PDC Energy - Q4 Results

[dan_s]

DENVER, Feb. 26, 2018 (GLOBE NEWSWIRE) -- PDC Energy, Inc. ("PDC" or the "Company") (NASDAQ:PDCE) today reported its 2017 full-year and fourth quarter operating and financial results.

2017 Highlights
•Year-over-year production increase of 44 percent to 31.8 million barrels of oil equivalent (MMBoe) or approximately 87,200 Boe per day with a December exit rate of approximately 97,000 Boe per day. < Total production slightly below my forecast, but crude oil production was above my forecast.

•Oil production of 12.9 million barrels (MMBbls), representing 41 percent of total production.

•Increase in proved reserves of 33 percent to 453 MMBoe, with all-sources reserve replacement of approximately 450 percent, driven primarily through an increase in Delaware Basin proved reserves to nearly 100 MMBoe.

•Strategically created three consolidated development positions in the Wattenberg Field through the acquisition of approximately 7,400 net acres and closings of two significant acreage exchanges.

•Full-year capital investments of approximately $790 million with a year-end leverage ratio, as defined by the Company's revolving credit agreement, of 1.9 times.

•Net cash from operating activities of approximately $590 million, a 21 percent increase compared to 2016 levels of approximately $485 million. < $15 million above my forecast

•Year-end liquidity of $881 million, including $181 million of cash and cash equivalents as of December 31, 2017. Liquidity, pro forma for the January 2018 acquisition of Bayswater Exploration and Production, LLC ("Bayswater Acquisition") closing, was approximately $700 million.

•Successfully issued $600 million of 5.75% senior notes due 2026, the proceeds of which were used to redeem $500 million of 7.75% senior notes due 2022, partially fund the Bayswater Acquisition and for general corporate purposes.

CEO Commentary

President and Chief Executive Officer, Bart Brookman commented, "The fourth quarter was a great way for us to end another extremely successful year, while also serving as a spring board into 2018. Our Delaware Basin team continues to improve our operational execution and build positive momentum. This is highlighted by improvements in our drill times, our ability to deliver truly impressive well results and strong production growth for numerous quarters. In Wattenberg, our team anxiously awaits the upcoming midstream expansion and the opportunity to unbundle our production."

"In 2018, we are once again focused on delivering tremendous returns to our shareholders with development in two of the most economic plays in the industry. Financially, the Company expects to operate in a cash flow positive environment in the second half of the year while simultaneously expecting to improve our leverage ratio to approximately 1.4 times by year-end."