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, 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 with an average lateral length of approximately 5,000′ through the acquisitions in Reeves and Culberson Counties in West Texas. As of year-end 2019, the Company’s had approximately 25,000 net acres.
In 2019, the Company announced the strategic acquisition of SRC Energy in an all-stock transaction valued at approximately $1.7 billion. The acquisition created a leading Colorado energy producer with approximately 182,000 net acres in the Core Wattenberg Field – 100% of which is located in Weld County. The acquisition closed in January of 2020.
The Company’s proved reserves have steadily grown to approximately 731 MMBoe as of year-end 2020. The reserves are comprised of about 57% crude oil and natural gas liquids. The Company’s year-end 2020 inventory consists of approximately 2,000 gross locations in the Wattenberg Field and 135 in the Delaware Basin. The Company exited 2020 with approximately 200 drill-uncompleted (DUC) wells in Wattenberg, which are included in its inventory count.