PDC Energy Q2 Results
Posted: Tue Aug 09, 2016 11:32 am
PDC Energy Reports 2016 Second Quarter Financial and Operating Results Including 54% Production Increase; Raises Full-Year 2016 Production Guidance while Reducing Full-Year Capital
DENVER, Aug. 09, 2016 (GLOBE NEWSWIRE) -- PDC Energy, Inc. ("PDC", the "Company," "we" or "us") (NASDAQ:PDCE) today reported its 2016 second quarter financial and operating results and updated its full-year 2016 guidance.
2016 Second Quarter Highlights
•Production of more than 57,100 barrels of oil equivalent ("Boe") per day; 54% increase year-over-year and 14% increase over the first quarter of 2016. < Compares to my forecast of 53,500 boepd
•Reduced lease operating expense ("LOE") 29% year-over-year to $2.63 per Boe.
•Turned-in-line 37 gross operated wells including the 10,000 foot lateral Neff well in the Utica. Began completions on first extended-reach lateral wells in the Core Wattenberg.
•Announced agreement to consolidate Middle Core Wattenberg leasehold position through strategic acreage trade that is expected to provide the opportunity for longer laterals with significantly increased working interest and improved operational synergies.
•Settled $115 million 3.25% Convertible Senior Notes ("Convertible Notes") in May 2016 through a combination of cash and approximately 792,000 shares.
2016 Updated Guidance Highlights
•Increased mid-point of guidance to 21.5 million barrels of oil equivalent ("MMBoe"), a 40% increase from 2015 production volumes, with an expected December exit rate in excess of 64,000 Boe per day.
•Anticipated second half 2016 spuds and turn-in-lines of 52 and 61, respectively.
•Full-year capital expenditures reduced to $400 to $420 million from the previously guided $410 to $440 million.
•Net cash from operating activities of approximately $440 to $465 million and an adjusted cash flow from operations, a non-U.S.GAAP measure defined below, of $450 to $475 million.
Bart Brookman, Chief Executive Officer and President, commented, "Once again, we are extremely pleased with our operational results and, in particular, the 54% year-over-year production growth. Our improved guidance for 2016 is a direct reflection of our ongoing commitment to operational improvements along with an intense focus on cost structure and the balance sheet. As we wrap up the year, we anticipate operational cash flows will exceed capital expenditures and we eagerly anticipate the first turn-in-lines of our Wattenberg XRL drilling projects. With the success of these longer laterals coupled with enhanced completion designs, we expect to be able to deliver additional value in the Middle Core portion of the field where our acreage will be concentrated following the expected closing of our recently announced strategic acreage trade."
DENVER, Aug. 09, 2016 (GLOBE NEWSWIRE) -- PDC Energy, Inc. ("PDC", the "Company," "we" or "us") (NASDAQ:PDCE) today reported its 2016 second quarter financial and operating results and updated its full-year 2016 guidance.
2016 Second Quarter Highlights
•Production of more than 57,100 barrels of oil equivalent ("Boe") per day; 54% increase year-over-year and 14% increase over the first quarter of 2016. < Compares to my forecast of 53,500 boepd
•Reduced lease operating expense ("LOE") 29% year-over-year to $2.63 per Boe.
•Turned-in-line 37 gross operated wells including the 10,000 foot lateral Neff well in the Utica. Began completions on first extended-reach lateral wells in the Core Wattenberg.
•Announced agreement to consolidate Middle Core Wattenberg leasehold position through strategic acreage trade that is expected to provide the opportunity for longer laterals with significantly increased working interest and improved operational synergies.
•Settled $115 million 3.25% Convertible Senior Notes ("Convertible Notes") in May 2016 through a combination of cash and approximately 792,000 shares.
2016 Updated Guidance Highlights
•Increased mid-point of guidance to 21.5 million barrels of oil equivalent ("MMBoe"), a 40% increase from 2015 production volumes, with an expected December exit rate in excess of 64,000 Boe per day.
•Anticipated second half 2016 spuds and turn-in-lines of 52 and 61, respectively.
•Full-year capital expenditures reduced to $400 to $420 million from the previously guided $410 to $440 million.
•Net cash from operating activities of approximately $440 to $465 million and an adjusted cash flow from operations, a non-U.S.GAAP measure defined below, of $450 to $475 million.
Bart Brookman, Chief Executive Officer and President, commented, "Once again, we are extremely pleased with our operational results and, in particular, the 54% year-over-year production growth. Our improved guidance for 2016 is a direct reflection of our ongoing commitment to operational improvements along with an intense focus on cost structure and the balance sheet. As we wrap up the year, we anticipate operational cash flows will exceed capital expenditures and we eagerly anticipate the first turn-in-lines of our Wattenberg XRL drilling projects. With the success of these longer laterals coupled with enhanced completion designs, we expect to be able to deliver additional value in the Middle Core portion of the field where our acreage will be concentrated following the expected closing of our recently announced strategic acreage trade."