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GHS 100 ENERGY CONFERENCE – PDC Energy, Inc.

PDC Energy, Inc. · Jun 25, 2013 · 31 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. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 1
    GHS 100 ENERGY CONFERENCE JUNE 25, 2013 NASDAQ:PDCE
  2. GHS 100 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 Proved reserves 179 MMBoe(2) WATTENBERG UTICA Liquid- Rich 48% liquids, 42% proved…
  3. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 3
    Organic Investment Opportunities WATTENBERG UTICA APPALACHIAN BASIN 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 -…
  4. GHS 100 ENERGY CONFERENCE – 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. GHS 100 ENERGY CONFERENCE – 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. GHS 100 ENERGY CONFERENCE – 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. GHS 100 ENERGY CONFERENCE – 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. GHS 100 ENERGY CONFERENCE – 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. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 9
    DJ Basin Stratigraphic Column Multiple Target Zones Current PDC Operations 2,300 net producing vertical wells 65+ producing horizontal wells Spud 35 gross (22 operated, 13 non-operated) horizontal wells YTD in Wattenberg field 3…
  10. GHS 100 ENERGY CONFERENCE – 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. GHS 100 ENERGY CONFERENCE – 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. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 12
    PDC Wattenberg Horizontal Program Riteaway Pad Waste Management Section 6/25/2013 13
  13. GHS 100 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. GHS 100 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, 57% HBP PDCE - 2013 Boy Scout 1-33H IP: 3,456 boepd Wagner 1-28H 7 Planned Spuds on IP: 4,650 boepd Average 95% WI,…
  15. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 15
    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…
  16. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 16
    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:…
  17. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 17
    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 -…
  18. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 18
    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…
  19. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 19
    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…
  20. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 20
    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…
  21. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 21
    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…
  22. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 22
    APPENDIX 6/25/2013 23
  23. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 23
    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…
  24. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 24
    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…
  25. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 25
    Waste Management Section Fall 2013 2N-64W-2 Map View 4-well pad 8-well pad Side View 6/25/2013 26
  26. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 26
    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…
  27. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 27
    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…
  28. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 28
    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…
  29. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 29
    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%…
  30. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 30
    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…
  31. GHS 100 ENERGY CONFERENCE – PDC Energy, Inc. – slide 31
    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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