Independant Energy group PDC Energy reported worse than third quarter earnings after the close Monday. $PDCE expects lower oil and natural gas production in the Wattenberg Field, Colorado and the liquid-rich Wolfcamp zones in the Delaware Basin.
Independant Energy group PDC Energy reported worse than expected third quarter earnings after the close Monday. $PDCE expects lower oil and natural gas production in the Wattenberg Field, Colorado and the liquid-rich Wolfcamp zones in the Delaware Basin.
PDC Energy Inc (NASDAQ): $PDCE Reported Earnings After Close Monday
Exp $0.59 EPS on $343.35 million forecast in revenue
PDC Energy (PDCE) reported results for the quarter ended September 2018 with a loss of $3.4 million. On a per-share basis it had a loss of 5 cents. Earnings, adjusted for non-recurring costs, were 48 cents per share. The results missed expectations of 59 cents per share. Revenue was $280.7 million also missing forecasts of $343.35 million.
PDC Energy Inc (NASDAQ): $PDCE
Market Reaction – After hours 46.33 ▲ 0.17 (0.37%)
President and Chief Executive Officer, Bart Brookman commented, “The third quarter offered several positives, including a glimpse of our multi-basin strategy delivering the results and efficiencies needed to propel us through the next several years. Our Wattenberg operating performance is beginning to improve, as production and costs are both trending in the right direction; however, our production continues to be curtailed by the shortfall in midstream capacity in the basin. In the Delaware, our Grizzly Bear downspacing test has moved PDC one-step closer to unlocking the optimal approach to maximizing value through full-field development. We are excited by the knowledge gained through this test and anxiously await the additional downspacing tests currently planned in 2019.”
- Production of 10.1 million barrels of oil equivalent (“MMBoe”), or approximately 110,000 barrels of oil equivalent (“Boe”) per day, representing a year-over-year increase of 21 percent from Wattenberg and Delaware basin operations.
- Oil production of 4.3 million barrels (“MMBbls”), a 27 percent increase year-over-year from Wattenberg and Delaware basin operations.
- Delaware Basin oil price realizations equal to approximately 94 percent of NYMEX average pricing.
2018 Capital Investment Outlook and Financial Guidance
The Company has seen modest improvements to its Wattenberg production volumes and system-wide line pressures while maintaining its expected allocation of total system capacity from its primary midstream service provider in the Wattenberg Field. However, due to the pace of ongoing third party midstream system optimization in Wattenberg and both planned and unplanned downtime in the third and fourth quarter, the Company now expects full-year 2018 production to be at the low end of its production guidance range, or approximately 40 MMBoe.
As a result of these midstream constraints negatively impacting production throughout the second half of the year, the Company expects its operating expenses per Boe to be at or slightly above the high-end of the provided guidance ranges in 2018. The Company does not currently anticipate these midstream constraints to materially impact its 2019 production growth outlook of 25 to 35 percent.
The Company expects its 2018 capital investment for crude oil and natural gas properties to be in the middle of its previously disclosed guidance range.
About PDC Energy, Inc.
PDC Energy, Inc. is a domestic independent exploration and production company that acquires, produces, develops, and explores for crude oil, natural gas and NGLs with operations in the Wattenberg Field in Colorado, in the Delaware Basin in West Texas.
Its operations are focused on the liquid-rich horizontal Niobrara and Codell plays in the Wattenberg Field, the liquid-rich Wolfcamp zones in the Delaware Basin.
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