PDC Energy (PDCE) Update - Nov 9
Posted: Mon Nov 09, 2020 3:26 pm
This is good news from PDC Energy:
"In September and October, PDC received COGCC approval related to 32 future wells. This inventory is located on four surface locations (Form 2A’s) averaging approximately ten building units within 2,000 feet and 750 feet to the nearest building unit. The Company expects to exit 2020 with approximately 23 approved surface permits comprising approximately 275 future horizontal drilling locations as well as an additional 200 DUC wells. The approximately 475 combined locations equate to nearly four years of future completion activity at the Company’s current pace."
"In the fourth quarter of 2020, the Company has approximately 4.1 million Bbls of oil hedges at a weighted-average floor price of approximately $58 per Bbl. The Company’s remaining swaps and costless collars represent approximately 70 percent of its projected oil volumes through year-end. Approximately 40 percent of the Company’s estimated gas production in the fourth quarter of 2020 is protected by floors at approximately $2 per Mcf. PDC’s 2021 hedge positions protect nearly 45 percent of its estimated oil volumes and 55 percent of its projected natural gas volumes at weighted-average floor prices of approximately $45 per barrel and $2.45 per Mcf, respectively."
PDCE is generating lots of free cash flow from operations today and it has a lot of upside for us.
"In September and October, PDC received COGCC approval related to 32 future wells. This inventory is located on four surface locations (Form 2A’s) averaging approximately ten building units within 2,000 feet and 750 feet to the nearest building unit. The Company expects to exit 2020 with approximately 23 approved surface permits comprising approximately 275 future horizontal drilling locations as well as an additional 200 DUC wells. The approximately 475 combined locations equate to nearly four years of future completion activity at the Company’s current pace."
"In the fourth quarter of 2020, the Company has approximately 4.1 million Bbls of oil hedges at a weighted-average floor price of approximately $58 per Bbl. The Company’s remaining swaps and costless collars represent approximately 70 percent of its projected oil volumes through year-end. Approximately 40 percent of the Company’s estimated gas production in the fourth quarter of 2020 is protected by floors at approximately $2 per Mcf. PDC’s 2021 hedge positions protect nearly 45 percent of its estimated oil volumes and 55 percent of its projected natural gas volumes at weighted-average floor prices of approximately $45 per barrel and $2.45 per Mcf, respectively."
PDCE is generating lots of free cash flow from operations today and it has a lot of upside for us.