It has been about a month since the last earnings report for PDC Energy . Shares have lost about 9.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is PDC Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
PDC Energy Q4 Earnings Beat Estimate
PDC Energy reported adjusted earnings per share of $3.22, beating the Zacks Consensus Estimate of $3.09 and improving from the year-ago period’s profit of $2.86. The outperformance reflects higher oil and natural gas prices, partly offset by lower-than-expected production numbers.
Meanwhile, PDC Energy recorded total revenues of 879.5 million, increasing from the year-ago level of $854.6 million and exceeding the consensus mark by 3.1%.
The company is using the excess cash from a supportive environment to reward investors with dividends and buybacks. As part of that, PDCE’s board of directors declared a quarterly cash dividend of 35 cents per share to its common shareholders. In addition to the regular dividend, PDCE declared a special dividend of 65 cents per share. Moreover, PDC Energy returned $260 million to its shareholders during the fourth quarter through share buybacks.
Production & Prices
For the fourth quarter of 2022, PDC Energy’s production totaled 22,723 thousand barrels of oil equivalent/MBoe (61% liquids), reflecting an increase of 17.1% from 19,405 MBoe a year ago. However, the Colorado-focused company’s quarterly average daily production of 247,000 Boe came in below the Zacks Consensus Estimate of 248,300 Boe due to certain weather-related disruptions. Of the aggregate output, 20,122 MBoe (or some 89%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price increased 2.4% from $4.10 per thousand cubic feet (Mcf) in the year-ago quarter to $4.20. PDC Energy sold NGLs at an average price of $22.49 per barrel (Bbls) compared to $32.74 a year ago. Meanwhile, the average oil price realization came in at $82.24 per barrel, 7.5% higher than $76.50 in the year-ago period. Overall, PDC Energy fetched $42.95 per MBoe compared with $32.74 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $295.8 million in the form of oil and gas capital investments, while it raked in $257.6 million in adjusted free cash flow. As of year-end 2022, PDC Energy had approximately $6.5 million in cash and cash equivalents, and $1.3 billion in long-term debt, representing a debt-to-capitalization of 24.8%.
2023 Guidance
For 2023, PDC Energy expects to pump 255,000-265,000 Boe per day of hydrocarbon. It also projected average oil production of 82,000-86,000 barrels per day. The company forecast capital spending between $1.35 billion and $1.5 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.97% due to these changes.
VGM Scores
Currently, PDC Energy has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PDC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is PDC Energy (PDCE) Down 9.6% Since Last Earnings Report?
It has been about a month since the last earnings report for PDC Energy . Shares have lost about 9.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is PDC Energy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
PDC Energy Q4 Earnings Beat Estimate
PDC Energy reported adjusted earnings per share of $3.22, beating the Zacks Consensus Estimate of $3.09 and improving from the year-ago period’s profit of $2.86. The outperformance reflects higher oil and natural gas prices, partly offset by lower-than-expected production numbers.
Meanwhile, PDC Energy recorded total revenues of 879.5 million, increasing from the year-ago level of $854.6 million and exceeding the consensus mark by 3.1%.
The company is using the excess cash from a supportive environment to reward investors with dividends and buybacks. As part of that, PDCE’s board of directors declared a quarterly cash dividend of 35 cents per share to its common shareholders. In addition to the regular dividend, PDCE declared a special dividend of 65 cents per share. Moreover, PDC Energy returned $260 million to its shareholders during the fourth quarter through share buybacks.
Production & Prices
For the fourth quarter of 2022, PDC Energy’s production totaled 22,723 thousand barrels of oil equivalent/MBoe (61% liquids), reflecting an increase of 17.1% from 19,405 MBoe a year ago. However, the Colorado-focused company’s quarterly average daily production of 247,000 Boe came in below the Zacks Consensus Estimate of 248,300 Boe due to certain weather-related disruptions. Of the aggregate output, 20,122 MBoe (or some 89%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price increased 2.4% from $4.10 per thousand cubic feet (Mcf) in the year-ago quarter to $4.20. PDC Energy sold NGLs at an average price of $22.49 per barrel (Bbls) compared to $32.74 a year ago. Meanwhile, the average oil price realization came in at $82.24 per barrel, 7.5% higher than $76.50 in the year-ago period. Overall, PDC Energy fetched $42.95 per MBoe compared with $32.74 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $295.8 million in the form of oil and gas capital investments, while it raked in $257.6 million in adjusted free cash flow. As of year-end 2022, PDC Energy had approximately $6.5 million in cash and cash equivalents, and $1.3 billion in long-term debt, representing a debt-to-capitalization of 24.8%.
2023 Guidance
For 2023, PDC Energy expects to pump 255,000-265,000 Boe per day of hydrocarbon. It also projected average oil production of 82,000-86,000 barrels per day. The company forecast capital spending between $1.35 billion and $1.5 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.97% due to these changes.
VGM Scores
Currently, PDC Energy has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PDC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.