PDC Energy Announces 2010 Fourth Quarter And Year-End Results; 2010 Results In Line With Guidance; Solid Annual Production Of 37.6 Bcfe From Continuing Operations

DENVER, Feb. 24, 2011 (GLOBE NEWSWIRE) -- PDC Energy ("PDC," or the "Company") (Nasdaq:PETD) today reported its 2010 fourth quarter and year-end operating and financial results.

Full Year 2010 Highlights

• The Company reported income from continuing operations for the year ended December 31, 2010 of $7.2 million, or $0.36 per diluted share, compared with a year ended December 31, 2009 loss from continuing operations of $78.3 million, or $4.76 per diluted share.  
• The Company reported as discontinued operations the results of operations related to its Michigan and North Dakota assets. On July 30, 2010, PDC completed the exchange of its Michigan assets with a private purchaser for producing and undeveloped Wolfberry properties in the Permian Basin of Texas. On February 7, 2011, the Company signed a purchase and sale agreement to sell its North Dakota assets for $9.5 million to a private purchaser. The effective date of the sale was January 1, 2011, and closing is scheduled for the first quarter 2011.  
• Adjusted net income attributable to shareholders, a non-GAAP financial measure defined below, was $0.4 million for the year ended December 31, 2010, compared to an adjusted net loss of $5.7 million for the year ended December 31, 2009.  
• Year ended 2010 results reflect a 2% increase in average realized sales prices (including realized gains on derivatives), to $6.92 per Mcfe compared to $6.77 per Mcfe for year ended 2009.  
• Annual 2010 production from continuing operations was 37.6 Bcfe, excluding 1.1 Bcfe of production from discontinued operations in Michigan and North Dakota, compared to 41.6 Bcfe of production from continuing operations in 2009, excluding 1.7 Bcfe of production from discontinued operations in Michigan and North Dakota.  
• The Company drilled 170.1 total net wells during 2010, a 115% increase over total net wells of 79.2 drilled in 2009.  
• PDC closed an offering of common equity and convertible debt in November 2010. The offering raised proceeds of $236.7 million net of fees and expenses. The net proceeds from the offering will be used to fund organic developmental drilling and additional acquisitions.  
• The Company's liquidity position at December 31, 2010 was $356.9 million, compared to $238.2 million at December 31, 2009. PDC's $302 million borrowing base, net of a $19 million letter of credit, was undrawn at December 31, 2010.

Fourth Quarter 2010 Highlights

• The Company reported a loss from continuing operations for the fourth quarter 2010 of $18.2 million, or $0.86 per diluted share, compared with the same period 2009 quarterly loss from continuing operations of $16.3 million, or $0.85 per diluted share. The loss was primarily due to a $23.4 million unrealized hedging loss in the fourth quarter of 2010.  
• Adjusted net loss attributable to shareholders, a non-GAAP financial measure defined below, was $3.6 million for the fourth quarter 2010, compared to an adjusted net loss of $3.1 million for the same 2009 period.  
• Fourth quarter 2010 results reflect a 17% decrease in the average realized sales price (including realized gains on derivatives), to $6.64 per Mcfe compared to $7.99 per Mcfe for the fourth quarter 2009.  Approximately $1.68 per Mcfe of the year over year change in the average realized sales price was due to the decrease in realized hedging gains.  
• The Company drilled 47.6 net wells during the fourth quarter 2010, compared to 14.0 net wells drilled in the same 2009 period.  
• Fourth quarter 2010 production from continuing operations of 9.7 Bcfe was in line with guidance and equal to third quarter 2010 production from continuing operations of 9.7 Bcfe.

Financial Results