These companies do not give a shit about the price drop in crude. They believe it to be a joke. They walk around in their 10-gallon hats with peevish, smug, confidence–convinced the spot prices will recover very quickly. They are to be rewarded when crude plants itself back at $100. All of the real estate in Sugarland Texas will be occupied by mega-mansions, owned by genius executives who had the courage to lever up into a massive drop in the price of crude.
The fact that this company, although smartly hedged at higher crude levels, levered up and increased production by 44% since last year is an abomination, an extreme dereliction of duty to its shareholders.
Via briefing
- Reports Q1 (Mar) loss of $0.89 per share, excluding non-recurring items, $0.78 worse than the Capital IQ Consensus of ($0.11); revenues fell 37.2% year/year to $90.8 mln vs the $151.14 mln Capital IQ Consensus
- First quarter 2016 production increased 58% to 4.6 MMBoe, or 50,216 Boe per day, compared to 2.9 MMBoe, or 32,162 Boe per day, in the first quarter of 2015
- The increase in production over the first quarter of 2015 was primarily due to continued successful execution of our horizontal development program in the Wattenberg Field
- The co estimates production for the first quarter of 2016 was impacted by nearly 100,000 Boe as a result of a severe late-March snowstorm that resulted in wide-spread downtime in the Wattenberg Field
- Crude oil production of 20,965 barrels per day, a 44% increase year-over-year and representing 42% of total production
Operations Update:
- The co turned-in-line 47 gross operated wells in the Wattenberg Field during the first quarter of 2016 and produced 47,840 Boe per day, an ~64% increase from the first quarter of 2015
- As expected, due to the timing of both fourth quarter 2015 and first quarter 2016 turn-in-lines, average sequential production from the field decreased slightly. PDC’s average wellhead oil differential in Wattenberg was ~$6.70 per barrel for the first quarter of 2016
- The co’s realized NGL price in the first quarter of 2016 was ~21% of NYMEX and its natural gas price was ~67% of NYMEX. In the Utica Shale, first quarter 2016 production was 2,376 Boe per day
