How Did PDC Energy’s 1Q16 Earnings and Revenue Look?
Why PDC Energy’s Stock Fell after 1Q16 Earnings
PDC Energy’s 1Q16 revenue
PDC Energy (PDCE) reported its 1Q16 earnings on May 6, 2016. The company announced adjusted revenue of ~$147 million. Wall Street analysts’ consensus estimate for revenue was ~$150 million. PDCE’s 1Q16 revenue was ~2% higher than its 1Q15 revenue of ~$144.6 million.
PDC Energy’s 1Q16 earnings
PDCE’s 1Q16 adjusted earnings per share (or EPS) were -$0.22, significantly lower than analysts’ consensus estimates of -$0.09. PDCE’s 1Q15 EPS were $0.19.
Upstream peers Whiting Petroleum (WLL) and EP Energy (EPE) reported 1Q16 adjusted EPS of -$0.85 and $0.19, respectively. Oasis Petroleum (OAS) is expected to report 1Q16 EPS of -$0.17. WLL, OAS, and PDCE make up ~1.5% of the iShares U.S. Oil & Gas Exploration & Production ETF (IEO).
PDC Energy’s 2015 earnings and revenue recap
Whereas PDCE reported adjusted EPS of $1.10 in 2015, it reported $0.99 per share in 2014. Unlike those of its upstream counterparts, PDCE’s earnings rose year-over-year. The rise was due to several factors such as PDCE’s hedges and lower cost structure. Also, while PDCE’s 2015 revenue came in at ~$595.3 million, its revenue in 2014 was ~$856.2 million.
However, as we saw above, PDCE’s 1Q16 earnings came in lower than expected while revenues were mostly in line with estimates.
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