OilStockReport
14 years ago
PETD in competition with Samson in the B-J Basin?
PDC Energy (PETD) has 74,100 acres in the D-J Basin. PDC has an aggressive drilling program. In 2011, it is planning to drill 14 wells. Eight of these wells will be horizontal and in the Wattenberg core. It estimates each well will cost $3.5 million. PDC has one producing well which had an average IP of 625 Boe/d. In 2010, PDC garnered 89% of its total production from the Rocky Mountain region. It has 3-4 rigs working the Wattenberg/Niobrara. One additional rig is running in the Piceance.
The D-J Basin is important to PDC's ability to increase its liquids production. Wattenberg is in the D-J Basin, south of Silo Field. PDC invested $77 million in the Wattenberg last year, and it estimates 2011 cap ex will be $125 million. Estimates have Wattenburg wells producing 60% liquids. PDC's D-J Basin has the possibility of 738 net undeveloped locations (vertical wells only). There are 125 horizontal locations here as well. Estimates have an additional 649 refracs/recompletes. Of the 74,100 net acres in the D-J Basin, 67,900 net acres are in the Wattenberg core. Another 6,266 net acres are in the Krieger prospect. There are 22 horizontal locations in current Krieger leases. For 2011, PDC is planning:
4-5 Krieger Wells
9-10 Core Area Wells
14 Horizontal Drilling Wells
OilStockReport
14 years ago
Denver oil and gas company PDC Energy says it raised combined proceeds of nearly a quarter-billion dollars from twin offerings of stock and notes.
The company plans to use the proceeds for acquisitions and drilling and to pay down debt.
PDC (NASDAQ: PETD) — officially known as Petroleum Development Corp. — said late Tuesday it raised $125.5 million in a common-stock offering at $32 a share, including the 3.6 million shares initially offered plus 540,000 shares through an the underwriters’ over-allotment option.
Wells Fargo Securities and BofA Merrill Lynch acted as joint book-running managers for the stock offering.
Also, the company said it closed Tuesday on the sale of 3.25 percent convertible senior notes due in 2016, raising a total of $111.2 million, including over-allotment options.
PDC’s share price has nearly doubled since the first of the year. Shares opened at $35.21 Wednesday.
Last week, PDC said it had signed agreements to buy three limited partnerships set up in 2005 for about $36.4 million. It already served as the managing general partner of the three partnerships.
The three partnerships collectively produce about 4 million cubic feet per day from oil and natural gas wells in the Wattenberg Field north of Denver and the Piceance Basin in western Colorado, PDC said.
The remaining partners who aren’t affiliated with PDC must approve the merger. PDC said it expects to close the purchases in the first quarter of 2011.
The move is a continuation of PDC’s efforts to shift from managing limited partnerships to managing its own oil and gas properties. In June, the company agreed to buy four other limited partnerships for about $36.5 million. In 2007, PDC bought 44 partnerships.
PDC said it plans to spend between $260 million and $300 million on capital expenditures in 2011 — figures that include the $36.4 million earmarked to purchase the three limited partnerships it plans to buy.
PDC was founded 41 years ago in Bridgeport, W. Va. It moved to Denver in March 2009.
As of July, its portfolio included 70,500 acres it leases in the high-potential Niobrara oil field in northern Colorado.
Read more: PDC Energy raises $237M through stock, notes offerings | Denver Business Journal
MWM
15 years ago
Petroleum Development Corporation Announces 2010 First Quarter Results: Company Reports Net Income of $23.7 Million, or $1.23 Per Diluted Share; Adjusted Cash Flow From Operations of $49.3 Million, or $2.56 Per Diluted Share; Quarterly Production Exceeded Guidance by 7%
Press Release Source: Petroleum Development Corporation On Monday May 10, 2010, 10:24 pm EDT
DENVER, May 10, 2010 (GLOBE NEWSWIRE) -- Petroleum Development Corporation ("PDC" or the "Company") (Nasdaq:PETD - News) today reported its 2010 first quarter operating and financial results.
First Quarter 2010 Highlights
The Company reported net income for the quarter ended March 31, 2010 of $23.7 million, or $1.23 per diluted share, compared with a March 31, 2009 quarterly net loss of $5.7 million, or a $0.38 loss per diluted share.
Adjusted net income attributable to shareholders, a non-GAAP financial measure defined below, for the first quarter 2010 was $10.9 million, or $0.57 per diluted share, compared to $4.1 million, or $0.27 per diluted share in the same 2009 period.
First quarter 2010 results reflect a 30% increase in average realized sales prices (including realized gains on derivatives), to $9.20 per Mcfe for Q1 2010 compared to $7.08 per Mcfe for Q1 2009.
Adjusted cash flow from operations, a non-GAAP financial measure defined below, for the first quarter 2010 was $49.3 million, compared to $39.7 million for the first quarter 2009.
First quarter 2010 production of 9.1 Bcfe exceeded the Company's guidance of 8.5 Bcfe by 7%, primarily due to increased production from the Wattenberg Field.
The Company drilled 38.6 total net wells during the first quarter 2010, compared to 24.9 total net wells drilled in the same 2009 period.
Operating costs and G&A are in line with expectations.
The Company's liquidity at March 31, 2010 improved to $253.8 million, compared to $238.2 million at December 31, 2009.
Richard W. McCullough, Chairman and Chief Executive Officer, stated, "We are very pleased with our operational and financial results for the quarter. We are drilling in all of our major fields, our production, particularly in the oil and liquids-rich Wattenberg Field, has increased, and we are very encouraged with our progress in the Marcellus Shale where we reached total depth on our first horizontal well. Although our per unit costs have risen somewhat due to production declines from 2009 levels, overall our costs remain low which along with our hedges are allowing us to make money in this very low gas pricing environment. Our operating teams continue to perform exceptionally well. We expect our production to continue to increase throughout the year, although with lower annual realized prices than forecasted we are not revising guidance upward at this time."
Financial Results
Natural gas and oil sales revenues from the Company's producing properties for the first quarter 2010 were up 52% to $60.4 million, an increase of $20.7 million from $39.7 million for the same 2009 period. The average realized price of natural gas and oil, including realized gains and losses on derivatives, was $9.20 per Mcfe in the first quarter 2010 compared to $7.08 per Mcfe in the first quarter of 2009. The average sales price for natural gas and oil, excluding realized gains and losses on derivatives, during this year's first quarter was $6.67 per Mcfe, an increase of approximately 76% from $3.79 per Mcfe for the same quarter 2009. The Company anticipates a diminishing contribution to realized gains, as compared to the first quarter of 2010, from its existing hedge positions for the remainder of year.
Commodity price risk management contributed a gain of $43.2 million for the first quarter of 2010. The $43.2 million gain was comprised of a $22.9 million realized gain and a $20.3 million unrealized gain. Both the realized and unrealized gain were the result of a decrease in spot and forward natural gas prices offset somewhat by an increase in spot and forward oil and liquids prices during the first quarter 2010. Commodity price risk management contributed a gain of $23.7 million for the first quarter 2009, which was comprised of a $36.6 million realized gain offset by a $12.9 million unrealized loss.
Natural gas and oil production and well operations costs decreased 4% to $15.7 million, or $1.73 per Mcfe for the first quarter 2010, compared to $16.4 million, or $1.47 per Mcfe for the first quarter 2009. The reduction, on an absolute basis, was primarily attributable to the preservation of cost reductions for field service and equipment costs in the Company's producing basins, offset to a degree by higher production taxes during the period. The increase on a per Mcfe basis was due to lower production in the first quarter 2010 versus the first quarter 2009. Production taxes, which fluctuate with natural gas and oil revenues, increased $0.5 million, or 27%, to $2.4 million in the first quarter 2010 versus the same period of 2009.
DD&A expense for the first quarter 2010 decreased 17% to $28.4 million, or $3.14 per Mcfe, from $34.4 million, or $3.08 per Mcfe, in the respective quarter 2009. The DD&A expense related to gas and oil properties for the first quarter 2010 was $26.4 million, or $2.91 per Mcfe, compared to $32.4 million, or $2.90 per Mcfe, for the first quarter 2009. The expense decrease was primarily due to a 19% decrease in production in the first quarter 2010, compared to the first quarter 2009.
General and administrative expenses decreased to $10.7 million in the first quarter 2010, from $12.1 million in the same 2009 period. The first quarter 2010 expense decrease was primarily related to the expensing of previously capitalized 2008 acquisition costs of $1.5 million in the first quarter 2009, pursuant to the adoption of a new accounting standard.
The Company's exploration expense increased from $5.6 million in the first quarter 2009 to $6.4 million in the first quarter 2010. The increase was primarily due to costs related to several deep exploratory zone tests in the Piceance Basin and the acceleration of Marcellus Shale seismic expenses, partially offset by drilling rig demobilization and inventory impairment costs incurred in the first quarter 2009.
Interest expense decreased $0.6 million to $7.8 million in the first quarter 2010, from $8.4 million in the same period of 2009, primarily as a result of continued debt reduction. Debt to book capitalization was 33% at March 31, 2010
MWM
15 years ago
'Green' investors target Marcellus Shale drillers
Tue Jan 26, 2010 2:10pm EST
Investors want more transparency companies targeted
By Anna Driver HOUSTON
(Reuters) - A group of shareholders who
focus on the environment said on Tuesday they are targeting
companies operating in the Marcellus Shale to ensure
development of natural gas does not pollute or endanger human
health. The shareholder proposal campaign, aimed at 12 companies
including Chesapeake Energy Corp (CHK.N), EOG Resources Inc
(EOG.N) and Exxon Mobil Corp (XOM.N), was sparked by mounting
worry about chemicals used in a process to extract gas from
rock called hydraulic fracturing, the groups said. "There is real business risk here," said Larisa Ruoff, an
official with the $100 million Green Century Funds. "Companies
and regulators must ensure this development is done in a way
that protects the environment and drinking water." Hydraulic fracturing -- where water, sand and chemicals are
pumped into formations at pressures high enough to crack the
rock and allow gas to escape -- has helped fuel a drilling boom
in the United States. That technology and others have allowed companies to tap
vast supplies of natural gas locked in big formations like the
Marcellus Shale, which spans parts of New York, Pennsylvania
and West Virginia. But environmentalists and critics say the drilling
chemicals have polluted aquifers in Pennsylvania and Colorado
and can cause cancer and other serious illnesses. The shareholder proposals sponsored by Green Century Funds
and the Investor Environment Health Network ask companies to
increase transparency about the effect of their drilling on the
environment and encourage companies to switch to less-toxic
hydraulic fracturing fluids. The oil and gas industry says the process is safe, and
there has never been a documented case of ground water
contamination because of hydraulic fracturing. "Ultimately the facts are going to bear out," said Tom
Price, a spokesman for Chesapeake Energy. "I think that is all
we can do, is to continue to point to the facts." Chesapeake holds the largest number of drilling leases in
the Marcellus along with its partner Statoil ASA (STL.OL). Still, opponents are becoming more vocal. On Monday, New
York City Mayor Michael Bloomberg said he opposed natural gas
drilling in the city's upstate watershed, saying it posed too
many risks. [ID:nN25192911] Ruoff said she has heard back from several of the companies
about the proposals, but she declined to name them.
(Reporting by Anna Driver in Houston, editing by Matthew
Lewis)
MWM
15 years ago
upon further reading it looks like Blackrock acquired the stake via an acquisition...
Blackrock takes a stake 7.5%, doublechecking to see if this is new...
This Amendment to Schedule 13G (this "Amendment")
is filed by BlackRock, Inc. ("BlackRock"). It amends
the most recent Schedule 13G filing, if any, made by
BlackRock and the most recent Schedule 13G filing,
if any, made by Barclays Global Investors, NA and
certain of its affiliates (Barclays Global Investors, NA
and such affiliates are collectively referred to as the
"BGI Entities") with respect to the subject class
of securities of the above-named issuer. As previously
announced, on December 1, 2009 BlackRock
completed its acquisition of Barclays Global Investors
from Barclays Bank PLC. As a result, [substantially all of]
the BGI Entities are now included as subsidiaries of
BlackRock for purposes of Schedule 13G filings.
(2) Check the appropriate box if a member of a group
(a)
(b)
(3) SEC use only
(4) Citizenship or place of organization
Delaware
Number of shares beneficially owned by each reporting person with:
(5)Sole voting power
1443293
(6)Shared voting power
None
(7)Sole dispositive power
1443293
(8)Shared dispositive power
None
(9)Aggregate amount beneficially owned by each reporting person
1443293
(10)Check if the aggregate amount in Row (9) excludes certain shares
(11)Percent of class represented by amount in Row 9
7.51%
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Penny Roger$
13 years ago
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