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STIFEL NICOLAUS – PDC Energy, Inc.

PDC Energy, Inc. · Jun 13, 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. STIFEL NICOLAUS – PDC Energy, Inc. – slide 1
    STIFEL NICOLAUS JUNE 13, 2013 NASDAQ:PDCE
  2. STIFEL NICOLAUS – PDC Energy, Inc. – slide 2
    Company Overview NASDAQ: PDCE Strategic Core Areas Colorado and Appalachian Basin Market cap 1.6 Billion(1) Enterprise value 2.3 Billion(1) WATTENBERG Liquid- UTICA 2013E Production 5,489 MBoe Rich 2013E Production: 392 MBoe…
  3. STIFEL NICOLAUS – PDC Energy, Inc. – slide 3
    Organic Investment Opportunities WATTENBERG UTICA 2,000 HZ Projects 200 HZ Projects (1,000 spacing) 6.3 Billion Estimated Capital (Net) 1.6 Billion Estimated Capital (Net) 40% - 140% IRR(1) 30% - 80% IRR(1) 70 - 80% Liquid Mix 50 -…
  4. STIFEL NICOLAUS – PDC Energy, Inc. – slide 4
    Non-Core Colorado Asset Divestiture Enables PDC to Accelerate LiquidRich Horizontal Drilling Colorado Natural Gas Assets: Piceance, NECO, Krieger, SECO Offer Amount: 200 million(1) cash Includes certain PDC hedges for 2013-2015…
  5. STIFEL NICOLAUS – PDC Energy, Inc. – slide 5
    YE2012 Reserves Summary Solid Growth Despite Price Declines and Divestitures PDCE YE2012 YE2011 YE2012 Post Non-Core CO SEC Pricing Comparison YE2011 YE2012 Reserves Comparison Asset Divestiture Total Proved 169.3 192.9 178.7…
  6. STIFEL NICOLAUS – PDC Energy, Inc. – slide 6
    Production by Area AREA (Boe/d) 2011 2012 2013E 2012 Commodity Mix Wattenberg 10,630 12,180 15,038 Utica - - 1,074 Oil 25% Marcellus / Other 2,019 2,820 3,784 Piceance 6,186 6,126 - Gas 65% NGLs NECO/ Other 1,715 1,467 - 10%…
  7. STIFEL NICOLAUS – PDC Energy, Inc. – slide 7
    Lease Operating Expense FY 2012 2013E Q1 2013 Direct Well Expense (/Boe) 3.03 2.74 2.09 Workover Expense (/Boe) 0.41 0.40 0.29 Indirect Well Expense (/Boe) 1.67 1.74 2.10 Lifting Cost (/Boe) 5.11 4.88 4.48 Lease Operating Expense…
  8. STIFEL NICOLAUS – PDC Energy, Inc. – slide 8
    Core Horizontal Wattenberg Added 3rd drilling rig May 2013 Third largest leaseholder and producer 99,000 net acres(1) 70% - 80% liquids Typical EURs from 300 to 500 MBoe Excellent returns IRR of 40% - 140+%(2) 2,000 gross…
  9. STIFEL NICOLAUS – PDC Energy, Inc. – slide 9
    DJ Basin Stratigraphic Column Multiple Target Zones Current PDC Operations 2,300 net producing vertical wells 60+ producing horizontal wells Spud 35 gross (22 operated, 13 non-operated) horizontal wells YTD in Wattenberg field 3…
  10. STIFEL NICOLAUS – PDC Energy, Inc. – slide 10
    Wattenberg Project Inventory (1) Proved HZ Inventory 2P HZ Inventory(1) 3P HZ Inventory(1) 4 Gross wells per 640 Ac. 10 Gross wells per 640 Ac. 16 Gross wells per 640 Ac. Gross HZ Inventory: 382 (8 Niobrara, 2 Codell) (12…
  11. STIFEL NICOLAUS – PDC Energy, Inc. – slide 11
    Horizontal Production: Niobrara and Codell (2) EUR: 500 MBoe Capex: 4.2MM IRR(1): 140+% PV10: 7.5 MM EUR: 300 MBoe (2) Capex: 4.2MM IRR(1): 57% PV10: 3.2 MM (1) Flat Pricing: 90 NYMEX Oil, 3.50 NYMEX Gas. Excludes lease…
  12. STIFEL NICOLAUS – PDC Energy, Inc. – slide 12
    PDC Wattenberg Horizontal Program 6/13/2013 13
  13. STIFEL NICOLAUS – PDC Energy, Inc. – slide 13
    Horizontal Codell Development Strong Well Performance Shows Potential for Development Across Wattenberg Large exposure with nearly all acreage having horizontal Codell potential Eight producing Codell horizontals showing results…
  14. STIFEL NICOLAUS – PDC Energy, Inc. – slide 14
    Riteaway Pad: Codell and Niobrara A & C Bench 5N-67W-32 5N-67W-32 Map View Production (Boepd) 10,000 32 1,000 Vertical Well HZ Niobrara Stacked HZ Niobrara/ Codell 100 Side View Riteaway Pad Codell HZ Niobrara - C…
  15. STIFEL NICOLAUS – PDC Energy, Inc. – slide 15
    Waste Management Pad Fall 2013 2N-64W-2 Map View Side View 6/13/2013 16
  16. STIFEL NICOLAUS – PDC Energy, Inc. – slide 16
    3rd Party Midstream Expansion - Wattenberg One Bcfe per Day of Capacity Planned Plants and compression strategically placed around PDC acreage PDC Acreage 2013 Compressor Site Sullivan CS LaSalle plant (160 MMcf/d) start-up late…
  17. STIFEL NICOLAUS – PDC Energy, Inc. – slide 17
    Utica Leasehold and Asset Summary Dry Leasehold and asset summary Oil Wet Gas Condensate Gas 45,700 net acres PDCE - 2013 Boy Scout 1-33H IP: 3,456 boepd Wagner 1-28H 7 Planned Spuds on IP: 4,650 boepd Average 95% WI, 16%…
  18. STIFEL NICOLAUS – PDC Energy, Inc. – slide 18
    Utica Geologic Summary Hickenbottom Onega Commissioners Palmer A Belmont County Guernsey County Morgan County A Utica Pt. Pleasant Trenton Resistivity (ohm-m) 1,000 2,000+ 1,000 2,000+ 800 2,000 Rock Properties PDC…
  19. STIFEL NICOLAUS – PDC Energy, Inc. – slide 19
    Stiers 3-Well Pad Guernsey County PDCs first Utica multi-well pad 2D seismic lines through acreage Testing different reservoir entry points Drilled 5,000 ft. laterals Testing 1,000 ft. spacing between wells Evaluating…
  20. STIFEL NICOLAUS – PDC Energy, Inc. – slide 20
    Appalachian Basin - Marcellus PDCM Marcellus Acreage 116,750 net acres to PDC 47 Marcellus productive wells (32 Horizontal) 357 of 600 undeveloped horizontal Marcellus locations in 3-county focus area of West Virginia…
  21. STIFEL NICOLAUS – PDC Energy, Inc. – slide 21
    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:…
  22. STIFEL NICOLAUS – PDC Energy, Inc. – slide 22
    2013 Capital Budget Pro-Forma for Colorado Asset Sale 2013 Capex Budget by Region Operated Capital Budget Horizontal Area Horizontal (MM) New Drills Rigs 63% 22% Wattenberg 280(1) 2.5 69 Utica 96 1 11 13% 2% Other 10 -…
  23. STIFEL NICOLAUS – PDC Energy, Inc. – slide 23
    Strong Balance Sheet PDC has Maintained Relatively Low Leverage and Strong Liquidity Conservative Leverage Strong Liquidity (1) (MM) 4.0x 60% 600 50% 51% 49% 509 45% 50% 500 3.0x 3.4x 33% 3.1x 3.1x 40% 384 376 2.8x 400 357 2.0x…
  24. STIFEL NICOLAUS – PDC Energy, Inc. – slide 24
    Crude Oil and Natural Gas Hedges Hedges in Place as of March 31, 2013 Pro-forma for Non-Core Colorado natural gas assets divestiture. Crude Oil (includes NGL) 2013 2014 2015 (1) NYMEX Average 96.60 93.21 89.65 Weighted-Average…
  25. STIFEL NICOLAUS – PDC Energy, Inc. – slide 25
    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…
  26. STIFEL NICOLAUS – PDC Energy, Inc. – slide 26
    Investor Relations Mike Edwards, Senior Director Investor Relations michael.edwardspdce.com Marti Dowling, Investor Relations Manager marti.dowlingpdce.com Corporate Headquarters PDC Energy, Inc. 1775 Sherman Street Suite 3000…
  27. STIFEL NICOLAUS – PDC Energy, Inc. – slide 27
    APPENDIX 6/13/2013 28
  28. STIFEL NICOLAUS – PDC Energy, Inc. – slide 28
    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 0%…
  29. STIFEL NICOLAUS – PDC Energy, Inc. – slide 29
    Significant 3P Reserves Growth (MMBoe) Large Gains in 3P Reserves Excluding Utica Potential Development of Wattenberg continues to add significant 3P reserves to PDCs portfolio Continued delineation of the horizontal Codell…
  30. STIFEL NICOLAUS – PDC Energy, Inc. – slide 30
    Wattenberg Marketing Netbacks Calculated After Gathering, Processing, POP Contracts, and Other Fees Expect access to Mt. Belvieu NGL market in 2014 via Front Range Pipeline NGL recoveries should improve as additional cryogenic…
  31. STIFEL NICOLAUS – PDC Energy, Inc. – slide 31
    Utica Marketing Netbacks Calculated After Gathering, Processing, POP Contracts, and Other Fees Current natural gas and NGL sales coming from refrigeration processing skid at location Long-term midstream services in Guernsey Co. via…
  32. STIFEL NICOLAUS – PDC Energy, Inc. – slide 32
    PDCM Marcellus Netbacks & Midstream Continuing Building Large Diameter, High Pressure Midstream Solutions for Marcellus Acreage Existing pipeline 18 miles of 812 diameter 2013 Construction 3.5 miles of 16 diameter 2014…

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