PDC Energy (PDCE) Update - Nov 8

dan_s · Post by **dan_s** » Mon Nov 08, 2021 5:27 pm

PDCE closed today at $58.52. It is up 185% YTD. First Call's price target is $64.31

PDC beat my Q3 forecast and they increased their Q4 production guidance.
I have updated my forecast/valuation model and I am raising my current valuation by $10 to $90/share, primarily because I am now giving 2021 and 2022 operating cash flow per share ($15.65 in 2021 and $20.35 in 2022) equal weight in my valuation.
I have also increased my valuation multiple from 4.75X to 5.0X annualized operating cash flow per share.
> PDC has raised their dividend and they have an aggressive share buyback underway.
> The balance sheet is in good shape.
> They have lots of high quality running room.

My forecast/valuation model will be posted to the EPG Home Page this evening.