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BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc.

PDC Energy, Inc. · Nov 6, 2013 · 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. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 1
    BREAN CAPITAL E&P CONFERENCE November 6, 2013 NASDAQ:PDCE
  2. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 2
    Company Overview NASDAQ: PDCE Market cap 2.3 Billion(1) Strategic Core Areas Enterprise value 2.6 Billion(1) Colorado and Appalachian Basin Proved reserves 179 MMBoe(2) WATTENBERG UTICA 52% liquids, 38% proved developed 2013E:…
  3. BREAN CAPITAL E&P CONFERENCE – 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. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 4
    2013 Capital Budget 2013 Capex Budget by Region Wattenberg(1) Utica PDCM 50% Other Operated Operated Capital Budget Area Horizontal Horizontal (MM) Rigs New Drills 63% 22% Wattenberg 280(1) 2.5 69 Utica 96 1 11 13% 2%…
  5. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 5
    Production by Area Area (Boe/d) 2012 2013E Q1 '13 Q2 '13 Q3 '13 2012 Commodity Mix Wattenberg 12,180 15,038 15,389 15,019 14,590 Utica - 1,074 189 218 360 Oil Marcellus / Other 2,820 3,784 2,922 2,852 3,684 25% Continuing Ops(1)…
  6. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 6
    LOE / Margin /Boe (1) Lease Operating Expense Gross Margin From Sales 6.00 5.96 60.00 Sales Sales Sales 5.50 50.00 47.71 47.10 47.91 (4.48) (4.97) (5.96) 4.97 (1.81) (1.64) (1.58) 5.00 40.00 (3.23) /Boe (3.22) (3.58)…
  7. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 7
    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…
  8. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 8
    DJ Basin Stratigraphic Column Multiple Target Zones Current PDC Operations 2,300 net producing vertical wells 90 producing horizontal wells(1) Third drilling rig added in May 13 Spud 77 gross wells (50 operated, 27…
  9. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 9
    Wattenberg Project Inventory (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:…
  10. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 10
    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…
  11. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 11
    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…
  12. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 12
    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…
  13. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 13
    Waste Management 16-Well Section Fall 2013 2N-64W-2 Hz Codell Economics Middle Core Economics Average 3-Phase EUR: 345 MBoe Average 3-Phase EUR: 365 MBoe % Liquids: 75% % Liquids: 69% IRR: 77% IRR: 81% PV10: 5.2MM PV10:…
  14. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 14
    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…
  15. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 15
    Utica Leasehold and Activity - drilled and/or completed - planned 2013 spud 9 - Wells expected to sales by YE 2013 Oil Wet Gas Condensate Dry Gas 48,000 net acres, 57% HBP, 95% WI, 16% royalty Commissioners 2H & 3H Completing 200…
  16. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 16
    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…
  17. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 17
    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…
  18. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 18
    Appalachian Basin - Marcellus PDCM Marcellus Acreage 125,250(1) Marcellus net acres to PDCM 54 Marcellus productive wells (39 Horizontal) 357 of 600 undeveloped horizontal Marcellus locations in 3-county focus area of West…
  19. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 19
    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…
  20. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 20
    Crude Oil and Natural Gas Hedges Hedges in Place as of October 15, 2013 Oct Dec Crude Oil FY2014 FY2015 2013 (1) NYMEX Average 102.97 96.36 89.11 Weighted-Average Hedge Price With Ceilings 99.21 94.47 89.30 Weighted-Average…
  21. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 21
    Investment 2013 Highlights Utica Objectives Significant horizontal projects in inventory Core Wattenberg Niobrara and Codell / Colorado Utica Shale / Southeast Ohio Marcellus Shale / West Virginia Capital primarily allocated to…
  22. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 22
    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…
  23. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 23
    APPENDIX 11/06/2013 24
  24. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 24
    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…
  25. BREAN CAPITAL E&P CONFERENCE – PDC Energy, Inc. – slide 25
    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…
  26. BREAN CAPITAL E&P CONFERENCE – 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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