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PDC Energy (PDCE) Stock Up 12.1% Since Q1 Earnings Beat
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Shares of PDC Energy, Inc. have gained 12.1% since first-quarter 2021 earnings announcement on May 5. Alongside a better-than-expected bottom line, investors’ hopes are buoyed by the company’s encouraging guidance for 2021. Based on the company’s ability to improve its cost structure, management raised its projection for free cash flow (FCF) generation in excess of $600 million this year. Further, it upped its target for debt reduction in 2021 to more than $350 million from above $200 million and its planned shareholder returns, which include stock repurchases and future dividend payments, to $150 million plus from more than $120 million.
Behind the Earnings Headlines
Upstream operator PDC Energy reported adjusted earnings per share of $1.41, comfortably ahead of the Zacks Consensus Estimate of 83 cents. The bottom line also rebounded from a loss of 98 cents reported in the year-ago quarter. This outperformance can be primarily attributed to better-than-anticipated commodity price realizations. Precisely, the company’s oil price realization came in at $56.34 per barrel, surpassing the Zacks Consensus Estimate of $54. Also, PDC Energy’s natural gas and natural gas liquids (NGLs) price came in at $2.63 per thousand cubic feet (Mcf) and $21.19 per barrels (Bbls) each, outpacing the Zacks Consensus Estimate of $1.92 Mcf and $16.76 Bbls, respectively.
Meanwhile, PDC Energy recorded total revenues of $286 million, missing the consensus mark by 62.2% and also the year-ago quarter’s sales of $757 million due to lower-than-anticipated production volumes. Precisely, this Colorado-focused company’s output of 15,740 thousand barrels of oil-equivalent (MBoe) lagged the Zacks Consensus Estimate of 15,825 MBoe.
Production & Prices
For the first quarter of 2021, PDC Energy’s production totaled 15,740 MBoe (57.5% liquids), reflecting a decrease of 7% from 16,845 MBoe a year ago. Of the aggregate output, 13,900 MBoe (or 88.3%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price increased from 96 cents per Mcf in the year-ago quarter to $2.63. PDC Energy sold NGLs at an average price of $21.19 per Bbls compared with $7.78 a year ago. The average oil price realization came in at $56.34 per barrel, 33% higher than $42.32 in the year-ago period. Overall, the company fetched $29.74 per MBoe compared with $19.02 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $125 million in the form of oil and gas capital investments. As of Mar 31, 2021, PDC Energy had $59.1 million in cash and cash equivalents, and $1.24 billion as long-term debt, representing a debt-to-capitalization of 32.43%.
PDC Energy, Inc. Price, Consensus and EPS Surprise
PDC Energy expects to churn out 190,000-200,000 Boe per day in 2021. It reiterated its oil production guidance of 64,000-68,000 Bbls per day. The company still expects to spend between $500 million and $600 million this year. It lifted its free cash flow (FCF) generation forecast to above $600 million (at a WTI price of $55, natural gas at $2.50 and NGL at $15) for 2021.
PDC Energy hiked its debt-reduction goal to more than $350 million for 2021 from more than $200 million and its planned shareholder returns, which comprise share buybacks and future dividend payouts, to more than $150 million from $120 million plus, in line with the rise in FCF prediction.
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PDC Energy (PDCE) Stock Up 12.1% Since Q1 Earnings Beat
Shares of PDC Energy, Inc. have gained 12.1% since first-quarter 2021 earnings announcement on May 5. Alongside a better-than-expected bottom line, investors’ hopes are buoyed by the company’s encouraging guidance for 2021. Based on the company’s ability to improve its cost structure, management raised its projection for free cash flow (FCF) generation in excess of $600 million this year. Further, it upped its target for debt reduction in 2021 to more than $350 million from above $200 million and its planned shareholder returns, which include stock repurchases and future dividend payments, to $150 million plus from more than $120 million.
Behind the Earnings Headlines
Upstream operator PDC Energy reported adjusted earnings per share of $1.41, comfortably ahead of the Zacks Consensus Estimate of 83 cents. The bottom line also rebounded from a loss of 98 cents reported in the year-ago quarter. This outperformance can be primarily attributed to better-than-anticipated commodity price realizations. Precisely, the company’s oil price realization came in at $56.34 per barrel, surpassing the Zacks Consensus Estimate of $54. Also, PDC Energy’s natural gas and natural gas liquids (NGLs) price came in at $2.63 per thousand cubic feet (Mcf) and $21.19 per barrels (Bbls) each, outpacing the Zacks Consensus Estimate of $1.92 Mcf and $16.76 Bbls, respectively.
Meanwhile, PDC Energy recorded total revenues of $286 million, missing the consensus mark by 62.2% and also the year-ago quarter’s sales of $757 million due to lower-than-anticipated production volumes. Precisely, this Colorado-focused company’s output of 15,740 thousand barrels of oil-equivalent (MBoe) lagged the Zacks Consensus Estimate of 15,825 MBoe.
Production & Prices
For the first quarter of 2021, PDC Energy’s production totaled 15,740 MBoe (57.5% liquids), reflecting a decrease of 7% from 16,845 MBoe a year ago. Of the aggregate output, 13,900 MBoe (or 88.3%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price increased from 96 cents per Mcf in the year-ago quarter to $2.63. PDC Energy sold NGLs at an average price of $21.19 per Bbls compared with $7.78 a year ago. The average oil price realization came in at $56.34 per barrel, 33% higher than $42.32 in the year-ago period. Overall, the company fetched $29.74 per MBoe compared with $19.02 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $125 million in the form of oil and gas capital investments. As of Mar 31, 2021, PDC Energy had $59.1 million in cash and cash equivalents, and $1.24 billion as long-term debt, representing a debt-to-capitalization of 32.43%.
PDC Energy, Inc. Price, Consensus and EPS Surprise
PDC Energy, Inc. price-consensus-eps-surprise-chart | PDC Energy, Inc. Quote
Guidance
PDC Energy expects to churn out 190,000-200,000 Boe per day in 2021. It reiterated its oil production guidance of 64,000-68,000 Bbls per day. The company still expects to spend between $500 million and $600 million this year. It lifted its free cash flow (FCF) generation forecast to above $600 million (at a WTI price of $55, natural gas at $2.50 and NGL at $15) for 2021.
PDC Energy hiked its debt-reduction goal to more than $350 million for 2021 from more than $200 million and its planned shareholder returns, which comprise share buybacks and future dividend payouts, to more than $150 million from $120 million plus, in line with the rise in FCF prediction.
Zacks Rank & Other Key Picks
PDC Energy currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy space include SilverBow Resources Inc. (SBOW - Free Report) , Matador Resources Company (MTDR - Free Report) and Continental Resources, Inc. , each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
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