PDC Energy Announces Closing of Permian Basin Asset Sale; Plans to Suspend Drilling in the Marcellus Shale; Updates 2012 Capi...
29 Febbraio 2012 - 3:00PM
Petroleum Development Corporation (dba PDC Energy) ("PDC" or the
"Company") (Nasdaq:PETD) today announced the Company closed on the
sale of its remaining Permian Basin assets.
The Company's Permian Basin assets were sold to Concho Resources
Inc. (NYSE:CXO) for a total sale price of approximately $184.4
million after customary closing adjustments. Proceeds from the sale
will be used to reduce outstanding borrowings on the Company's
revolving credit facility and provide liquidity to fund the
Company's 2012 capital budget. The Company previously sold its
non-core Permian assets in the fourth quarter of 2011 for $13.3
million, resulting in total proceeds from the sale of the Permian
Basin assets of approximately $198 million. In 2011, the Permian
Basin represented approximately 5%, or 2.5 billion cubic feet
equivalent ("Bcfe"), of total production and 6%, or 65 Bcfe, of
year-end proved reserves.
PDC also reported the Company's joint venture, PDC Mountaineer,
LLC ("PDCM"), has elected to temporarily suspend drilling in the
Marcellus Shale play due to the current depressed natural gas price
environment. PDCM is currently drilling its third horizontal
Marcellus well in 2012 and plans to drill one additional well prior
to suspending drilling operations. PDCM also plans to proceed with
the completion of seven wells over the next several months,
including three wells that were drilled in 2011.
PDC's previously announced 2012 capital budget of $284 million
will remain unchanged. The Company plans to reallocate the $12
million PDCM equity contribution portion of the capital budget to
liquid-rich projects in the Wattenberg Field. The Company
reconfirms its production guidance of 53 Bcfe for 2012.
James Trimble, President and Chief Executive Officer, commented,
"The sale of our remaining Permian Basin assets enables us to pay
down a significant portion of our revolving bank debt and
strengthen our balance sheet as we focus on increasing liquids
production in our core Wattenberg Field and de-risking our emerging
Utica Shale position. Further, I wish to emphasize that we are very
pleased with our West Virginia Marcellus program results of five to
seven Bcf per well. Substantially all of our Marcellus acreage
position is held by production, which provides us the flexibility
to wait for improved gas pricing before recommencing our drilling
program."
BMO Capital markets advised PDC Energy on the sale of its
Permian assets to Concho Resources Inc.
PDC Fourth Quarter and Year-End 2011 Conference
Call
PDC plans to host a conference call with investors to discuss
fourth quarter and year-end 2011 results. The conference call is
scheduled for 11:00 a.m. EST on Thursday, March 1, 2012. Conference
call materials will be available on the Company's website,
www.petd.com, at the time of the call.
PDC Analyst Day
PDC plans to host an analyst day in Boston on Tuesday, March 13,
2012. This event is scheduled to be held at the Boston Harbor
Hotel, 70 Rowes Wharf, Boston, Massachusetts, 02110. The related
slide presentation will be available on the Company's website
immediately prior to the event.
Upcoming Conference
Presentations
PDC is scheduled to present at the Howard Weil Energy Conference
in New Orleans, Louisiana on Thursday, March 29, 2012. Please see
the Company's website at www.petd.com for full details and webcast
information.
About PDC Energy
PDC Energy is an independent energy company engaged in the
development, production and marketing of natural gas and oil. Its
operations are focused primarily in the Wattenberg Field of
Colorado, including the horizontal Niobrara, the Marcellus Shale
development in West Virginia and the Utica Shale in Ohio. PDC is
included in the S&P SmallCap 600 Index and the Russell 3000
Index of Companies.
NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933
("Securities Act") and Section 21E of the Securities Exchange Act
of 1934 ("Exchange Act") regarding PDC's business, financial
condition, results of operations and prospects. All statements
other than statements of historical facts included in and
incorporated by reference into this report are forward-looking
statements. Words such as expects, anticipates, intends, plans,
believes, seeks, estimates and similar expressions or variations of
such words are intended to identify forward-looking statements
herein, which include statements regarding the Company's future
financial and operating results; PDC's expected use of proceeds
from the completed Permian divestitures; PDC's continuing efforts
to seek a working interest partner in the Utica and de-risking such
positions; PDC's expected 2012 capital budget,including anticipated
liquidity and capital expenditures; 2012 drilling and operations
plans, including plans to accelerate drilling in the liquid-rich
horizontal Niobrara development in the Wattenberg Field; 2012
estimated natural gas and oil production and reserves, including
expected 2012 production; plans to temporarily suspend drilling in
the Marcellus Shale; plans to reallocate the PDCM capital budget to
the Wattenberg Field; availability of capital future cash flows;
anticipated liquidity, anticipated capital expenditures and
management's strategies, plans and objectives. However, these are
not the exclusive means of identifying forward-looking statements
herein. Although forward-looking statements contained in this press
release reflect the Company's good faith judgment, such statements
can only be based on facts and factors currently known to it.
Consequently, forward-looking statements are inherently subject to
risks and uncertainties, including risks and uncertainties
incidental to the exploration for, and the acquisition,
development, production and marketing of natural gas and oil, and
actual outcomes may differ materially from the results and outcomes
discussed in the forward-looking statements. Important factors that
could cause actual results to differ materially from the
forward-looking statements include, but are not limited to:
- changes in production volumes and worldwide demand, including
economic conditions that might impact demand;
- volatility of commodity prices for natural gas, NGLs and crude
oil;
- the impact of governmental fiscal terms and/or regulations,
including changes in environmental laws, the regulation and
enforcement related to those laws and the costs to comply with
those laws, as well as other regulations;
- decline in the values of our natural gas and crude oil
properties resulting in impairments;
- changes in estimates of proved reserves;
- inaccuracy of reserve estimates and expected production
rates;
- the potential for production decline rates from our wells to be
greater than expected;
- the timing and extent of our success in discovering, acquiring,
developing and producing reserves;
- our ability to acquire leases, drilling rigs, supplies and
services at reasonable prices;
- the timing and receipt of necessary regulatory permits;
- risks incidental to the drilling and operation of natural gas
and crude oil wells;
- our future cash flow, liquidity and financial position;
- competition in the oil and gas industry;
- the availability and cost of capital to us;
- reductions in the borrowing base under our credit
facility;
- the availability of sufficient pipeline and other
transportation facilities to carry our production and the impact of
these facilities on price;
- our success in marketing natural gas, NGLs and crude oil;
- the effect of natural gas and crude oil derivatives
activities;
- the impact of environmental events, governmental responses to
the events and our ability to insure adequately against such
events;
- the cost of pending or future litigation;
- our ability to retain or attract senior management and key
technical employees; and
- the success of strategic plans, expectations and objectives for
future operations of the Company.
Further, PDC urges you to carefully review and consider the
cautionary statements made in this press release, the Item 1-A Risk
Factors in the 2010 annual report on Form 10-K for the year ended
December 31, 2010, filed with the Securities and Exchange
Commission ("SEC") on February 24, 2011, as amended on April 21,
2011 and May 18, 2011, and other subsequent filings with the SEC
for further information on risks and uncertainties that could
affect the Company's business, financial condition and results of
operations, which are incorporated by this reference as though
fully set forth herein. The Company cautions you not to place undue
reliance on forward-looking statements, which speak only as of the
date made. Other than as required under the securities
laws, PDC undertakes no obligation to update any forward-looking
statements in order to reflect any event or circumstance occurring
after the date of this release or currently unknown facts or
conditions or the occurrence of unanticipated events. All
forward-looking statements are qualified in their entirety by this
cautionary statement.
CONTACT: Ron Wirth
Director Investor Relations
(303)860-5830
rwirth@petd.com
Marti Dowling
Investor Relations Manager
(303)831-3926
mdowling@petd.com
Grafico Azioni Pdc Energy, Inc. (MM) (NASDAQ:PETD)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Pdc Energy, Inc. (MM) (NASDAQ:PETD)
Storico
Da Giu 2023 a Giu 2024