For nearly half a century, PDC Energy has adapted and evolved to provide energy for the needs of everyday people. The company has remained focused on sound geological and engineering fundamentals, strong financials, adaptive technologies, and adding value for shareholders while working closely with property owners and local communities.
PDC Energy was founded in Bridgeport, West Virginia in 1969. For the first 30 years, the Company operated exclusively in the Appalachian Basin where it focused on drilling Shallow Upper Devonian gas wells. In 1999, the Company greatly expanded its range of operations by entering the Wattenberg Field and Piceance Basin of Colorado as well as other basins, where the Company continued to focus on developing low-risk, predominately natural gas focused assets. In 2009, PDC moved its corporate headquarters to Denver, Colorado.
In 2010, the Company implemented a liquids-rich growth strategy that focused on acquiring and developing assets capable of delivering much higher long-term value as compared to its then-existing dry natural gas-weighted portfolio. The Company acquired key liquid-rich assets in the core Wattenberg in 2012 for approximately $305 million, including net production of ~2,800 Boe per day and 30,000 net acres in the Inner and Middle Core areas, and also acquired approximately 67,000 net acres in the condensate and wet-gas windows of the emerging Utica Shale play. Additionally, the Company divested many of its dry gas-weighted assets like the Piceance Basin, NECO and Shallow Devonian in 2013. PDC completed its transition to a higher-valued, liquids focused portfolio in 2014, by divesting its dry gas Marcellus joint venture assets in Appalachia.
Over the last six years, the Company’s operating and technical teams have substantially improved the capital efficiency of the drilling program in its Wattenberg assets through an exclusive focus on horizontal drilling and completions. Additionally, the teams have focused on margin improvements by managing operating costs and pursuing improved marketing and midstream contracts.
In December 2016, PDC made a significant acquisition of assets in the Delaware Basin. At the time of the acquisition, the Company identified 785 drilling locations through the acquisitions in Reeves and Culberson Counties in West Texas. As of year-end 2017, the Company’s had approximately 60,000 net acres.
The Company’s proved reserves have steadily grown to approximately 453 MMBoe as of year-end 2017, including approximately 98 MMBoe in its Delaware assets. The reserves are comprised of about 58% crude oil and natural gas liquids, up substantially from year-end 2009 proved reserves of only 120 MMBoe comprised of 15% crude oil and 85% natural gas. The Company’s year-end 2017 drilling inventory consists of approximately 1,500 gross locations in the Wattenberg Field and 450 in the Delaware Basin.