PDC Energy - Valuation Adjusted

[dan_s]

I have updated my profile on PDC Energy. This may sound weird, but I have lowered my valuation by $5/share to $87.00 even though I feel better about the company today. First Call's price target is $76.58.

PDCE issued more shares for the Permian Basin acquisition that they announced on August 23rd. The dilution lowered their cash flow per share, which impacts my valuation. I actually feel better about PDCE because the new Permian Basin "Core Area" gives it a lot more long-term potential. After the deal closes in the 4th quarter and they raise their production guidance, I will probably feel justified in using a higher multiple of CFPS to value it.

PCDE should also get a boost from the fact that the two initiatives that would have shutdown drilling in Colorado have been kicked out due to not having enough valid signatures.

PDCE has a lot of upside for us. Read the profile carefully and I think you will agree.

[dan_s]

August 30: SEAPORT GLOBAL UPGRADES PDC ENERGY TO BUY

[setliff]

what is wrong with pdce? upgrades all over the place--latest today a reiteration at stifel and it is down >$1

[dan_s]

Dilution caused by the stock offering, but IMO it is a Screaming Buy at today's price. The team at PDCE is really good.