Overview as of December 6, 2016 | Print |
Growing reserves and production
PDC Energy follows a simple but effective business strategy: value-added growth of reserves and production while maximizing margins and cash flow and maintaining a strong balance sheet and debt metrics. The Company is focused on horizontal drilling and low-risk organic development of oil and natural gas reserves from shales and tight reservoir rocks.
PDC Energy operates in three geographically distinct areas of the country to reduce the risk level associated with oil and natural gas drilling, production and marketing:
- Denver - Julesburg Basin
- Core Wattenberg Field - Northeast Colorado
- Permian Basin
- Delaware Basin - West Texas
- Appalachian Basin
- Utica Shale – Southeast Ohio
Emphasis on oil and NGLs
PDC is focused on horizontal Niobrara and Codell development in the liquid-rich Wattenberg Field, where liquid content in new horizontal wells is expected to average 50% - 75% of the production stream. In the Delaware Basin, the Company is targeting the Wolfcamp A, B & C development where it expects the Eastern acreage block to be 70-80% liquids, the Central block 60-70% liquids and the Western block 50-70% liquids. Additionally, the Company has drilled multiple wells in the wet gas and condensate windows to evaluate its Utica Shale position.
Drilling and development
Annual production from continuing operations for 2015 averaged 42,108 Boe per day and proved reserves at year-end 2015 totaled 273 MMboe. During 2015, the Company spud 174 gross horizontal wells and participated in 54 non-operated horizontal projects.
Fiscal management and marketing strategy
PDC Energy is committed to maintaining a conservative balance sheet as part of its fiscal strategy. PDC utilizes an active hedging program for oil and natural gas to reduce the effects of variable commodity prices and lock in cash flow to help fund its capital expenditure program. The Company also markets a portion of its natural gas and oil through a wholly owned subsidiary, Riley Natural Gas (“RNG”) as part of its risk management strategy. With RNG managing natural gas and oil marketing, PDC maintains better control over sales and derivative activities.