- Year-end 2016 proved reserves of 341.4 million barrels of oil equivalent ("MMBoe"), an approximate 25% increase over year-end 2015 proved reserves with estimated all-sources reserve replacement of 409% (1).
- Estimated 2016 production of 22.2 MMBoe, a 44% increase over 2015.
- Increased the average lateral length of proved undeveloped horizontal ("PUD") Niobrara locations in the Wattenberg Field from approximately 5,400 feet to approximately 7,000 feet.
- Proved reserve additions of 32.5 MMBoe attributable to the Delaware basin acquisitions that closed in December 2016. The acquisitions included approximately 61,500 net acres in Reeves and Culberson counties, Texas.
|Year-End Proved Reserve Breakdown by Basin|
|2015 (MMBoe)||2016 (MMBoe)||% Liquid (2016)|
The value of the Company's proved reserves, utilizing the SEC price guidelines, discounted at ten percent and before tax ("PV10"), increased to $1.7 billion as of December 31, 2016, compared to $1.3 billion as of year-end 2015. The increase in PV10 is primarily a result of a 25% increase in total proved reserves outweighing the 15% and 4% decrease in the average NYMEX oil and gas price, respectively.
|2016 Year-End Proved Reserves Summary|
|Proved Reserves (MMBoe)||BTAX PV-10 ($MM)||BTAX PV-10 ($/Boe)|
|Beginning balance at December 31, 2015||272.8||$||1,337||$||4.90|
|Extensions, revisions, dispositions and acquisitions||90.8|
|2016 estimated production||(22.2||)|
|Ending balance at December 31, 2016||341.4||$||1,675||$||4.91|
NOTE REGARDING FORWARD-LOOKING STATEMENTSThis press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 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 release are forward-looking statements. Words such as expects, forecast, guidance, anticipates, intends, plans, believes, seeks, estimates, will and similar expressions or variations of such words are intended to identify forward-looking statements herein, which may include statements regarding PDC's 2016 proved reserves, including that our estimated crude oil and natural gas reserves are based on many assumptions that may turn out to be inaccurate, and any material inaccuracies in these reserve estimates or underlying assumptions may materially affect the quantities and present value of our reserves; PDC's future production (including the commodity mix of such production) and development plan; rates of return on projects; future costs and financial conditions; per well reserves and performance; anticipated cost savings and efficiencies; anticipated impairments; future debt metrics; 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 PDC. 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 worldwide production volumes and demand, including economic conditions that might impact demand;
- volatility of commodity prices for crude oil, natural gas and NGLs, including the risk of an extended period of low commodity prices;
- the impact of governmental policies and/or regulations, including changes in environmental and other laws, the interpretation and enforcement related to those laws and regulations, liabilities arising thereunder and the costs to comply with those laws and regulations;
- potential declines in the value of our crude oil, natural gas and NGLs properties resulting in impairments, and potential inaccuracies in preliminary estimates of impairments;
- potential inability to achieve expected improvements in efficiency and drilling results;
- changes in estimates of proved reserves;
- inaccuracy of reserve estimates and expected production rates;
- potential for production decline rates from our wells being greater than expected;
- timing and extent of our success in discovering, acquiring, developing and producing reserves;
- our ability to secure leases, drilling rigs, supplies and services at reasonable prices;
- availability of sufficient pipeline, gathering and other transportation facilities and related infrastructure to process and transport our production and the impact of these facilities and regional capacity on the prices we receive for our production;
- timing and receipt of necessary regulatory permits;
- risks incidental to the drilling and operation of crude oil and natural gas wells;
- our future cash flows, liquidity and financial condition;
- competition within the oil and gas industry;
- availability and cost of capital;
- reductions in the borrowing base under our revolving credit facility;
- our success in marketing crude oil, natural gas and NGLs;
- effect of crude oil and natural gas derivatives activities;
- impact of environmental events, governmental and other third-party responses to such events, and our ability to insure adequately against such events;
- cost of pending or future litigation;
- effect that acquisitions we may pursue have on our capital expenditures;
- our ability to retain or attract senior management and key technical employees; and
- success of strategic plans, expectations and objectives for our future operations.
Contacts:Michael EdwardsSenior Director Investor Relations firstname.lastname@example.orgKyle Sourk Manager Investor Relations303email@example.com