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MIZUHO SECURITIES – PDC Energy, Inc.

PDC Energy, Inc. · Jan 24, 2014 · 26 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. MIZUHO SECURITIES – PDC Energy, Inc. – slide 1
    MIZUHO SECURITIES January 24, 2014 NASDAQ:PDCE
  2. MIZUHO SECURITIES – PDC Energy, Inc. – slide 2
    Company Overview NASDAQ: PDCE Market cap 1.8 Billion(1) Strategic Core Areas Enterprise value 2.4 Billion(1) Colorado and Appalachian Basin Proved reserves (YE2012) 179 MMBoe(2) WATTENBERG UTICA 52% liquids, 38% proved developed…
  3. MIZUHO SECURITIES – PDC Energy, Inc. – slide 3
    YE2012 Reserves Summary Significant 3P Reserves Growth (MMBoe) Proved Reserves 52% liquids; 62% PUDs; PV-10 of 1.7 billion Development of Wattenberg expected to add significant 3P reserves to PDCs portfolio Continued delineation…
  4. MIZUHO SECURITIES – PDC Energy, Inc. – slide 4
    2014 Capital Budget Wattenberg Utica PDCM 50% Other Operated Operated Capital Budget Area Horizontal Horizontal 72% (MM) Rigs New Drills 25% Wattenberg 467(1) 4.5 115 Utica 162 1.25 18 2% Other 2 - - 1% Sub-Total 631…
  5. MIZUHO SECURITIES – PDC Energy, Inc. – slide 5
    Production by Area 2012 2013E 2014E Q1 '13 Q2 '13 Q3 '13 Commodity Mix(1) Area (Boe/d) Wattenberg 12,180 15,038 - 15,389 15,019 14,590 2012 2014E(1) Oil Utica - 1,074 - 189 218 360 25% Gas Oil Marcellus / Other 2,820 3,784 -…
  6. MIZUHO SECURITIES – PDC Energy, Inc. – slide 6
    Core Horizontal Wattenberg 98,000 net acres, 95% HBP Third largest leaseholder and producer 70% - 80% liquids Niobrara Wt. Avg. Inventory EUR of 335 Mboe per well Excellent returns IRR of 50% - 140%(1) 2,000 gross…
  7. MIZUHO SECURITIES – PDC Energy, Inc. – slide 7
    DJ Basin Stratigraphic Column Multiple Target Zones Current PDC Operations 2,300 net producing vertical wells 113 producing horizontal wells(1) Fourth drilling rig added in Dec. 13, 5th rig May 14 Spud 119 gross wells (70…
  8. MIZUHO SECURITIES – PDC Energy, Inc. – slide 8
    Wattenberg Project Inventory YE2012 (1) Proved HZ Inventory(2) 4 Gross HZ wells (Niobrara only) per 640 Ac. Gross HZ Inventory: 382 2P HZ Inventory(2) 10 Gross wells per 640 Ac. (8 Niobrara, 2 Codell) Gross HZ Inventory:…
  9. MIZUHO SECURITIES – PDC Energy, Inc. – slide 9
    Horizontal Niobrara Performance Inner Core Middle Core Outer Core Average EUR1 Average EUR1 Average EUR1 Range of Industry Results Range of Industry Results Range of Industry Results 900 MBoe 600 MBoe 500 MBoe 300 MBoe 200…
  10. MIZUHO SECURITIES – PDC Energy, Inc. – slide 10
    Horizontal Codell Development Strong Well Performance Shows Potential for Development Across Wattenberg Large exposure with nearly all acreage having horizontal Codell potential Codell horizontals showing results similar to…
  11. MIZUHO SECURITIES – PDC Energy, Inc. – slide 11
    Horizontal Codell Performance Current Type Curve Avg. 3-Phase EUR: 345 MBoe Avg. 3-phase EUR: 345 MBoe PDC 3P Inventory: Capex: 455 wells 4.2MM % Liquids: 75% IRR1: 77% PV10: 5.2MM (1) Flat Pricing: 90 NYMEX Oil, 4.00…
  12. MIZUHO SECURITIES – PDC Energy, Inc. – slide 12
    Waste Management 16-Well Section Fall 2013 2N-64W-2 All 16 wells as 1-7-14 Hz Codell Economics Average 3-Phase EUR: 345 MBoe Middle Core Economics % Liquids: 75% Average 3-Phase EUR: 365 MBoe IRR: 77% % Liquids: 69% PV10: 5.2MM…
  13. MIZUHO SECURITIES – PDC Energy, Inc. – slide 13
    3rd Party Midstream Expansion - Wattenberg One Bcfe per Day of Capacity Planned PDC Acreage Plants and compression strategically placed around PDC acreage OConnor* plant (160 MMcf/d) started-up October 10th 2013 Compressor Site…
  14. MIZUHO SECURITIES – PDC Energy, Inc. – slide 14
    Utica Leasehold and Activity - drilled and/or completed - planned 2014 spud 11 - Wells to sales by YE 2013 Oil Wet Gas Condensate Dry 48,000 net acres, 57% HBP, 95% WI, 16% royalty Gas Onega-Comm 14-25H 1 3,950 lateral, 13 stages…
  15. MIZUHO SECURITIES – PDC Energy, Inc. – slide 15
    Garvin 1-H Initial Performance Very encouraging initial performance from Southern Utica acreage test Little drawdown in reservoir pressure during variations of choke sizes Signals higher than expected fracture conductivity Managing…
  16. MIZUHO SECURITIES – PDC Energy, Inc. – slide 16
    Utica Drilling & Completions Multi-well pads Testing different reservoir landing zones Targeting 5,000 to 6,000 ft. laterals 1,000 ft. spacing between wells Evaluating different completion designs Using 20 to 30 frac stages…
  17. MIZUHO SECURITIES – PDC Energy, Inc. – slide 17
    Appalachian Basin - Marcellus PDCM Marcellus Acreage producing 125,250(1) Marcellus net acres to 3 PDCM O.E.S 3-well pad 54 Marcellus productive wells (39 Horizontal) 357 of 600 undeveloped horizontal Marcellus locations in…
  18. MIZUHO SECURITIES – PDC Energy, Inc. – slide 18
    Debt Maturity Schedule in Millions 115 million 3.25% convertible debentures mature in May 2016 Debt Maturity Schedule 600 40 million PDCM revolver matures in 3.25% Convertible Notes due 2016 April 2017; 15 million second lien 500…
  19. MIZUHO SECURITIES – PDC Energy, Inc. – slide 19
    Crude Oil and Natural Gas Hedges Hedges in Place as of December 31, 2013 Crude Oil (includes NGL) FY2014 FY2015 FY2016 (1) NYMEX Average 96.36 88.75 83.83 Weighted-Average Hedge Price With Ceilings 94.15 89.35 N/A…
  20. MIZUHO SECURITIES – PDC Energy, Inc. – slide 20
    Investment 2013 Highlights 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…
  21. MIZUHO SECURITIES – PDC Energy, Inc. – slide 21
    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…
  22. MIZUHO SECURITIES – PDC Energy, Inc. – slide 22
    APPENDIX 1/24/2014 23
  23. MIZUHO SECURITIES – PDC Energy, Inc. – slide 23
    Utica Geologic Summary Palmer Onega Commissioners Hickenbottom A Morgan County Guernsey County Belmont County A Utica Pt. Pleasant Trenton Resistivity (ohm-m) 800 2,000 1,000 2,000+ 1,000 2,000+ Rock Properties PDC…
  24. MIZUHO SECURITIES – PDC Energy, Inc. – slide 24
    PDCE Share Count Leverage to Top-Tier Plays PDCE Highly Leveraged To the Top Liquids-Rich US Onshore Basins Utica: Net Acreage/Million Outstanding Shares IRRs of US Onshore Basins(1) 2,000 Source: Company presentations and filings…
  25. MIZUHO SECURITIES – PDC Energy, Inc. – slide 25
    Utica: Local Stratigraphic Column Southern Ohio 1. Queenston Shale Classic Mudstone Null TOC & low resistance 2. Upper Utica Shale Mudstone with null limestone content. Some TOC & low resistivity High clay content Lower Youngs…
  26. MIZUHO SECURITIES – PDC Energy, Inc. – slide 26
    Marcellus Horizontal Marcellus Well Production Normalized to 5,000' Lateral 10,000 MCFD 1,000 CAPEX: 7 MM 3.50/MCF (Year 1) EUR: 9 BCF Type Curve F&D: 0.72/MCFE IRR: 32% EUR: 7 BCF Type Curve F&D: 0.93/MCFE IRR: 20% EUR:…

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