PDC Energy Announces 2018 Full-Year Production and Year-End Proved Reserves; Issues 2019 Production & Capital Guidance – Expects to be Cash Flow Positive at $50 WTI Oil
- Full-year 2018 oil and gas capital investment of approximately
$985 million, generating a year-over-year production increase of 26% to 40.2 million barrels of oil equivalent (“MMBoe”).
- Full-year 2018 oil production increased 32% year-over-year to approximately 17.0 million barrels.
- Fourth quarter 2018 production of approximately 11.8 MMBoe with a December exit rate of approximately 130,000 Boe per day.
- Year-end 2018 proved reserves of 545 MMBoe, an approximate 20% increase over year-end 2017 levels with an estimated all-sources reserve replacement of 330%(1).
- Before-tax SEC PV10 of year-end 2018 reserves of
$5.3 billion, an increase of approximately 66% compared to year-end 2017.
2019 Guidance Highlights:
- Operating plan designed around the prioritization of delivering strong debt-adjusted per-share metrics and free cash flow generation utilizing a flat
$50WTI oil and $3NYMEX gas price deck.
- Anticipated capital investments of
$810 to $870 million, a reduction of approximately $150 millioncompared to 2018. Approximately $40 millionof capital associated with Delawaremidstream is included in the full-year capital range; however, a portion of this investment is expected to be recouped through the ongoing divestiture process, which is expected to be executed in the first half of 2019.
- Project generating free cash flow from oil and gas operations, excluding corporate capital, of approximately
$25 millionat $50oil.
- Year-over-year production growth of approximately 20% to an estimated 46 to 50 MMBoe.
“Our team performed extremely well in 2018, overcoming several hurdles that were largely out of our direct control while maintaining our high standard of safe, reliable operations,” said President and Chief Executive Officer,
Brookman added, “The industry is clearly faced with a new set of operational and financial expectations and I applaud our team’s resolve in creating a plan that mirrors our strategic priorities and commitment to generating free cash flow at
2019 Capital Budget and Operating Overview
PDC’s investment decisions are currently based on
First, the Company plans to invest
The Company also plans to invest approximately
Production in 2019 is expected to increase approximately 20% over 2018 to a range of 46 to 50 MMBoe. Due to the timing of expected turn-in-lines in the
Additional details, including 2019 spuds and turn-in-lines for each basin, detailed financial guidance and operating cost structure and a preliminary 2020 outlook will be provided in the Company’s 2018 year-end earnings release on
2018 SEC Proved Reserves
PDC’s total proved reserves as of
|Year-End Proved Reserve Breakdown by Basin
PDC’s independent reserve engineering firms,
The value of the Company’s proved reserves, utilizing the
|2018 Year-End Proved Reserves Summary
|Beginning balance at December 31, 2017||452.9||$||3,212||$||7.09|
|Extensions, revisions, dispositions and acquisitions||132.2|
|2018 estimated production||(40.2||)|
|Ending balance at December 31, 2018||544.9||$||5,321||$||9.77|
(1) All-sources reserve replacement defined as the sum of the year-over-year net additions in proved reserves from extensions, revisions, dispositions and acquisitions, divided by 2018 estimated production.
2018 Fourth Quarter and Year-End Teleconference and Webcast
The Company invites you to join
Conference Call and Webcast:
Webcast available at: www.pdce.com
Domestic (toll free): 877-312-5520
Conference ID: 6887989
Domestic (toll free): 855-859-2056
Conference ID: 6887989
The replay of the call will be available for six months on PDC's website at www.pdce.com.
Upcoming Investor Presentations
PDC is scheduled to present at the
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 ("Securities Act"), Section 21E of the Securities Exchange Act of 1934 ("Exchange Act") and
The above statements are not the exclusive means of identifying forward-looking statements herein. Although forward-looking statements contained in this report reflect our good faith judgment, such statements can only be based on facts and factors currently known to us. Forward-looking statements are always subject to risks and uncertainties, and become subject to greater levels of risk and uncertainty as they address matters further into the future. Throughout this report or accompanying materials, we may use the term “projection” or similar terms or expressions, or indicate that we have “modeled” certain future scenarios. We typically use these terms to indicate our current thoughts on possible outcomes relating to our business or our industry in periods beyond the current fiscal year. Because such statements relate to events or conditions further in the future, they are subject to increased levels of uncertainty. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to:
- changes in worldwide production volumes and demand, including economic conditions that might impact demand and prices for the products we produce;
- volatility of commodity prices for crude oil, natural gas and natural gas liquids ("NGLs") and the risk of an extended period of depressed prices;
- volatility and widening of differentials;
- reductions in the borrowing base under our revolving credit facility;
- impact of governmental policies and/or regulations, including changes in environmental and other laws, the interpretation and enforcement of those laws and regulations, liabilities arising thereunder and the costs to comply with those laws and regulations;
- declines in the value of our crude oil, natural gas and NGLs properties resulting in impairments;
- changes in estimates of proved reserves;
- inaccuracy of reserve estimates and expected production rates;
- potential for production decline rates from our wells being greater than expected;
- timing and extent of our success in discovering, acquiring, developing and producing reserves;
- availability of sufficient pipeline, gathering and other transportation facilities and related infrastructure to process and transport our production and the impact of these facilities and regional capacity on the prices we receive for our production;
- timing and receipt of necessary regulatory permits;
- risks incidental to the drilling and operation of crude oil and natural gas wells;
- difficulties in integrating our operations as a result of any significant acquisitions and acreage exchanges;
- increases or changes in costs and expenses;
- availability of supplies, materials, contractors and services that may delay the drilling or completion of our wells;
- potential losses of acreage due to lease expirations or otherwise;
- increases or adverse changes in construction and procurement costs associated with future build out of midstream-related assets;
- future cash flows, liquidity and financial condition;
- competition within the oil and gas industry;
- availability and cost of capital;
- our success in marketing crude oil, natural gas and NGLs;
- effect of crude oil and natural gas derivative activities;
- impact of environmental events, governmental and other third-party responses to such events and our ability to insure adequately against such events;
- cost of pending or future litigation;
- effect that acquisitions we may pursue have on our capital requirements;
- our ability to retain or attract senior management and key technical employees; and
- success of strategic plans, expectations and objectives for our future operations.
Further, we urge you to carefully review and consider the cautionary statements and disclosures, specifically those under the heading "Risk Factors," made in our Annual Report on Form 10-K for the year ended
Senior Director Investor Relations
Manager Investor Relations
Source: PDC Energy, Inc.