PDC Energy Announces 2019 Third Quarter Financial and Operating Results
Third Quarter 2019 Highlights:
- Net cash from operating activities of
$234 million , adjusted cash flow from operations, a non-U.S. GAAP financial measure defined below, of approximately$202 million , and oil and gas capital investments of$164 million . - Approximately
$39 million of free cash flow, a non-U.S. GAAP measure defined as net cash from operating activities, adjusted for changes in working capital, less oil and gas capital investments. - Total production of 12.7 million barrels of oil equivalent (“MMBoe”), or approximately 138,000 Boe per day, a 26 percent increase from the third quarter of 2018.
- Lease operating expenses (“LOE”) of
$2.87 per Boe, a 12 percent improvement from the third quarter of 2018. Average Delaware Basin drilling, completion and facility costs of approximately$1,150 per lateral foot, a 37 percent improvement compared to average full-year 2018 costs of$1,835 per lateral foot.- In October, the Company’s borrowing base under its revolving credit facility was reaffirmed at
$1.6 billion with an elected commitment level of$1.3 billion . Contingent upon closing the acquisition ofSRC Energy, Inc. (“SRC”), the Company’s borrowing base has been approved at$2.1 billion with an elected commitment level of up to$1.9 billion .
CEO Commentary
President and Chief Executive Officer,
Operations Update
In the third quarter, the Company invested approximately
In Wattenberg, the Company invested approximately
In the
Stock Repurchase Program
Year-to-date, the Company has returned approximately
The Company is unable to present a reconciliation of forward-looking free cash flow because components of the calculation, including fluctuations in working capital accounts, are inherently unpredictable. Moreover, estimating the most directly comparable GAAP measure with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. The Company believes that forward-looking estimates of free cash flow are important to investors because they assist in the analysis of the Company’s ability to generate cash from its operations in excess of capital investments in crude oil and natural gas properties.
Oil and Gas Production, Sales and Operating Cost Data
Crude oil, natural gas and NGLs sales, excluding net settlements on derivatives, decreased 17 percent to
The following table provides production and weighted-average sales price, by area, for the three and nine months ended
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2019 | 2018 | Percent Change | 2019 | 2018 | Percent Change | |||||||||||||||||
Crude oil (MBbls) | ||||||||||||||||||||||
Wattenberg Field | 3,525 | 3,254 | 8.3 | % | 10,777 | 9,076 | 18.7 | % | ||||||||||||||
Delaware Basin | 1,328 | 1,042 | 27.4 | % | 3,500 | 2,918 | 19.9 | % | ||||||||||||||
Utica Shale | — | — | * | — | 46 | * | ||||||||||||||||
Total | 4,853 | 4,296 | 13.0 | % | 14,277 | 12,040 | 18.6 | % | ||||||||||||||
Weighted-average price | $ | 52.70 | $ | 66.27 | (20.5 | )% | $ | 53.30 | $ | 63.43 | (16.0 | )% | ||||||||||
Natural gas (MMcf) | ||||||||||||||||||||||
Wattenberg Field | 22,945 | 16,808 | 36.5 | % | 67,139 | 48,169 | 39.4 | % | ||||||||||||||
Delaware Basin | 6,328 | 4,957 | 27.7 | % | 16,777 | 13,457 | 24.7 | % | ||||||||||||||
Utica Shale | — | — | * | — | 414 | * | ||||||||||||||||
Total | 29,273 | 21,765 | 34.5 | % | 83,916 | 62,040 | 35.3 | % | ||||||||||||||
Weighted-average price | $ | 0.91 | $ | 1.60 | (43.1 | )% | $ | 1.31 | $ | 1.67 | (21.6 | )% | ||||||||||
NGLs (MBbls) | ||||||||||||||||||||||
Wattenberg Field | 2,178 | 1,643 | 32.6 | % | 6,086 | 4,616 | 31.8 | % | ||||||||||||||
Delaware Basin | 805 | 534 | 50.7 | % | 2,005 | 1,360 | 47.4 | % | ||||||||||||||
Utica Shale | — | — | * | — | 34 | * | ||||||||||||||||
Total | 2,983 | 2,177 | 37.0 | % | 8,091 | 6,010 | 34.6 | % | ||||||||||||||
Weighted-average price | $ | 8.43 | $ | 24.35 | (65.4 | )% | $ | 11.92 | $ | 22.71 | (47.5 | )% | ||||||||||
Crude oil equivalent (MBoe) | ||||||||||||||||||||||
Wattenberg Field | 9,527 | 7,698 | 23.8 | % | 28,053 | 21,721 | 29.2 | % | ||||||||||||||
Delaware Basin | 3,187 | 2,402 | 32.7 | % | 8,301 | 6,520 | 27.3 | % | ||||||||||||||
Utica Shale | — | — | * | — | 149 | * | ||||||||||||||||
Total | 12,714 | 10,100 | 25.9 | % | 36,354 | 28,390 | 28.1 | % | ||||||||||||||
Weighted-average price | $ | 24.18 | $ | 36.88 | (34.4 | )% | $ | 26.61 | $ | 35.35 | (24.7 | )% | ||||||||||
Production costs for the third quarter of 2019, which include LOE, production taxes and TGP, were
The following table provides the components of production costs for the three and nine months ended
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Lease operating expenses | $ | 36.5 | $ | 33.0 | $ | 106.0 | $ | 94.9 | |||||||
Production taxes | 13.0 | 24.0 | 57.8 | 66.8 | |||||||||||
Transportation, gathering and processing expenses | 11.0 | 9.2 | 34.6 | 25.5 | |||||||||||
Total | $ | 60.5 | $ | 66.2 | $ | 198.4 | $ | 187.2 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Lease operating expenses per Boe | $ | 2.87 | $ | 3.27 | $ | 2.92 | $ | 3.34 | |||||||
Production taxes per Boe | 1.03 | 2.37 | 1.59 | 2.35 | |||||||||||
Transportation, gathering and processing expenses per Boe | 0.87 | 0.91 | 0.95 | 0.90 | |||||||||||
Total per Boe | $ | 4.77 | $ | 6.55 | $ | 5.46 | $ | 6.59 | |||||||
Financial Results
Net income for the third quarter of 2019 was
Net cash from operating activities was
General and administrative expense (“G&A”) was
2019 Capital Investment Outlook and Financial Guidance
The following table summarizes the Company’s current 2019 financial guidance:
Low | High | ||||||||
Production (MMBoe) | 48.0 | 50.0 | |||||||
Capital Investment in Crude Oil and Natural Gas Properties (millions) | $ | 810 | $ | 840 | |||||
Operating Expenses | |||||||||
Lease operating expense ($/Boe) | $ | 2.85 | $ | 3.00 | |||||
Transportation, gathering and processing expenses ($/Boe) | $ | 0.90 | $ | 1.00 | |||||
Production |
6 | % | 7 | % | |||||
General and administrative expense ($/Boe) | $ | 3.00 | $ | 3.20 | |||||
Estimated Price Realizations (% of NYMEX) (excludes TGP) | |||||||||
Crude oil | 90% | 95% | |||||||
Natural gas | 40% | 45% | |||||||
NGLs | 20% | 25% |
The Company projects to generate free cash flow between
The Company expects its 2019 capital investments to be at, or near the bottom end of the
Reconciliation of Non-U.S. GAAP Financial Measures
We use "adjusted cash flows from operations”, “free cash flow”, "adjusted net income (loss)" and "adjusted EBITDAX," non-U.S. GAAP financial measures, for internal management reporting, when evaluating period-to-period changes and, in some cases, in providing public guidance on possible future results. In addition, we believe these are measures of our fundamental business and can be useful to us, investors, lenders and other parties in the evaluation of our performance relative to our peers and in assessing acquisition opportunities and capital expenditure projects. These supplemental measures are not measures of financial performance under U.S. GAAP and should be considered in addition to, not as a substitute for, net income (loss) or cash flows from operations, investing or financing activities and should not be viewed as liquidity measures or indicators of cash flows reported in accordance with U.S. GAAP. The non-U.S. GAAP financial measures that we use may not be comparable to similarly titled measures reported by other companies. In the future, we may disclose different non-U.S. GAAP financial measures in order to help us and our investors more meaningfully evaluate and compare our future results of operations to our previously reported results of operations. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and to not rely on any single financial measure.
Adjusted cash flows from operations and free cash flow. We believe adjusted cash flows from operations can provide additional transparency into the drivers of trends in our operating cash flows, such as production, realized sales prices and operating costs, as it disregards the timing of settlement of operating assets and liabilities. We believe free cash flow provides additional information that may be useful in an analysis of our ability to generate cash to fund exploration and development activities and to return capital to stockholders.
Adjusted net income (loss). We believe that adjusted net income (loss) provides additional transparency into operating trends, such as production, realized sales prices, operating costs and net settlements on commodity derivative contracts, because it disregards changes in our net income (loss) from mark-to-market adjustments resulting from net changes in the fair value of our unsettled commodity derivative contracts, and these changes are not directly reflective of our operating performance.
Adjusted EBITDAX. We believe that adjusted EBITDAX provides additional transparency into operating trends because it reflects the financial performance of our assets without regard to financing methods, capital structure, accounting methods or historical cost basis. In addition, because adjusted EBITDAX excludes certain non-cash expenses, we believe it is a not a measure of income, but rather a measure of our liquidity and ability to generate sufficient cash for exploration, development, acquisitions and to service our debt obligations.
Beginning in the third quarter of 2019, we included a reconciling item for gains or losses on the sale of properties and equipment when calculating adjusted EBITDAX, thereby no longer including such gains or losses in our reported adjusted EBITDAX. We believe this methodology for calculating adjusted EBITDAX will enable greater comparability to our peers, as well as consistent treatment of adjustments for impairment and gains or losses on the sale of properties and equipment. For comparability, all prior periods presented have been conformed to the aforementioned methodology.
The following tables provide reconciliations of adjusted cash flows from operations, adjusted net income (loss) and adjusted EBITDAX to their most comparable U.S. GAAP measures (in millions, except per share data):
Adjusted Cash Flows from Operations and Free Cash Flow (Deficit) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Adjusted cash flows from operations and free cash flow (deficit): | ||||||||||||||||
Net cash from operating activities | $ | 233.5 | $ | 197.0 | $ | 675.7 | $ | 577.8 | ||||||||
Changes in assets and liabilities | (31.1 | ) | 4.1 | (73.8 | ) | (2.5 | ) | |||||||||
Adjusted cash flows from operations | 202.4 | 201.1 | 601.9 | 575.3 | ||||||||||||
Capital expenditures for development of crude oil and natural gas properties | (237.8 | ) | (252.9 | ) | (780.6 | ) | (685.5 | ) | ||||||||
Change in accounts payable related to capital expenditures | 74.2 | (19.1 | ) | 57.7 | (91.4 | ) | ||||||||||
Free cash flow (deficit) | $ | 38.8 | $ | (70.9 | ) | $ | (121.0 | ) | $ | (201.6 | ) |
Adjusted Net Income (Loss) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Adjusted net income (loss): | ||||||||||||||||
Net income (loss) | $ | 15.9 | $ | (3.4 | ) | $ | (35.7 | ) | $ | (176.8 | ) | |||||
(Gain) loss on commodity derivative instruments | (54.9 | ) | 94.4 | 87.9 | 257.8 | |||||||||||
Net settlements on commodity derivative instruments | 1.8 | (48.1 | ) | (19.8 | ) | (90.5 | ) | |||||||||
Tax effect of above adjustments | 12.7 | (11.1 | ) | (16.3 | ) | (40.1 | ) | |||||||||
Adjusted net income (loss) | $ | (24.5 | ) | $ | 31.8 | $ | 16.1 | $ | (49.6 | ) | ||||||
Earnings per share, diluted | $ | 0.25 | $ | (0.05 | ) | $ | (0.55 | ) | $ | (2.68 | ) | |||||
(Gain) loss on commodity derivative instruments | (0.87 | ) | 1.43 | 1.35 | 3.91 | |||||||||||
Net settlements on commodity derivative instruments | 0.03 | (0.73 | ) | (0.30 | ) | (1.37 | ) | |||||||||
Tax effect of above adjustments | 0.20 | (0.17 | ) | (0.25 | ) | (0.61 | ) | |||||||||
Adjusted earnings per share, diluted | $ | (0.39 | ) | $ | 0.48 | $ | 0.25 | $ | (0.75 | ) |
Adjusted EBITDAX | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net income (loss) to adjusted EBITDAX: | ||||||||||||||||
Net income (loss) | $ | 15.9 | $ | (3.4 | ) | $ | (35.7 | ) | $ | (176.8 | ) | |||||
(Gain) loss on commodity derivative instruments | (54.9 | ) | 94.4 | 87.9 | 257.8 | |||||||||||
Net settlements on commodity derivative instruments | 1.8 | (48.1 | ) | (19.8 | ) | (90.5 | ) | |||||||||
Non-cash stock-based compensation | 5.9 | 5.6 | 18.1 | 16.4 | ||||||||||||
Interest expense, net | 17.8 | 17.4 | 53.7 | 52.2 | ||||||||||||
Income tax expense (benefit) | 10.7 | (3.9 | ) | (4.2 | ) | (53.8 | ) | |||||||||
Impairment of properties and equipment | 0.2 | 1.5 | 37.0 | 194.2 | ||||||||||||
Exploration, geologic and geophysical expense | 0.2 | 1.0 | 3.5 | 4.6 | ||||||||||||
Depreciation, depletion and amortization | 171.8 | 147.5 | 491.8 | 410.0 | ||||||||||||
Accretion of asset retirement obligations | 1.4 | 1.2 | 4.5 | 3.8 | ||||||||||||
Loss on sale of properties and equipment | 43.9 | 2.1 | 9.6 | 3.2 | ||||||||||||
Adjusted EBITDAX | $ | 214.7 | $ | 215.3 | $ | 646.4 | $ | 621.1 | ||||||||
Cash from operating activities to adjusted EBITDAX: | ||||||||||||||||
Net cash from operating activities | $ | 233.5 | $ | 197.0 | $ | 675.7 | $ | 577.8 | ||||||||
Interest expense, net | 17.8 | 17.4 | 53.7 | 52.2 | ||||||||||||
Amortization of debt discount and issuance costs | (3.4 | ) | (3.1 | ) | (10.1 | ) | (9.5 | ) | ||||||||
Exploration, geologic and geophysical expense | 0.2 | 1.0 | 3.5 | 4.6 | ||||||||||||
Other | (2.3 | ) | (1.1 | ) | (2.6 | ) | (1.5 | ) | ||||||||
Changes in assets and liabilities | (31.1 | ) | 4.1 | (73.8 | ) | (2.5 | ) | |||||||||
Adjusted EBITDAX | $ | 214.7 | $ | 215.3 | $ | 646.4 | $ | 621.1 | ||||||||
PDC ENERGY, INC. Condensed Consolidated Statements of Operations (unaudited, in thousands, except per share data) |
|||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | |||||||||||||||
Crude oil, natural gas and NGLs sales | $ | 307,409 | $ | 372,439 | $ | 967,464 | $ | 1,003,597 | |||||||
Commodity price risk management gain (loss), net | 54,867 | (94,394 | ) | (87,858 | ) | (257,760 | ) | ||||||||
Other income | 3,667 | 2,672 | 11,495 | 8,011 | |||||||||||
Total revenues | 365,943 | 280,717 | 891,101 | 753,848 | |||||||||||
Costs, expenses and other | |||||||||||||||
Lease operating expenses | 36,498 | 33,046 | 106,047 | 94,942 | |||||||||||
Production taxes | 13,039 | 23,984 | 57,849 | 66,757 | |||||||||||
Transportation, gathering and processing expenses | 10,999 | 9,234 | 34,631 | 25,511 | |||||||||||
Exploration, geologic and geophysical expense | 209 | 1,032 | 3,492 | 4,553 | |||||||||||
Impairment of properties and equipment | 167 | 1,488 | 37,021 | 194,230 | |||||||||||
General and administrative expense | 41,091 | 48,240 | 123,497 | 121,183 | |||||||||||
Depreciation, depletion and amortization | 171,839 | 147,540 | 491,784 | 409,952 | |||||||||||
Accretion of asset retirement obligations | 1,356 | 1,200 | 4,503 | 3,773 | |||||||||||
Loss on sale of properties and equipment | 43,872 | 2,118 | 9,599 | 3,199 | |||||||||||
Other expenses | 2,492 | 2,711 | 8,882 | 8,187 | |||||||||||
Total costs, expenses and other | 321,562 | 270,593 | 877,305 | 932,287 | |||||||||||
Income (loss) from operations | 44,381 | 10,124 | 13,796 | (178,439 | ) | ||||||||||
Interest expense | (17,859 | ) | (17,622 | ) | (53,742 | ) | (52,561 | ) | |||||||
Interest income | 48 | 188 | 63 | 405 | |||||||||||
Income (loss) before income taxes | 26,570 | (7,310 | ) | (39,883 | ) | (230,595 | ) | ||||||||
Income tax (expense) benefit | (10,662 | ) | 3,876 | 4,163 | 53,765 | ||||||||||
Net income (loss) | $ | 15,908 | $ | (3,434 | ) | $ | (35,720 | ) | $ | (176,830 | ) | ||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.25 | $ | (0.05 | ) | $ | (0.55 | ) | $ | (2.68 | ) | ||||
Diluted | $ | 0.25 | $ | (0.05 | ) | $ | (0.55 | ) | $ | (2.68 | ) | ||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 62,547 | 66,073 | 64,835 | 66,032 | |||||||||||
Diluted | 62,595 | 66,073 | 64,835 | 66,032 |
PDC ENERGY, INC. Condensed Consolidated Balance Sheets (unaudited, in thousands, except share and per share data) |
||||||||
September 30, 2019 | December 31, 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 4,567 | $ | 1,398 | ||||
Accounts receivable, net | 253,077 | 181,434 | ||||||
Fair value of derivatives | 75,830 | 84,492 | ||||||
Prepaid expenses and other current assets | 7,938 | 7,136 | ||||||
Total current assets | 341,412 | 274,460 | ||||||
Properties and equipment, net | 4,165,156 | 4,002,862 | ||||||
Assets held-for-sale, net | — | 140,705 | ||||||
Fair value of derivatives | 33,185 | 93,722 | ||||||
Other assets | 43,851 | 32,396 | ||||||
Total Assets | $ | 4,583,604 | $ | 4,544,145 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 147,893 | $ | 181,864 | ||||
Production tax liability | 71,569 | 60,719 | ||||||
Fair value of derivatives | 2,953 | 3,364 | ||||||
Funds held for distribution | 88,047 | 105,784 | ||||||
Accrued interest payable | 16,280 | 14,150 | ||||||
Other accrued expenses | 81,049 | 75,133 | ||||||
Total current liabilities | 407,791 | 441,014 | ||||||
Long-term debt | 1,267,471 | 1,194,876 | ||||||
Deferred income taxes | 193,707 | 198,096 | ||||||
Asset retirement obligations | 86,182 | 85,312 | ||||||
Liabilities held-for-sale | — | 4,111 | ||||||
Fair value of derivatives | 661 | 1,364 | ||||||
Other liabilities | 268,037 | 92,664 | ||||||
Total liabilities | 2,223,849 | 2,017,437 | ||||||
Stockholders' equity | ||||||||
Common shares - par value $0.01 per share, 150,000,000 authorized, 62,087,818 and 66,148,609 issued as of September 30, 2019 and December 31, 2018, respectively |
621 | 661 | ||||||
Additional paid-in capital | 2,390,658 | 2,519,423 | ||||||
Retained earnings (deficit) | (26,993 | ) | 8,727 | |||||
Treasury shares - at cost, 139,415 and 45,220 as of September 30, 2019 and December 31, 2018, respectively |
(4,531 | ) | (2,103 | ) | ||||
Total stockholders' equity | 2,359,755 | 2,526,708 | ||||||
Total Liabilities and Stockholders' Equity | $ | 4,583,604 | $ | 4,544,145 | ||||
PDC ENERGY, INC. Condensed Consolidated Statements of Cash Flows (unaudited, in thousands) |
||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | 15,908 | $ | (3,434 | ) | $ | (35,720 | ) | $ | (176,830 | ) | |||||
Adjustments to net income (loss) to reconcile to net cash from operating activities: | ||||||||||||||||
Net change in fair value of unsettled commodity derivatives | (53,022 | ) | 46,298 | 68,058 | 167,218 | |||||||||||
Depreciation, depletion and amortization | 171,839 | 147,540 | 491,784 | 409,952 | ||||||||||||
Impairment of properties and equipment | 167 | 1,488 | 37,021 | 194,230 | ||||||||||||
Accretion of asset retirement obligations | 1,356 | 1,200 | 4,503 | 3,773 | ||||||||||||
Non-cash stock-based compensation | 5,866 | 5,578 | 18,124 | 16,357 | ||||||||||||
Loss on sale of properties and equipment | 43,872 | 2,118 | 9,599 | 3,199 | ||||||||||||
Amortization of debt discount and issuance costs | 3,408 | 3,082 | 10,139 | 9,454 | ||||||||||||
Deferred income taxes | 10,586 | (2,848 | ) | (4,389 | ) | (53,029 | ) | |||||||||
Other | 2,366 | 51 | 2,761 | 1,025 | ||||||||||||
Changes in assets and liabilities | 31,143 | (4,096 | ) | 73,845 | 2,485 | |||||||||||
Net cash from operating activities | 233,489 | 196,977 | 675,725 | 577,834 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Capital expenditures for development of crude oil and natural gas properties | (237,790 | ) | (252,914 | ) | (780,581 | ) | (685,549 | ) | ||||||||
Capital expenditures for other properties and equipment | (5,069 | ) | (1,289 | ) | (15,522 | ) | (3,739 | ) | ||||||||
Acquisition of crude oil and natural gas properties | (8,299 | ) | (520 | ) | (12,445 | ) | (181,572 | ) | ||||||||
Proceeds from sale of properties and equipment | 374 | 661 | 1,528 | 2,443 | ||||||||||||
Proceeds from divestitures | 2,616 | 4,470 | 202,046 | 43,493 | ||||||||||||
Restricted cash | — | — | 8,001 | 1,249 | ||||||||||||
Net cash from investing activities | (248,168 | ) | (249,592 | ) | (596,973 | ) | (823,675 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from revolving credit facility | 410,000 | 396,000 | 1,300,000 | 629,000 | ||||||||||||
Repayment of revolving credit facility | (343,000 | ) | (343,000 | ) | (1,235,500 | ) | (554,000 | ) | ||||||||
Payment of debt issuance costs | (17 | ) | (26 | ) | (53 | ) | (4,086 | ) | ||||||||
Purchase of treasury shares | (48,552 | ) | — | (142,665 | ) | — | ||||||||||
Purchase of treasury shares for employee stock-based compensation tax withholding obligations | (157 | ) | (206 | ) | (3,874 | ) | (4,700 | ) | ||||||||
Principal payments under financing lease obligations | (504 | ) | (209 | ) | (1,492 | ) | (873 | ) | ||||||||
Other | 2 | — | — | (55 | ) | |||||||||||
Net cash from financing activities | 17,772 | 52,559 | (83,584 | ) | 65,286 | |||||||||||
Net change in cash, cash equivalents and restricted cash | 3,093 | (56 | ) | (4,832 | ) | (180,555 | ) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 1,474 | 9,426 | 9,399 | 189,925 | ||||||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 4,567 | $ | 9,370 | $ | 4,567 | $ | 9,370 |
2019 Third Quarter Teleconference and Webcast
The Company invites you to join
Conference Call and Webcast:
Date/Time:
Webcast available at: www.pdce.com
Domestic (toll free): 877-312-5520
International: 253-237-1142
Conference ID: 6783219
Replay Numbers:
Domestic (toll free): 855-859-2056
International: 404-537-3406
Conference ID: 6783219
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 attend the
About
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 global 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;
- impact of recent regulatory developments in
Colorado with respect to additional permit scrutiny - 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, including the acquisition of SRC or acreage exchanges;
- increases or changes in costs and expenses;
- limitations in the 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 changes in costs and expenses;
- 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 to our operations, personnel retention, strategy, stock price and expenses caused by the actions of activist shareholders;
- 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, including litigation related to the acquisition of SRC;
- 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 Quarterly Report on Form 10-Q for the quarter ended
Additional Information and Where to Find it
This document does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication references a proposed business combination between
Certain Information Concerning Participants
PDC, SRC and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed SRC transaction. Information about the directors and executive officers of PDC is set forth in PDC’s proxy statement for its 2019 annual meeting of stockholders, which was filed with the
Contacts: | Michael Edwards | |
Senior Director Investor Relations | ||
303-860-5820 | ||
michael.edwards@pdce.com | ||
Kyle Sourk | ||
Manager Investor Relations | ||
303-318-6150 | ||
kyle.sourk@pdce.com |
Source: PDC Energy, Inc.