Schlumberger beats earnings estimates as Q2 revenues develop by 10%

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On August 2, the Firm handed a significant milestone within the allowing course of by receiving the Completeness Dedication on its Guanella CAP from the Colorado Oil & Fuel Conservation Fee (“COGCC”). The Guanella CAP covers roughly 35,000 consolidated web acres in rural Weld County with roughly 450 effectively areas accessed by solely 22 floor areas. With the Completeness Dedication handed, PDC now enters the technical evaluate section and 60-day public remark interval.

In June 2022, PDC was granted unanimous approval for a 69-well Oil and Fuel Growth Plan (“OGDP”) and a 30-well OGDP, the Firm’s second and third approval beneath the brand new allowing course of. Mixed, these two approvals offered the Firm 99 extra permits. Collectively, these approvals and the in progress Guanella CAP utility, signify the Firm’s deliberate Wattenberg Discipline turn-in-line (“TIL”) exercise into 2028. Over the approaching months, the Firm expects to submit a number of extra OGDPs increasing its stock of permitted areas to help probably the most environment friendly improvement of the core Wattenberg Discipline.

2022 Second Quarter Highlights:

  • Internet money from working actions of roughly $747 million, adjusted money flows from operations, a non-U.S. GAAP metric outlined beneath, of roughly $695 million and oil and gasoline capital investments of roughly $290 million.
  • Roughly $405 million of adjusted free money circulate (“FCF”), a non-U.S. GAAP metric outlined beneath.
  • Returned roughly $250 million of capital to shareholders by way of the repurchase of roughly 3.0 million shares of widespread inventory excellent and a $0.35 base dividend.
  • Closed on acquisition of Nice Western Petroleum, LLC (the “Nice Western Acquisition”) on Might 6, 2022.
  • Prolonged multi-year DJ Basin allow stock with approval of Kenosha and Broe OGDP permits accounting for 99 new wells.
  • Complete manufacturing of 21.4 million barrels of oil equal (“MMBoe”) or roughly 235,000 Boe per day and oil manufacturing of 6.8 million barrels (“MMBbls”) or roughly 75,000 Bbls per day.

CEO Commentary

President and Chief Govt Officer, Bart Brookman, commented, “I commend our regulatory workforce at PDC and am happy with the working relationship we’ve got developed with the COGCC. In June, we obtained 99 extra permits, extending our mapped turn-in-line schedule effectively into 2025. At the moment’s announcement of the Completeness Dedication on the Guanella CAP marks one other key accomplishment in offering long-term visibility into the drilling allow course of. We look ahead to persevering with this approval observe report with our Guanella CAP and future OGDPs.

“For the quarter, we closed on the $1.4 billion Nice Western transaction, which honored all PDC’s acquisition standards and added complementary core stock to our Wattenberg asset. The groups are diligently working to mix the 2 corporations and we anticipate full integration might be full by the top of third quarter.

“Our outcomes for the quarter are highlighted by the Firm’s means to generate greater than $400 million in adjusted free money circulate (FCF) whereas returning roughly $250 million of capital to shareholders by way of the repurchase of widespread inventory and base dividends. This represents an annualized free money circulate yield and shareholder return yield of roughly 26% and 16% respectively. PDC elevated its base quarterly dividend to $0.35 per share after closing the Nice Western acquisition, and stays dedicated to returning a minimal of 60% of its quarterly publish dividend annual FCF to shareholders by way of the Firm’s share repurchase program and a year-end particular dividend if wanted.”

Operations Replace

Within the second quarter of 2022, PDC invested roughly $290 million whereas delivering complete manufacturing of 21.4 million Boe, or roughly 235,000 Boe per day, and oil manufacturing of 6.8 million barrels, or roughly 75,000 barrels per day. Complete manufacturing and oil manufacturing signify a sequential enhance of 19 % and 17 % respectively, in comparison with the primary quarter of 2022, primarily pushed by the manufacturing volumes from the Nice Western Acquisition. Manufacturing got here in decrease than steerage because of a small variety of compounding close to time period operational constraints together with downtime related to shifting wells on the Nice Western Raindance pad to gasoline elevate, timing of non permanent unplanned upkeep on third occasion midstream programs within the Wattenberg Discipline and delays in securing workover rigs within the Delaware Basin.

Within the Wattenberg Discipline, the Firm invested roughly $230 million to function a mean of three drilling rigs and one and a half completion crews within the second quarter, leading to 54 spuds and 33 TILs and 50 in-process wells PDC acquired as a part of the Nice Western Acquisition. Shortly after closing of the Nice Western Acquisition on Might sixth, the Firm dropped one of many two rigs that Nice Western was working. Contemplating the 2 rigs operated by PDC and one rig from Nice Western, we operated a 3 rig program for almost all of the second quarter. Complete manufacturing was 18.3 million Boe, or roughly 201,000 Boe per day, whereas oil manufacturing was roughly 5.5 million Bbls, or roughly 60,000 Bbls per day. PDC exited the second quarter with roughly 190 drilled, uncompleted wells (“DUCs”) and roughly 455 accepted permits in-hand.

In June, the Firm started shifting the 35 effectively Raindance pad, positioned in a decrease gas-oil ratio a part of the core Wattenberg onto gasoline elevate which required adjoining wells to be briefly shut-in whereas gear was moved and put in. Preliminary manufacturing response from wells the place gasoline elevate has been put in and been introduced again on-line are assembly expectations and at present help long run manufacturing forecasts. This work is predicted to proceed into the second half of the 12 months and the impacts have been integrated into our second half 2022 manufacturing steerage.

Within the Delaware Basin, PDC invested roughly $60 million to function one drilling rig and a completion crew, leading to 4 spuds and 9 TILs. Complete manufacturing was 3.1 million Boe, or roughly 34,000 Boe per day, whereas oil manufacturing was roughly 1.3 million Boe, or roughly 14,000 Boe per day.

Q2 2022 Shareholder Returns and Monetary Place

The Firm returned roughly $250 million of capital to shareholders by way of the repurchase of roughly 3.0 million shares of widespread inventory excellent and its a $0.35 per share base quarterly dividend. The Firm has a $1.25 billion share repurchase program approved, which is predicted to be utilized by 12 months finish 2023. PDC stays dedicated to returning a minimal of 60 % of its quarterly post-dividend annual FCF to shareholders by way of the Firm’s share repurchase program and a year-end particular dividend, if wanted.

The Firm had roughly $39 million money available and roughly $755 million drawn on the credit score facility as of June 30, 2022. The leverage ratio was 0.7x at June 30, 2022.

Second Half and Full Yr 2022 Outlook

For the second half, the Firm expects complete manufacturing to be in a spread of 245,000-255,000 Boe per day and 80,000-84,000 Bbls per day of oil manufacturing. Capital investments in crude oil and pure gasoline properties are anticipated to be between $515 and $565 million.

Primarily based on our present working outcomes from the primary half of the 12 months, we now count on full-year 2022 manufacturing to vary between 230,000 Boe to 240,000 Boe per day, of which roughly 73,000 Bbls to 77,000 Bbls is predicted to be crude oil. Our deliberate 2022 capital investments in crude oil and pure gasoline properties are anticipated to be between $1.025 and $1.075 billion.

Environmental, Social and Governance (“ESG”)

Via the primary six months of 2022, the Firm is on schedule with its deliberate initiatives to satisfy its 15% and 30% GHG and methane discount targets for the complete 12 months 2022, respectively.

The Firm surpassed the 4 12 months mark with no misplaced time work accidents in each the Wattenberg and Delaware basins. Via the primary six months of 2022, PDCE worker Complete OSHA Recordable Damage Price (TRIR) was 0.34, a mark forward of the company goal of 0.4.

Together with its current environmental, well being and security efficiency bonus metrics, together with GHG and methane depth discount targets, ESG is projected to account for roughly 25 % of the Firm’s short-term incentive program.

Second Quarter Oil and Fuel Manufacturing, Gross sales and Working Value Knowledge

Crude oil, pure gasoline and NGLs gross sales, excluding web settlements on derivatives have been $1,238 million, a 40 % enhance in comparison with first quarter of 2022 of $882 million. The rise in gross sales between durations was resulting from a 17 % enhance in weighted common realized gross sales worth per Boe to $57.81 from $49.23 and a 19 % enhance in manufacturing from 17.9 MMBoe to 21.4 MMBoe. The rise in gross sales worth was primarily pushed by 15 % and 47 % will increase in weighted common realized crude oil and pure gasoline costs, respectively. The mixed income from crude oil, pure gasoline and NGLs gross sales and web settlements on commodity by-product devices was $939 million within the second quarter of 2022 in comparison with $721 million within the first quarter of 2022.

The next desk supplies weighted common gross sales worth, by space, excluding web settlements on derivatives and transportation, gathering and processing expense (“TGP”), for the durations introduced:

Three Months Ended Six Months Ended June 30,
June 30, 2022 March 31, 2022 % Change 2022 2021 % Change
Crude oil (MBbls)
Wattenberg Discipline 5,545 4,832 15 % 10,377 8,670 20 %
Delaware Basin 1,299 1,021 27 % 2,320 1,578 47 %
Complete 6,844 5,853 17 % 12,697 10,248 24 %
Weighted common worth $ 108.24 $ 93.93 15 % $ 101.64 $ 60.92 67 %
Pure gasoline (MMcf)
Wattenberg Discipline 43,244 37,663 15 % 80,907 73,742 10 %
Delaware Basin 6,573 5,456 20 % 12,029 9,770 23 %
Complete 49,817 43,119 16 % 92,936 83,512 11 %
Weighted common worth $ 5.57 $ 3.78 47 % $ 4.74 $ 2.29 107 %
NGLs (MBbls)
Wattenberg Discipline 5,575 4,291 30 % 9,866 8,153 21 %
Delaware Basin 688 594 16 % 1,282 844 52 %
Complete 6,263 4,885 28 % 11,148 8,997 24 %
Weighted common worth $ 34.99 $ 34.70 1 % $ 34.86 $ 20.61 69 %
Crude oil equal (MBoe)
Wattenberg Discipline 18,328 15,400 19 % 33,728 29,113 16 %
Delaware Basin 3,082 2,524 22 % 5,607 4,051 38 %
Complete 21,410 17,924 19 % 39,335 33,164 19 %
Weighted common worth $ 57.81 $ 49.23 17 % $ 53.90 $ 30.19 79 %

Manufacturing prices for the second quarter of 2022, which embody LOE, manufacturing taxes and TGP, have been $190 million, or $8.85 per Boe, in comparison with $145 million, or $8.09 per Boe, within the first quarter of 2022. The rise in manufacturing prices per Boe was primarily resulting from a 9 % enhance in LOE partially offset by a 12 % lower in TGP between durations. The rise in LOE per Boe between durations was resulting from elevated effectively service prices pushed by increased commodity costs and inflation, and a rise in environmental prices between durations. The lower in TGP expense per Boe between durations was resulting from decrease TGP charges on the acquired Nice Western manufacturing.

The next desk supplies the elements of manufacturing prices for the durations introduced:

Three Months Ended Six Months Ended June 30,
June 30, 2022 March 31, 2022 2022 2021
Lease working bills $ 70.6 $ 54.2 $ 124.8 $ 84.2
Manufacturing taxes 89.3 62.9 152.2 56.5
Transportation, gathering and processing bills 29.6 28.0 57.6 47.7
Complete $ 189.5 $ 145.1 $ 334.6 $ 188.4
Three Months Ended Six Months Ended June 30,
June 30, 2022 March 31, 2022 2022 2021
Lease working bills per Boe $ 3.30 $ 3.02 $ 3.17 $ 2.54
Manufacturing taxes per Boe 4.17 3.51 3.87 1.70
Transportation, gathering and processing bills per Boe 1.38 1.56 1.46 1.44
Complete per Boe $ 8.85 $ 8.09 $ 8.50 $ 5.68

Monetary Outcomes

Internet revenue for the second quarter of 2022 was $662 million, or $6.74 per diluted share, in comparison with a web lack of $32 million, or $0.33 per diluted share within the first quarter of 2022. The quarter-over-quarter change was primarily resulting from a rise in crude oil, pure gasoline and NGLs gross sales of $355 million, a $466 million lower in commodity danger administration loss between durations and a acquire on cut price buy from the Nice Western Acquisition of $100.3 million within the second quarter of 2022, partially offset by a $128.0 million enhance in revenue tax expense between durations. Adjusted web revenue, a non-U.S. GAAP monetary measure outlined beneath, was $502 million within the second quarter of 2022 in comparison with $359 million within the first quarter of 2022. The motion between durations is primarily attributable to the change in gross sales and settled derivatives.

Internet money from working actions for the second quarter of 2022 was roughly $747 million in comparison with $489 million within the first quarter of 2022. Adjusted money flows from operations, a non-U.S. GAAP metric outlined beneath, was roughly $695 million and $539 million within the second and first quarter of 2022, respectively. The quarter-over-quarter enhance in adjusted money flows from operations was primarily as a result of enhance in gross sales partially offset by change in by-product settlements, and will increase in prices and normal administrative expense because of the Nice Western Acquisition. Adjusted free money flows, a non-U.S. GAAP metric outlined beneath, elevated to $404 million from $319 million within the first quarter of 2022.

G&A, which incorporates money and non-cash expense and $13.0 million in Nice Western transaction and transition associated expense, was $46 million, or $2.13 per Boe within the second quarter of 2022 in comparison with $34 million, or $1.90 per Boe, within the first quarter of 2022. Excluding the transaction and transition prices related to the Nice Western Acquisition, G&A was $1.52 per Boe within the second quarter.

Reconciliation of Non-U.S. GAAP Monetary Measures

We use “adjusted money flows from operations,” “adjusted free money circulate (deficit),” “adjusted web revenue (loss)” and “adjusted EBITDAX,” non-U.S. GAAP monetary measures, for inside administration reporting, when evaluating period-to-period adjustments and, in some circumstances, in offering public steerage on potential future outcomes. As well as, we imagine these are measures of our basic enterprise and could be helpful to us, traders, lenders and different events within the analysis of our efficiency relative to our friends and in assessing acquisition alternatives and capital expenditure initiatives. These supplemental measures aren’t measures of economic efficiency beneath U.S. GAAP and needs to be thought-about along with, not as an alternative to, web revenue (loss) or money flows from operations, investing or financing actions and shouldn’t be seen as liquidity measures or indicators of money flows reported in accordance with U.S. GAAP. The non-U.S. GAAP monetary measures that we use will not be corresponding to equally titled measures reported by different corporations. Sooner or later, we might disclose completely different non-U.S. GAAP monetary measures so as to assist us and our traders extra meaningfully consider and examine our future outcomes of operations to our beforehand reported outcomes of operations. We strongly encourage traders to evaluate our monetary statements and publicly filed stories of their entirety and to not depend on any single monetary measure.

Adjusted money flows from operations and adjusted free money circulate (deficit). We imagine adjusted money flows from operations can present extra transparency into the drivers of tendencies in our working money flows, similar to manufacturing, realized gross sales costs and working prices, because it disregards the timing of settlement of working property and liabilities. We imagine adjusted free money circulate (deficit) supplies extra data which may be helpful in an investor evaluation of our means to generate money from working actions from our current oil and gasoline asset base to fund exploration and improvement actions and to return capital to stockholders within the interval through which the associated transactions occurred. We exclude from this measure money receipts and expenditures associated to acquisitions and divestitures of oil and gasoline properties and capital expenditures for different properties and gear, which aren’t reflective of the money generated or utilized by ongoing actions on our current producing properties and, within the case of acquisitions and divestitures, could also be evaluated individually by way of their affect on our efficiency and liquidity. Adjusted free money circulate is a supplemental measure of liquidity and shouldn’t be seen as an alternative to money flows from operations as a result of it excludes sure required money expenditures. For instance, we might have obligatory debt service necessities or different non-discretionary expenditures which aren’t deducted from the adjusted free money circulate measure.

We’re unable to current a reconciliation of forward-looking adjusted money circulate as a result of elements of the calculation, together with fluctuations in working capital accounts, are inherently unpredictable. Furthermore, estimating probably the most straight comparable GAAP measure with the required precision mandatory to supply a significant reconciliation is extraordinarily troublesome and couldn’t be achieved with out unreasonable effort. We imagine that forward-looking estimates of adjusted money circulate are vital to traders as a result of they help within the evaluation of our means to generate money from our operations.

Adjusted web revenue (loss). We imagine that adjusted web revenue (loss) supplies extra transparency into working tendencies, similar to manufacturing, realized gross sales costs, working prices and web settlements on commodity by-product contracts, as a result of it disregards adjustments in our web revenue (loss) from mark-to-market changes ensuing from web adjustments within the truthful worth of our unsettled commodity by-product contracts, and these adjustments aren’t straight reflective of our working efficiency.

Adjusted EBITDAX. We imagine that adjusted EBITDAX supplies extra transparency into working tendencies as a result of it displays the monetary efficiency of our property with out regard to financing strategies, capital construction, accounting strategies or historic price foundation. As well as, as a result of adjusted EBITDAX excludes sure non-cash bills, we imagine it’s not a measure of revenue, however moderately a measure of our liquidity and talent to generate adequate money for exploration, improvement, and acquisitions and to service our debt obligations.

Money Flows from Operations to Adjusted Money Flows from Operations and Adjusted Free Money Circulate
Three Months Ended Six Months Ended June 30,
June 30, 2022 March 31, 2022 2022 2021
Money flows from operations to adjusted money flows from operations and adjusted free money circulate:
Internet money from working actions $ 747.4 $ 489.0 $ 1,236.4 $ 577.4
Modifications in property and liabilities (52.7 ) 49.8 (2.9 ) 65.6
Adjusted money flows from operations 694.7 538.8 1,233.5 643.0
Capital expenditures for midstream property (3.0 ) (3.0 )
Capital expenditures for improvement of crude oil and pure gasoline properties (346.7 ) (187.0 ) (533.7 ) (240.3 )
Change in accounts payable associated to capital expenditures for oil and gasoline improvement actions 58.8 (33.1 ) 25.7 (61.3 )
Adjusted free money circulate $ 403.8 $ 318.7 $ 722.5 $ 341.4
Internet Loss to Adjusted Internet Revenue (Loss) and Adjusted Earnings Per Share, Diluted
Three Months Ended Six Months Ended June 30,
June 30, 2022 March 31, 2022 2022 2021
Internet revenue (loss) to adjusted web revenue (loss):
Internet revenue (loss) $ 662.4 $ (32.0 ) $ 630.4 $ (96.1 )
Loss (acquire) on commodity by-product devices 102.0 568.1 670.0 489.5
Internet settlements on commodity by-product devices (298.7 ) (161.6 ) (460.3 ) (85.8 )
Tax impact of above changes (1) 36.4 (15.9 ) (41.9 )
Adjusted web revenue (loss) $ 502.1 $ 358.6 $ 798.2 $ 307.6
Earnings per share, diluted 6.83 $ (0.33 ) 6.42 (0.97 )
Loss (acquire) on commodity by-product devices 1.04 5.80 6.83 1.79
Internet settlements on commodity by-product devices (3.04 ) (1.65 ) (4.70 ) (0.85 )
Tax impact of above changes (1) 0.37 (0.16 ) (0.43 )
Adjusted earnings (loss) per share, diluted $ 5.11 $ 3.66 $ 8.13 $ (0.01 )
Weighted common diluted shares excellent 98.2 98.0 98.2 100.7

_____________

(1)   As a result of full valuation allowance recorded towards our web deferred tax property, there is no such thing as a tax impact for the six months ended June 30, 2021.

Adjusted EBITDAX
Three Months Ended Six Months Ended June 30,
June 30, 2022 March 31, 2022 2022 2021
Internet revenue (loss) to adjusted EBITDAX:
Internet revenue (loss) $ 662.4 $ (32.0 ) $ 630.4 $ (96.1 )
Loss (acquire) on commodity by-product devices 102.0 568.1 670.0 489.5
Internet settlements on commodity by-product devices (298.7 ) (161.6 ) (460.3 ) (85.8 )
Non-cash stock-based compensation 7.2 5.5 12.8 11.5
Curiosity expense, web 17.6 12.9 30.5 39.1
Revenue tax expense (profit) 128.0 1.2 129.2 (0.1 )
Impairment of properties and gear 0.5 0.9 1.5 0.3
Exploration, geologic and geophysical expense 0.3 0.3 0.6 0.6
Depreciation, depletion and amortization 191.1 151.1 342.1 309.0
Accretion of asset retirement obligations 3.4 3.0 6.3 6.4
Loss (acquire) on sale of properties and gear 0.5 (0.1 ) 0.4 (0.3 )
Adjusted EBITDAX $ 814.3 $ 549.3 $ 1,363.5 $ 674.1
Money from working actions to adjusted EBITDAX:
Internet money from working actions $ 747.4 $ 489.0 $ 1,236.4 $ 577.4
Acquire on cut price buy 100.3 100.3
Curiosity expense, web 17.6 12.9 30.5 39.1
Amortization and write-off of debt low cost, premium and issuance prices (1.3 ) (1.4 ) (2.7 ) (7.7 )
Exploration, geologic and geophysical expense 0.3 0.3 0.6 0.6
Different 2.7 (1.3 ) 1.3 (0.9 )
Modifications in property and liabilities (52.7 ) 49.8 (2.9 ) 65.6
Adjusted EBITDAX $ 814.3 $ 549.3 $ 1,363.5 $ 674.1

PDC ENERGY, INC. 
Condensed Consolidated Statements of Operations

(unaudited, in 1000’s, besides per share knowledge)

Three Months Ended June 30, Six Months Ended June 30,
2022 2021 2022 2021
Revenues
Crude oil, pure gasoline and NGLs gross sales $ 1,237,680 $ 533,141 $ 2,120,058 $ 1,001,260
Commodity worth danger administration acquire (loss), web (101,976 ) (308,253 ) (670,031 ) (489,509 )
Different revenue 2,787 3,981 4,912 3,154
Complete revenues 1,138,491 228,869 1,454,939 514,905
Prices, bills and different
Lease working expense 70,611 42,395 124,767 84,199
Manufacturing taxes 89,251 26,968 152,167 56,460
Transportation, gathering and processing expense 29,584 25,989 57,555 47,721
Exploration, geologic and geophysical expense 320 286 573 640
Common and administrative expense 45,649 32,843 79,756 65,520
Depreciation, depletion and amortization 191,061 162,210 342,116 308,973
Accretion of asset retirement obligations 3,352 3,232 6,339 6,360
Impairment of properties and gear 510 62 1,453 252
Loss (acquire) on sale of properties and gear 498 (129 ) 373 (341 )
Different expense 2,145 2,193
Complete prices, bills and different 430,836 296,001 765,099 571,977
Revenue (loss) from operations 707,655 (67,132 ) 689,840 (57,072 )
Curiosity expense, web (17,565 ) (20,060 ) (30,510 ) (39,101 )
Acquire on cut price buy 100,273 100,273
Revenue (loss) earlier than revenue taxes 790,363 (87,192 ) 759,603 (96,173 )
Revenue tax profit (expense) (127,982 ) 155 (129,182 ) 100
Internet revenue (loss) $ 662,381 $ (87,037 ) $ 630,421 $ (96,073 )
Earnings (Loss) per share:
Fundamental $ 6.83 $ (0.88 ) $ 6.52 $ (0.97 )
Diluted $ 6.74 $ (0.88 ) $ 6.42 $ (0.97 )
Weighted common widespread shares excellent:
Fundamental 96,982 99,187 96,632 99,445
Diluted 98,246 99,187 98,150 99,445
Dividends declared per share $ 0.35 $ 0.12 $ 0.60 $ 0.12


PDC ENERGY, INC.

Condensed Consolidated Stability Sheets
(unaudited, in 1000’s, besides share and per share knowledge)

June 30, 2022 December 31, 2021
Property
Present property:
Money and money equivalents $ 38,528 $ 33,829
Accounts receivable, web 723,415 398,605
Honest worth of derivatives 14,643 17,909
Pay as you go bills and different present property 11,726 8,230
Complete present property 788,312 458,573
Properties and gear, web 7,087,772 4,814,865
Honest worth of derivatives 26,967 15,177
Different property 73,190 48,051
Complete Property $ 7,976,241 $ 5,336,666
Liabilities and Stockholders’ Fairness
Liabilities
Present liabilities:
Accounts payable $ 285,414 $ 127,891
Manufacturing tax legal responsibility 242,653 99,583
Honest worth of derivatives 702,329 304,870
Funds held for distribution 548,185 285,861
Accrued curiosity payable 14,683 10,482
Different accrued bills 85,021 91,409
Complete present liabilities 1,878,285 920,096
Lengthy-term debt 1,698,047 942,084
Asset retirement obligations 146,020 127,526
Honest worth of derivatives 235,630 95,561
Deferred revenue taxes 186,383 26,383
Different liabilities 361,155 314,769
Complete liabilities 4,505,520 2,426,419
Commitments and contingent liabilities
Stockholders’ fairness
Widespread shares – par worth $0.01 per share, 150,000,000 approved, 97,047,329 and 96,468,071 issued as of June 30, 2022 and December 31, 2021, respectively 970 965
Further paid-in capital 3,096,523 3,161,941
Retained earnings (collected deficit) 380,467 (249,954 )
Treasury shares – at price, 120,143 and 54,960 as of June 30, 2022 and December 31, 2021, respectively (7,239 ) (2,705 )
Complete stockholders’ fairness 3,470,721 2,910,247
Complete Liabilities and Stockholders’ Fairness $ 7,976,241 $ 5,336,666


PDC ENERGY, INC. 

Condensed Consolidated Statements of Money Flows
(unaudited, in 1000’s)

Six Months Ended June 30,
2022 2021
Money flows from working actions:
Internet revenue (loss) $ 630,421 $ (96,073 )
Changes to web loss to reconcile to web money from working actions:
Internet change in truthful worth of unsettled commodity derivatives 209,777 403,723
Depreciation, depletion and amortization 342,116 308,973
Impairment of properties and gear 1,453 252
Accretion of asset retirement obligations 6,339 6,360
Non-cash stock-based compensation 12,770 11,515
Loss (acquire) on sale of properties and gear 373 (341 )
Amortization of debt low cost, premium and issuance prices 2,715 7,714
Deferred revenue taxes 128,481
Acquire on cut price buy (100,273 )
Different (700 ) 875
Modifications in property and liabilities 2,909 (65,632 )
Internet money from working actions 1,236,381 577,366
Money flows from investing actions:
Capital expenditures for improvement of crude oil and pure gasoline properties (533,592 ) (240,266 )
Capital expenditures for midstream property (3,015 )
Capital expenditures for different properties and gear (2,537 ) (274 )
Money paid for acquisition of an exploration and manufacturing enterprise (1,068,241 )
Proceeds from sale of properties and gear 461 4,414
Proceeds from divestitures 465
Internet money from investing actions (1,606,459 ) (236,126 )
Money flows from financing actions:
Proceeds from revolving credit score facility and different borrowings 1,372,000 429,800
Compensation of revolving credit score facility and different borrowings (617,000 ) (597,800 )
Cost of debt issuance prices (47 )
Buy of treasury shares for worker stock-based compensation tax withholding obligations (16,860 ) (5,656 )
Buy of treasury shares (295,005 ) (47,694 )
Dividends paid (59,219 ) (11,885 )
Principal funds beneath financing lease obligations (962 ) (879 )
Internet money from financing actions 382,907 (234,114 )
Internet change in money, money equivalents and restricted money 12,829 107,126
Money, money equivalents and restricted money, starting of interval 33,829 2,623
Money, money equivalents and restricted money, finish of interval $ 46,658 $ 109,749

2022 Second Quarter Teleconference and Webcast

The Firm invitations you to hitch Bart Brookman, President and Chief Govt Officer; Scott Meyers, Chief Monetary Officer; Lance Lauck, Govt Vice President Company Growth and Technique; and David Lillo, Senior Vice President Operations for a convention name at 11:00 a.m. ET on Thursday, August 4, 2022, to debate the 2022 second quarter outcomes. The associated slide presentation might be out there on PDC’s web site at www.pdce.com.

To attend the convention name or webcast, individuals ought to register on-line at http://www.pdce.com/investors-overview/events-calendar-webcasts-presentations/. As soon as registered, individuals will obtain the dial in particulars and a novel PIN quantity. Members are requested to register a minimal quarter-hour earlier than the beginning of the decision.

A replay of the webcast might be out there two hours after the decision and archived on the identical internet web page for six months.

Upcoming Investor Shows

PDC is scheduled to take part within the 2022 EnerCom Denver – The Vitality Funding Convention beginning on Monday, August 8, 2022, the Barclays CEO Vitality Energy Convention beginning on Tuesday, September 6, 2022 and the Wells Fargo Leveraged Finance Convention beginning on Wednesday, September 7, 2022. Up to date displays might be posted to the Firm’s web site, www.pdce.com, previous to the beginning of every convention.

About PDC Vitality, Inc.

PDC Vitality, Inc. is a home unbiased exploration and manufacturing firm that acquires, explores and develops properties for the manufacturing of crude oil, pure gasoline and NGLs, with operations within the Wattenberg Discipline in Colorado and Delaware Basin in west Texas. Its operations within the Wattenberg Discipline are targeted within the horizontal Niobrara and Codell performs and our Delaware Basin operations are primarily targeted within the horizontal Wolfcamp zones.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press launch comprises forward-looking statements inside the which means of Part 27A of the
Securities Act of 1933 (“Securities Act”) and Part 21E of the Securities Change Act of 1934 (“Change Act”) and the US (“U.S.”) Non-public Securities Litigation Reform Act of 1995 concerning our enterprise, monetary situation, outcomes of operations and prospects. All statements apart from statements of historic reality included in and integrated by reference into this report are “forward-looking statements”. Phrases similar to count on, anticipate, intend, plan, imagine, search, estimate, schedule and related expressions or variations of such phrases are supposed to establish forward-looking statements herein. Ahead-looking statements embody, amongst different issues, statements concerning allowing issues; future manufacturing, prices and money flows; impacts from the acquisition and integration of Nice Western, together with drilling areas, zones and progress alternatives; capital expenditures and initiatives; the return of capital to shareholders by way of buybacks of shares and/or funds of dividends, ESG issues; and our means to fund deliberate actions.

The above statements aren’t the unique technique of figuring out forward-looking statements herein. Though forward-looking statements contained on this press launch replicate our good religion judgment, such statements can solely be primarily based on info and components at present identified to us. Ahead-looking statements are all the time topic to dangers and uncertainties, and change into topic to better ranges of danger and uncertainty as they deal with issues additional into the longer term. All through this press launch or accompanying supplies, we might use the time period “projection” or related phrases or expressions, or point out that we’ve got “modeled” sure future eventualities. We sometimes use these phrases to point our present ideas on potential outcomes referring to our enterprise or our trade in durations past the present fiscal 12 months. As a result of such statements relate to occasions or circumstances additional sooner or later,
they’re topic to elevated ranges of uncertainty.

Necessary components that would trigger precise outcomes to vary materially from the forward-looking statements embody, however aren’t restricted to:

  • market and commodity worth volatility, widening worth differentials, and associated impacts to the Firm, together with decreased income, revenue and money circulate, write-downs and impairments and decreased availability of capital;
  • difficulties in integrating our operations because of any vital acquisitions, together with the Nice Western Acquisition, or acreage exchanges;
  • adversarial adjustments to our future money flows, liquidity and monetary situation;
  • adjustments in, and interpretations and enforcement of, environmental and different legal guidelines and different political and regulatory developments, together with particularly extra allow scrutiny in Colorado;
  • the coronavirus 2019 (“COVID-19”) pandemic, together with its results on commodity costs, downstream capability, worker well being and security, enterprise continuity and regulatory issues;
  • declines within the worth of our crude oil, pure gasoline and pure gasoline liquids (“NGLs”) properties leading to impairments;
  • adjustments in, and inaccuracy of, reserve estimates and anticipated manufacturing and decline charges;
  • timing and extent of our success in discovering, buying, growing and producing reserves;
  • reductions within the borrowing base beneath our revolving credit score facility;
  • availability and price of capital;
  • dangers inherent within the drilling and operation of crude oil and pure gasoline wells;
  • timing and prices of wells and services;
  • availability, price, and timing of adequate pipeline, gathering and transportation services and associated infrastructure;
  • limitations within the availability of provides, supplies, contractors and companies that will delay the drilling
    or
    completion of our wells;
  • potential losses of acreage or different impacts resulting from lease expirations, different title defects, or in any other case;
  • dangers inherent in advertising crude oil, pure gasoline and NGLs;
  • impact of crude oil and pure gasoline by-product actions;
  • affect of environmental occasions, governmental and different third-party responses to such occasions and our means to insure adequately towards such occasions;
  • price of pending or future litigation;
  • affect to our operations, personnel retention, technique, inventory worth and bills attributable to the actions of activist shareholders;
  • uncertainties related to future dividends to our shareholders or share buybacks;
  • timing and quantities of federal and state revenue taxes;
  • our means to retain or entice senior administration and key technical workers;
  • an unanticipated assumption of liabilities or different issues with the Nice Western Acquisition or different acquisitions we might pursue;
  • civil unrest, terrorist assaults and cyber threats;
  • dangers related to current inflationary tendencies and the potential for a recession; and
  • success of strategic plans, expectations and goals for our future operations.

Additional, we urge you to rigorously evaluate and think about the cautionary statements and disclosures, particularly these beneath the “Merchandise 1A. Danger Components” made in our Annual Report on Kind 10-Ok for the 12 months ended December 31, 2021 (“2021 Kind 10-Ok”) filed with the U.S. Securities and Change Fee (“SEC”) for additional data on dangers and uncertainties that would have an effect on our enterprise, monetary situation, outcomes of operations and prospects, that are integrated by this reference as if absolutely set forth herein. We warning you to not place undue reliance on the forward-looking statements, which converse solely as of the date of this launch. We undertake no obligation to replace any forward-looking statements so as to replicate any occasion or circumstance occurring after the date of this launch or at present unknown info or circumstances or the incidence of unanticipated occasions. All forward-looking statements are certified of their entirety by this cautionary assertion.

 


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Supply: PDC Vitality, Inc.

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