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PDC Energy (PDCE) Q2 Earnings Beat on Production & Price Gains

PDC Energy, Inc. PDCE reported adjusted earnings per share of $1.66 for second-quarter 2021, ahead of the Zacks Consensus Estimate of $1.19 as well as the year-ago reported quarter’s 14 cents. This outperformance can be primarily attributed to better-than-anticipated total production and oil price realizations. The company’s output of 17,424 thousand barrels of oil-equivalent (MBoe) outpaced the Zacks Consensus Estimate of 17,407 MBoe. Also, PDC Energy’s oil price realization came in at $65.05 per barrel, surpassing the Zacks Consensus Estimate of $63.

The upstream operator recorded total revenues of $537.12 million, beating the consensus mark by 12.95% and also the year-ago quarter’s sales of $175.2 million.

Production & Prices

For the second quarter of 2021, PDC Energy’s production totaled 17,424 MBoe (58.5% liquids), reflecting an increase of 1% from 17,248 MBoe a year ago. Of the aggregate output, 15,213 MBoe (or 87.3%) came from Wattenberg Field and the rest from Delaware Basin.

The average realized natural gas price increased from 76 cents per Mcf in the year-ago quarter to $1.98. PDC Energy sold NGLs at an average price of $20.11 per barrel compared with $6.38 a year ago. The average oil price realization came in at $65.05 per barrel, 249% higher than $18.63 in the year-ago period. Overall, the company fetched $30.6 per MBoe compared with $10.08 a year ago.

PDC Energy, Inc. Price, Consensus and EPS Surprise

PDC Energy, Inc. Price, Consensus and EPS Surprise
PDC Energy, Inc. Price, Consensus and EPS Surprise

PDC Energy, Inc. price-consensus-eps-surprise-chart | PDC Energy, Inc. Quote

Capital Expenditure & Balance Sheet

The energy explorer shelled out $180 million in the form of oil and gas capital investments. As of Jun 30, 2021, PDC Energy had $109.7 million in cash and cash equivalents, and $1.24 billion as long-term debt, representing a debt-to-capitalization of 33.5%.

Guidance

The company expects to churn out 190,000-195,000 Boe per day in 2021. It reiterated its oil production guidance of 64,000-66,000 barrel per day. The company still expects to spend between $550 million and $600 million this year. It lifted its free cash flow (FCF) generation forecast to above $800 million (at a WTI price of $65, natural gas at $3.50 and NGL at $20) for 2021.

The energy player expects more than $200 million for third-quarter FCF, based on its updated commodity pricing projections. The company plans to spend roughly $150 million in the same period of 2021 to run a full-time drilling rig in each basin and a Wattenberg completion crew. It anticipates a 5-10% rise in total daily output and a 15-20% increase in daily oil production, sequentially.

By 2025, this Denver, CO-based energy player plans to reduce its GHG and methane emissions by 60% and 50%, respectively. The firm is now more committed to coordinate with the World Bank to achieve zero routine flaring by 2025, having preponed it 2030 as previously stated.

Zacks Rank & Other Key Picks

PDC Energy currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy space include Devon Energy Corporation DVN, Matador Resources Company MTDR and Continental Resources, Inc. CLR, each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.


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Devon Energy Corporation (DVN) : Free Stock Analysis Report

Continental Resources, Inc. (CLR) : Free Stock Analysis Report

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