PDC Energy Update - Feb 11

[dan_s]

Everything matches up with or better than my forecast/valuation model. I will update my forecast for PDCE tomorrow after our luncheon at The Hess Club. My valuation of $74.00/share looks good. - Dan
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DENVER, Feb. 11, 2019 (GLOBE NEWSWIRE) -- PDC Energy, Inc. ("PDC" or the "Company") (PDCE) today reported its 2018 full-year production and year-end SEC proved reserves, as well as its production and capital investment guidance for 2019.

2018 Highlights:

•Full-year 2018 oil and gas capital investment of approximately $985 million, generating a year-over-year production increase of 26% to 40.2 million barrels of oil equivalent (“MMBoe”).

•Full-year 2018 oil production increased 32% year-over-year to approximately 17.0 million barrels.

•Fourth quarter 2018 production of approximately 11.8 MMBoe with a December exit rate of approximately 130,000 Boe per day.

•Year-end 2018 proved reserves of 545 MMBoe, an approximate 20% increase over year-end 2017 levels with an estimated all-sources reserve replacement of 330%.

•Before-tax SEC PV10 of year-end 2018 reserves of $5.3 billion, an increase of approximately 66% compared to year-end 2017.

2019 Guidance Highlights:

•Operating plan designed around the prioritization of delivering strong debt-adjusted per-share metrics and free cash flow generation utilizing a flat $50 WTI oil and $3 NYMEX gas price deck.

•Anticipated capital investments of $810 to $870 million, a reduction of approximately $150 million compared to 2018. Approximately $40 million of capital associated with Delaware midstream is included in the full-year capital range; however, a portion of this investment is expected to be recouped through the ongoing divestiture process, which is expected to be executed in the first half of 2019.

•Project generating free cash flow from oil and gas operations, excluding corporate capital, of approximately $25 million at $50 oil.

•Year-over-year production growth of approximately 20% to an estimated 46 to 50 MMBoe.

CEO Commentary

“Our team performed extremely well in 2018, overcoming several hurdles that were largely out of our direct control while maintaining our high standard of safe, reliable operations,” said President and Chief Executive Officer, Bart Brookman.

Brookman added, “The industry is clearly faced with a new set of operational and financial expectations and I applaud our team’s resolve in creating a plan that mirrors our strategic priorities and commitment to generating free cash flow at $50 WTI oil prices. I’m extremely pleased that our 2019 plan is focused on capital discipline as seen through an approximate $150 million reduction in our capital investments as well as an expected 15 percent reduction in our combined LOE and G&A costs per Boe compared to 2018. These achievements highlight the strength of our portfolio and ability to drive value for our shareholders.”