PDC Energy (PDCE) Update - June 9
Posted: Thu Jun 09, 2022 12:03 pm
This is why PDCE is up today.
DENVER, June 08, 2022 (GLOBE NEWSWIRE) -- PDC Energy, Inc. (“PDC” or the “Company”) (Nasdaq: PDCE) announced today that the Colorado Oil and Gas Conservation Commission (“COGCC”) approved the Company’s Kenosha Oil & Gas Development Plan (“OGDP”) permit application. The Kenosha OGDP, which encompasses 69 wells on three pads in rural Weld County, Colorado, marks an important next step as PDC further increases its permitted inventory by another rig year and solidifies drilling and completion activity well into 2024. The Company will soon have over 550 permits and drilled and uncompleted wells (“DUCs”).
David Lillo, Senior Vice President of Operations, commented, “PDC has demonstrated its leadership with our stakeholders in the community and regulatory agencies with the Kenosha OGDP approval. Our team has done a tremendous job working with COGCC leadership and staff and we appreciate the collaborative relationship we have with them as we permit under the new regulations. Kenosha is the second OGDP we have had approved and we look forward to further approvals with our Guanella Comprehensive Area Plan, Broe and other OGDPs.”
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 its Delaware Basin operations are primarily focused in the horizontal Wolfcamp zones.
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This justifies a higher valuation multiple for PDCE. My $153/share current valuation is based on just 5.5 X annualized operating cash flow. "Running Room" is one of factors in coming up with a valuation multiple that I think is appropriate for each company. PDCE has some "political risk" because Democrats run Colorado, where most of their production and "running room" is. However, Colorado Democrats are much smarter than the average elected Democrat. They know how important upstream oil & gas companies are to their economy.
Since PDCE is still trading below $90, I will hold off on increasing my valuation until the Company releases Q2 results and more detailed guidance for 2H 2022. The Great Western Acquisition closed on May 6th. It increased PDC's production by ~25%, to more than 250,000 Boepd.
DENVER, June 08, 2022 (GLOBE NEWSWIRE) -- PDC Energy, Inc. (“PDC” or the “Company”) (Nasdaq: PDCE) announced today that the Colorado Oil and Gas Conservation Commission (“COGCC”) approved the Company’s Kenosha Oil & Gas Development Plan (“OGDP”) permit application. The Kenosha OGDP, which encompasses 69 wells on three pads in rural Weld County, Colorado, marks an important next step as PDC further increases its permitted inventory by another rig year and solidifies drilling and completion activity well into 2024. The Company will soon have over 550 permits and drilled and uncompleted wells (“DUCs”).
David Lillo, Senior Vice President of Operations, commented, “PDC has demonstrated its leadership with our stakeholders in the community and regulatory agencies with the Kenosha OGDP approval. Our team has done a tremendous job working with COGCC leadership and staff and we appreciate the collaborative relationship we have with them as we permit under the new regulations. Kenosha is the second OGDP we have had approved and we look forward to further approvals with our Guanella Comprehensive Area Plan, Broe and other OGDPs.”
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 its Delaware Basin operations are primarily focused in the horizontal Wolfcamp zones.
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This justifies a higher valuation multiple for PDCE. My $153/share current valuation is based on just 5.5 X annualized operating cash flow. "Running Room" is one of factors in coming up with a valuation multiple that I think is appropriate for each company. PDCE has some "political risk" because Democrats run Colorado, where most of their production and "running room" is. However, Colorado Democrats are much smarter than the average elected Democrat. They know how important upstream oil & gas companies are to their economy.
Since PDCE is still trading below $90, I will hold off on increasing my valuation until the Company releases Q2 results and more detailed guidance for 2H 2022. The Great Western Acquisition closed on May 6th. It increased PDC's production by ~25%, to more than 250,000 Boepd.