Commissioners 3H 4,300 lateral…
  17. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 17
    Utica Update drilled and/or completed planned 2014 spud New Type Curve Areas 54,000 net acres OIL CONDENSATE WET GAS DRY 300 Horizontal locations in inventory WINDOW WINDOW GAS 20% acreage in Guernsey & Noble Commissioners…
  18. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 18
    Current Type Curve Estimates Condensate Window Estimates Wet Gas Window Estimates Average Production Rate Average Production Rate Type Curve Estimate Type Curve Estimate Condensate Estimated Economics Wet Gas Estimated…
  19. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 19
    Flowback Management Enhancing Results New Well Average Production Rate Old Well Average Production Rate Commissioners Pad Detweiler Pad Old Wells New Wells Commissioners 2H Onega Commissioners 1425H Commissioners 3H…
  20. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 20
    Midstream Options MarkWest (MWE) MWE PDC volumes flow to Seneca Plant Cadiz Plant MWE has current capacity of 585 MMcf/d with MWE Hopedale planned expansion to 1.0+ Bcf/d by 2015 Fractionator Access to all major NGL…
  21. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 21
    PDCM Marcellus 6/5/2014 22
  22. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 22
    PDCM Summary Large acreage position 2013 Marcellus Activity in PDCM Focus Area 131,000 net acres; 92% HBP O.E.S 95% in WV; 5% in PA 3-well pad 100% operated Delineated focus area Armstrong/Reynolds 4-well pad Harrison, Taylor and…
  23. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 23
    2014 Financial Outlook 6/5/2014 24
  24. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 24
    2014 Consolidated Financial Guidance (from continuing operations) In Millions, Except for Per Share Data YE 2013 2014 Guidance (3) Actual Low High Production (MMBoe) 7.4 (1) 9.5 10.0 Crude oil, natural gas and NGLs sales 359 458…
  25. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 25
    Debt Maturity Schedule in Millions 115 million 3.25% convertible Debt Maturity Schedule debentures mature in May 2016 3.25% Convertible Notes due 2016 600 Drawn 03/31/2014 PDCM PDCM: 53 million revolver matures in Undrawn Revolver…
  26. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 26
    Crude Oil and Natural Gas Hedges Hedges in place as of April 15, 2014 Apr Dec Crude Oil (includes NGL) FY2015 FY2016 2014 NYMEX Average (1) 98.58 90.69 84.98 WeightedAverage Hedge Price With Ceilings 93.55 89.35 94.50…
  27. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 27
    Investment Highlights 2013 Utica Objectives Positioned to execute multi-year organic growth of production, cash flow and proved reserves Significant horizontal projects in inventory Core Wattenberg Niobrara and Codell / Colorado…
  28. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 28
    Investor Relations Mike Edwards, Senior Director Investor Relations michael.edwardspdce.com Marti Dowling, Manager Investor Relations marti.dowlingpdce.com Corporate Headquarters PDC Energy, Inc. 1775 Sherman Street Suite 3000…
  29. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 29
    Appendix 6/5/2014 30
  30. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 30
    Lease Operating Expense /Boe Updated Lifting Cost Guidance 6.00 5.00 (0.92) (3.41 4.00 )(1.32 )(3.17 ) /Boe 3.00 Gross Margin 2.00 3.94 Gross Margin 4.23 Gross Margin Gross Margin 3.41 3.77 3.60 1.00 0.00…
  31. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 31
    Niobrara Downspacing in Core Wattenberg MIDDLE CORE OUTER CORE Represents 300+ Hz Niobrara industry wells Represents 175+ Hz Niobrara industry wells Spacing Unit Performance Spacing Unit Performance 320 160 80 40 320 160 80 40…
  32. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 32
    Horizontal Codell: Establishing Consistency Hz Codell Activity Map Represents 70+ Hz Codell Hz Codell industry wells Core Wattenberg Boundary (1) PDC Hz Codell (1) Industry Hz Codell EUR Variability Type Well Type…
  33. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 33
    Neill 1H Learnings: Landing Zone is Critical Utica Type Log Landed Neill 1H out of Pt. Pleasant target zone Analysis shows lateral permeability orders of 7,150 magnitude lower than other PDC Utica wells Palmer wells drilled to the…
  34. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 34
    Encouraging Results on Recent Wells Marcellus Well Production Normalized to 5,000 Lateral Keys to Successful Execution Optimizing well spacing in all areas (700 1,000); achieving delineation across focus area Tighter stage…
  35. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 35
    PDCs Transition to Horizontal Drilling Potential Vertical Locations Potential HZ Locations 2,000 4,000 3,600 1,800 3,500 1,600 2,800 1,430 1,354 3,000 1,400 1,200 2,500 1,000 2,000 800 1,500 600 966 400 1,000 189 131 200…
  36. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 36
    Solid Exposure to High-Return Plays PDC positioned in two of the top PDC Horizontal Inventory As of 4/17/14 3,700 three basins in U.S. onshore Locations Wattenberg Focused on liquidrich shale plays 2,800 locations Marcellus 600…
  37. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 37
    PDCE + PDCM = PDC Consolidated In Millions Except For Per Share Data PDC Year Ended 12/31/2013 PDCE Net PDCM Consolidated (1) Statement of Operations Natural gas, NGL and Crude oil sales 334 25 359 Commodity price risk management…
  38. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 38
    Reconciliation of Non-GAAP Financial Measures in millions, except share and per share data Year Ended December 31 Adjusted net income (loss) from net income (loss): 2011 2012 2013 Net income (loss) 13.4 (130.7) (22.3) (Gain) loss on…
  39. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 39
    Reconciliation of Non-GAAP Financial Measures in millions, except share and per share data Year Ended December 31 Adjusted EBITDA from net income (loss): 2011 2012 2013 Net income (loss) 13.4 (130.7) (22.3) (Gain) loss on commodity…
  40. IPAA OGIS TORONTO – PDC Energy, Inc. – slide 40
    Reconciliation of Non-GAAP Financial Measures in millions, except share and per share data Year Ended December 31 Adjusted EBITDAX from net income (loss): 2011 2012 2013 Net income (loss) 13.4 (130.7) (22.3) (Gain) loss on…

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