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Wells Fargo Exploration & Production Forum – PDC Energy, Inc.

PDC Energy, Inc. · Mar 7, 2013 · 32 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. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 1
    Wells Fargo Exploration & Production Forum March 7, 2013 NASDAQ:PDCE
  2. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 2
    Company Overview Strategic Core Areas Market cap 1.4 Billion(1) Colorado and Appalachian Basin Enterprise value 2.1 Billion(1) (4) Proved reserves 1.2 Tcfe (193 MMBoe)(2) 48% liquids, 42% proved developed Does not include…
  3. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 3
    PDC Signs Definitive Agreement to Sell Non-Core Colorado Assets Colorado Natural Gas Assets: Piceance, NECO, Krieger, SECO Offer Amount: 200 million cash Includes certain PDC Hedges for 2013-2015 Buyer assumption of all PDC Firm…
  4. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 4
    PDC Positioned to Accelerate Liquid-Rich Horizontal Wattenberg & Utica Focuses PDC on three premier horizontal plays with decade-plus drilling inventory Liquid-rich: Core Wattenberg (Niobrara & Codell) and Utica Shale Prolific natural…
  5. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 5
    Key Investment Themes Stable base of production from long-lived assets in Colorado and Appalachia Substantial portfolio of high return, liquid-rich projects Core Wattenberg horizontal Niobrara play increasing from two to three…
  6. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 6
    YE2012 Reserve Summary PDCE Reserves Comparison YE2011 YE2012 Total Proved (Bcfe) 1,016 1,157 PDP (Bcfe) 338 339 % Liquids 34% 48% PV-10 Value (MM) 1,350 1,709 SEC Product Pricing Gas (/MMbtu) 4.12 2.76 SEC Product Pricing Oil…
  7. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 7
    Production Summary from Continuing Operations 2011 2012 Wattenberg 23.3 26.7 Appalachia 4.4 6.2 Piceance 13.5 13.5 December 2012 Commodity Mix NECO/Other 3.8 3.2 Total 45.0 49.6 Exit Rate (December average, MMcfe/d) 139 143…
  8. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 8
    Lease Operating Expenses /Mcfe 2011 2012 Lease Operating Expense (MM) 41 42 Direct Well Expense (/Mcfe) 0.47 0.50 Workover Expense (/Mcfe) 0.20 0.07 Indirect Well Expense (/Mcfe) 0.25 0.28 Lifting Cost Continuing Ops 0.92…
  9. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 9
    Core Wattenberg Horizontal Niobrara Third largest leaseholder and producer in the core Wattenberg Field 99,000 net acres in core area(1) 70%-80% liquids Typical EURs from 300 to 500 MBoe Excellent returns IRR of 40% -…
  10. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 10
    PDC Core Wattenberg Horizontal Program PDC Average Peak 24 Hr and 30 Day IP in Boepd North 2012 Spuds: 37 Producing Wells: 31 Avg Peak 24 Hr IP: 513 Avg 30 Day IP: 394 Center % Liquids: 65 85% 2012 Spuds: 0 Producing Wells: 2 Avg…
  11. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 11
    Wattenberg Field Stratigraphic Column Multiple Target Zones Current PDC Horizontal Program Data Drilling 3 to 5 well pads 4,000 average lateral length 16 frac stages per well Drill time of 12-15 days spud to spud Sliding sleeves,…
  12. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 12
    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…
  13. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 13
    Horizontal Production: Niobrara and Codell Total Horizontal Production 1,000 EUR: 500 MBOE Capex: 4.2MM IRR: 123% PV10: 7.5 MM 100 EUR: 300 MBOE Capex: 4.2MM IRR: 40% PV10: 3.3 MM 40 Niobrara Wells 26 Niobrara Wells…
  14. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 14
    Midstream Activity Summary Wattenberg Third Party Providers 3/7/2013 15
  15. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 15
    3rd Party Midstream Expansion Oil and Gas Lease New plants and compression strategically placed Sullivan CS around PDC acreage Compressor Site Processing Plant LaSalle plant expected start-up late Q313 2013 in service Lucerne 2…
  16. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 16
    Utica Leasehold and Asset Summary Southeast Ohio Activity update Oil Wet Gas Condensate Dry Gas PDC and other operators recent reported drilling results Boy Scout 1-33H Wagner 1-28H have exceeded expectations IP: 3,456 boepd IP:…
  17. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 17
    Appalachian Basin PDCM Project Overview Devonian Marcellus Productive Wells 3,571 24 Total Approx. Net Acreage 236,000 152,000* West Virginia 195,000 143,000 Pennslyvania 41,000 9,000 EURs - horizontal Marcellus wells (Bcf) 5-9 *…
  18. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 18
    Marcellus Focus Area Hz Inventory Undeveloped Locations Core Focus Area 357 Outside Focus Area 243 Total 600 Marcellus Activity Horizontal Wells Harrison County 8 Taylor County 7 Vertical Wells 15 Total 30 West…
  19. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 19
    Marcellus Horizontal 3/7/2013 20
  20. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 20
    2013 Capital Budget Pro-Forma for Colorado Asset Sale 2013 Capex Budget by Region: 372 Million Wattenberg(1) Utica PDCM 50% Other Operated Capital Budget Area Horizontal (MM) Rigs 70% Wattenberg 254 2.5 15% Utica 53 1 13%…
  21. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 21
    Strong Balance Sheet PDC has Maintained Relatively Low Leverage and Strong Liquidity Conservative Leverage Strong Liquidity (*) (MM) 4.0x 60% 600 535 49% 47% 44% 45% 50% 500 3.0x 384 34% 33% 3.1x 40% 400 357 2.8x 2.9x 2.0x…
  22. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 22
    Crude Oil and Natural Gas Hedges Hedges in place as of December 31, 2012 Pro-forma for expected non-core Colorado natural gas assets divestiture. Crude Oil (includes NGL) 2013 2014 2015 NYMEX Average(1) 92.75 92.36 90.26…
  23. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 23
    Investment Highlights Significant horizontal projects in inventory Core Wattenberg Niobrara and Codell Utica Shale in SE Ohio West Virginia / Marcellus Capital currently allocated to projects that increase liquids-mix in…
  24. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 24
    Appendix 3/7/2013 25
  25. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 25
    Preliminary 2013 Financial Guidance (from Continuing Operations) In millions, except for per share data Preliminary 2013 Guidance Pricing Assumption: Low High Natural Gas: 3.00/Mcf 4.00/Mcf Crude Oil: 85.00/Bbl 100.00/Bbl NGL: 30%…
  26. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 26
    Summary Financial Results (from Continuing Operations) in millions, except per share data Three Months Ended Year Ended December 31, December 31, Measure 2012 2011 2012 2011 Total natural gas, NGL, and crude oil sales 78.2 80.0…
  27. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 27
    Adjusted Net Loss Reconciliation From Net Income (Loss) in millions, except share and per share data Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 Net income (loss) (126.2) (8.4) (130.7) 13.4…
  28. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 28
    Adjusted Cash Flows From Operations Reconciliation From Net Cash From Operating Activities in millions, except share and per share data Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 Net cash from…
  29. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 29
    Adjusted EBITDA Reconciliation From Net Income (Loss) in millions, except share and per share data Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 Net income (loss) (126.2) (8.4) (130.7) 13.4…
  30. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 30
    Adjusted EBITDA Reconciliation From Net Cash From Operating Activities in millions, except share and per share data Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 Net cash from operating activities…
  31. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 31
    Adjusted EBITDAX Reconciliation Full Year Full Year Full Year 2010 2011 2012 Net Income (loss) attributable to shareholders 6.2 13.4 (130.7) Unrealized loss (gain) on derivatives, net (1) (12.6) (28.6) 17.1 Interest Expense, net…
  32. Wells Fargo Exploration & Production Forum – PDC Energy, Inc. – slide 32
    Contact Information Investor Relations Ron Wirth, Vice President Finance and Treasurer ron.wirthpdce.com Marti Dowling, Investor Relations Manager marti.dowlingpdce.com Corporate Headquarters PDC Energy, Inc. 1775 Sherman Street…

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