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PDC Energy, Inc. (“PDC,” the “Company,” “we” or “us”) (PDCE) today reported year-end 2015 proved reserves and full-year production.

Year-End 2015 Highlights

  • Proved reserves of 272.8 million barrels of oil equivalent (“MMBoe”), an approximate 9% increase over year-end 2014 proved reserves with estimated reserve replacement of 247%
  • Increased well-density on proved undeveloped horizontal (“PUD”) Niobrara locations in the Wattenberg Field from eight to 16 wells per section-equivalent due to the continued success  of downspacing
  • 2015 production of 15.4 MMBoe representing 65% year-over-year growth and exceeding top-end of guidance

CEO Commentary

Bart Brookman, President and Chief Executive Officer, commented, “Our ability to high-grade our development plan and increase proved reserves in the current price environment is a true testament to the depth, quality and resilience of our middle core Wattenberg inventory.  We had tremendous 2015 production of approximately 15.4 MMBoe, highlighted by our ability to drive efficiencies from a cost, operating and technological standpoint.  Our top priority for 2016 is maintaining our solid balance sheet and strong debt metrics. We believe our flexible and efficient Wattenberg drilling program positions us to continue to deliver long-term shareholder value.”

2015 Proved Reserves

PDC’s total proved reserves as of December 31, 2015 increased 9% to 272.8 MMBoe compared to 250.1 MMBoe reported at year-end 2014 and were 60% liquid, 40% natural gas and 26% proved developed.  The growth in proved reserves was primarily a result of the increased well-density of PUD locations in the Company’s middle core Wattenberg that allowed for the subsequent optimization of the Company’s five-year development plan. Total gross PUD locations in Wattenberg increased to approximately 790.

PDC’s independent reserve engineering firm, Ryder Scott Company, L.P., completed its estimate of the Company’s year-end 2015 proved reserves in accordance with Securities and Exchange Commission (“SEC”) guidelines using NYMEX prices of $50.28 per barrel (“Bbl”) for crude oil and $2.59 per million British Thermal Units (“MMBtu”) for natural gas, before adjustments for energy content, quality, midstream fees, and basis differentials.

The value of the Company’s proved reserves, discounted at ten percent and before tax (“PV10”), decreased to $1.3 billion as of December 31, 2015 compared to $3.5 billion as of year-end 2014. The decrease in PV10 is primarily a result of a 47% and 41% decrease in the average NYMEX oil and gas price, respectively.

2015 Year-End Proved Reserves Summary



Beginning balance at December 31, 2014 250.1 $ 3,450 $ 13.80
Drilling, extensions, additions and revisions 38.1
2015 production from continuing operations (15.4 )
Ending balance at December 31, 2015 272.8 $ 1,337 $ 4.90

The Company has stress-tested its proved reserves to determine the impact of lower crude oil prices. Replacing the 2015 SEC NYMEX crude oil prices with those shown in the table below, and leaving all other parameters unchanged, results in a decrease in PDC’s total proved reserves of 6% or less.

 2015 Year-End Proved Reserves Price Stress Test

Pricing Scenario – NYMEX


from SEC
$50.28/Bbl, $2.59/MMBtu (SEC) 272.8
$40.00/Bbl, $2.59/MMBtu 266.1 (2 %)
$30.00/Bbl, $2.59/MMBtu 256.5 (6 %)

Operational Update

PDC’s full-year 2015 production was approximately 15.4 MMBoe or 42,100 Boe per day, a 65% increase compared to 2014 production.  The Company continues to see encouraging results related to increased drilling efficiency, completion technology and reduced line pressure in the Wattenberg Field.  In the fourth quarter, the Company turned-in-line 43 horizontal wells, including the 13 well Rieder project testing 26 wells per section-equivalent spacing.

Upcoming Investor Presentations

PDC is scheduled to present at the Credit Suisse Energy Summit in Vail, Colorado on February 23, 2016. Please see the Company’s website at for details and webcast information. The related slide presentation is expected to be available on the Company’s website immediately prior to the events.

Analyst Day

The Company plans to host an Analyst Day on Thursday, April 7, 2016 at the Brown Palace Hotel in Denver, Colorado. PDC also plans to webcast the event.

About PDC Energy, Inc.

PDC Energy, Inc. is a domestic independent exploration and production company that produces, develops, acquires and explores for crude oil, natural gas and NGLs with primary operations in the Wattenberg Field in Colorado and in the Utica Shale in southeastern Ohio. Our operations in the Wattenberg Field are focused on the liquid-rich horizontal Niobrara and Codell plays and our Ohio operations are focused in the condensate and wet gas portion of the Utica Shale play. PDC is included in the S&P SmallCap 600 Index and the Russell 2000 Index of Companies.