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PDC: Press Release Announcing Results For The Fiscal Quarter Ended September 30, 2015 Exhibit

The following excerpt is from the company's SEC filing.

PDC Energy Reports 2015 Third Quarter Financial and Operating Results and Production Increase of 84% to 4.3

Million Barrels of Oil Equivalent

DENVER, CO, November 5, 2015:

PDC Energy, Inc. ("PDC", the "Company," "we" or "us") (NASDAQ: PDCE) today reported its 2015 third quarter financial and operating results.

2015 Third Quarter Highlights

Net cash from operating activities increased 94% to $136.5 million; exceeded capital expenditures of $130.9 million.

Production of 47,017 Boe per day; 84% increase compared to the third quarter of 2014 and 27% grow th compared to the second quarter of 2015.

Crude oil production of 21,824 Bbls per day; 87% increase compared to the third quarter of 2014 and 26% growth compared to the second quarter of 2015.

Lease operating expense of $2.87 per Boe; 37% decrease compared to the third quarter of 2014.

In September 2015, re-affirmed borrowing base of $700 million (commitment level of $450 million) and extended the maturity of revolving credit facility by two years to May 2020.

Bart Brookman, President and Chief Executive Officer, commented, “This is truly a transformative time at PDC as we just achieved the greatest quarter-over-quarter production growth in company history while operating within cash flow. Led by the sustained strong performance of our Chesnut and Churchill extended reach laterals and the improved midstream environment in the Wattenberg, the third quarter results exceeded our expectations. Our average production rate for the quarter approximated our previously anticipated 2015 exit rate, and we now expect to meet or slightly exceed the top end of our revised full-year production guidance of 15.0 MMBoe. Once again, I am extremely pleased

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with the efforts at every level of the organization in helping to differentiate PDC as a premier operator in these challenging industry times.”

Financial Results

Net cash from operating activities was $136.5 million in the third quarter of 2015, compared to net cash from operating activities of $70.4 million in the third quarter of 2014. Adjusted cash flows from operations, a non-U.S. GAAP financial measure defined below, increased 121% to $122.7

million in the third quarter of 2015, compared to $55.5 million in the third quarter of 2014.

Net loss in the third quarter of 2015 was $41.5 million, or $1.04 per diluted share, compared to net income of $54.0 million, or $1.47 per diluted share, in the third quarter of 2014. Adjusted net loss, a non-U.S. GAAP financial measure defined below, was $75.9 million in the third quarter of 2015, compared to an adjusted net loss of $5.7 million in the comparable period of 2014. Excluding impairment expenses related to its Utica Shale asset of $150.3 million and relevant tax effects, adjusted net income was $15.4 million or $0.38 per share.

Third quarter 2015 production increased 84% to 4.3 million barrels of oil equivalent (“MMBoe”), or 47,017 barrels of oil equivalent (“Boe”) per day, compared to 2.4 MMBoe, or 25,568 Boe per day, from continuing operations in the third quarter of 2014. Third quarter 2015 production increased 27% compared to 37,001 Boe per day in the second quarter of 2015. The increases in production over the prior periods were primarily due to improved well performance, the impact of extended reach lateral drilling and reduced line pressures in the Wattenberg Field.

Crude oil, natural gas and NGLs sales, excluding net settlements on derivatives, decreased 13% to $104.5 million in the third quarter of 2015, compared to $120.5 million in the third quarter of 2014. The average crude oil equivalent sales price, excluding net settlements on derivatives, decreased 53% to $24.15 per Boe in the third quarter of 2015 compared to $51.24 per Boe in the same 2014 period. Including the impact of net settlements on derivatives, crude oil, natural gas and NGL sales increased 49% to $172.5 million in the third quarter of 2015 compared to $116.0 million in the same period last year.

Net commodity price risk management activities in the third quarter of 2015 resulted in a gain of $123.5 million, which was comprised of $68.0 million of positive net settlements on derivatives and $55.5 million of net change in fair value of unsettled derivatives. Commodity price risk management activities in the third quarter of 2014 resulted in a net gain of $90.2 million, which was comprised of $4.5 million of negative net settlements on derivatives and a $94.7 million gain in net change in fair value of unsettled derivatives.

Production costs were $25.5 million, or $5.89

per Boe, in the third quarter of 2015 compared to $22.8 million, or $9.67 per Boe, in the third quarter of 2014. Lease operating expense (“LOE”) in the third quarter of 2015 was $2.87

per Boe compared to $4.56 per Boe in the third quarter of 2014. The decrease in the rate of both production costs and LOE is primarily attributable to an increase in production.

General and administrative expense ("G&A") was $18.5 million in the third quarter of 2015, down from $34.6 million in the third quarter of 2014. The decrease in G&A was primarily attributable to $16.2 million of certain litigation and other legal expenses in the third quarter of 2014. Excluding the litigation and legal expenses in 2014, G&A on a per Boe basis decreased 45% to $4.28 per Boe in the third quarter of 2015 from $7.83 in the third quarter of 2014 and is attributable to maintaining similar levels of total G&A while increasing production.

Depreciation, depletion and amortization expense ("DD&A") related to crude oil and natural gas properties was $79.8 million, or $18.44

per Boe, in the third quarter of 2015, compared to $48.7 million, or $20.70 per Boe, in the third quarter of 2014. Due to the commodity price outlook and current netback realizations, the Company recorded an impairment charge of proved and unproved properties in its Utica Shale asset of $150.3 million in the third quarter of 2015.

Interest expense in the third quarter of 2015 was $12.1 million compared to $11.8 million in the third quarter of 2014. The increase in 2015 is primarily attributable to higher average borrowings on the Company’s revolving credit facility during the quarter.

Capital expenditures in the third quarter of 2015, excluding carry-over of expenses related to prior periods, were $103.9 million compared to $183.7 million for the same 2014 period.

Debt...


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