Delaware
|
95-2636730
|
(State of incorporation)
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(I.R.S. Employer Identification No.)
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Title of each class
|
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Ticker Symbol
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Name of each exchange on which registered
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Common stock, par value $0.01 per share
|
|
PDCE
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Nasdaq Global Select Market
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Large Accelerated Filer
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x
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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PART I – FINANCIAL INFORMATION
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Page
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Item 1.
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Financial Statements
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Item 2.
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Item 3.
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Item 4.
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PART II – OTHER INFORMATION
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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•
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changes in global production volumes and demand, including economic conditions that might impact demand and prices for the products we produce;
|
•
|
volatility of commodity prices for crude oil, natural gas and natural gas liquids ("NGLs") and the risk of an extended period of depressed prices;
|
•
|
volatility and widening of differentials;
|
•
|
reductions in the borrowing base under our revolving credit facility;
|
•
|
impact of governmental policies and/or regulations, including changes in environmental and other laws, the interpretation and enforcement of those laws and regulations, liabilities arising thereunder and the costs to comply with those laws and regulations;
|
•
|
declines in the value of our crude oil, natural gas and NGLs properties resulting in impairments;
|
•
|
changes in estimates of proved reserves;
|
•
|
inaccuracy of reserve estimates and expected production rates;
|
•
|
potential for production decline rates from our wells being greater than expected;
|
•
|
timing and extent of our success in discovering, acquiring, developing and producing reserves;
|
•
|
availability of sufficient pipeline, gathering and other transportation facilities and related infrastructure to process and transport our production and the impact of these facilities and regional capacity on the prices we receive for our production;
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•
|
timing and receipt of necessary regulatory permits;
|
•
|
risks incidental to the drilling and operation of crude oil and natural gas wells;
|
•
|
difficulties in integrating our operations as a result of any significant acquisitions or acreage exchanges;
|
•
|
increases or changes in costs and expenses;
|
•
|
availability of supplies, materials, contractors and services that may delay the drilling or completion of our wells;
|
•
|
potential losses of acreage due to lease expirations or otherwise;
|
•
|
increases or changes in costs and expenses;
|
•
|
future cash flows, liquidity and financial condition;
|
•
|
competition within the oil and gas industry;
|
•
|
availability and cost of capital;
|
•
|
our success in marketing crude oil, natural gas and NGLs;
|
•
|
effect of crude oil and natural gas derivative activities;
|
•
|
impact to our operations, personnel retention, strategy, stock price and expenses caused by the actions of activist shareholders;
|
•
|
impact of environmental events, governmental and other third-party responses to such events and our ability to insure adequately against such events;
|
•
|
cost of pending or future litigation;
|
•
|
effect that acquisitions we may pursue have on our capital requirements;
|
•
|
our ability to retain or attract senior management and key technical employees; and
|
•
|
success of strategic plans, expectations and objectives for our future operations.
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|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,474
|
|
|
$
|
1,398
|
|
Accounts receivable, net
|
|
277,321
|
|
|
181,434
|
|
||
Fair value of derivatives
|
|
41,425
|
|
|
84,492
|
|
||
Prepaid expenses and other current assets
|
|
5,607
|
|
|
7,136
|
|
||
Total current assets
|
|
325,827
|
|
|
274,460
|
|
||
Properties and equipment, net
|
|
4,196,335
|
|
|
4,002,862
|
|
||
Assets held-for-sale, net
|
|
—
|
|
|
140,705
|
|
||
Fair value of derivatives
|
|
31,655
|
|
|
93,722
|
|
||
Other assets
|
|
41,087
|
|
|
32,396
|
|
||
Total Assets
|
|
$
|
4,594,904
|
|
|
$
|
4,544,145
|
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
219,158
|
|
|
$
|
181,864
|
|
Production tax liability
|
|
69,951
|
|
|
60,719
|
|
||
Fair value of derivatives
|
|
19,775
|
|
|
3,364
|
|
||
Funds held for distribution
|
|
88,879
|
|
|
105,784
|
|
||
Accrued interest payable
|
|
14,273
|
|
|
14,150
|
|
||
Other accrued expenses
|
|
86,523
|
|
|
75,133
|
|
||
Total current liabilities
|
|
498,559
|
|
|
441,014
|
|
||
Long-term debt
|
|
1,197,744
|
|
|
1,194,876
|
|
||
Deferred income taxes
|
|
183,120
|
|
|
198,096
|
|
||
Asset retirement obligations
|
|
78,909
|
|
|
85,312
|
|
||
Liabilities held-for-sale
|
|
—
|
|
|
4,111
|
|
||
Fair value of derivatives
|
|
927
|
|
|
1,364
|
|
||
Other liabilities
|
|
257,239
|
|
|
92,664
|
|
||
Total liabilities
|
|
2,216,498
|
|
|
2,017,437
|
|
||
|
|
|
|
|
||||
Commitments and contingent liabilities
|
|
|
|
|
||||
|
|
|
|
|
||||
Stockholders' equity
|
|
|
|
|
||||
Common shares - par value $0.01 per share, 150,000,000 authorized, 63,520,462 and 66,148,609 issued as of June 30, 2019 and December 31, 2018, respectively
|
|
635
|
|
|
661
|
|
||
Additional paid-in capital
|
|
2,433,974
|
|
|
2,519,423
|
|
||
Retained earnings (deficit)
|
|
(42,901
|
)
|
|
8,727
|
|
||
Treasury shares - at cost, 364,780 and 45,220
as of June 30, 2019 and December 31, 2018, respectively |
|
(13,302
|
)
|
|
(2,103
|
)
|
||
Total stockholders' equity
|
|
2,378,406
|
|
|
2,526,708
|
|
||
Total Liabilities and Stockholders' Equity
|
|
$
|
4,594,904
|
|
|
$
|
4,544,145
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Crude oil, natural gas and NGLs sales
|
|
$
|
338,956
|
|
|
$
|
325,933
|
|
|
$
|
660,055
|
|
|
$
|
631,158
|
|
Commodity price risk management gain (loss), net
|
|
47,349
|
|
|
(116,126
|
)
|
|
(142,725
|
)
|
|
(163,366
|
)
|
||||
Other income
|
|
4,353
|
|
|
2,724
|
|
|
7,828
|
|
|
5,339
|
|
||||
Total revenues
|
|
390,658
|
|
|
212,531
|
|
|
525,158
|
|
|
473,131
|
|
||||
Costs, expenses and other
|
|
|
|
|
|
|
|
|
||||||||
Lease operating expenses
|
|
34,328
|
|
|
32,260
|
|
|
69,549
|
|
|
61,896
|
|
||||
Production taxes
|
|
22,642
|
|
|
22,604
|
|
|
44,810
|
|
|
42,773
|
|
||||
Transportation, gathering and processing expenses
|
|
12,208
|
|
|
8,964
|
|
|
23,632
|
|
|
16,277
|
|
||||
Exploration, geologic and geophysical expense
|
|
640
|
|
|
875
|
|
|
3,283
|
|
|
3,521
|
|
||||
Impairment of properties and equipment
|
|
28,979
|
|
|
159,554
|
|
|
36,854
|
|
|
192,742
|
|
||||
General and administrative expense
|
|
42,808
|
|
|
37,247
|
|
|
82,406
|
|
|
72,943
|
|
||||
Depreciation, depletion and amortization
|
|
168,523
|
|
|
135,624
|
|
|
319,945
|
|
|
262,412
|
|
||||
Accretion of asset retirement obligations
|
|
1,563
|
|
|
1,285
|
|
|
3,147
|
|
|
2,573
|
|
||||
(Gain) loss on sale of properties and equipment
|
|
(33,904
|
)
|
|
(351
|
)
|
|
(34,273
|
)
|
|
1,081
|
|
||||
Other expenses
|
|
2,836
|
|
|
2,708
|
|
|
6,390
|
|
|
5,476
|
|
||||
Total costs, expenses and other
|
|
280,623
|
|
|
400,770
|
|
|
555,743
|
|
|
661,694
|
|
||||
Income (loss) from operations
|
|
110,035
|
|
|
(188,239
|
)
|
|
(30,585
|
)
|
|
(188,563
|
)
|
||||
Interest expense
|
|
(18,905
|
)
|
|
(17,410
|
)
|
|
(35,883
|
)
|
|
(34,939
|
)
|
||||
Interest income
|
|
5
|
|
|
69
|
|
|
15
|
|
|
217
|
|
||||
Income (loss) before income taxes
|
|
91,135
|
|
|
(205,580
|
)
|
|
(66,453
|
)
|
|
(223,285
|
)
|
||||
Income tax (expense) benefit
|
|
(22,587
|
)
|
|
45,323
|
|
|
14,825
|
|
|
49,889
|
|
||||
Net income (loss)
|
|
$
|
68,548
|
|
|
$
|
(160,257
|
)
|
|
$
|
(51,628
|
)
|
|
$
|
(173,396
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
1.04
|
|
|
$
|
(2.43
|
)
|
|
$
|
(0.78
|
)
|
|
$
|
(2.63
|
)
|
Diluted
|
|
$
|
1.04
|
|
|
$
|
(2.43
|
)
|
|
$
|
(0.78
|
)
|
|
$
|
(2.63
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
65,815
|
|
|
66,066
|
|
|
65,998
|
|
|
66,012
|
|
||||
Diluted
|
|
65,926
|
|
|
66,066
|
|
|
65,998
|
|
|
66,012
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net loss
|
|
$
|
(51,628
|
)
|
|
$
|
(173,396
|
)
|
Adjustments to net loss to reconcile to net cash from operating activities:
|
|
|
|
|
||||
Net change in fair value of unsettled commodity derivatives
|
|
121,080
|
|
|
120,920
|
|
||
Depreciation, depletion and amortization
|
|
319,945
|
|
|
262,412
|
|
||
Impairment of properties and equipment
|
|
36,854
|
|
|
192,742
|
|
||
Accretion of asset retirement obligations
|
|
3,147
|
|
|
2,573
|
|
||
Non-cash stock-based compensation
|
|
12,258
|
|
|
10,779
|
|
||
(Gain) loss on sale of properties and equipment
|
|
(34,273
|
)
|
|
1,081
|
|
||
Amortization of debt discount and issuance costs
|
|
6,731
|
|
|
6,372
|
|
||
Deferred income taxes
|
|
(14,975
|
)
|
|
(50,181
|
)
|
||
Other
|
|
395
|
|
|
974
|
|
||
Changes in assets and liabilities
|
|
42,702
|
|
|
6,581
|
|
||
Net cash from operating activities
|
|
442,236
|
|
|
380,857
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Capital expenditures for development of crude oil and natural gas properties
|
|
(542,791
|
)
|
|
(432,635
|
)
|
||
Capital expenditures for other properties and equipment
|
|
(10,453
|
)
|
|
(2,450
|
)
|
||
Acquisition of crude oil and natural gas properties
|
|
(4,146
|
)
|
|
(181,052
|
)
|
||
Proceeds from sale of properties and equipment
|
|
1,154
|
|
|
1,782
|
|
||
Proceeds from divestitures
|
|
199,430
|
|
|
39,023
|
|
||
Restricted cash
|
|
8,001
|
|
|
1,249
|
|
||
Net cash from investing activities
|
|
(348,805
|
)
|
|
(574,083
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Proceeds from revolving credit facility
|
|
890,000
|
|
|
233,000
|
|
||
Repayment of revolving credit facility
|
|
(892,500
|
)
|
|
(211,000
|
)
|
||
Payment of debt issuance costs
|
|
(36
|
)
|
|
(4,060
|
)
|
||
Purchase of treasury shares
|
|
(94,113
|
)
|
|
—
|
|
||
Purchase of treasury shares for employee stock-based compensation tax withholding obligations
|
|
(3,717
|
)
|
|
(4,494
|
)
|
||
Other
|
|
(990
|
)
|
|
(719
|
)
|
||
Net cash from financing activities
|
|
(101,356
|
)
|
|
12,727
|
|
||
Net change in cash, cash equivalents and restricted cash
|
|
(7,925
|
)
|
|
(180,499
|
)
|
||
Cash, cash equivalents and restricted cash, beginning of period
|
|
9,399
|
|
|
189,925
|
|
||
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
1,474
|
|
|
$
|
9,426
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Treasury Stock
|
|
|
|
|
||||||||||||||||
|
Shares
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Shares
|
|
Amount
|
|
Retained Earnings (Deficit)
|
|
Total Stockholders' Equity
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, March 31, 2019
|
66,196,863
|
|
|
$
|
662
|
|
|
$
|
2,521,558
|
|
|
(22,635
|
)
|
|
$
|
(1,016
|
)
|
|
$
|
(111,449
|
)
|
|
$
|
2,409,755
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68,548
|
|
|
68,548
|
|
|||||
Stock-based compensation
|
148,040
|
|
|
1
|
|
|
7,574
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,575
|
|
|||||
Purchase of treasury shares for employee stock-based compensation tax withholding obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
(54,784
|
)
|
|
(2,257
|
)
|
|
—
|
|
|
(2,257
|
)
|
|||||
Retirement of treasury shares for employee stock-based compensation tax withholding obligations
|
(2,182
|
)
|
|
—
|
|
|
(78
|
)
|
|
2,182
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|||||
Purchase of treasury shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,136,406
|
)
|
|
(105,215
|
)
|
|
—
|
|
|
(105,215
|
)
|
|||||
Retirement of treasury shares
|
(2,822,259
|
)
|
|
(28
|
)
|
|
(94,085
|
)
|
|
2,822,259
|
|
|
94,113
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of treasury shares
|
—
|
|
|
—
|
|
|
(995
|
)
|
|
24,604
|
|
|
995
|
|
|
—
|
|
|
—
|
|
|||||
Balance, June 30, 2019
|
63,520,462
|
|
|
$
|
635
|
|
|
$
|
2,433,974
|
|
|
(364,780
|
)
|
|
$
|
(13,302
|
)
|
|
$
|
(42,901
|
)
|
|
$
|
2,378,406
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Treasury Stock
|
|
|
|
|
||||||||||||||||
|
Shares
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Shares
|
|
Amount
|
|
Retained Earnings (Deficit)
|
|
Total Stockholders' Equity
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, March 31, 2018
|
65,999,010
|
|
|
$
|
660
|
|
|
$
|
2,504,663
|
|
|
(29,255
|
)
|
|
$
|
(1,514
|
)
|
|
$
|
(6,435
|
)
|
|
$
|
2,497,374
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(160,257
|
)
|
|
(160,257
|
)
|
|||||
Stock-based compensation
|
134,015
|
|
|
1
|
|
|
5,517
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,518
|
|
|||||
Purchase of treasury shares for employee stock-based compensation tax withholding obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
(45,706
|
)
|
|
(2,239
|
)
|
|
—
|
|
|
(2,239
|
)
|
|||||
Issuance of treasury shares
|
—
|
|
|
—
|
|
|
(397
|
)
|
|
7,792
|
|
|
397
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|||||
Balance, June 30, 2018
|
66,133,025
|
|
|
$
|
661
|
|
|
$
|
2,509,693
|
|
|
(67,169
|
)
|
|
$
|
(3,356
|
)
|
|
$
|
(166,692
|
)
|
|
$
|
2,340,306
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Treasury Stock
|
|
|
|
|
||||||||||||||||
|
Shares
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Shares
|
|
Amount
|
|
Retained Earnings (Deficit)
|
|
Total Stockholders' Equity
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2018
|
66,148,609
|
|
|
$
|
661
|
|
|
$
|
2,519,423
|
|
|
(45,220
|
)
|
|
$
|
(2,103
|
)
|
|
$
|
8,727
|
|
|
$
|
2,526,708
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(51,628
|
)
|
|
(51,628
|
)
|
|||||
Stock-based compensation
|
196,294
|
|
|
2
|
|
|
12,256
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,258
|
|
|||||
Purchase of treasury shares for employee stock-based compensation tax withholding obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
(96,571
|
)
|
|
(3,717
|
)
|
|
—
|
|
|
(3,717
|
)
|
|||||
Retirement of treasury shares for employee stock-based compensation tax withholding obligations
|
(2,182
|
)
|
|
—
|
|
|
(78
|
)
|
|
2,182
|
|
|
78
|
|
|
—
|
|
|
—
|
|
|||||
Purchase of treasury shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,136,406
|
)
|
|
(105,215
|
)
|
|
—
|
|
|
(105,215
|
)
|
|||||
Retirement of treasury shares
|
(2,822,259
|
)
|
|
(28
|
)
|
|
(94,085
|
)
|
|
2,822,259
|
|
|
94,113
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of treasury shares
|
—
|
|
|
—
|
|
|
(3,542
|
)
|
|
88,976
|
|
|
3,542
|
|
|
—
|
|
|
—
|
|
|||||
Balance, June 30, 2019
|
63,520,462
|
|
|
$
|
635
|
|
|
$
|
2,433,974
|
|
|
(364,780
|
)
|
|
$
|
(13,302
|
)
|
|
$
|
(42,901
|
)
|
|
$
|
2,378,406
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||||
|
Common Stock
|
|
|
|
Treasury Stock
|
|
|
|
|
||||||||||||||||
|
Shares
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Shares
|
|
Amount
|
|
Retained Earnings (Deficit)
|
|
Total Stockholders' Equity
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2017
|
65,955,080
|
|
|
$
|
659
|
|
|
$
|
2,503,294
|
|
|
(55,927
|
)
|
|
$
|
(3,008
|
)
|
|
$
|
6,704
|
|
|
$
|
2,507,649
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173,396
|
)
|
|
(173,396
|
)
|
|||||
Stock-based compensation
|
177,945
|
|
|
2
|
|
|
10,777
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,779
|
|
|||||
Purchase of treasury shares for employee stock-based compensation tax withholding obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
(87,063
|
)
|
|
(4,494
|
)
|
|
—
|
|
|
(4,494
|
)
|
|||||
Issuance of treasury shares
|
—
|
|
|
—
|
|
|
(4,288
|
)
|
|
78,395
|
|
|
4,288
|
|
|
—
|
|
|
—
|
|
|||||
Non-employee directors' deferred compensation plan
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,574
|
)
|
|
(142
|
)
|
|
—
|
|
|
(142
|
)
|
|||||
Other
|
—
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90
|
)
|
|||||
Balance, June 30, 2018
|
66,133,025
|
|
|
$
|
661
|
|
|
$
|
2,509,693
|
|
|
(67,169
|
)
|
|
$
|
(3,356
|
)
|
|
$
|
(166,692
|
)
|
|
$
|
2,340,306
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
Revenue by Commodity and Operating Region
|
|
2019
|
|
2018
|
|
Percent Change
|
|
2019
|
|
2018
|
|
Percentage Change
|
||||||||||
Crude oil
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wattenberg Field
|
|
$
|
203,548
|
|
|
$
|
189,992
|
|
|
7.1
|
%
|
|
$
|
383,974
|
|
|
$
|
360,299
|
|
|
6.6
|
%
|
Delaware Basin
|
|
70,620
|
|
|
62,599
|
|
|
12.8
|
%
|
|
121,277
|
|
|
116,016
|
|
|
4.5
|
%
|
||||
Utica Shale (1)
|
|
—
|
|
|
—
|
|
*
|
|
|
—
|
|
|
2,696
|
|
|
*
|
|
|||||
Total
|
|
$
|
274,168
|
|
|
$
|
252,591
|
|
|
8.5
|
%
|
|
$
|
505,251
|
|
|
$
|
479,011
|
|
|
5.5
|
%
|
Natural gas
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wattenberg Field
|
|
$
|
30,129
|
|
|
$
|
22,640
|
|
|
33.1
|
%
|
|
$
|
76,831
|
|
|
$
|
52,412
|
|
|
46.6
|
%
|
Delaware Basin
|
|
910
|
|
|
7,472
|
|
|
(87.8
|
)%
|
|
6,680
|
|
|
15,151
|
|
|
(55.9
|
)%
|
||||
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
1,109
|
|
|
*
|
|
||||
Total
|
|
$
|
31,039
|
|
|
$
|
30,112
|
|
|
3.1
|
%
|
|
$
|
83,511
|
|
|
$
|
68,672
|
|
|
21.6
|
%
|
NGLs
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wattenberg Field
|
|
$
|
22,677
|
|
|
$
|
30,271
|
|
|
(25.1
|
)%
|
|
$
|
50,399
|
|
|
$
|
59,041
|
|
|
(14.6
|
)%
|
Delaware Basin
|
|
11,072
|
|
|
12,959
|
|
|
(14.6
|
)%
|
|
20,894
|
|
|
23,594
|
|
|
(11.4
|
)%
|
||||
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
840
|
|
|
*
|
|
||||
Total
|
|
$
|
33,749
|
|
|
$
|
43,230
|
|
|
(21.9
|
)%
|
|
$
|
71,293
|
|
|
$
|
83,475
|
|
|
(14.6
|
)%
|
Revenue by Operating Region
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wattenberg Field
|
|
$
|
256,354
|
|
|
$
|
242,903
|
|
|
5.5
|
%
|
|
$
|
511,204
|
|
|
$
|
471,752
|
|
|
8.4
|
%
|
Delaware Basin
|
|
82,602
|
|
|
83,030
|
|
|
(0.5
|
)%
|
|
148,851
|
|
|
154,761
|
|
|
(3.8
|
)%
|
||||
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
4,645
|
|
|
*
|
|
||||
Total
|
|
$
|
338,956
|
|
|
$
|
325,933
|
|
|
4.0
|
%
|
|
$
|
660,055
|
|
|
$
|
631,158
|
|
|
4.6
|
%
|
(1)
|
In March 2018, we completed the disposition of our Utica Shale properties.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
|
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Total assets
|
$
|
48,200
|
|
|
$
|
24,880
|
|
|
$
|
73,080
|
|
|
$
|
118,521
|
|
|
$
|
59,693
|
|
|
$
|
178,214
|
|
Total liabilities
|
(18,326
|
)
|
|
(2,376
|
)
|
|
(20,702
|
)
|
|
(3,364
|
)
|
|
(1,364
|
)
|
|
(4,728
|
)
|
||||||
Net asset
|
$
|
29,874
|
|
|
$
|
22,504
|
|
|
$
|
52,378
|
|
|
$
|
115,157
|
|
|
$
|
58,329
|
|
|
$
|
173,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Fair value of Level 3 instruments, net asset (liability) beginning of period
|
|
$
|
12,990
|
|
|
$
|
(8,834
|
)
|
|
$
|
58,329
|
|
|
$
|
(9,687
|
)
|
Changes in fair value included in condensed consolidated statement of operations line item:
|
|
|
|
|
|
|
|
|
||||||||
Commodity price risk management gain (loss), net
|
|
10,597
|
|
|
(4,701
|
)
|
|
(32,923
|
)
|
|
(6,854
|
)
|
||||
Settlements included in condensed consolidated statement of operations line items:
|
|
|
|
|
|
|
|
|
||||||||
Commodity price risk management gain (loss), net
|
|
(1,083
|
)
|
|
(5,565
|
)
|
|
(2,902
|
)
|
|
(2,559
|
)
|
||||
Fair value of Level 3 instruments, net asset (liability) end of period
|
|
$
|
22,504
|
|
|
$
|
(19,100
|
)
|
|
$
|
22,504
|
|
|
$
|
(19,100
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Net change in fair value of Level 3 unsettled derivatives included in condensed consolidated statement of operations line item:
|
|
|
|
|
|
|
|
|
||||||||
Commodity price risk management gain (loss), net
|
|
$
|
6,200
|
|
|
$
|
(15,582
|
)
|
|
$
|
(26,641
|
)
|
|
$
|
(9,412
|
)
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||
|
|
Estimated Fair Value
|
|
Percent of Par
|
|
Estimated Fair Value
|
|
Percent of Par
|
||||||
|
|
(in millions)
|
||||||||||||
Senior notes:
|
|
|
|
|
|
|
|
|||||||
|
2021 Convertible Notes
|
$
|
188.8
|
|
|
94.4
|
%
|
|
$
|
175.4
|
|
|
87.7
|
%
|
|
2024 Senior Notes
|
400.4
|
|
|
100.1
|
%
|
|
370.2
|
|
|
92.5
|
%
|
||
|
2026 Senior Notes
|
598.2
|
|
|
99.7
|
%
|
|
532.4
|
|
|
88.7
|
%
|
|
|
Collars
|
|
Fixed-Price Swaps
|
|
|
||||||||||||||||
Commodity/ Index/
Maturity Period
|
|
Quantity
(Crude oil -
MBls
Natural Gas - BBtu)
|
|
Weighted-Average
Contract Price
|
|
Quantity (Crude Oil - MBbls
Gas and Basis-
BBtu )
|
|
Weighted-
Average
Contract
Price
|
|
Fair Value
June 30,
2019 (1)
(in thousands)
|
||||||||||||
|
|
Floors
|
|
Ceilings
|
|
|
|
|||||||||||||||
Crude Oil
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NYMEX
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
|
2,500
|
|
|
$
|
57.40
|
|
|
$
|
67.26
|
|
|
3,900
|
|
|
$
|
55.08
|
|
|
$
|
(5,583
|
)
|
2020
|
|
3,600
|
|
|
55.00
|
|
|
71.68
|
|
|
6,200
|
|
|
61.28
|
|
|
48,856
|
|
||||
2021
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,200
|
|
|
57.99
|
|
|
4,262
|
|
||||
Total Crude Oil
|
|
6,100
|
|
|
|
|
|
|
11,300
|
|
|
|
|
$
|
47,535
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Natural Gas
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NYMEX
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
15,164
|
|
|
$
|
2.91
|
|
|
$
|
8,228
|
|
Dominion South
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
2.54
|
|
|
2
|
|
||||
2020
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
2.54
|
|
|
—
|
|
||||
Total Natural Gas
|
|
—
|
|
|
|
|
|
|
15,220
|
|
|
|
|
$
|
8,230
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basis Protection - Natural Gas
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CIG
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
2019
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
22,322
|
|
|
$
|
(0.68
|
)
|
|
$
|
(3,102
|
)
|
2020
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,500
|
|
|
(0.64
|
)
|
|
(285
|
)
|
||||
Total Basis Protection - Natural Gas
|
|
—
|
|
|
|
|
|
|
32,822
|
|
|
|
|
$
|
(3,387
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity Derivatives Fair Value
|
|
|
|
|
|
|
|
$
|
52,378
|
|
(1)
|
Approximately 34.0 percent of the fair value of our commodity derivative assets and 11.5 percent of the fair value of our commodity derivative liabilities were measured using significant unobservable inputs (Level 3).
|
|
|
|
|
|
Fair Value
|
||||||
Derivative Instruments:
|
|
Condensed Consolidated Balance Sheet Line Item
|
|
June 30, 2019
|
|
December 31, 2018
|
|||||
|
|
|
|
|
(in thousands)
|
||||||
Derivative assets:
|
Current
|
|
|
|
|
|
|
||||
|
Commodity derivative contracts
|
|
Fair value of derivatives
|
|
$
|
41,214
|
|
|
$
|
84,492
|
|
|
Basis protection derivative contracts
|
|
Fair value of derivatives
|
|
211
|
|
|
—
|
|
||
|
|
|
|
|
41,425
|
|
|
84,492
|
|
||
|
Non-current
|
|
|
|
|
|
|
||||
|
Commodity derivative contracts
|
|
Fair value of derivatives
|
|
31,655
|
|
|
93,722
|
|
||
Total derivative assets
|
|
|
|
$
|
73,080
|
|
|
$
|
178,214
|
|
|
|
|
|
|
|
|
|
|
||||
Derivative liabilities:
|
Current
|
|
|
|
|
|
|
||||
|
Commodity derivative contracts
|
|
Fair value of derivatives
|
|
$
|
16,410
|
|
|
$
|
748
|
|
|
Basis protection derivative contracts
|
|
Fair value of derivatives
|
|
3,365
|
|
|
2,616
|
|
||
|
|
|
|
|
19,775
|
|
|
3,364
|
|
||
|
Non-current
|
|
|
|
|
|
|
||||
|
Commodity derivative contracts
|
|
Fair value of derivatives
|
|
694
|
|
|
1,364
|
|
||
|
Basis protection derivative contracts
|
|
Fair value of derivatives
|
|
233
|
|
|
—
|
|
||
|
|
|
|
|
927
|
|
|
1,364
|
|
||
Total derivative liabilities
|
|
|
|
$
|
20,702
|
|
|
$
|
4,728
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Condensed Consolidated Statement of Operations Line Item
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Commodity price risk management gain (loss), net
|
|
|
|
|
|
|
|
|
||||||||
Net settlements
|
|
$
|
(13,193
|
)
|
|
$
|
(16,408
|
)
|
|
$
|
(21,645
|
)
|
|
$
|
(42,446
|
)
|
Net change in fair value of unsettled derivatives
|
|
60,542
|
|
|
(99,718
|
)
|
|
(121,080
|
)
|
|
(120,920
|
)
|
||||
Total commodity price risk management gain (loss), net
|
|
$
|
47,349
|
|
|
$
|
(116,126
|
)
|
|
$
|
(142,725
|
)
|
|
$
|
(163,366
|
)
|
|
|
|
|
|
|
|
|
|
As of June 30, 2019
|
|
Derivative Instruments, Gross
|
|
Effect of Master Netting Agreements
|
|
Derivative Instruments, Net
|
||||||
|
|
(in thousands)
|
||||||||||
Asset derivatives:
|
|
|
|
|
|
|
||||||
Derivative instruments, at fair value
|
|
$
|
73,080
|
|
|
$
|
(15,731
|
)
|
|
$
|
57,349
|
|
|
|
|
|
|
|
|
||||||
Liability derivatives:
|
|
|
|
|
|
|
||||||
Derivative instruments, at fair value
|
|
$
|
20,702
|
|
|
$
|
(15,731
|
)
|
|
$
|
4,971
|
|
|
|
|
|
|
|
|
As of December 31, 2018
|
|
Derivative Instruments, Gross
|
|
Effect of Master Netting Agreements
|
|
Derivative Instruments, Net
|
||||||
|
|
(in thousands)
|
||||||||||
Asset derivatives:
|
|
|
|
|
|
|
||||||
Derivative instruments, at fair value
|
|
$
|
178,214
|
|
|
$
|
(3,985
|
)
|
|
$
|
174,229
|
|
|
|
|
|
|
|
|
||||||
Liability derivatives:
|
|
|
|
|
|
|
||||||
Derivative instruments, at fair value
|
|
$
|
4,728
|
|
|
$
|
(3,985
|
)
|
|
$
|
743
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(in thousands)
|
||||||
Properties and equipment, net:
|
|
|
|
||||
Crude oil and natural gas properties
|
|
|
|
||||
Proved
|
$
|
5,920,714
|
|
|
$
|
5,452,613
|
|
Unproved
|
480,316
|
|
|
492,594
|
|
||
Total crude oil and natural gas properties
|
6,401,030
|
|
|
5,945,207
|
|
||
Equipment and other
|
40,716
|
|
|
60,612
|
|
||
Land and buildings
|
12,547
|
|
|
11,243
|
|
||
Construction in progress
|
429,542
|
|
|
356,095
|
|
||
Properties and equipment, at cost
|
6,883,835
|
|
|
6,373,157
|
|
||
Accumulated DD&A
|
(2,687,500
|
)
|
|
(2,370,295
|
)
|
||
Properties and equipment, net
|
$
|
4,196,335
|
|
|
$
|
4,002,862
|
|
|
|
|
|
|
December 31, 2018
|
||
|
(in thousands)
|
||
Assets
|
|
||
Properties and equipment, net
|
$
|
137,448
|
|
Other assets
|
3,257
|
|
|
Total assets
|
$
|
140,705
|
|
|
|
||
Liabilities
|
|
||
Asset retirement obligation
|
$
|
4,111
|
|
Total liabilities
|
$
|
4,111
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Impairment of proved and unproved properties
|
$
|
2,229
|
|
|
$
|
159,528
|
|
|
$
|
10,104
|
|
|
$
|
192,658
|
|
Amortization of individually insignificant unproved properties
|
—
|
|
|
26
|
|
|
—
|
|
|
84
|
|
||||
Impairment of infrastructure and other
|
26,750
|
|
|
—
|
|
|
26,750
|
|
|
—
|
|
||||
Impairment of properties and equipment
|
$
|
28,979
|
|
|
$
|
159,554
|
|
|
$
|
36,854
|
|
|
$
|
192,742
|
|
|
|
Six Months Ended June 30,
|
|
Year Ended December 31, 2018
|
||||
|
|
(in thousands, except for number of wells)
|
||||||
|
|
|
|
|
||||
Beginning balance
|
|
$
|
12,188
|
|
|
$
|
15,448
|
|
Additions to capitalized exploratory well costs pending the determination of proved reserves
|
|
22,270
|
|
|
35,127
|
|
||
Reclassifications to proved properties
|
|
(13,213
|
)
|
|
(38,387
|
)
|
||
Ending balance
|
|
$
|
21,245
|
|
|
$
|
12,188
|
|
|
|
|
|
|
||||
Number of wells pending determination at period-end
|
|
3
|
|
|
2
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
|
|
|
|
|
||||
Employee benefits
|
|
$
|
16,229
|
|
|
$
|
25,811
|
|
Asset retirement obligations
|
|
29,853
|
|
|
25,598
|
|
||
Purchases of treasury shares
|
|
11,102
|
|
|
—
|
|
||
Environmental expenses
|
|
2,424
|
|
|
3,038
|
|
||
Operating and finance leases
|
|
5,870
|
|
|
—
|
|
||
Other
|
|
21,045
|
|
|
20,686
|
|
||
Other accrued expenses
|
|
$
|
86,523
|
|
|
$
|
75,133
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
|
(in thousands)
|
||||||
|
|
|
|
|
||||
Production taxes
|
|
$
|
34,608
|
|
|
$
|
61,310
|
|
Deferred oil gathering credits
|
|
21,705
|
|
|
22,710
|
|
||
Deferred midstream gathering credits
|
|
178,918
|
|
|
—
|
|
||
Operating and finance leases
|
|
18,292
|
|
|
—
|
|
||
Other
|
|
3,716
|
|
|
8,644
|
|
||
Other liabilities
|
|
$
|
257,239
|
|
|
$
|
92,664
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(in thousands)
|
||||||
Senior Notes:
|
|
|
|
||||
1.125% Convertible Notes due September 2021:
|
|
|
|
||||
Principal amount
|
$
|
200,000
|
|
|
$
|
200,000
|
|
Unamortized discount
|
(18,821
|
)
|
|
(22,766
|
)
|
||
Unamortized debt issuance costs
|
(2,153
|
)
|
|
(2,640
|
)
|
||
Net of unamortized discount and debt issuance costs
|
179,026
|
|
|
174,594
|
|
||
|
|
|
|
||||
6.125% Senior Notes due September 2024:
|
|
|
|
||||
Principal amount
|
400,000
|
|
|
400,000
|
|
||
Unamortized debt issuance costs
|
(5,101
|
)
|
|
(5,590
|
)
|
||
Net of unamortized debt issuance costs
|
394,899
|
|
|
394,410
|
|
||
|
|
|
|
||||
5.75% Senior Notes due May 2026:
|
|
|
|
||||
Principal amount
|
600,000
|
|
|
600,000
|
|
||
Unamortized debt issuance costs
|
(6,181
|
)
|
|
(6,628
|
)
|
||
Net of unamortized debt issuance costs
|
593,819
|
|
|
593,372
|
|
||
|
|
|
|
||||
Total senior notes
|
1,167,744
|
|
|
1,162,376
|
|
||
|
|
|
|
||||
Revolving Credit Facility:
|
|
|
|
||||
Revolving credit facility due May 2023
|
30,000
|
|
|
32,500
|
|
||
Total long-term debt, net of unamortized discount and debt issuance costs
|
$
|
1,197,744
|
|
|
$
|
1,194,876
|
|
Lease Costs
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
|
|
(in thousands)
|
||||||
Operating lease costs
|
|
$
|
1,384
|
|
|
$
|
2,731
|
|
|
|
|
|
|
||||
Finance lease costs:
|
|
|
|
|
||||
Amortization of ROU assets
|
|
$
|
497
|
|
|
$
|
987
|
|
Interest on lease liabilities
|
|
67
|
|
|
129
|
|
||
Total finance lease costs
|
|
564
|
|
|
1,116
|
|
||
|
|
|
|
|
||||
Short-term lease costs
|
|
51,074
|
|
|
112,105
|
|
||
Total lease costs
|
|
$
|
53,022
|
|
|
$
|
115,952
|
|
Leases
|
|
Condensed Consolidated Balance Sheet Line Item
|
|
June 30, 2019
|
||
|
|
|
|
(in thousands)
|
||
Operating Leases:
|
|
|
|
|
||
Operating lease ROU assets
|
|
Other assets
|
|
$
|
16,665
|
|
|
|
|
|
|
||
Operating lease obligation - short-term
|
|
Other accrued expense
|
|
$
|
4,028
|
|
Operating lease obligation - long-term
|
|
Other liabilities
|
|
15,016
|
|
|
Total operating lease liabilities
|
|
|
|
$
|
19,044
|
|
|
|
|
|
|
||
Finance Leases:
|
|
|
|
|
||
Finance lease ROU assets
|
|
Properties and equipment, net
|
|
$
|
5,161
|
|
|
|
|
|
|
||
Finance lease obligation - short-term
|
|
Other accrued expense
|
|
$
|
1,842
|
|
Finance lease obligation - long-term
|
|
Other liabilities
|
|
3,276
|
|
|
Total finance lease liabilities
|
|
|
|
$
|
5,118
|
|
|
|
|
|
|
||
Weighted-average remaining lease term (years)
|
|
|
|
|
||
Operating leases
|
|
|
|
4.71
|
|
|
Finance leases
|
|
|
|
3.27
|
|
|
|
|
|
|
|
||
Weighted-average discount rate
|
|
|
|
|
||
Operating leases
|
|
|
|
5.0
|
%
|
|
Finance leases
|
|
|
|
5.0
|
%
|
|
|
Operating Leases
|
|
Finance Leases
|
|
Total
|
||||||
|
|
(in thousands)
|
||||||||||
2019
|
|
$
|
2,387
|
|
|
$
|
1,044
|
|
|
$
|
3,431
|
|
2020
|
|
4,847
|
|
|
1,956
|
|
|
6,803
|
|
|||
2021
|
|
4,923
|
|
|
1,313
|
|
|
6,236
|
|
|||
2022
|
|
5,016
|
|
|
711
|
|
|
5,727
|
|
|||
2023
|
|
1,559
|
|
|
496
|
|
|
2,055
|
|
|||
Thereafter
|
|
2,648
|
|
|
29
|
|
|
2,677
|
|
|||
Total lease payments
|
|
21,380
|
|
|
5,549
|
|
|
26,929
|
|
|||
Less interest and discount
|
|
(2,336
|
)
|
|
(431
|
)
|
|
(2,767
|
)
|
|||
Present value of lease liabilities
|
|
$
|
19,044
|
|
|
$
|
5,118
|
|
|
$
|
24,162
|
|
|
Amount
|
||
|
(in thousands)
|
||
|
|
||
Balance at December 31, 2018
|
$
|
115,021
|
|
Obligations incurred with development activities
|
4,066
|
|
|
Accretion expense
|
3,147
|
|
|
Revisions in estimated cash flows
|
3,556
|
|
|
Obligations discharged with asset retirements
|
(11,687
|
)
|
|
Obligations discharged with divestitures
|
(5,341
|
)
|
|
Balance at June 30, 2019
|
108,762
|
|
|
Current portion
|
(29,853
|
)
|
|
Long-term portion
|
$
|
78,909
|
|
|
|
|
|
For the Twelve Months Ending June 30,
|
|
|
|
|
||||||||||||||||||||
Area
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024 and
Through Expiration |
|
Total
|
|
Expiration
Date |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Natural gas (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Wattenberg Field
|
|
29,820
|
|
|
31,025
|
|
|
31,025
|
|
|
31,025
|
|
|
77,556
|
|
|
200,451
|
|
|
June 30, 2026
|
||||||
Delaware Basin
|
|
44,907
|
|
|
29,326
|
|
|
10,770
|
|
|
—
|
|
|
—
|
|
|
85,003
|
|
|
December 31, 2021
|
||||||
Gas Marketing
|
|
7,137
|
|
|
7,116
|
|
|
6,875
|
|
|
1,147
|
|
|
—
|
|
|
22,275
|
|
|
August 31, 2022
|
||||||
Total
|
|
81,864
|
|
|
67,467
|
|
|
48,670
|
|
|
32,172
|
|
|
77,556
|
|
|
307,729
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Crude oil (MBbls)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Wattenberg Field
|
|
11,713
|
|
|
12,389
|
|
|
14,965
|
|
|
14,050
|
|
|
36,926
|
|
|
90,043
|
|
|
December 31, 2027
|
||||||
Delaware Basin
|
|
8,740
|
|
|
8,398
|
|
|
8,030
|
|
|
8,030
|
|
|
4,048
|
|
|
37,246
|
|
|
December 31, 2023
|
||||||
Total
|
|
20,453
|
|
|
20,787
|
|
|
22,995
|
|
|
22,080
|
|
|
40,974
|
|
|
127,289
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Water (MBbls)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Wattenberg Field
|
|
4,659
|
|
|
6,207
|
|
|
6,207
|
|
|
6,207
|
|
|
9,352
|
|
|
32,632
|
|
|
December 31, 2024
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dollar commitment (in thousands)
|
|
$
|
104,184
|
|
|
$
|
92,260
|
|
|
$
|
98,773
|
|
|
$
|
92,994
|
|
|
$
|
202,488
|
|
|
$
|
590,699
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense
|
|
$
|
7,575
|
|
|
$
|
5,518
|
|
|
$
|
12,258
|
|
|
$
|
10,779
|
|
Income tax benefit
|
|
(1,812
|
)
|
|
(1,323
|
)
|
|
(2,932
|
)
|
|
(2,584
|
)
|
||||
Stock-based compensation expense, net of tax
|
|
$
|
5,763
|
|
|
$
|
4,195
|
|
|
$
|
9,326
|
|
|
$
|
8,195
|
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
Weighted-Average
Grant Date Fair Value per Share |
|||
|
|
|
|
|||
Non-vested at December 31, 2018
|
618,407
|
|
|
$
|
54.16
|
|
Granted
|
576,776
|
|
|
40.47
|
|
|
Vested
|
(266,329
|
)
|
|
54.00
|
|
|
Forfeited
|
(74,319
|
)
|
|
46.40
|
|
|
Non-vested at June 30, 2019
|
854,535
|
|
|
45.64
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands, except per share data)
|
||||||
|
|
|
|
||||
Total intrinsic value of time-based awards vested
|
$
|
10,424
|
|
|
$
|
10,482
|
|
Total intrinsic value of time-based awards non-vested
|
30,815
|
|
|
36,934
|
|
||
Market price per share as of June 30
|
36.06
|
|
|
60.45
|
|
||
Weighted-average grant date fair value per share
|
40.47
|
|
|
49.73
|
|
|
Six Months Ended June 30,
|
||||
|
2019
|
|
2018
|
||
|
|
|
|
||
Expected term of award (in years)
|
3
|
|
|
3
|
|
Risk-free interest rate
|
2.5
|
%
|
|
2.4
|
%
|
Expected volatility
|
41.4
|
%
|
|
42.3
|
%
|
|
|
Shares
|
|
Weighted-Average
Grant Date Fair Value per Share |
|||
|
|
|
|
|
|||
Non-vested at December 31, 2018
|
|
102,914
|
|
|
$
|
74.88
|
|
Granted
|
|
139,197
|
|
|
56.68
|
|
|
Non-vested at June 30, 2019
|
|
242,111
|
|
|
64.42
|
|
|
Six Months Ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
|
(in thousands, except per share data)
|
||||||
|
|
|
|
||||
Total intrinsic value of market-based awards non-vested
|
$
|
8,731
|
|
|
$
|
8,402
|
|
Market price per common share as of June 30,
|
36.06
|
|
|
60.45
|
|
||
Weighted-average grant date fair value per share
|
56.68
|
|
|
69.98
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||||||
|
|
|
|
|
|
|
|
||||
Weighted-average common shares outstanding - basic
|
65,815
|
|
|
66,066
|
|
|
65,998
|
|
|
66,012
|
|
Dilutive effect of:
|
|
|
|
|
|
|
|
||||
Restricted stock and PSU
|
85
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Other equity-based awards
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Weighted-average common shares and equivalents outstanding - diluted
|
65,926
|
|
|
66,066
|
|
|
65,998
|
|
|
66,012
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
(in thousands)
|
||||||||||
|
|
|
|
|
|
|
|
||||
Weighted-average common share equivalents excluded from diluted earnings per share due to their anti-dilutive effect:
|
|
|
|
|
|
|
|
||||
RSUs and PSUs
|
770
|
|
|
803
|
|
|
1,048
|
|
|
698
|
|
Other equity-based awards
|
208
|
|
|
93
|
|
|
302
|
|
|
85
|
|
Total anti-dilutive common share equivalents
|
978
|
|
|
896
|
|
|
1,350
|
|
|
783
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2019
|
|
2018 (1)
|
||||
|
|
(in thousands)
|
||||||
Supplemental cash flow information:
|
|
|
|
|
||||
Cash payments for:
|
|
|
|
|
||||
Interest, net of capitalized interest
|
|
$
|
29,034
|
|
|
$
|
27,817
|
|
Income taxes
|
|
200
|
|
|
393
|
|
||
|
|
|
|
|
||||
Non-cash investing and financing activities:
|
|
|
|
|
||||
Change in accounts payable related to capital expenditures
|
|
$
|
16,520
|
|
|
$
|
72,334
|
|
Change in asset retirement obligations, with a corresponding change to crude oil and natural gas properties, net of disposals
|
|
(1,139
|
)
|
|
6,248
|
|
||
Change in accounts payable related to the purchase and retirement of treasury shares
|
|
11,102
|
|
|
—
|
|
||
|
|
|
|
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
|
||||
Operating cash flows from operating leases
|
|
$
|
2,914
|
|
|
$
|
—
|
|
Operating cash flows from finance leases
|
|
127
|
|
|
—
|
|
||
Financing cash flows from finance leases
|
|
988
|
|
|
—
|
|
||
|
|
|
|
|
||||
ROU assets obtained in exchange for lease obligations:
|
|
|
|
|
||||
Operating leases
|
|
$
|
1,428
|
|
|
$
|
—
|
|
Finance leases
|
|
1,593
|
|
|
—
|
|
(i)
|
PDC Energy, Inc. ("Parent"), the issuer of the guaranteed obligations, including non-material subsidiaries;
|
(ii)
|
PDC Permian, Inc., the guarantor subsidiary ("Guarantor"), as specified in the indentures related to our senior notes;
|
(iii)
|
Eliminations representing adjustments to (a) eliminate intercompany transactions between or among Parent, Guarantor and our other subsidiaries and (b) eliminate the investments in our subsidiaries; and
|
(iv)
|
Parent and subsidiaries on a consolidated basis ("Consolidated").
|
|
|
Condensed Consolidating Balance Sheets
|
||||||||||||||
|
|
June 30, 2019
|
||||||||||||||
|
|
Parent
|
|
Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
1,474
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,474
|
|
Accounts receivable, net
|
|
157,661
|
|
|
119,660
|
|
|
—
|
|
|
277,321
|
|
||||
Fair value of derivatives
|
|
41,425
|
|
|
—
|
|
|
—
|
|
|
41,425
|
|
||||
Prepaid expenses and other current assets
|
|
5,200
|
|
|
407
|
|
|
—
|
|
|
5,607
|
|
||||
Total current assets
|
|
205,760
|
|
|
120,067
|
|
|
—
|
|
|
325,827
|
|
||||
Properties and equipment, net
|
|
2,345,072
|
|
|
1,851,263
|
|
|
—
|
|
|
4,196,335
|
|
||||
Intercompany receivable
|
|
327,983
|
|
|
—
|
|
|
(327,983
|
)
|
|
—
|
|
||||
Investment in subsidiaries
|
|
1,317,269
|
|
|
—
|
|
|
(1,317,269
|
)
|
|
—
|
|
||||
Fair value of derivatives
|
|
31,655
|
|
|
—
|
|
|
—
|
|
|
31,655
|
|
||||
Other assets
|
|
36,031
|
|
|
5,056
|
|
|
—
|
|
|
41,087
|
|
||||
Total Assets
|
|
$
|
4,263,770
|
|
|
$
|
1,976,386
|
|
|
$
|
(1,645,252
|
)
|
|
$
|
4,594,904
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
|
$
|
133,024
|
|
|
$
|
86,134
|
|
|
$
|
—
|
|
|
$
|
219,158
|
|
Production tax liability
|
|
64,933
|
|
|
5,018
|
|
|
—
|
|
|
69,951
|
|
||||
Fair value of derivatives
|
|
19,775
|
|
|
—
|
|
|
—
|
|
|
19,775
|
|
||||
Funds held for distribution
|
|
76,424
|
|
|
12,455
|
|
|
—
|
|
|
88,879
|
|
||||
Accrued interest payable
|
|
14,269
|
|
|
4
|
|
|
—
|
|
|
14,273
|
|
||||
Other accrued expenses
|
|
83,624
|
|
|
2,899
|
|
|
—
|
|
|
86,523
|
|
||||
Total current liabilities
|
|
392,049
|
|
|
106,510
|
|
|
—
|
|
|
498,559
|
|
||||
Intercompany payable
|
|
—
|
|
|
327,983
|
|
|
(327,983
|
)
|
|
—
|
|
||||
Long-term debt
|
|
1,197,744
|
|
|
—
|
|
|
—
|
|
|
1,197,744
|
|
||||
Deferred income taxes
|
|
147,444
|
|
|
35,676
|
|
|
—
|
|
|
183,120
|
|
||||
Asset retirement obligations
|
|
71,906
|
|
|
7,003
|
|
|
—
|
|
|
78,909
|
|
||||
Fair value of derivatives
|
|
927
|
|
|
—
|
|
|
—
|
|
|
927
|
|
||||
Other liabilities
|
|
75,294
|
|
|
181,945
|
|
|
—
|
|
|
257,239
|
|
||||
Total liabilities
|
|
1,885,364
|
|
|
659,117
|
|
|
(327,983
|
)
|
|
2,216,498
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Commitments and contingent liabilities
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Stockholders' Equity
|
|
|
|
|
|
|
|
|
||||||||
Common shares
|
|
635
|
|
|
—
|
|
|
—
|
|
|
635
|
|
||||
Additional paid-in capital
|
|
2,433,974
|
|
|
1,766,775
|
|
|
(1,766,775
|
)
|
|
2,433,974
|
|
||||
Retained deficit
|
|
(42,901
|
)
|
|
(449,506
|
)
|
|
449,506
|
|
|
(42,901
|
)
|
||||
Treasury shares
|
|
(13,302
|
)
|
|
—
|
|
|
—
|
|
|
(13,302
|
)
|
||||
Total stockholders' equity
|
|
2,378,406
|
|
|
1,317,269
|
|
|
(1,317,269
|
)
|
|
2,378,406
|
|
||||
Total Liabilities and Stockholders' Equity
|
|
$
|
4,263,770
|
|
|
$
|
1,976,386
|
|
|
$
|
(1,645,252
|
)
|
|
$
|
4,594,904
|
|
|
|
Condensed Consolidating Balance Sheets
|
||||||||||||||
|
|
December 31, 2018
|
||||||||||||||
|
|
Parent
|
|
Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Current assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
|
$
|
1,398
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,398
|
|
Accounts receivable, net
|
|
146,529
|
|
|
34,905
|
|
|
—
|
|
|
181,434
|
|
||||
Fair value of derivatives
|
|
84,492
|
|
|
—
|
|
|
—
|
|
|
84,492
|
|
||||
Prepaid expenses and other current assets
|
|
6,725
|
|
|
411
|
|
|
—
|
|
|
7,136
|
|
||||
Total current assets
|
|
239,144
|
|
|
35,316
|
|
|
—
|
|
|
274,460
|
|
||||
Properties and equipment, net
|
|
2,270,711
|
|
|
1,732,151
|
|
|
—
|
|
|
4,002,862
|
|
||||
Assets held-for-sale
|
|
—
|
|
|
140,705
|
|
|
—
|
|
|
140,705
|
|
||||
Intercompany receivable
|
|
451,601
|
|
|
—
|
|
|
(451,601
|
)
|
|
—
|
|
||||
Investment in subsidiaries
|
|
1,316,945
|
|
|
—
|
|
|
(1,316,945
|
)
|
|
—
|
|
||||
Fair value of derivatives
|
|
93,722
|
|
|
—
|
|
|
—
|
|
|
93,722
|
|
||||
Other assets
|
|
30,084
|
|
|
2,312
|
|
|
—
|
|
|
32,396
|
|
||||
Total Assets
|
|
$
|
4,402,207
|
|
|
$
|
1,910,484
|
|
|
$
|
(1,768,546
|
)
|
|
$
|
4,544,145
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable
|
|
$
|
110,847
|
|
|
$
|
71,017
|
|
|
$
|
—
|
|
|
$
|
181,864
|
|
Production tax liability
|
|
53,309
|
|
|
7,410
|
|
|
—
|
|
|
60,719
|
|
||||
Fair value of derivatives
|
|
3,364
|
|
|
—
|
|
|
—
|
|
|
3,364
|
|
||||
Funds held for distribution
|
|
90,183
|
|
|
15,601
|
|
|
—
|
|
|
105,784
|
|
||||
Accrued interest payable
|
|
14,143
|
|
|
7
|
|
|
—
|
|
|
14,150
|
|
||||
Other accrued expenses
|
|
73,689
|
|
|
1,444
|
|
|
—
|
|
|
75,133
|
|
||||
Total current liabilities
|
|
345,535
|
|
|
95,479
|
|
|
—
|
|
|
441,014
|
|
||||
Intercompany payable
|
|
—
|
|
|
451,601
|
|
|
(451,601
|
)
|
|
—
|
|
||||
Long-term debt
|
|
1,194,876
|
|
|
—
|
|
|
—
|
|
|
1,194,876
|
|
||||
Deferred income taxes
|
|
162,368
|
|
|
35,728
|
|
|
—
|
|
|
198,096
|
|
||||
Asset retirement obligations
|
|
79,904
|
|
|
5,408
|
|
|
—
|
|
|
85,312
|
|
||||
Liabilities held-for-sale
|
|
—
|
|
|
4,111
|
|
|
—
|
|
|
4,111
|
|
||||
Fair value of derivatives
|
|
1,364
|
|
|
—
|
|
|
—
|
|
|
1,364
|
|
||||
Other liabilities
|
|
91,452
|
|
|
1,212
|
|
|
—
|
|
|
92,664
|
|
||||
Total liabilities
|
|
1,875,499
|
|
|
593,539
|
|
|
(451,601
|
)
|
|
2,017,437
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Commitments and contingent liabilities
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Stockholders' Equity
|
|
|
|
|
|
|
|
|
||||||||
Common shares
|
|
661
|
|
|
—
|
|
|
—
|
|
|
661
|
|
||||
Additional paid-in capital
|
|
2,519,423
|
|
|
1,766,775
|
|
|
(1,766,775
|
)
|
|
2,519,423
|
|
||||
Retained earnings
|
|
8,727
|
|
|
(449,830
|
)
|
|
449,830
|
|
|
8,727
|
|
||||
Treasury shares
|
|
(2,103
|
)
|
|
—
|
|
|
—
|
|
|
(2,103
|
)
|
||||
Total stockholders' equity
|
|
2,526,708
|
|
|
1,316,945
|
|
|
(1,316,945
|
)
|
|
2,526,708
|
|
||||
Total Liabilities and Stockholders' Equity
|
|
$
|
4,402,207
|
|
|
$
|
1,910,484
|
|
|
$
|
(1,768,546
|
)
|
|
$
|
4,544,145
|
|
|
|
Condensed Consolidating Statements of Operations
|
||||||||||||||
|
|
Three Months Ended June 30, 2019
|
||||||||||||||
|
|
Parent
|
|
Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Crude oil, natural gas and NGLs sales
|
|
$
|
256,355
|
|
|
$
|
82,601
|
|
|
$
|
—
|
|
|
$
|
338,956
|
|
Commodity price risk management gain, net
|
|
47,349
|
|
|
—
|
|
|
—
|
|
|
47,349
|
|
||||
Other income
|
|
2,555
|
|
|
1,798
|
|
|
—
|
|
|
4,353
|
|
||||
Total revenues
|
|
306,259
|
|
|
84,399
|
|
|
—
|
|
|
390,658
|
|
||||
Costs, expenses and other
|
|
|
|
|
|
|
|
|
||||||||
Lease operating expenses
|
|
23,554
|
|
|
10,774
|
|
|
—
|
|
|
34,328
|
|
||||
Production taxes
|
|
17,928
|
|
|
4,714
|
|
|
—
|
|
|
22,642
|
|
||||
Transportation, gathering and processing expenses
|
|
5,869
|
|
|
6,339
|
|
|
—
|
|
|
12,208
|
|
||||
Exploration, geologic and geophysical expense
|
|
259
|
|
|
381
|
|
|
—
|
|
|
640
|
|
||||
Impairment of properties and equipment
|
|
—
|
|
|
28,979
|
|
|
—
|
|
|
28,979
|
|
||||
General and administrative expense
|
|
37,285
|
|
|
5,523
|
|
|
—
|
|
|
42,808
|
|
||||
Depreciation, depletion and amortization
|
|
116,964
|
|
|
51,559
|
|
|
—
|
|
|
168,523
|
|
||||
Accretion of asset retirement obligations
|
|
1,351
|
|
|
212
|
|
|
—
|
|
|
1,563
|
|
||||
Gain on sale of properties and equipment
|
|
(66
|
)
|
|
(33,838
|
)
|
|
—
|
|
|
(33,904
|
)
|
||||
Other expenses
|
|
2,836
|
|
|
—
|
|
|
—
|
|
|
2,836
|
|
||||
Total costs, expenses and other
|
|
205,980
|
|
|
74,643
|
|
|
—
|
|
|
280,623
|
|
||||
Income from operations
|
|
100,279
|
|
|
9,756
|
|
|
—
|
|
|
110,035
|
|
||||
Interest expense
|
|
(19,750
|
)
|
|
845
|
|
|
—
|
|
|
(18,905
|
)
|
||||
Interest income
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||
Income before income taxes
|
|
80,534
|
|
|
10,601
|
|
|
—
|
|
|
91,135
|
|
||||
Income tax expense
|
|
(20,068
|
)
|
|
(2,519
|
)
|
|
—
|
|
|
(22,587
|
)
|
||||
Equity in income of subsidiary
|
|
8,082
|
|
|
—
|
|
|
(8,082
|
)
|
|
—
|
|
||||
Net income
|
|
$
|
68,548
|
|
|
$
|
8,082
|
|
|
$
|
(8,082
|
)
|
|
$
|
68,548
|
|
|
|
Condensed Consolidating Statements of Operations
|
||||||||||||||
|
|
Three Months Ended June 30, 2018
|
||||||||||||||
|
|
Parent
|
|
Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Crude oil, natural gas and NGLs sales
|
|
$
|
242,903
|
|
|
$
|
83,030
|
|
|
$
|
—
|
|
|
$
|
325,933
|
|
Commodity price risk management loss, net
|
|
(116,126
|
)
|
|
—
|
|
|
—
|
|
|
(116,126
|
)
|
||||
Other income
|
|
2,479
|
|
|
245
|
|
|
—
|
|
|
2,724
|
|
||||
Total revenues
|
|
129,256
|
|
|
83,275
|
|
|
—
|
|
|
212,531
|
|
||||
Costs, expenses and other
|
|
|
|
|
|
|
|
|
||||||||
Lease operating expenses
|
|
23,432
|
|
|
8,828
|
|
|
—
|
|
|
32,260
|
|
||||
Production taxes
|
|
16,189
|
|
|
6,415
|
|
|
—
|
|
|
22,604
|
|
||||
Transportation, gathering and processing expenses
|
|
3,610
|
|
|
5,354
|
|
|
—
|
|
|
8,964
|
|
||||
Exploration, geologic and geophysical expense
|
|
296
|
|
|
579
|
|
|
—
|
|
|
875
|
|
||||
Impairment of properties and equipment
|
|
86
|
|
|
159,468
|
|
|
—
|
|
|
159,554
|
|
||||
General and administrative expense
|
|
33,152
|
|
|
4,095
|
|
|
—
|
|
|
37,247
|
|
||||
Depreciation, depletion and amortization
|
|
93,217
|
|
|
42,407
|
|
|
—
|
|
|
135,624
|
|
||||
Accretion of asset retirement obligations
|
|
1,177
|
|
|
108
|
|
|
—
|
|
|
1,285
|
|
||||
Gain on sale of properties and equipment
|
|
(351
|
)
|
|
—
|
|
|
—
|
|
|
(351
|
)
|
||||
Other expenses
|
|
2,708
|
|
|
—
|
|
|
—
|
|
|
2,708
|
|
||||
Total costs, expenses and other
|
|
173,516
|
|
|
227,254
|
|
|
—
|
|
|
400,770
|
|
||||
Loss from operations
|
|
(44,260
|
)
|
|
(143,979
|
)
|
|
—
|
|
|
(188,239
|
)
|
||||
Interest expense
|
|
(17,915
|
)
|
|
505
|
|
|
—
|
|
|
(17,410
|
)
|
||||
Interest income
|
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
||||
Loss before income taxes
|
|
(62,106
|
)
|
|
(143,474
|
)
|
|
—
|
|
|
(205,580
|
)
|
||||
Income tax benefit
|
|
13,348
|
|
|
31,975
|
|
|
—
|
|
|
45,323
|
|
||||
Equity in loss of subsidiary
|
|
(111,499
|
)
|
|
—
|
|
|
111,499
|
|
|
—
|
|
||||
Net loss
|
|
$
|
(160,257
|
)
|
|
$
|
(111,499
|
)
|
|
$
|
111,499
|
|
|
$
|
(160,257
|
)
|
|
|
Condensed Consolidating Statements of Operations
|
||||||||||||||
|
|
Six Months Ended June 30, 2019
|
||||||||||||||
|
|
Parent
|
|
Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Crude oil, natural gas and NGLs sales
|
|
$
|
511,204
|
|
|
$
|
148,851
|
|
|
$
|
—
|
|
|
$
|
660,055
|
|
Commodity price risk management loss, net
|
|
(142,725
|
)
|
|
—
|
|
|
—
|
|
|
(142,725
|
)
|
||||
Other income
|
|
5,188
|
|
|
2,640
|
|
|
—
|
|
|
7,828
|
|
||||
Total revenues
|
|
373,667
|
|
|
151,491
|
|
|
—
|
|
|
525,158
|
|
||||
Costs, expenses and other
|
|
|
|
|
|
|
|
|
||||||||
Lease operating expenses
|
|
47,188
|
|
|
22,361
|
|
|
—
|
|
|
69,549
|
|
||||
Production taxes
|
|
33,813
|
|
|
10,997
|
|
|
—
|
|
|
44,810
|
|
||||
Transportation, gathering and processing expenses
|
|
11,309
|
|
|
12,323
|
|
|
—
|
|
|
23,632
|
|
||||
Exploration, geologic and geophysical expense
|
|
576
|
|
|
2,707
|
|
|
—
|
|
|
3,283
|
|
||||
Impairment of properties and equipment
|
|
—
|
|
|
36,854
|
|
|
—
|
|
|
36,854
|
|
||||
General and administrative expense
|
|
71,719
|
|
|
10,687
|
|
|
—
|
|
|
82,406
|
|
||||
Depreciation, depletion and amortization
|
|
229,595
|
|
|
90,350
|
|
|
—
|
|
|
319,945
|
|
||||
Accretion of asset retirement obligations
|
|
2,729
|
|
|
418
|
|
|
—
|
|
|
3,147
|
|
||||
Gain on sale of properties and equipment
|
|
(448
|
)
|
|
(33,825
|
)
|
|
—
|
|
|
(34,273
|
)
|
||||
Other expenses
|
|
6,390
|
|
|
—
|
|
|
—
|
|
|
6,390
|
|
||||
Total costs, expenses and other
|
|
402,871
|
|
|
152,872
|
|
|
—
|
|
|
555,743
|
|
||||
Loss from operations
|
|
(29,204
|
)
|
|
(1,381
|
)
|
|
—
|
|
|
(30,585
|
)
|
||||
Interest expense
|
|
(37,685
|
)
|
|
1,802
|
|
|
—
|
|
|
(35,883
|
)
|
||||
Interest income
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||
Income (loss) before income taxes
|
|
(66,874
|
)
|
|
421
|
|
|
—
|
|
|
(66,453
|
)
|
||||
Income tax (expense) benefit
|
|
14,923
|
|
|
(98
|
)
|
|
—
|
|
|
14,825
|
|
||||
Equity in income of subsidiary
|
|
323
|
|
|
—
|
|
|
(323
|
)
|
|
—
|
|
||||
Net income (loss)
|
|
$
|
(51,628
|
)
|
|
$
|
323
|
|
|
$
|
(323
|
)
|
|
$
|
(51,628
|
)
|
|
|
Condensed Consolidating Statements of Operations
|
||||||||||||||
|
|
Six Months Ended June 30, 2018
|
||||||||||||||
|
|
Parent
|
|
Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Crude oil, natural gas and NGLs sales
|
|
$
|
476,397
|
|
|
$
|
154,761
|
|
|
$
|
—
|
|
|
$
|
631,158
|
|
Commodity price risk management loss, net
|
|
(163,366
|
)
|
|
—
|
|
|
—
|
|
|
(163,366
|
)
|
||||
Other income
|
|
4,995
|
|
|
344
|
|
|
—
|
|
|
5,339
|
|
||||
Total revenues
|
|
318,026
|
|
|
155,105
|
|
|
—
|
|
|
473,131
|
|
||||
Costs, expenses and other
|
|
|
|
|
|
|
|
|
||||||||
Lease operating expenses
|
|
44,794
|
|
|
17,102
|
|
|
—
|
|
|
61,896
|
|
||||
Production taxes
|
|
32,270
|
|
|
10,503
|
|
|
—
|
|
|
42,773
|
|
||||
Transportation, gathering and processing expenses
|
|
6,841
|
|
|
9,436
|
|
|
—
|
|
|
16,277
|
|
||||
Exploration, geologic and geophysical expense
|
|
609
|
|
|
2,912
|
|
|
—
|
|
|
3,521
|
|
||||
Impairment of properties and equipment
|
|
92
|
|
|
192,650
|
|
|
—
|
|
|
192,742
|
|
||||
General and administrative expense
|
|
64,711
|
|
|
8,232
|
|
|
—
|
|
|
72,943
|
|
||||
Depreciation, depletion and amortization
|
|
187,593
|
|
|
74,819
|
|
|
—
|
|
|
262,412
|
|
||||
Accretion of asset retirement obligations
|
|
2,377
|
|
|
196
|
|
|
—
|
|
|
2,573
|
|
||||
Loss on sale of properties and equipment
|
|
1,081
|
|
|
—
|
|
|
—
|
|
|
1,081
|
|
||||
Other expenses
|
|
5,476
|
|
|
—
|
|
|
—
|
|
|
5,476
|
|
||||
Total costs, expenses and other
|
|
345,844
|
|
|
315,850
|
|
|
—
|
|
|
661,694
|
|
||||
Loss from operations
|
|
(27,818
|
)
|
|
(160,745
|
)
|
|
—
|
|
|
(188,563
|
)
|
||||
Interest expense
|
|
(36,012
|
)
|
|
1,073
|
|
|
—
|
|
|
(34,939
|
)
|
||||
Interest income
|
|
217
|
|
|
—
|
|
|
—
|
|
|
217
|
|
||||
Loss before income taxes
|
|
(63,613
|
)
|
|
(159,672
|
)
|
|
—
|
|
|
(223,285
|
)
|
||||
Income tax benefit
|
|
13,925
|
|
|
35,964
|
|
|
—
|
|
|
49,889
|
|
||||
Equity in loss of subsidiary
|
|
(123,708
|
)
|
|
—
|
|
|
123,708
|
|
|
—
|
|
||||
Net loss
|
|
$
|
(173,396
|
)
|
|
$
|
(123,708
|
)
|
|
$
|
123,708
|
|
|
$
|
(173,396
|
)
|
|
|
Condensed Consolidating Statements of Cash Flows
|
||||||||||||||
|
|
Six Months Ended June 30, 2019
|
||||||||||||||
|
|
Parent
|
|
Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from operating activities
|
|
$
|
263,339
|
|
|
$
|
178,897
|
|
|
$
|
—
|
|
|
$
|
442,236
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures for development of crude oil and natural gas properties
|
|
(292,743
|
)
|
|
(250,048
|
)
|
|
—
|
|
|
(542,791
|
)
|
||||
Capital expenditures for other properties and equipment
|
|
(10,235
|
)
|
|
(218
|
)
|
|
—
|
|
|
(10,453
|
)
|
||||
Acquisition of crude oil and natural gas properties
|
|
(83
|
)
|
|
(4,063
|
)
|
|
—
|
|
|
(4,146
|
)
|
||||
Proceeds from sale of properties and equipment
|
|
154
|
|
|
1,000
|
|
|
—
|
|
|
1,154
|
|
||||
Proceeds from divestitures
|
|
—
|
|
|
199,430
|
|
|
—
|
|
|
199,430
|
|
||||
Restricted cash
|
|
8,001
|
|
|
—
|
|
|
—
|
|
|
8,001
|
|
||||
Intercompany transfers
|
|
124,848
|
|
|
—
|
|
|
(124,848
|
)
|
|
—
|
|
||||
Net cash from investing activities
|
|
(170,058
|
)
|
|
(53,899
|
)
|
|
(124,848
|
)
|
|
(348,805
|
)
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
||||||||
Proceeds from revolving credit facility
|
|
890,000
|
|
|
—
|
|
|
—
|
|
|
890,000
|
|
||||
Repayment of revolving credit facility
|
|
(892,500
|
)
|
|
—
|
|
|
—
|
|
|
(892,500
|
)
|
||||
Payment of debt issuance costs
|
|
(36
|
)
|
|
—
|
|
|
—
|
|
|
(36
|
)
|
||||
Purchase of treasury shares
|
|
(94,113
|
)
|
|
—
|
|
|
—
|
|
|
(94,113
|
)
|
||||
Purchase of treasury shares for employee stock-based compensation tax withholding obligations
|
|
(3,717
|
)
|
|
—
|
|
|
—
|
|
|
(3,717
|
)
|
||||
Other
|
|
(840
|
)
|
|
(150
|
)
|
|
—
|
|
|
(990
|
)
|
||||
Intercompany transfers
|
|
—
|
|
|
(124,848
|
)
|
|
124,848
|
|
|
—
|
|
||||
Net cash from financing activities
|
|
(101,206
|
)
|
|
(124,998
|
)
|
|
124,848
|
|
|
(101,356
|
)
|
||||
Net change in cash, cash equivalents and restricted cash
|
|
(7,925
|
)
|
|
—
|
|
|
—
|
|
|
(7,925
|
)
|
||||
Cash, cash equivalents and restricted cash, beginning of period
|
|
9,399
|
|
|
—
|
|
|
—
|
|
|
9,399
|
|
||||
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
1,474
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,474
|
|
|
|
Condensed Consolidating Statements of Cash Flows
|
||||||||||||||
|
|
Six Months Ended June 30, 2018
|
||||||||||||||
|
|
Parent
|
|
Guarantor
|
|
Eliminations
|
|
Consolidated
|
||||||||
|
|
(in thousands)
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Cash flows from operating activities
|
|
$
|
267,551
|
|
|
$
|
113,306
|
|
|
$
|
—
|
|
|
$
|
380,857
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures for development of crude oil and natural gas properties
|
|
(218,614
|
)
|
|
(214,021
|
)
|
|
—
|
|
|
(432,635
|
)
|
||||
Capital expenditures for other properties and equipment
|
|
(1,898
|
)
|
|
(552
|
)
|
|
—
|
|
|
(2,450
|
)
|
||||
Acquisition of crude oil and natural gas properties, including settlement adjustments
|
|
(180,981
|
)
|
|
(71
|
)
|
|
—
|
|
|
(181,052
|
)
|
||||
Proceeds from sale of properties and equipment
|
|
1,782
|
|
|
—
|
|
|
—
|
|
|
1,782
|
|
||||
Proceeds from divestitures
|
|
39,023
|
|
|
—
|
|
|
—
|
|
|
39,023
|
|
||||
Restricted cash
|
|
1,249
|
|
|
—
|
|
|
—
|
|
|
1,249
|
|
||||
Intercompany transfers
|
|
(101,398
|
)
|
|
—
|
|
|
101,398
|
|
|
—
|
|
||||
Net cash from investing activities
|
|
(460,837
|
)
|
|
(214,644
|
)
|
|
101,398
|
|
|
(574,083
|
)
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
||||||||
Proceeds from revolving credit facility
|
|
233,000
|
|
|
—
|
|
|
—
|
|
|
233,000
|
|
||||
Repayment of revolving credit facility
|
|
(211,000
|
)
|
|
—
|
|
|
—
|
|
|
(211,000
|
)
|
||||
Payment of debt issuance costs
|
|
(4,060
|
)
|
|
—
|
|
|
—
|
|
|
(4,060
|
)
|
||||
Purchase of treasury shares for employee stock-based compensation tax withholding obligations
|
|
(4,494
|
)
|
|
—
|
|
|
—
|
|
|
(4,494
|
)
|
||||
Other
|
|
(659
|
)
|
|
(60
|
)
|
|
—
|
|
|
(719
|
)
|
||||
Intercompany transfers
|
|
—
|
|
|
101,398
|
|
|
(101,398
|
)
|
|
—
|
|
||||
Net cash from financing activities
|
|
12,787
|
|
|
101,338
|
|
|
(101,398
|
)
|
|
12,727
|
|
||||
Net change in cash, cash equivalents and restricted cash
|
|
(180,499
|
)
|
|
—
|
|
|
—
|
|
|
(180,499
|
)
|
||||
Cash, cash equivalents and restricted cash, beginning of period
|
|
189,925
|
|
|
—
|
|
|
—
|
|
|
189,925
|
|
||||
Cash, cash equivalents and restricted cash, end of period
|
|
$
|
9,426
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,426
|
|
|
|
Operated Wells
|
||||||||||||||||
|
|
Wattenberg Field
|
|
Delaware Basin
|
|
Total
|
||||||||||||
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||||
In-process as of December 31, 2018
|
|
133
|
|
|
122.4
|
|
|
18
|
|
|
17.4
|
|
|
151
|
|
|
139.8
|
|
Spud
|
|
81
|
|
|
77.4
|
|
|
20
|
|
|
18.9
|
|
|
101
|
|
|
96.3
|
|
Turned-in-line
|
|
(59
|
)
|
|
(54.4
|
)
|
|
(17
|
)
|
|
(16.5
|
)
|
|
(76
|
)
|
|
(70.9
|
)
|
In-process as of June 30, 2019
|
|
155
|
|
|
145.4
|
|
|
21
|
|
|
19.8
|
|
|
176
|
|
|
165.2
|
|
|
|
Non-Operated Wells
|
||||||||||||||||
|
|
Wattenberg Field
|
|
Delaware Basin
|
|
Total
|
||||||||||||
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
|
Gross
|
|
Net
|
||||||
In-process as of December 31, 2018
|
|
5
|
|
|
2.0
|
|
|
6
|
|
|
0.9
|
|
|
11
|
|
|
2.9
|
|
Spud
|
|
28
|
|
|
3.5
|
|
|
2
|
|
|
0.4
|
|
|
30
|
|
|
3.9
|
|
Turned-in-line
|
|
(17
|
)
|
|
(1.1
|
)
|
|
(8
|
)
|
|
(1.3
|
)
|
|
(25
|
)
|
|
(2.4
|
)
|
In-process as of June 30, 2019
|
|
16
|
|
|
4.4
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
4.4
|
|
|
Low
|
|
High
|
||||
Operating Expenses
|
|||||||
Lease operating expenses ($/Boe)
|
$
|
2.85
|
|
|
$
|
3.00
|
|
Transportation, gathering and processing expenses ("TGP") ($/Boe)
|
$
|
0.90
|
|
|
$
|
1.00
|
|
Production taxes (% of crude oil, natural gas and NGLs sales)
|
6
|
%
|
|
7
|
%
|
||
General and administrative expense ("G&A") ($/Boe)
|
$
|
3.00
|
|
|
$
|
3.20
|
|
|
|
|
|
||||
Estimated Price Realizations (% of NYMEX, excludes TGP)
|
|||||||
Crude oil
|
90%
|
|
95%
|
||||
Natural gas
|
40%
|
|
45%
|
||||
NGLs
|
20%
|
|
25%
|
*
|
Percent change is not meaningful.
|
|||
|
Amounts may not recalculate due to rounding.
|
|
|
|
|
(1) In March 2018, we completed the disposition of our Utica Shale properties.
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
|
(in millions)
|
||||||
Increase in production
|
$
|
88.4
|
|
|
$
|
156.2
|
|
Decrease in average crude oil price
|
(39.4
|
)
|
|
(39.9
|
)
|
||
Decrease in average natural gas price
|
(11.2
|
)
|
|
(9.7
|
)
|
||
Decrease in average NGLs price
|
(24.8
|
)
|
|
(77.7
|
)
|
||
Total increase in crude oil, natural gas and NGLs sales revenue
|
$
|
13.0
|
|
|
$
|
28.9
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
Production by Operating Region
|
|
2019
|
|
2018
|
|
Percent Change
|
|
2019
|
|
2018
|
|
Percent Change
|
||||||
Crude oil (MBbls)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Wattenberg Field
|
|
3,681
|
|
|
2,943
|
|
|
25.1
|
%
|
|
7,253
|
|
|
5,823
|
|
|
24.6
|
%
|
Delaware Basin
|
|
1,218
|
|
|
1,005
|
|
|
21.2
|
%
|
|
2,172
|
|
|
1,876
|
|
|
15.8
|
%
|
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
46
|
|
|
*
|
|
Total
|
|
4,899
|
|
|
3,948
|
|
|
24.1
|
%
|
|
9,425
|
|
|
7,745
|
|
|
21.7
|
%
|
Natural gas (MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Wattenberg Field
|
|
23,233
|
|
|
15,836
|
|
|
46.7
|
%
|
|
44,193
|
|
|
31,360
|
|
|
40.9
|
%
|
Delaware Basin
|
|
5,759
|
|
|
4,851
|
|
|
18.7
|
%
|
|
10,450
|
|
|
8,500
|
|
|
22.9
|
%
|
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
414
|
|
|
*
|
|
Total
|
|
28,992
|
|
|
20,687
|
|
|
40.1
|
%
|
|
54,643
|
|
|
40,274
|
|
|
35.7
|
%
|
NGLs (MBbls)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Wattenberg Field
|
|
2,007
|
|
|
1,544
|
|
|
30.0
|
%
|
|
3,908
|
|
|
2,973
|
|
|
31.4
|
%
|
Delaware Basin
|
|
686
|
|
|
443
|
|
|
54.9
|
%
|
|
1,200
|
|
|
826
|
|
|
45.3
|
%
|
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
34
|
|
|
*
|
|
Total
|
|
2,693
|
|
|
1,987
|
|
|
35.5
|
%
|
|
5,108
|
|
|
3,833
|
|
|
33.3
|
%
|
Crude oil equivalent (MBoe)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Wattenberg Field
|
|
9,561
|
|
|
7,126
|
|
|
34.2
|
%
|
|
18,526
|
|
|
14,023
|
|
|
32.1
|
%
|
Delaware Basin
|
|
2,864
|
|
|
2,256
|
|
|
27.0
|
%
|
|
5,114
|
|
|
4,118
|
|
|
24.2
|
%
|
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
149
|
|
|
*
|
|
Total
|
|
12,425
|
|
|
9,382
|
|
|
32.4
|
%
|
|
23,640
|
|
|
18,290
|
|
|
29.3
|
%
|
Average crude oil equivalent per day (Boe)
|
|
|
|
|
|
|
|
|
|
|
||||||||
Wattenberg Field
|
|
105,066
|
|
|
78,308
|
|
|
34.2
|
%
|
|
102,354
|
|
|
77,475
|
|
|
32.1
|
%
|
Delaware Basin
|
|
31,473
|
|
|
24,791
|
|
|
27.0
|
%
|
|
28,254
|
|
|
22,751
|
|
|
24.2
|
%
|
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
823
|
|
|
*
|
|
Total
|
|
136,539
|
|
|
103,099
|
|
|
32.4
|
%
|
|
130,608
|
|
|
101,049
|
|
|
29.3
|
%
|
Amounts may not recalculate due to rounding.
|
|
(1) In March 2018, we completed the disposition of our Utica Shale properties.
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
Weighted-Average Realized Sales Price by Operating Region
|
|
|
|
|
|
Percent Change
|
|
|
|
|
|
Percent Change
|
||||||||||
(excluding net settlements on derivatives)
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
||||||||||||
Crude oil (per Bbl)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wattenberg Field
|
|
$
|
55.30
|
|
|
$
|
64.57
|
|
|
(14.4
|
)%
|
|
$
|
52.94
|
|
|
$
|
61.88
|
|
|
(14.4
|
)%
|
Delaware Basin
|
|
57.97
|
|
|
62.31
|
|
|
(7.0
|
)%
|
|
55.83
|
|
|
61.86
|
|
|
(9.7
|
)%
|
||||
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
58.10
|
|
|
*
|
|
||||
Weighted-average price
|
|
55.96
|
|
|
63.99
|
|
|
(12.5
|
)%
|
|
53.61
|
|
|
61.85
|
|
|
(13.3
|
)%
|
||||
Natural gas (per Mcf)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wattenberg Field
|
|
$
|
1.30
|
|
|
$
|
1.43
|
|
|
(9.1
|
)%
|
|
$
|
1.74
|
|
|
$
|
1.67
|
|
|
4.2
|
%
|
Delaware Basin
|
|
0.16
|
|
|
1.54
|
|
|
(89.6
|
)%
|
|
0.64
|
|
|
1.78
|
|
|
(64.0
|
)%
|
||||
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
2.68
|
|
|
*
|
|
||||
Weighted-average price
|
|
1.07
|
|
|
1.46
|
|
|
(26.7
|
)%
|
|
1.53
|
|
|
1.71
|
|
|
(10.5
|
)%
|
||||
NGLs (per Bbl)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wattenberg Field
|
|
$
|
11.30
|
|
|
$
|
19.60
|
|
|
(42.3
|
)%
|
|
$
|
12.90
|
|
|
$
|
19.86
|
|
|
(35.0
|
)%
|
Delaware Basin
|
|
16.14
|
|
|
29.26
|
|
|
(44.8
|
)%
|
|
17.41
|
|
|
28.56
|
|
|
(39.0
|
)%
|
||||
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
24.29
|
|
|
*
|
|
||||
Weighted-average price
|
|
12.53
|
|
|
21.76
|
|
|
(42.4
|
)%
|
|
13.96
|
|
|
21.78
|
|
|
(35.9
|
)%
|
||||
Crude oil equivalent (per Boe)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Wattenberg Field
|
|
$
|
26.81
|
|
|
$
|
34.09
|
|
|
(21.4
|
)%
|
|
$
|
27.59
|
|
|
$
|
33.64
|
|
|
(18.0
|
)%
|
Delaware Basin
|
|
28.84
|
|
|
36.80
|
|
|
(21.6
|
)%
|
|
29.11
|
|
|
37.58
|
|
|
(22.5
|
)%
|
||||
Utica Shale (1)
|
|
—
|
|
|
—
|
|
|
*
|
|
|
—
|
|
|
30.98
|
|
|
*
|
|
||||
Weighted-average price
|
|
27.28
|
|
|
34.74
|
|
|
(21.5
|
)%
|
|
27.92
|
|
|
34.51
|
|
|
(19.1
|
)%
|
Amounts may not recalculate due to rounding.
|
|
(1) In March 2018, we completed the disposition of our Utica Shale properties.
|
For the Three Months Ended June 30, 2019
|
|
Average NYMEX Price
|
|
Average Realized Price Before Transportation, Gathering and Processing Expenses
|
|
Average Realization Percentage Before Transportation, Gathering and Processing Expenses
|
|
Average Transportation, Gathering and Processing Expenses
|
|
Average Realized Price After Transportation, Gathering and Processing Expenses
|
|
Average Realization Percentage After Transportation, Gathering and Processing Expenses
|
||||||||||
Crude oil (per Bbl)
|
|
$
|
59.81
|
|
|
$
|
55.96
|
|
|
94
|
%
|
|
$
|
1.20
|
|
|
$
|
54.76
|
|
|
92
|
%
|
Natural gas (per MMBtu)
|
|
2.64
|
|
|
1.07
|
|
|
41
|
%
|
|
0.19
|
|
|
0.88
|
|
|
33
|
%
|
||||
NGLs (per Bbl)
|
|
59.81
|
|
|
12.53
|
|
|
21
|
%
|
|
0.18
|
|
|
12.35
|
|
|
21
|
%
|
||||
Crude oil equivalent (per Boe)
|
|
42.78
|
|
|
27.28
|
|
|
64
|
%
|
|
0.96
|
|
|
26.32
|
|
|
62
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the Three Months Ended June 30, 2018
|
|
Average NYMEX Price
|
|
Average Realized Price Before Transportation, Gathering and Processing Expenses
|
|
Average Realization Percentage Before Transportation, Gathering and Processing Expenses
|
|
Average Transportation, Gathering and Processing Expenses
|
|
Average Realized Price After Transportation, Gathering and Processing Expenses
|
|
Average Realization Percentage After Transportation, Gathering and Processing Expenses
|
||||||||||
Crude oil (per Bbl)
|
|
$
|
67.88
|
|
|
$
|
63.99
|
|
|
94
|
%
|
|
$
|
0.92
|
|
|
$
|
63.07
|
|
|
93
|
%
|
Natural gas (per MMBtu)
|
|
2.80
|
|
|
1.46
|
|
|
52
|
%
|
|
0.24
|
|
|
1.22
|
|
|
44
|
%
|
||||
NGLs (per Bbl)
|
|
67.88
|
|
|
21.76
|
|
|
32
|
%
|
|
0.18
|
|
|
21.58
|
|
|
32
|
%
|
||||
Crude oil equivalent (per Boe)
|
|
49.11
|
|
|
34.74
|
|
|
71
|
%
|
|
0.96
|
|
|
33.78
|
|
|
69
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the Six Months Ended June 30, 2019
|
|
Average NYMEX Price
|
|
Average Realized Price Before Transportation, Gathering and Processing Expenses
|
|
Average Realization Percentage Before Transportation, Gathering and Processing Expenses
|
|
Average Transportation, Gathering and Processing Expenses
|
|
Average Realized Price After Transportation, Gathering and Processing Expenses
|
|
Average Realization Percentage After Transportation, Gathering and Processing Expenses
|
||||||||||
Crude oil (per Bbl)
|
|
$
|
57.36
|
|
|
$
|
53.61
|
|
|
93
|
%
|
|
$
|
1.21
|
|
|
$
|
52.40
|
|
|
91
|
%
|
Natural gas (per MMBtu)
|
|
2.89
|
|
|
1.53
|
|
|
53
|
%
|
|
0.19
|
|
|
1.34
|
|
|
46
|
%
|
||||
NGLs (per Bbl)
|
|
57.36
|
|
|
13.96
|
|
|
24
|
%
|
|
0.21
|
|
|
13.75
|
|
|
24
|
%
|
||||
Crude oil equivalent (per Boe)
|
|
41.93
|
|
|
27.92
|
|
|
67
|
%
|
|
0.97
|
|
|
26.95
|
|
|
64
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
For the Six Months Ended June 30, 2018
|
|
Average NYMEX Price
|
|
Average Realized Price Before Transportation, Gathering and Processing Expenses
|
|
Average Realization Percentage Before Transportation, Gathering and Processing Expenses
|
|
Average Transportation, Gathering and Processing Expenses
|
|
Average Realized Price After Transportation, Gathering and Processing Expenses
|
|
Average Realization Percentage After Transportation, Gathering and Processing Expenses
|
||||||||||
Crude oil (per Bbl)
|
|
$
|
65.37
|
|
|
$
|
61.85
|
|
|
95
|
%
|
|
$
|
0.80
|
|
|
$
|
61.05
|
|
|
93
|
%
|
Natural gas (per MMBtu)
|
|
2.90
|
|
|
1.71
|
|
|
59
|
%
|
|
0.23
|
|
|
1.48
|
|
|
51
|
%
|
||||
NGLs (per Bbl)
|
|
65.37
|
|
|
21.78
|
|
|
33
|
%
|
|
0.21
|
|
|
21.57
|
|
|
33
|
%
|
||||
Crude oil equivalent (per Boe)
|
|
47.77
|
|
|
34.51
|
|
|
72
|
%
|
|
0.89
|
|
|
33.62
|
|
|
70
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Commodity price risk management gain (loss), net:
|
|
|
|
|
|
|
|
||||||||
Net settlements of commodity derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Crude oil fixed price swaps, collars and rollfactors
|
$
|
(14.7
|
)
|
|
$
|
(37.2
|
)
|
|
$
|
(17.5
|
)
|
|
$
|
(63.9
|
)
|
Crude oil basis protection swaps
|
—
|
|
|
11.7
|
|
|
—
|
|
|
11.4
|
|
||||
Natural gas fixed price swaps and collars
|
2.1
|
|
|
2.5
|
|
|
0.5
|
|
|
2.6
|
|
||||
Natural gas basis protection swaps
|
(0.6
|
)
|
|
8.7
|
|
|
(4.6
|
)
|
|
11.2
|
|
||||
NGLs fixed price swaps
|
—
|
|
|
(2.1
|
)
|
|
—
|
|
|
(3.8
|
)
|
||||
Total net settlements of commodity derivative instruments
|
(13.2
|
)
|
|
(16.4
|
)
|
|
(21.6
|
)
|
|
(42.5
|
)
|
||||
Change in fair value of unsettled commodity derivative instruments:
|
|
|
|
|
|
|
|
||||||||
Reclassification of settlements included in prior period changes in fair value of commodity derivative instruments
|
15.4
|
|
|
18.1
|
|
|
(39.7
|
)
|
|
32.0
|
|
||||
Crude oil fixed price swaps, collars and rollfactors
|
38.3
|
|
|
(111.4
|
)
|
|
(85.6
|
)
|
|
(152.9
|
)
|
||||
Natural gas fixed price swaps and collars
|
7.2
|
|
|
(2.3
|
)
|
|
6.7
|
|
|
(3.2
|
)
|
||||
Natural gas basis protection swaps
|
(0.4
|
)
|
|
(1.7
|
)
|
|
(2.5
|
)
|
|
5.0
|
|
||||
NGLs fixed price swaps
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
|
(1.8
|
)
|
||||
Net change in fair value of unsettled commodity derivative instruments
|
60.5
|
|
|
(99.7
|
)
|
|
(121.1
|
)
|
|
(120.9
|
)
|
||||
Total commodity price risk management gain (loss), net
|
$
|
47.3
|
|
|
$
|
(116.1
|
)
|
|
$
|
(142.7
|
)
|
|
$
|
(163.4
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Impairment of proved and unproved properties
|
$
|
2.2
|
|
|
$
|
159.5
|
|
|
$
|
10.1
|
|
|
$
|
192.6
|
|
Amortization of individually insignificant unproved properties
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||
Impairment of infrastructure and other
|
26.8
|
|
|
—
|
|
|
26.8
|
|
|
—
|
|
||||
Impairment of properties and equipment
|
$
|
29.0
|
|
|
$
|
159.5
|
|
|
$
|
36.9
|
|
|
$
|
192.7
|
|
|
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
|
|
(in millions)
|
||||||
Increase in production
|
|
$
|
42.6
|
|
|
$
|
77.2
|
|
Decrease in weighted-average depreciation, depletion and amortization rates
|
|
(9.1
|
)
|
|
(18.5
|
)
|
||
Total increase in DD&A expense related to crude oil and natural gas properties
|
|
$
|
33.5
|
|
|
$
|
58.7
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Operating Region/Area
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
(per Boe)
|
||||||||||||||
Wattenberg Field
|
|
$
|
12.12
|
|
|
$
|
12.94
|
|
|
$
|
12.27
|
|
|
$
|
13.23
|
|
Delaware Basin
|
|
17.88
|
|
|
18.34
|
|
|
17.53
|
|
|
17.69
|
|
||||
Total weighted-average
|
|
$
|
13.45
|
|
|
$
|
14.24
|
|
|
$
|
13.41
|
|
|
$
|
14.13
|
|
•
|
operating performance and return on capital as compared to our peers;
|
•
|
financial performance of our assets and our valuation without regard to financing methods, capital structure or historical cost basis;
|
•
|
our ability to generate sufficient cash to service our debt obligations; and
|
•
|
the viability of acquisition opportunities and capital expenditure projects, including the related rate of return.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
(in millions)
|
||||||||||||||
Adjusted cash flows from operations:
|
|
|
|
|
|
|
|
||||||||
Net cash from operating activities
|
$
|
260.4
|
|
|
$
|
175.7
|
|
|
$
|
442.2
|
|
|
$
|
380.9
|
|
Changes in assets and liabilities
|
(53.4
|
)
|
|
23.6
|
|
|
(42.7
|
)
|
|
(6.6
|
)
|
||||
Adjusted cash flows from operations
|
$
|
207.0
|
|
|
$
|
199.3
|
|
|
$
|
399.5
|
|
|
$
|
374.3
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income (loss):
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
68.5
|
|
|
$
|
(160.3
|
)
|
|
$
|
(51.6
|
)
|
|
$
|
(173.4
|
)
|
(Gain) loss on commodity derivative instruments
|
(47.3
|
)
|
|
116.1
|
|
|
142.7
|
|
|
163.4
|
|
||||
Net settlements on commodity derivative instruments
|
(13.2
|
)
|
|
(16.4
|
)
|
|
(21.6
|
)
|
|
(42.4
|
)
|
||||
Tax effect of above adjustments
|
14.5
|
|
|
(23.9
|
)
|
|
(29.0
|
)
|
|
(29.0
|
)
|
||||
Adjusted net income (loss)
|
$
|
22.5
|
|
|
$
|
(84.5
|
)
|
|
$
|
40.5
|
|
|
$
|
(81.4
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) to adjusted EBITDAX:
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
$
|
68.5
|
|
|
$
|
(160.3
|
)
|
|
$
|
(51.6
|
)
|
|
$
|
(173.4
|
)
|
(Gain) loss on commodity derivative instruments
|
(47.3
|
)
|
|
116.1
|
|
|
142.7
|
|
|
163.4
|
|
||||
Net settlements on commodity derivative instruments
|
(13.2
|
)
|
|
(16.4
|
)
|
|
(21.6
|
)
|
|
(42.4
|
)
|
||||
Non-cash stock-based compensation
|
7.6
|
|
|
5.5
|
|
|
12.3
|
|
|
10.8
|
|
||||
Interest expense, net
|
18.9
|
|
|
17.3
|
|
|
35.9
|
|
|
34.7
|
|
||||
Income tax expense (benefit)
|
22.6
|
|
|
(45.3
|
)
|
|
(14.8
|
)
|
|
(49.9
|
)
|
||||
Impairment of properties and equipment
|
29.0
|
|
|
159.5
|
|
|
36.9
|
|
|
192.7
|
|
||||
Exploration, geologic and geophysical expense
|
0.6
|
|
|
0.9
|
|
|
3.3
|
|
|
3.5
|
|
||||
Depreciation, depletion and amortization
|
168.5
|
|
|
135.6
|
|
|
319.9
|
|
|
262.4
|
|
||||
Accretion of asset retirement obligations
|
1.6
|
|
|
1.4
|
|
|
3.1
|
|
|
2.6
|
|
||||
Adjusted EBITDAX
|
$
|
256.8
|
|
|
$
|
214.3
|
|
|
$
|
466.1
|
|
|
$
|
404.4
|
|
|
|
|
|
|
|
|
|
||||||||
Cash from operating activities to adjusted EBITDAX:
|
|
|
|
|
|
|
|
||||||||
Net cash from operating activities
|
$
|
260.4
|
|
|
$
|
175.7
|
|
|
$
|
442.2
|
|
|
$
|
380.9
|
|
Interest expense, net
|
18.9
|
|
|
17.3
|
|
|
35.9
|
|
|
34.7
|
|
||||
Amortization of debt discount and issuance costs
|
(3.4
|
)
|
|
(3.1
|
)
|
|
(6.7
|
)
|
|
(6.4
|
)
|
||||
Gain (loss) on sale of properties and equipment
|
33.9
|
|
|
0.4
|
|
|
34.3
|
|
|
(1.1
|
)
|
||||
Exploration, geologic and geophysical expense
|
0.6
|
|
|
0.9
|
|
|
3.3
|
|
|
3.5
|
|
||||
Other
|
(0.2
|
)
|
|
(0.5
|
)
|
|
(0.2
|
)
|
|
(0.6
|
)
|
||||
Changes in assets and liabilities
|
(53.4
|
)
|
|
23.6
|
|
|
(42.7
|
)
|
|
(6.6
|
)
|
||||
Adjusted EBITDAX
|
$
|
256.8
|
|
|
$
|
214.3
|
|
|
$
|
466.1
|
|
|
$
|
404.4
|
|
Period
|
|
Total Number of Shares Purchased (1) (2)
|
|
Average Price Paid per Share
|
|
Total Number
of Shares Purchased as Part of Publicly Announced Plans or Programs (2) |
|
Approximate Dollar Value of Shares that may yet be Purchased Under the Plans or Programs (in millions) (3)
|
||||||
|
|
|
|
|
|
|
|
|
||||||
April 1 - 30, 2019
|
|
51,059
|
|
|
$
|
41.67
|
|
|
—
|
|
|
$
|
200.0
|
|
May 1 - 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
200.0
|
|
||
June 1 - 30, 2019
|
|
3,140,131
|
|
|
33.55
|
|
|
3,136,406
|
|
|
94.8
|
|
||
Total second quarter 2019 purchases
|
|
3,191,190
|
|
|
$
|
33.68
|
|
|
3,136,406
|
|
|
$
|
94.8
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Certain purchases represent shares withheld from employees for the payment of their tax liabilities related to the vesting of securities issued pursuant to our stock-based compensation plans. The withheld shares are not issued or considered common stock repurchased under the Stock Repurchase Program described in the footnote titled Common Stock to our condensed consolidated financial statements included elsewhere in this report.
|
(2)
|
In April 2019, our Board of Directors approved a program to acquire up to $200 million of our outstanding common stock. The Stock Repurchase Program does not require any specific number of shares to be acquired, and can be modified or discontinued by the Board of Directors at any time.
|
(3)
|
In July 2019, we repurchased $19.8 million of our outstanding common stock as part of the Stock Repurchase Program. At July 31, 2019, $75.0 million of shares remained available for repurchase that may yet be purchased under the Stock Repurchase Program.
|
|
|
|
|
Incorporated by Reference
|
|
|
||||||
Exhibit Number
|
|
Exhibit Description
|
|
Form
|
|
SEC File Number
|
|
Exhibit
|
|
Filing Date
|
|
Filed Herewith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.1*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
|
PDC Energy, Inc.
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
Date: August 7, 2019
|
/s/ Barton Brookman
|
|
Barton Brookman
|
|
President and Chief Executive Officer
|
|
(principal executive officer)
|
|
|
|
/s/ R. Scott Meyers
|
|
R. Scott Meyers
|
|
Senior Vice President and Chief Financial Officer
|
|
(principal financial officer)
|
|
|
|
|
|
|
|
|
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of PDC Energy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
August 7, 2019
|
|
/s/ Barton Brookman
|
|
Barton Brookman
|
|
President and Chief Executive Officer
|
|
(principal executive officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of PDC Energy, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date:
|
August 7, 2019
|
|
/s/ R. Scott Meyers
|
|
R. Scott Meyers
|
|
Senior Vice President and Chief Financial Officer
|
|
(principal financial officer)
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Barton Brookman
|
|
August 7, 2019
|
Barton Brookman
|
|
|
President and Chief Executive Officer
|
|
|
(principal executive officer)
|
|
|
|
|
|
/s/ R. Scott Meyers
|
|
August 7, 2019
|
R. Scott Meyers
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
(principal financial officer)
|
|
|