PDC Energy (PDCE) Announces 2015 Capital Budget and Production Guidance

PDC Energy, Inc. (Nasdaq: PDCE) today announced its capital budget and production guidance for 2015.

2015 Capital Budget and Production Guidance

PDC's capital budget for 2015 is approximately $557 million, a decrease of 14% compared to its 2014 capital budget. The Company's 2015 budget includes $526 million of development capital and $31 million for lease maintenance, exploration and other expenditures. The 2015 capital budget is focused on organic growth opportunities in PDC's Inner and Middle core areas of the Wattenberg Field.

The Company estimates net production volumes for 2015 will be between 13.8 million and 14.5 million barrels of oil equivalent ("MMboe") and expects production growth throughout the year. The Company anticipates a commodity mix of approximately 45% crude oil, 20% natural gas liquids and 35% natural gas. The commodity mix reflects the Company's increased focus on allocating capital towards its highest-value drilling opportunities in both the Inner and Middle core areas of the Wattenberg Field. For 2015, the Company projects it will drill approximately 90% of its wells in the Inner and Middle Core areas, up from about 67% in those areas in 2014.

PDC estimates its 2014 production exit rate to be approximately 32,500 Boe per day and its full-year 2014 production volumes to be within its guidance range of 9.3 to 9.5 MMoe. The Company's 2015 production exit rate is anticipated to be approximately 46,500 Boe per day.

2015 – 2016 Hedge and Financial Positioning

PDC has very substantial hedge positions in place for 2015 and 2016. For 2015, PDC has approximately 80% of expected crude oil production hedged at a weighted average floor of approximately NYMEX $89 per barrel and approximately 75% of expected natural gas production hedged at a weighted average floor of approximately NYMEX $4 per thousand cubic feet ("Mcf"). For 2016, the Company has approximately 4.1 million barrels of crude oil hedged at a weighted average floor of approximately NYMEX $85 per barrel and approximately 27.5 billion cubic feet ("Bcf") of natural gas hedged at a weighted average floor price of approximately NYMEX $4 per Mcf. The mark-to-market value for the Company's existing crude oil and natural gas hedges is approximately $200 million using the November 30, 2014 NYMEX forward strip. Additionally, PDC expects a strong netback on its Wattenberg natural gas price realizations, as pricing is based on the CIG index, which current future markets project at only $0.25/Mcf below NYMEX for 2015.

The Company is focused on maintaining its very strong balance sheet, liquidity and debt metrics. As of September 30, 2014, PDC had liquidity of approximately $789 million, pro-forma for the October 14, 2014 Marcellus asset sale. PDC's 2015 capital budget is based on an estimated full-year 2015 NYMEX price on November 30, 2014 of $67 per barrel and $3.80 per Mcf. Factoring in the beneficial impact of its existing 2015 hedges, the Company projects it will end 2015 with a capital outspend of approximately $165 million and a debt to EBITDAX ratio of less than 2.0x.

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