PDC Energy Seeks Acquisitions
Mar 18 15
PDC Energy, Inc. (NasdaqGS:PDCE) is seeking acquisitions. PDC Energy, Inc. has filed a Follow-on Equity Offering, the net proceeds of which will be used for general corporate purposes, which may include the acquisition of producing properties and other assets, the repayment of our outstanding indebtedness, working capital, or for any other purposes as may be described in the accompanying prospectus supplement.
PDC Energy, Inc. - Analyst/Investor Day
Feb 19 15
PDC Energy, Inc. - Analyst/Investor Day
PDC Energy, Inc. Reports Unaudited Consolidated Production and Earnings Results for the Fourth Quarter and Year Ended December 31, 2014; Announces Impairment of Crude Oil and Natural Gas Properties for the Fourth Quarter Ended December 31, 2014; Provides Earnings Guidance for the Year 2015
Feb 19 15
PDC Energy, Inc. reported unaudited consolidated production and earnings results for the fourth quarter and year ended December 31, 2014. For the quarter, the company reported net income of $131.8 million, or $3.64 per diluted share, compared to $13.2 million, or $0.36 per diluted share, for the fourth quarter of 2013. Adjusted net loss was $39.9 million compared to adjusted net income of $16.1 million for the same 2013 period, was impacted by the after-tax gain on the sale of Marcellus assets of $76.3 million, offset by tax of about $29.9 million on the gain. The quarter was also impacted by the impairment of Utica properties of $158.3 million, offset by $62.1 million tax benefit. Without these events, adjusted net income for the quarter was $10 million. Net cash from operating activities was $34.7 million compared to net cash from operating activities of $39.6 million in the fourth quarter of 2013. Adjusted cash flows from operations were $69.9 million compared to $72.3 million in the same 2013 period. Adjusted EBITDA was $159.3 million against $81.3 million a year ago. Total revenues were $407.691 million against $135.379 million a year ago. Income from continuing operations before income taxes was $138.085 million against $23.735 million a year ago. Income from continuing operations was $83.970 million against $14.798 million a year ago.
For the full year, net income was $155.4 million, or $4.24 per diluted share, compared to a net loss of $22.3 million, or $0.69 per diluted share, for 2013. Net income includes $163.5 million of impairments primarily related to the company's Utica Shale development plan as a result of low commodity prices and reclassification of reserves. This compares to $52.5 million of impairments in 2013. Included in net income and adjusted net loss, a non-GAAP financial measure defined below, was a pre-tax gain of $76.3 million related to the divestiture of its Marcellus assets. Adjusted net loss was $37.7 million for 2014, compared to adjusted net income of $0.5 million for 2013. Adjusted net loss for 2014 excludes a pre-tax gain of $193.1 million compared to a pre-tax loss of $22.8 million in 2013 on unsettled commodity derivative instruments. Net cash from operating activities was $236.7 million compared to $159.2 million for 2013. Adjusted cash flows from operations were $250.2 million compared to $207.8 million in 2013. Adjusted cash flow was reduced by $40.3 million related to the settlement of two lawsuits during 2014. Total revenues for 2014 were $856.2 million, a 118% increase from $392.7 million for 2013. Crude oil, natural gas and NGLs sales revenues increased 38% to $471.4 million in 2014 compared to $340.8 million in 2013. Adjusted EBITDA was $361.0 million against $241.0 million a year ago. Total revenues were $856.207 million against $392.665 million a year ago. Income from continuing operations before income taxes was $177.228 million against loss from continuing operations before income taxes of $32.963 million a year ago. Income from continuing operations was $107.261 million against loss from continuing operations of $21.111 million a year ago.
Fourth quarter 2014 production from continuing operations increased 29% to 28,060 Boe/d compared to 21,735 Boe/d in the fourth quarter of 2013, and increased 10% compared to 25,600 Boe/d in the third quarter of 2014. The increase in fourth quarter 2014 production was primarily due to ongoing successful horizontal drilling in the Wattenberg Field.
For 2013, the company achieved 42% production growth over 2013 to 25,464 barrels of oil equivalent per day in 2014, or 9.3 million barrels of oil equivalent for the year from continuing operations. Crude oil and natural gas liquids production volumes accounted for 65% of 2014 production from continuing operations.
For the quarter Ended December 31, 2014, the company announced impairment of crude oil and natural gas properties was $159.9 million compared to $1.0 million against same period for previous year.
The company’s 2015 updated capital budget is approximately $473 million, a decrease of 15% compared to its previously announced $557 million. The decrease is due to service cost reductions and an expected decrease in non-operated activity, which was partially offset by increased working interest in the operated drilling program. The company's plan to operate five drilling rigs in Wattenberg remains intact. The company widened its 2015 production guidance range slightly to 13.5 MMBoe to 14.5 MMBoe from 13.8 – 14.5 MMBoe, due to uncertainty regarding the timing of non-operated activity. Production growth from 2014 to the mid-point of the revised 2015 guidance range is 51%. The cash flow for 2015 is estimated to be approximately $360 million at the midpoint of production guidance. This is based on $51.72 oil price and a $2.86 natural gas price. And the outspend for the company has been reduced to $110 million. Based on the production ranges, the company forecasts sales to be between $361 million and $400 million, with realized gains on derivatives of $188 million using the average price. Adjusted EBITDA is forecast between $386 million and $413 million. Adjusted cash flow from operations are expected to be between $350 million and $375 million or $9.41 and $10.10 per diluted share.