PDC Energy (PDCE) - Updates Proved Reserves
Posted: Thu Feb 22, 2018 4:20 pm
Highlights:
Year-end 2017 proved reserves of 452.9 million barrels of oil equivalent (“MMBoe”), an approximate 33% increase over year-end 2016 proved reserves with estimated all-sources reserve replacement of 450%.
Proved reserves of 97.9 MMBoe in the Delaware Basin, an increase of 65.4 MMBoe or 200% from year-end 2016.
Before-tax SEC PV10 of the year-end 2017 reserves of $3.2 billion, an increase of approximately 92% from year-end 2016.
Anticipated 2017 production of 31.8 MMBoe, a 44% increase over 2016, with estimated 2017 oil production of 12.9 MM barrels, a 48% increase over 2016.
Anticipated fourth quarter 2017 oil production of over 40,400 barrels per day, an 8% increase over third quarter 2017. < Compares to my forecast of 39,500 BOPD in Q4
Anticipated December 2017 production exit rate of 97,000 barrels of oil equivalent (“Boe”) per day.
Anticipated 2017 capital investment of approximately $790 million.
CEO Commentary
Bart Brookman, President and Chief Executive Officer, commented, “We were very pleased with the strong reserve growth in both Wattenberg and Delaware. Overall, our year-end 2017 proved reserves increased 33% over year-end 2016 to 453 MMBoe. The key driver was our Delaware assets, which grew to nearly 100 MMBoe. We continue to place the highest priority on operational execution and we are seeing measured improvement in our Delaware performance.
“Given the midstream constraints in Wattenberg, we are pleased with our full-year 2017 production of 31.8 MMBoe, compared to our guidance of approximately 32 MMBoe. We are particularly pleased with oil production that came in slightly above expectations. These higher oil volumes were attributable to strong results in Delaware, and in particular, in our Eastern acreage block. Our operating teams in both basins managed capital investments effectively, as our full-year 2017 capital spending came in below our guidance of $800 million.”
2017 Proved Reserves
PDC’s total proved reserves as of December 31, 2017 increased 33% to 452.9 MMBoe compared to 341.4 MMBoe reported at year-end 2016. The composition of the reserves at the end of 2017 were 58% liquids and 42% natural gas, with 32% of the reserves classified as proved developed. Year-end 2016 reserves were 59% liquid, 41% natural gas, and 29% proved developed. Proved reserves in the Wattenberg Field increased 15% to 350.8 MMBoe, while proved reserves in the Delaware Basin increased over 200% to 97.9 MMBoe. The Company’s year-end 2017 proved reserves include its Utica Shale assets, which it expects to divest in the first quarter of 2018, but excludes assets acquired in the Wattenberg Field from Bayswater Exploration & Production, LLC that closed in January 2018.
Year-end 2017 proved reserves of 452.9 million barrels of oil equivalent (“MMBoe”), an approximate 33% increase over year-end 2016 proved reserves with estimated all-sources reserve replacement of 450%.
Proved reserves of 97.9 MMBoe in the Delaware Basin, an increase of 65.4 MMBoe or 200% from year-end 2016.
Before-tax SEC PV10 of the year-end 2017 reserves of $3.2 billion, an increase of approximately 92% from year-end 2016.
Anticipated 2017 production of 31.8 MMBoe, a 44% increase over 2016, with estimated 2017 oil production of 12.9 MM barrels, a 48% increase over 2016.
Anticipated fourth quarter 2017 oil production of over 40,400 barrels per day, an 8% increase over third quarter 2017. < Compares to my forecast of 39,500 BOPD in Q4
Anticipated December 2017 production exit rate of 97,000 barrels of oil equivalent (“Boe”) per day.
Anticipated 2017 capital investment of approximately $790 million.
CEO Commentary
Bart Brookman, President and Chief Executive Officer, commented, “We were very pleased with the strong reserve growth in both Wattenberg and Delaware. Overall, our year-end 2017 proved reserves increased 33% over year-end 2016 to 453 MMBoe. The key driver was our Delaware assets, which grew to nearly 100 MMBoe. We continue to place the highest priority on operational execution and we are seeing measured improvement in our Delaware performance.
“Given the midstream constraints in Wattenberg, we are pleased with our full-year 2017 production of 31.8 MMBoe, compared to our guidance of approximately 32 MMBoe. We are particularly pleased with oil production that came in slightly above expectations. These higher oil volumes were attributable to strong results in Delaware, and in particular, in our Eastern acreage block. Our operating teams in both basins managed capital investments effectively, as our full-year 2017 capital spending came in below our guidance of $800 million.”
2017 Proved Reserves
PDC’s total proved reserves as of December 31, 2017 increased 33% to 452.9 MMBoe compared to 341.4 MMBoe reported at year-end 2016. The composition of the reserves at the end of 2017 were 58% liquids and 42% natural gas, with 32% of the reserves classified as proved developed. Year-end 2016 reserves were 59% liquid, 41% natural gas, and 29% proved developed. Proved reserves in the Wattenberg Field increased 15% to 350.8 MMBoe, while proved reserves in the Delaware Basin increased over 200% to 97.9 MMBoe. The Company’s year-end 2017 proved reserves include its Utica Shale assets, which it expects to divest in the first quarter of 2018, but excludes assets acquired in the Wattenberg Field from Bayswater Exploration & Production, LLC that closed in January 2018.