History | Print |
Over four decades of profitable growth.
PDC Energy was founded in Bridgeport, West Virginia in 1969. For the first 30 years, the Company operated exclusively in the Appalachian Basin where it focused on drilling Shallow Upper Devonian gas wells. In 1999, the Company greatly expanded its range of operations by entering the Wattenberg Field and Piceance Basin of Colorado as well as the Michigan Basin, among others, where the company continued its focus on developing low-risk, predominately natural gas focused assets. In 2009, PDC moved its corporate headquarters to Denver, Colorado. Also that year, PDC formed a joint venture to accelerate and fund the exploration and development of its natural gas assets in the emerging Marcellus Shale of West Virginia and Pennsylvania.
In 2010, the Company implemented a liquids-rich growth strategy that focused on acquiring and developing assets capable of delivering much higher long term value added growth than from its dry natural gas-weighted portfolio. The Company acquired key liquid-rich assets in the core Wattenberg in 2012 for approximately $305 million, including net production of ~2,800 Boe per day and 30,000 net acres in the Inner and Middle Core areas, and also acquired approximately 67,000 net acres in the condensate and wet-gas windows of the emerging Utica Shale play. Additionally, the Company divested many of its dry gas-weighted assets like the Piceance Basin, NECO and Shallow Devonian in 2013. PDC completed its transition to a higher-valued, liquids focused portfolio in 2014, by divesting its dry gas Marcellus joint venture assets in Appalachia.
Over the last five years, the Company’s operating and technical teams have substantially improved the capital efficiency of the drilling programs in both its Wattenberg and Utica assets through an exclusive focus on horizontal drilling and completions. Additionally, the teams have focused on margin improvements by managing their operating costs and pursuing improved marketing and midstream contracts.
In December 2016, PDC acquired a significant new set of assets in the Delaware Basin. The Company identified 785 drilling locations through the acquisitions in Reeves and Culberson Counties in Texas. As of August 2017, the Company had approximately 60,000 net acres.
The Company’s proved reserves have steadily grown to approximately 341 MMBoe as of year-end 2016, including approximately 32 MMBoe acquired in the Delaware acquisitions. The reserves are comprised of about 59% crude oil and natural gas liquids, up substantially from year-end 2009 proved reserves of only 120 MMBoe comprised of 15% crude oil and 85% natural gas.