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CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc.

PDC Energy, Inc. · May 15, 2013 · 31 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. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 1
    CREDIT SUISSE: SHALE REVOLUTION SYMPOSIUM Horizontal Wattenberg May 15, 2013 NASDAQ:PDCE
  2. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 2
    Company Overview NASDAQ:PDCE Market cap 1.5 Billion(1) Strategic Core Areas Enterprise value 2.1 Billion(1) Colorado and Appalachian Basin Proved reserves 193 MMBoe (1.2 Tcfe)(2) WATTENBERG Liquid- UTICA 48% liquids, 42% proved…
  3. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 3
    Operational Overview Wattenberg UTICA - APPALACHIAN BASIN Liquid-Rich 2013E Production: 15,040 Boe/d(2) 2013E Production: 1,070 Boe/d(2) Basins 70-80% Liquids 50-80% Liquids 99,000 Net Acres(1) 95% HPB 45,700 Net Acres 57%…
  4. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 4
    Focused on HZ Drilling Gross Horizontal Wells Gross Vertical Wells Frac Stages 100 95 250 1400 1236 90 206 1200 80 200 1031 171 963 70 1000 60 54 150 800 50 40 100 600 400 30 24 400 20 50 7 200 10 9 0 0 0 0 2010 2011…
  5. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 5
    Core Wattenberg Geology Overview 5/15/2013 6
  6. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 6
    Regional Niobrara Deposition Niobrara section is uniformly present across entire DJ Basin Only economically productive in certain areas of the basin 5/15/2013 7
  7. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 7
    Depositional Setting of the Niobrara Average depth of +/- 7,200 in Core Wattenberg Field Organic Rich Source Rx Chalky Benches created from skeletal debris of living Organic Rich Source Rx organisms deposited in shallow marine…
  8. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 8
    Wattenberg Field Stratigraphy Rocky Mountains created the current western boundary of the DJ basin Zones of basement weakness directly below Core Wattenberg Field enabled high heat-flow from the Mantle to thermally generate recoverable…
  9. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 9
    Colorado Mineral Belt Wattenbergs Heat Source CMB heat flow runs continuously from southwest Colorado, thru central Colorado and extends to the plains under Core Wattenberg Field then dies out further northeast Denver CMB heat…
  10. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 10
    Core Wattenberg Productivity A Thermal Maturity Bull's-Eye is centered under the Core Wattenberg Field The location of the Bulls-Eye is due to the high heat flow that generated substantial recoverable oil and gas across the Core…
  11. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 11
    Core Wattenberg Niobrara Composition Benches are not pure chalks, they contain abundant organics Many interbedded chalks / shales / marls make up the entire Niobrara section Niobrara outcrop in cement quarry near Lyons, CO A -…
  12. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 12
    Codell Geologic Summary Considered same petroleum system as Niobrara zones Composition is silty, shaly, very fine grained, clay-cemented sandstone Source of deposition was a shallow marine environment Average depth of 7,300 (base…
  13. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 13
    Wattenberg Horizontal Operational Overview 5/15/2013 14
  14. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 14
    Core Wattenberg Horizontal Summary Horizontal wells are 70% 80% liquids Typical EURs from 300 to 500 MBoe Excellent industry returns IRR of 40% 140%(1) Very repeatable results within Core Wattenberg due to geologic factors…
  15. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 15
    Horizontal Development Highlights Drill site considerations for multi-well pad Larger pad size to accommodate drilling equipment Less surface footprint than equivalent number of vertical wells Reduce size of pad for production…
  16. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 16
    General Horizontal Wattenberg Well Design Well design Premium grade tubulars and connections minimize mechanical risks Packer-and-sleeve design preferred over plug-and-perf completion Frac design Number of stages varies due to…
  17. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 17
    Core Wattenberg Midstream Summary Plants and compression built within PDCs acreage area Temporary by-pass on DCP plants to add capacity in 2013 LaSalle plant start-up late Q313 Incremental 160 MMcfd of capacity Lower average line…
  18. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 18
    PDCs Wattenberg Development Summary Wattenberg Net Production Wattenberg Spuds 8,000 140 Oil NGLs Gas 120 6,000 100 MBoe 80 4,000 60 2,000 40 20 0 0 2011 2012 2013E 2014E 2011 2012 2013E 2014E Development CAPEX…
  19. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 19
    Horizontal Wattenberg Performance 5/15/2013 20
  20. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 20
    Horizontal Niobrara Summary Continued Delineation of Core Wattenberg Continued horizontal development of the Niobrara has delineated three core areas across the Wattenberg Field The core areas represent the different areas of…
  21. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 21
    Industry-Based Niobrara Delineation Study Significant Inventory of Wells Across All Areas Within Core Wattenberg Wattenberg Hz Niobrara study included 350 wells across the field with 3+ months of production Industry Core Wattenberg…
  22. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 22
    Productivity of the Codell Boundary for Codell horizontal development based on traditional Codell vertical productivity area The Codell is blanketed across the identified area and is hydrocarbon charged, yielding consistently…
  23. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 23
    Horizontal Codell Summary Strong Well Performance Shows Potential for Development Across Wattenberg Eight producing PDC Codell horizontals showing results similar to existing horizontal Niobrara wells Overall industry performance…
  24. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 24
    PDC Horizontal Production: Niobrara and Codell (2) (2) (1) Flat Pricing: 90 NYMEX Oil, 3.50 NYMEX Gas. Excludes lease acquisition and corporate-level costs. (2) Economics based on Outer Core acreage. 5/15/2013 25
  25. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 25
    Horizontal Wattenberg Potential 5/15/2013 26
  26. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 26
    Wells Ranch Downspacing Pilot Section 34 T006N R063W Map View Wells Ranch Pad 6N-63W-34 Wells Ranch 4-well pad Pad N Production (Boepd) 34 10,000 Wells Ranch 43-34H 1,000 Vertical Well HZ Niobrara Stacked HZ Niobrara/…
  27. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 27
    Analysis of Tighter Horizontal Niobrara Spacing Detailed Reservoir Engineering Points Towards 40-Acre Horizontal Well Density Engineering team using reservoir modeling to understand drainage areas Comparing model data to actual…
  28. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 28
    Waste Management Pad Fall 2013 Section 02 T002N R064W Map View Waste Management Pad 2N-64W-2 16-wells / 4-pads Spud May 2013 N Completion Fall / 4Q 2013 Side View 5/15/2013 29
  29. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 29
    Wattenberg Project Inventory Proved HZ Inventory 2P HZ Inventory* 3P HZ Inventory* 4 Gross wells per 640 Ac. 10 Gross wells per 640 Ac. 16 Gross wells per 640 Ac. Gross HZ Inventory: 384 (8 Niobrara, 2 Codell) (12 Niobrara, 4…
  30. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 30
    PDCE Share Count Leverage to Core Wattenberg Acreage PDCE Most Leveraged To High Return/Low Risk Wattenberg Asset Amongst Acreage Holders 1 Core Wattenberg Acreage (Thousands of Acres) IRRs of US Onshore Basins 450 0% 10% 20% 30% 40%…
  31. CREDIT SUISSE SHALE REVOLUTION SYMPOSIUM – PDC Energy, Inc. – slide 31
    Contact Information Investor Relations Ron Wirth, Vice President Finance and Treasurer ron.wirthpdce.com Mike Edwards, Senior Director Investor Relations michael.edwardspdce.com Marti Dowling, Investor Relations Manager…

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