PDC Energy Announces Update to 2020 Operating Plan
The Company expects to reduce its full-year capital investments by 20 to 25 percent compared to its original guidance range of
The Company will continue to monitor the near and long-term commodity price environment and has short-term contracts with further flexibility to adjust its development plan should it deem necessary. Given the current conditions, PDC expects to slow its pace of previously planned share repurchases while prioritizing its financial strength and liquidity. Additionally, the Company continues to scrutinize its cost structure with a goal of maintaining its peer-leading metrics. PDC plans to provide a detailed update to its 2020 guidance in the coming weeks.
Operating Plan Changes:
- Upon completion of the current pad, the Company plans to release its
Delaware Basincompletion crew for the remainder of 2020, deferring ten to 15 previously planned wells into 2021.
- The Company plans to operate one drilling rig in the
Delaware Basinfor the remainder of 2020, opting not to deploy a second drilling rig in the second half of 2020, as originally planned.
- In the Wattenberg Field, PDC plans to reduce its activity during the second quarter of 2020 from three drilling rigs and two completion crews to two drilling rigs and one completion crew.
Consistent with current strip pricing, PDC’s updated operating plan considers a WTI oil price of
President and CEO
PDC’s updated 2021 outlook assumes maintaining a two rig, one completion crew pace in Wattenberg while operating one rig and a part-time completion crew in the
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 ("Securities Act") and Section 21E of the Securities Exchange Act of 1934 ("Exchange Act") regarding our business plans, outlook, financial condition and other prospects. All statements other than statements of historical fact included in this release are "forward-looking statements." Words such as expect, anticipate, intend, plan, believe, seek, estimate, schedule and similar expressions or variations of such words are intended to identify forward-looking statements herein. Forward-looking statements include, among other things, statements regarding future: production, costs and cash flows; commodity prices and differentials; capital expenditures and projects; cash flows from operations relative to future capital investments; our stock repurchase program, which may be modified or discontinued at any time.
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. In this release and accompanying materials, we may use the term “outlook” 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 the 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.
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 December 31, 2019 filed with the U.S. Securities and Exchange Commission (“SEC”) on February 27, 2020, and our other filings with the SEC for further information on risks and uncertainties that could affect our business, financial condition, results of operations and prospects, which are incorporated by this reference as though fully set forth herein. We caution you not to place undue reliance on the forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this press release or currently unknown facts or conditions or the occurrence of unanticipated events. All forward-looking statements are qualified in their entirety by this cautionary statement.
(1) As used in this news release, free cash flow, a non-
Contacts: Michael Edwards
Senior Director Investor Relations
Manager Investor Relations
Source: PDC Energy, Inc.