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Growing reserves and production
PDC Energy follows a simple and effective business strategy of value-added growth of reserves and production, while maximizing margins and cash flow and maintaining a strong balance sheet and debt metrics. The Company is focused on horizontal drilling and low-risk organic development of oil and natural gas reserves from shales and tight reservoir rocks.
PDC Energy currently operates in three geographically distinct areas of the country, with primary interest in the Wattenberg field and Delaware basins.
- Denver - Julesburg Basin
- Core Wattenberg Field - Weld County, Colorado
- Permian Basin
- Delaware Basin - Reeves and Culberson Counties, West Texas
- The Company announced in April that it intends to begin marketing for sale its Utica Shale assets in Southeast Ohio.
Emphasis on oil and NGLs
PDC is focused on horizontal Niobrara and Codell development in the liquid-rich Wattenberg Field, where liquid content in new horizontal wells is expected to average 50% - 75% of the production stream. In the Delaware Basin, the Company is targeting the Wolfcamp A, B and C development where it expects the Eastern acreage block to be 70-80% liquids, the Central block 60-70% liquids and the Western block 50-70% liquids.
Drilling and development
Annual production from continuing operations for 2016 averaged 60,590 Boe per day and proved reserves at year-end 2016 totalled 341 MMboe. During 2016, the Company spud 129 gross horizontal wells and participated in 17 non-operated horizontal projects.
Fiscal management and marketing strategy
PDC Energy is committed to maintaining a strong balance sheet as part of its fiscal strategy. PDC utilizes an active hedging program for oil and natural gas to reduce the effects of variable commodity prices and help insulate cash flow to help fund its capital expenditure program.