PDC Energy (PDCE) Update - May 25
Posted: Tue May 25, 2021 1:09 pm
I just finished my review of the updated PDC Energy profile. It will be posted to the EPG website this afternoon.
PDCE is currently trading at $40.13 at the time of this post.
My valuation is now $62.00
PDC does have some "Bad Hedges" to work off, but higher NGL prices are offsetting a large chunk of that issue.
PDC is primarily a DJ Basin company with a second core area in the Delaware Basin.
My 2021 operating cash flow forecast of $1,443.4 million compares to their 2021 CapEx budget of $500 to $600 million, so over $800 million of FCF this year.
They are already funding a stock repurchase program and they will start paying a dividend later this year.
To hit the mid-point of their production guidance (195,000 Boepd), PDC will be reporting significant increases in production each quarter.
I like the production mix of approximately 34% crude oil, 25% NGLs and 41% natural gas.
PDCE is currently trading at $40.13 at the time of this post.
My valuation is now $62.00
PDC does have some "Bad Hedges" to work off, but higher NGL prices are offsetting a large chunk of that issue.
PDC is primarily a DJ Basin company with a second core area in the Delaware Basin.
My 2021 operating cash flow forecast of $1,443.4 million compares to their 2021 CapEx budget of $500 to $600 million, so over $800 million of FCF this year.
They are already funding a stock repurchase program and they will start paying a dividend later this year.
To hit the mid-point of their production guidance (195,000 Boepd), PDC will be reporting significant increases in production each quarter.
I like the production mix of approximately 34% crude oil, 25% NGLs and 41% natural gas.