PDC Energy, Inc.NASDAQ
PDC Energy: An Idea That Has Worked And May Work Again
Richard Zeits • 13 Comments
Richard Zeits • 13 Comments
Tue, Nov. 15, 10:49 AM
- West Texas' Permian Basin now holds nearly as many active oil rigs as the rest of the U.S. combined, including those offshore, the U.S. Energy Information Administration reports.
- The rig count has been rising since this summer, but the Permian began seeing rigs increase earlier than the U.S. as a whole, and is adding rigs more quickly; of the ~450 total U.S. rigs, the Permian now accounts for ~220.
- Permian production has reached 2M bbl/day of oil, while south Texas’ Eagle Ford and North Dakota’s Bakken have fallen to below 1M bbl/day.
- Top Permain producers include CVX, OXY, APA, PXD, CXO, DVN, EOG, MRO, FANG, XOM, ECA, RSPP, SM, EGN, PE, AREX, GPOR, XEC, LPI, CPE, ESTE, WPX, PDCE
Thu, Nov. 3, 8:07 AM
Wed, Nov. 2, 5:30 PM
- AAC, AAON, AAWW, ACIW, ACRE, ACTA, AFSI, AGIO, AGU, AKRX, AMAG, AMCX, AMRN, ANIP, ANSS, APA, ARCB, ARW, AVP, BCE, BDX, BLL, CCC, CCOI, CHD, CHK, CHTR, CI, CLDT, CNSL, COMM, CPK, CRIS, CRZO, CYBR, DDD, DNR, DW, ECA, EFOI, ENB, ENOC, EVA, FCPT, FI, FIG, FMSA, GEL, GEO, GIL, GLOG, GOGO, H, HAR, HFC, HHS, HII, HMHC, HRC, HSC, IBP, ICPT, INSY, IPCC, IQNT, IRWD, IT, KOP, LAMR, LBY, LDOS, LFUS, LINC, LNG, LXP, MFA, MGA, MITK, MITL, MPEL, MPG, MPW, MSGN, NERV, NGS, NNN, NXTM, OGE, ONCE, ONDK, PBH, PDCE, PGTI, PNW, PRFT, PWR, RDUS, RFP, RGEN, ROLL, RWLK, SFM, SGM, SHLX, SMG, SNSS, SPAR, SPGI, SQBG, STFC, STOR, TDY, TGI, THS, TICC, TIME, TK, TNK, TOO, TVPT, TWI, TX, UNT, USCR, VGR, VWR, WILN, WPC, WRLD, ZEUS
Thu, Sep. 8, 5:15 PM
- PDC Energy (NASDAQ:PDCE) -1.8% AH after announcing a concurrent public offering consisting of 6.5M common shares and $100M in convertible senior notes due 2021.
- PDCE will provide underwriters in the stock offering an option to purchase up to an additional 975K shares and underwriters in the notes offering an option to purchase up to $15M worth of additional notes.
- PDCE says it plans to use the proceeds to fund part of its previously announced $1.5B acquisition of ~57K net acres in the Delaware Basin, and for general corporate purposes.
Mon, Aug. 29, 6:25 PM
- Williams Capital believes oil industry fundamentals are solid despite current commodity price levels but is cautious overall and advises investors not to chase the recent run at current valuations.
- However, the firm recommends select underappreciated companies with lower expectations and re-rating potential, and thinks companies situated in core resource plays that can demonstrate further capital efficiency improvements with catalysts will continue to garner top valuations and M&A premiums.
- Two of Williams' favorites are SM Energy (NYSE:SM), which the firm says remains one of the cheapest names in the sector with a solid balance sheet and assets as well as a conservative management team, and Newfield Exploration (NYSE:NFX), which Williams sees thriving through the current downturn given its strong balance sheet, ample financial liquidity and strong hedge book.
- Also initiated with Buy ratings: Cabot Oil & Gas (NYSE:COG), Energen (NYSE:EGN), Gulfport Energy (NASDAQ:GPOR), Oasis Petroleum (NYSE:OAS), PDC Energy (NASDAQ:PDCE), Pioneer Natural Resources (NYSE:PXD).
- Driven largely by valuation, Williams assigns Hold ratings on Diamondback Energy (NASDAQ:FANG), Gastar Exploration (NYSEMKT:GST), Laredo Petroleum (NYSE:LPI), Parsley Energy (NYSE:PE), Rice Energy (NYSE:RICE) and Cimarex Energy (NYSE:XEC).
Mon, Aug. 29, 2:29 PM
- Oil and natural gas explorers escape a vote in Colorado that could have severely limited drilling in the state, as two measures that would have allowed local communities to ban hydraulic fracturing fail to garner enough support for the November ballot.
- A proposal that would have restricted drilling near homes fell ~21K valid signatures short of the total needed to qualify for a ballot vote, and a measure allowing local governments to ban fracking also failed to attract enough signatures, according to the Colorado Secretary of State's office.
- Colorado's top producers include Anadarko Petroleum (APC +1.3%), Encana (ECA +0.4%), Noble Energy (NBL +1.4%), PDC Energy (PDCE +1.6%), Whiting Petroleum (WLL +1.9%), Bill Barrett (BBG +5.3%), Carrizo Oil and Gas (CRZO +2.2%) and Synergy Resources (SYRG +5.2%).
Fri, Aug. 26, 10:21 AM
- The initiative pushed by anti-fracking activists in Colorado that could virtually eliminate hydraulic fracturing in the state is "extremely unlikely" to make it to the November ballot needed to become law, Wells Fargo analysts say.
- The proposal would move the distance for a hydraulic fracturing operation from 500 ft. or more to a minimum of 2,500 ft. or more from an "area of special concern" such as occupied housing, drinking water sources, sports fields and parks.
- The stock market already is assuming that the proposal will fail, the firm says, based on recent gains in share prices of companies that operate in the Niobrara/DJ Basin, including PDC Energy (PDCE +0.2%), Anadarko Petroleum (APC +1.3%), Bill Barrett (BBG +3.5%) and Whiting Petroleum (WLL +4.4%).
Fri, Aug. 26, 5:23 AM
- Blackstone yesterday announced an agreement to invest $1.5B in a pair of drilling deals in West Texas, and committed another $500M to a group who has just purchased 16K acres in another area of the Permian Basin. The money for the deals came from an $8B pool raised early last year, but had mostly sat untapped.
- Other investors of late include Wilbur Ross, EIG Global Energy Partners, and Apollo Global. Wall Street's rush could be a sign of a bottom ... or a bubble - in some cases properties are going for higher prices that exceed those paid when oil was above $100 per barrel two years ago.
- "There’s this one corner of the world, the Permian Basin, where investors will keep financing you to keep on acquiring,” says Parsley Energy (NYSE:PE) CEO Bryan Sheffield, whose company has sold stock to buy land five times since 2014 (including a sale last week). PDC Energy (NASDAQ:PDCE) shot higher earlier this week on an agreement to buy $1.5B of Permian fields fro a NY investment firm.
- “It’s like musical chairs,” says a Dallas portfolio manager. “At some point in time, there’s not going to be a chair, and [oil producers] want to make sure they have a seat.”
Wed, Aug. 24, 3:41 PM
- PDC Energy (PDCE +5.9%) jumps to two-year highs following its entry into the Delaware Basin with the acquisition of ~57K net acres for $1.5B.
- Canaccord analysts reiterate their Buy rating and $72 stock price target, as they continue to believe the Delaware Basin will be the focus of transaction activity going forward even as the Midland Basin has stolen the show with purchases in recent weeks; the firm says the fact that the Delaware continues to boast several sizable P-E-backed operators means that logical takeout targets remain for future M&A.
- Stifel says that like most Permian Basin transactions, the deal was not cheap, working out to $22K/acre vs. $27K/acre for last month's nearby acquisition by Diamondback Energy, $15K/acre for a January purchase by Concho Resources, and $13K/acre for a deal last November by EOG Resources.
- Stephens upgrades shares to Overweight and KeyBanc raises its PDCE price target to $76 from $72 because of the "transformative" deal.
Wed, Aug. 24, 2:08 PM
Tue, Aug. 23, 4:43 PM
- PDC Energy (NASDAQ:PDCE) agrees to acquire two privately held companies owning 57K net acres in the core Delaware Basin for ~$1.5B in cash and stock.
- PDCE says current net production in the acreage totals ~7K boe/day from 21 horizontal wells, with two additional wells in the completion and flowback phase.
- PDCE also says it plans to spud nine horizontal wells during the rest of the year and expand certain midstream infrastructure, and is finishing completion operations on two horizontal wells with plans to operate two drilling rigs by year-end 2016.
Tue, Aug. 9, 8:07 AM
Mon, Aug. 8, 9:53 PM
- Environmental groups in Colorado say they have collected enough signatures to add proposed anti-fracking initiatives to the November election ballot, pending final validation by the Secretary of State's office.
- One of the initiatives would strengthen the state's setback rules, requiring new oil and gas development facilities to be located at least 2,500 ft. from occupied structures or areas such as parks, while the second would transfer regulatory control of new oil and gas development to local governments.
- Anadarko Petroleum (NYSE:APC), Noble Energy (NYSE:NBL) and Whiting Petroleum (NYSE:WLL) hold the greatest net acreage in Colorado's DJ Basin; other companies with DJ exposure include Synergy Resources (NYSEMKT:SYRG), PDC Energy (NASDAQ:PDCE), Bonanza Creek Energy (NYSE:BCEI), Bill Barrett (NYSE:BBG), and Carrizo Oil and Gas (NASDAQ:CRZO).
Mon, Aug. 8, 5:30 PM
- ACM, AER, AMAG, AMRC, AMSC, ARES, BDSI, BERY, BITA, BR, CECE, CHTR, CNK, COH, CORE, EGRX, ENZY, EVEP, EXC, GLPI, GWPH, HCP, HHS, HPT, HRI, HWCC, INCY, IONS, IPXL, JEC, LABL, LAMR, LGIH, LNCE, LNG, LRN, LXP, MCC, MPAA, MWW, NCLH, NCT, NRG, NXST, NYLD, OCUL, PDCE, PMC, PPL, RDNT, RRGB, RSTI, SATS, SNI, SSH, STE, TDG, TESO, TGH, TLP, TRCO, UNVR, VRTU, VRX, W, WAC, WPRT, WWAV, ZBRA
Thu, Jun. 16, 9:14 AM
- Noble Energy (NYSE:NBL) and PDC Energy (NASDAQ:PDCE) announce an asset swap deal that sees both companies exchange acreage in Colorado's Wattenberg field in the DJ Basin.
- NBL says it will receive ~11.7K net acres in its Wells Ranch development area in exchange for ~13.5K net acres primarily out of the Bronco area.
- PDCE says the trade "creates significant operational efficiencies and incremental value for both PDC and Noble by consolidating our operated acreage positions."
Fri, Jun. 10, 7:05 PM
- Western Colorado has 40x more natural gas than previously thought, potentially making it the second-largest formation in the U.S., according to a new estimate from the U.S. Geological Survey.
- The Mancos Shale formation in Colorado’s Piceance Basin holds ~66.3T cf of gas, up from just 1.6T estimated in 2003, the USGS says, and the revision puts the basin second only to the Marcellus Shale in terms of the largest total gas reserves in the U.S.
- Current prices of ~$2/MMBtu are considered too low for companies to begin drilling to any large extent; companies likely would begin drilling if prices reached $3.50/MMBtu, says David Ludlam of the West Slope Colorado Oil and Gas Association.
- Among Colorado's top current oil and gas producers: APC, NBL, ECA, XOM, CVX, OXY, WLL, BBG, SYRG, PDCE, BCEI, CRZO