PDC Energy Provides Preliminary Third Quarter Operating Results and Revised Full-Year Guidance
2021 Third Quarter Highlights:
- Anticipate total daily production between 197,000 and 200,000 barrels of oil equivalent (“BOE”) per day and daily oil production between 63,000 and 65,000 barrels (“Bbls”) per day.
- Reduced total debt by
$200 millionthrough the September 2021settlement of the Company’s 2021 Convertible Notes. PDC expects to exit the third quarter with less than $1.2 billionof total net debt and a leverage ratio of approximately 0.8x.
Full-Year 2021 Updated Guidance Highlights:
- Anticipated total production near the bottom of the previous range of 190,000 to 195,000 Boe per day and oil production of 60,000 to 63,000 Bbls per day, below the previous range of 64,000 to 66,000 Bbls per day.
- Anticipate second half 2021 adjusted free cash flow (“FCF”), a non-
U.S.GAAP metric defined below, of more than $500 millionassuming estimated third quarter price realizations and $70per Bbl WTI oil, $5per Mcf NYMEX natural gas and $30NGL realizations in the fourth quarter.
- Expect oil and gas capital investments between
$550to $600 million, unchanged from prior guidance.
PDC’s estimated third quarter production results of approximately 197,000 to 200,000 BOE per day and 63,000 to 65,000 Bbls per day represent sequential increases from the second quarter of approximately three percent and eight percent, respectively. Prior third quarter expectations were five to ten percent sequential growth in daily total production and 15 to 20 percent sequential growth in daily oil production. The lower-than-expected third quarter results are primarily due to less than anticipated
In 2021, PDC turned-in-line 18
The Company anticipates fourth quarter 2021 daily total production and oil production to represent an increase of more than ten percent compared to the fourth quarter of 2020, resulting in anticipated full-year production towards the low-end of the previously guided range of 190,000 to 195,000 Boe per day. The Company’s full-year oil production guidance has been reduced to between 60,000 and 63,000 Bbls per day to reflect the aforementioned
The Company’s multi-year outlook, including projected cumulative post-tax FCF of approximately
2021 Third Quarter Teleconference and Webcast
The Company plans to issue its third quarter news release after market close on
|Conference Call and Webcast:
Domestic (toll free): 877-312-5520
Conference ID: 8059582
Webcast and replay: available at www.pdce.com
Reconciliation of Non-
We use “adjusted free cash flow (deficit)”, a non-
Adjusted free cash flow (deficit). We believe adjusted free cash flow (deficit) provides additional information that may be useful in an investor analysis of our ability to generate cash from operating activities from our existing oil and gas asset base to fund exploration and development activities and to return capital to stockholders in the period in which the related transactions occurred. We exclude from this measure cash receipts and expenditures related to acquisitions and divestitures of oil and gas properties and capital expenditures for other properties and equipment, which are not reflective of the cash generated or used by ongoing activities on our existing producing properties and, in the case of acquisitions and divestitures, may be evaluated separately in terms of their impact on our performance and liquidity. Adjusted free cash flow is a supplemental measure of liquidity and should not be viewed as a substitute for cash flows from operations because it excludes certain required cash expenditures. For example, we may have mandatory debt service requirements or other non-discretionary expenditures which are not deducted from the adjusted free cash flow measure.
We are unable to present a reconciliation of forward-looking adjusted 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. We believe that forward-looking estimates of adjusted cash flow are important to investors because they assist in the analysis of our ability to generate cash from our operations.
SPECIAL 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 press release 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 press release 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.
Further, we urge you to carefully review and consider the cautionary statements and disclosures, specifically those under the “Item 1A. Risk Factors” made in our Annual Report on Form 10-K for the year ended
|Director Corporate Finance & Investor Relations|
Source: PDC Energy, Inc.