Energy Prospectus

PDCE closed today at $53.02. My valuation is $90.00 per share.

DENVER, Dec. 07, 2021 (GLOBE NEWSWIRE) -- PDC Energy, Inc. (“PDC” or the “Company”) (Nasdaq:PDCE) announced today that its Board of Directors declared a special dividend of $0.50 per share in addition to a quarterly cash dividend of $0.12 per share on PDC’s outstanding common stock. The dividends are payable on December 29, 2021 to stockholders of record at the close of business on December 17, 2021.

PDC’s total 2021 shareholder returns, consisting of share repurchases and base dividend payments through November 30 and the anticipated dividend payments in December, equate to approximately $210 million. The Company maintains an active share repurchase program and expects to consistently repurchase shares through year-end.

President and CEO Bart Brookman commented, “PDC has had a tremendous year as evidenced by anticipated 2021 free cash flow of more than $900 million. Through intense focus on further strengthening our balance sheet, we expect our year-end 2021 debt balance to reflect a reduction of more than 40 percent compared to year-end 2020. I’m pleased the Board of Directors has approved our quarterly base dividend of $0.12 per share and a special dividend of $0.50 per share to ensure we meet our 2021 shareholder return commitment of more than $210 million. PDC is now positioned for significant – and sustainable – shareholder returns in the coming years in which we expect a growing base dividend to serve as the foundation.”

About PDC Energy, Inc.

PDC Energy, Inc. is a domestic independent exploration and production company that acquires, explores and develops properties for the production of crude oil, natural gas and NGLs, with operations in the Wattenberg Field in Colorado and Delaware Basin in west Texas. Its operations in the Wattenberg Field are focused in the horizontal Niobrara and Codell plays and our Delaware Basin operations are primarily focused in the horizontal Wolfcamp zones.

Stifel's take:

PDC Energy (PDCE, $53.02, Buy; Target $80.00)
Achieving Shareholder Return Goal With Special Dividend - Michael S. Scialla
As telegraphed with its 3Q21 release, PDCE announced a 4Q21 $50 million special dividend (on top of a $12 million 4Q21 base dividend) to ensure that it achieves its 2021 shareholder return goal of more than $210 million. Through 3Q21 the company had returned ~$137 million to shareholders consisting of $24 million in base dividends and $113 million in share repurchases. While some investors may have preferred share repurchases, which arguably have a longer-term share price impact than a special dividend, PDCE's FCF and dividend yields rank among the best in our mid-cap oil group. In addition, PDCE noted that 4Q21 repurchases will contribute to the 2021 shareholder return although limitations with the existing program prevented repurchases from satisfying the entire capital commitment balance.

Truist Financial

PDC Energy, Inc. (PDCE, $53.02, Buy) - Following Through
on Shareholder Return Promise - PDCE made good on its
prior shareholder return guide by announcing the substitute
payment in the form of a special dividend of $0.50/share or ~
$50mm official, supplementing its buyback program’s activity
after running into constraints to hit its FY21 goal. Given the
lower than group multiple that the Colorado E&Ps maintain
resulting in discounted equity values, we expect the special
dividend to be rather one-time in nature, as we believe the
management teams will continue to view their discounts as
temporary buying opportunities favoring repurchases over other
forms of shareholder returns. - Neal Dingmann