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RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc.

PDC Energy, Inc. · Jun 4, 2013 · 32 slides

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Slides

  1. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 1
    RBC GLOBAL ENERGY CONFERENCE JUNE 4, 2013 NASDAQ:PDCE
  2. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 2
    Company Overview NASDAQ: PDCE Market cap 1.6 Billion(1) Strategic Core Areas Enterprise value 2.3 Billion(1) Colorado and Appalachian Basin WATTENBERG Liquid- UTICAAPPALACHIAN BASIN Proved reserves 179 MMBoe(2) Rich 2013E…
  3. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 3
    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…
  4. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 4
    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…
  5. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 5
    Production by Area AREA (Boe/d) 2011 2012 2013E Q1 2013 2012 Commodity Mix Wattenberg 10,630 12,180 15,038 5,489 Utica - - 1,074 392 Oil 25% Marcellus / Other 2,019 2,820 3,784 1,381 Piceance 6,186 6,126 - - Gas 65% NGLs NECO/…
  6. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 6
    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…
  7. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 7
    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…
  8. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 8
    Wattenberg Field Stratigraphic Column Multiple Target Zones Current PDC Horizontal Program Data Drilling 3 to 5 wells per pad 4,000 average lateral length 16 - 20 frac stages per well Drill time of 12 - 15 days spud to spud…
  9. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 9
    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…
  10. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 10
    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…
  11. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 11
    Horizontal Niobrara Performance Continued Delineation of Core Wattenberg OUTER CORE Stable GOR: 3.6 Mcf/Bbl INNER CORE Stable GOR: 10 Mcf/Bbl MIDDLE CORE Stable GOR: 9 Mcf/Bbl 6/4/2013 12
  12. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 12
    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…
  13. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 13
    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…
  14. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 14
    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%…
  15. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 15
    Utica Cross Section Oil Wet Gas Condensate Dry A Palmer Onega Commisioners A Hickenbottom Gas Morgan County Guernsey County Belmont County A A Resistivity 800 2,000 1,000 2,000+ 1,000 2,000+ (Ohms) Porosity 6 - 11% 6 -…
  16. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 16
    Appalachian Basin - Marcellus PDCM Marcellus Acreage Marcellus Overview Gross Productive Wells 47 Horizontal 32 Vertical 15 Net Acreage (Full JV) 125,250 West Virginia 116,250 Pennsylvania 9,000 Undeveloped Locations Core…
  17. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 17
    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:…
  18. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 18
    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…
  19. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 19
    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…
  20. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 20
    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…
  21. RBC GLOBAL ENERGY 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. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 22
    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 marti.dowlingpdce.com Corporate…
  23. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 23
    Appendix 6/4/2013 24
  24. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 24
    Adjusted EBITDA Reconciliation From Net Cash From Operating Activities & PV-10 Reconciliation in millions, except share and per share data Year Ended December 31, 2012 2011 Net cash from operating activities 174.7 166.8 Interest…
  25. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 25
    Adjusted EBITDAX Reconciliation in millions Full Year Full Year Full Year 2010 2011 2012 Net Income (loss) attributable to shareholders 6.2 13.4 (130.7) (1) Unrealized loss (gain) on derivatives, net (12.6) (28.6) 17.1…
  26. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 26
    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…
  27. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 27
    Waste Management Pad Fall 2013 2N-64W-2 Map View Side View 6/4/2013 28
  28. RBC GLOBAL ENERGY CONFERENCE – PDC Energy, Inc. – slide 28
    Utica Target Economics: Liquid-Rich Window & the Future IRR: (1) Flat Pricing: 90 NYMEX Oil, 3.50 NYMEX Gas; excludes lease acquisition and corporate-level costs Utica Type Curves 10,000 EUR: 750 MBoe Capex: 8.5MM IRR: 80%…
  29. RBC GLOBAL ENERGY CONFERENCE – 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. RBC GLOBAL ENERGY CONFERENCE – 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. RBC GLOBAL ENERGY CONFERENCE – 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. RBC GLOBAL ENERGY CONFERENCE – 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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