DENVER, Jan. 20, 2016 (GLOBE NEWSWIRE) — PDC Energy, Inc. (“PDC,” the “Company,” “we” or “us”) (NASDAQ:PDCE) today reported year-end 2015 proved reserves and full-year production.
Year-End 2015 Highlights
CEO Commentary
Bart Brookman, President and Chief Executive Officer, commented, “Our ability to high-grade our development plan and increase proved reserves in the current price environment is a true testament to the depth, quality and resilience of our middle core Wattenberg inventory. We had tremendous 2015 production of approximately 15.4 MMBoe, highlighted by our ability to drive efficiencies from a cost, operating and technological standpoint. Our top priority for 2016 is maintaining our solid balance sheet and strong debt metrics. We believe our flexible and efficient Wattenberg drilling program positions us to continue to deliver long-term shareholder value.”
2015 Proved Reserves
PDC’s total proved reserves as of December 31, 2015 increased 9% to 272.8 MMBoe compared to 250.1 MMBoe reported at year-end 2014 and were 60% liquid, 40% natural gas and 26% proved developed. The growth in proved reserves was primarily a result of the increased well-density of PUD locations in the Company’s middle core Wattenberg that allowed for the subsequent optimization of the Company’s five-year development plan. Total gross PUD locations in Wattenberg increased to approximately 790.
PDC’s independent reserve engineering firm, Ryder Scott Company, L.P., completed its estimate of the Company’s year-end 2015 proved reserves in accordance with Securities and Exchange Commission (“SEC”) guidelines using NYMEX prices of $50.28 per barrel (“Bbl”) for crude oil and $2.59 per million British Thermal Units (“MMBtu”) for natural gas, before adjustments for energy content, quality, midstream fees, and basis differentials.
The value of the Company’s proved reserves, discounted at ten percent and before tax (“PV10”), decreased to $1.3 billion as of December 31, 2015 compared to $3.5 billion as of year-end 2014. The decrease in PV10 is primarily a result of a 47% and 41% decrease in the average NYMEX oil and gas price, respectively.
2015 Year-End Proved Reserves Summary |
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Proved Reserves (MMBoe) |
BTAX PV-10 ($MM) |
BTAX PV-10 ($/Boe) |
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Beginning balance at December 31, 2014 | 250.1 | $ | 3,450 | $ | 13.80 | ||||
Drilling, extensions, additions and revisions | 38.1 | ||||||||
2015 production from continuing operations | (15.4 | ) | |||||||
Ending balance at December 31, 2015 | 272.8 | $ | 1,337 | $ | 4.90 | ||||
The Company has stress-tested its proved reserves to determine the impact of lower crude oil prices. Replacing the 2015 SEC NYMEX crude oil prices with those shown in the table below, and leaving all other parameters unchanged, results in a decrease in PDC’s total proved reserves of 6% or less.
2015 Year-End Proved Reserves Price Stress Test |
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Pricing Scenario – NYMEX |
Proved Reserves (MMBoe) |
Changes from SEC Reserves |
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$50.28/Bbl, $2.59/MMBtu (SEC) | 272.8 | – | ||
$40.00/Bbl, $2.59/MMBtu | 266.1 | (2 | %) | |
$30.00/Bbl, $2.59/MMBtu | 256.5 | (6 | %) | |
Operational Update
PDC’s full-year 2015 production was approximately 15.4 MMBoe or 42,100 Boe per day, a 65% increase compared to 2014 production. The Company continues to see encouraging results related to increased drilling efficiency, completion technology and reduced line pressure in the Wattenberg Field. In the fourth quarter, the Company turned-in-line 43 horizontal wells, including the 13 well Rieder project testing 26 wells per section-equivalent spacing.
Upcoming Investor Presentations
PDC is scheduled to present at the Credit Suisse Energy Summit in Vail, Colorado on February 23, 2016. Please see the Company’s website at www.pdce.com for details and webcast information. The related slide presentation is expected to be available on the Company’s website immediately prior to the events.
Analyst Day
The Company plans to host an Analyst Day on Thursday, April 7, 2016 at the Brown Palace Hotel in Denver, Colorado. PDC also plans to webcast the event.
About PDC Energy, Inc.
PDC Energy, Inc. is a domestic independent exploration and production company that produces, develops, acquires and explores for crude oil, natural gas and NGLs with primary operations in the Wattenberg Field in Colorado and in the Utica Shale in southeastern Ohio. Our operations in the Wattenberg Field are focused on the liquid-rich horizontal Niobrara and Codell plays and our Ohio operations are focused in the condensate and wet gas portion of the Utica Shale play. PDC is included in the S&P SmallCap 600 Index and the Russell 2000 Index of Companies.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding PDC’s business, financial condition, results of operations and prospects. All statements other than statements of historical facts included in and incorporated by reference into this release are forward-looking statements. Words such as expects, forecast, guidance, anticipates, intends, plans, believes, seeks, estimates, will and similar expressions or variations of such words are intended to identify forward-looking statements herein, which may include statements regarding PDC’s 2015 proved reserves, PDC’s future production (including the commodity mix of such production) and development plan; rates of return on projects; future costs and financial conditions; per well reserves and performance; anticipated cost savings and efficiencies; anticipated impairments; future debt metrics; and management’s strategies, plans and objectives. However, these are not the exclusive means of identifying forward-looking statements herein. Although forward-looking statements contained in this press release reflect the Company’s good faith judgment, such statements can only be based on facts and factors currently known to PDC. Consequently, forward-looking statements are inherently subject to risks and uncertainties, including risks and uncertainties incidental to the exploration for, and the acquisition, development, production and marketing of natural gas and oil, and actual outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to:
Further, PDC urges you to carefully review and consider the cautionary statements made in this press release and the Company’s filings with the SEC for further information on risks and uncertainties that could affect the Company’s business, financial condition and results of operations, which are incorporated by this reference as though fully set forth herein. The Company cautions you not to place undue reliance on the forward-looking statements, which speak only as of the date hereof. PDC undertakes no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this release or currently unknown facts or conditions or the occurrence of unanticipated events. All forward-looking statements are qualified in their entirety by this cautionary statement.
Before tax PV-10 is a non-GAAP measure and is different than the standard measure of discounted future net cash flows (“standardized measure”), which measure will be presented in PDC’s upcoming Annual Report on Form 10-K, in that before tax PV-10 is a pre-tax number, while standardized measure includes the effect of estimated future income taxes. Estimates of non-proved reserves, including 3P reserves, are based on more limited information, and are subject to significantly greater risk of not being produced than proved reserves.
CONTACT: Contacts: Michael Edwards Senior Director Investor Relations 303-860-5820 michael.edwards@pdce.com Kyle Sourk Manager Investor Relations 303-318-6150 kyle.sourk@pdce.com