PDC Energy Announces Agreement to Settle Securities Class Action Regarding 2010 and 2011 Partnership Purchases
Sep 19 14
PDC Energy, Inc. announced that it executed a binding agreement in principle to settle the securities class action pending against the company and its wholly-owned merger subsidiary regarding the acquisition of certain partnerships in 2010 and 2011. This class action, which was brought on behalf of a class of certain former partnership unit holders, was filed in December 2011 in the U.S. District Court for the Central District of California and is titled Schulein v. Petroleum Development Corp. The complaint alleged that the disclosures in the proxy statements issued in connection with the transactions were inadequate, and also alleged a state law breach of fiduciary duty. Under the proposed settlement agreement, the class action will be dismissed with prejudice and all claims will be released. The company's settlement obligation consists of two components: first, an up-front cash payment by PDC of approximately $11.5 million and second, a transfer of interests, primarily net profit interests, which would generate cash in future years, in a certain number of Wattenberg wells to be drilled in 2015 and 2016. Beginning in 2027, the plaintiffs have the right to require PDC to repurchase these interests. PDC currently estimates the fair value of its two combined elements of the settlement, including the repurchase option, to be in the range of $30-$35 million. The company does not anticipate any material impact to its operations or cash flow from this settlement after 2014. The proposed settlement remains subject to the satisfaction of various conditions, including but not limited to the following: negotiation and execution of the necessary agreements, including a formal settlement agreement relating to the net profit interests; funding to plaintiffs by the Company's insurance carriers of $6 million which is in addition to the company's cash payment; preliminary approval by the Court; and final Court approval following notice to members of the class. The company has steadfastly maintained that the claims raised in the class action were without merit, and has vigorously contested those claims. The company continues to deny any wrongdoing.
PDC Energy, Inc. Presents at Barclays CEO Energy-Power Conference, Sep-04-2014 11:05 AM
Aug 8 14
PDC Energy, Inc. Presents at Barclays CEO Energy-Power Conference, Sep-04-2014 11:05 AM. Venue: The Sheraton NY Hotel & Towers, 811 Seventh Ave, New York City, NY 10019, United States. Speakers: Lance A. Lauck, Senior Vice President of Corporate Development.
PDC Energy, Inc. Reports Consolidated Unaudited Earnings Results for the Second Quarter and Six Months Ended June 30, 2014 and Production Results for the Second Quarter of 2014; Records Impairment for the Second Quarter of 2014; Provides Production Guidance for the Second Half of Fiscal Year 2014; Revises Earnings Guidance for Full Year 2014; Provides Cash Flow Guidance for the Fiscal Year 2015
Aug 8 14
PDC ENERGY, INC. reported consolidated unaudited earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported of $109,472,000 compared with $121,305,000 for the same period last year. Loss from operations was $35,825,000 compared with income from operations $39,379,000 for the same period last year. Loss from continuing operations before income taxes was $48,733,000 compared with income from continuing operations before income taxes $26,293,000 for the same period last year. Loss from continuing operations was $28,187,000 or $0.79 diluted per share compared with income from continuing operations $16,502,000 or $0.53 diluted per share for the same period last year. Net loss was $28,187,000 or $0.79 diluted per share compared with net income of $19,918,000 or $0.64 diluted per share for the same period last year. Adjusted EBITDA was $62.7 million compared with 54.1 million for the same period last year. Adjusted net loss was $1.5 million or $0.04 per share compared with adjusted net income of $7.0 million or $0.23 per share for the same period last year. Adjusted cash flows from operations was $55.0 million compared with $46.4 million for the same period last year. Cash flow for the company from operations was $55 million; however, after excluding the impact of the litigation charge that Gysle will discuss shortly, adjusted cash flow from operations would have been $76 million.
For the six months, the company reported of $239,734,000 compared with $193,131,000 for the same period last year. Loss from operations was $26,760,000 compared with income from operations $10,711,000 for the same period last year. Loss from continuing operations before income taxes was $52,247,000 compared with $37,154,000 for the same period last year. Loss from continuing operations was $30,314,000 or $0.85 diluted per share compared with $24,453,000 or $0.80 diluted per share for the same period last year. Net income was $30,314,000 or $0.85 diluted per share compared with $19,500,000 or $0.64 diluted per share for the same period last year. Adjusted EBITDA was $139.2 million compared with $115.3 million for the same period last year. Adjusted net income was $8.1 million or $0.23 per share compared with adjusted net loss of $13.4 million or $0.44 per share for the same period last year. Adjusted cash flows from operations was $124.7 million compared with $98.7 million for the same period last year.
The company reported impairment of crude oil and natural gas properties of $938,000 compared with $1,502,000 for the same period last year.
For the second half of 2014, the company anticipating 300,000 barrels improvement from the original guidance based on drilling programs.
The company increased its 2014 full-year guidance which it provided at its Analyst Day in April 2014. Production guidance increased to a range of 10.7 to 10.9 million barrels of oil equivalent (MMBoe) (or 29,300 to 29,850 Boe per day), from initial guidance of 9.5 to 10.0 MMBoe. This new guidance is estimated to be reduced by 0.3 MMBoe following the close of the sale of the Marcellus interests in the fourth quarter of 2014. Revenues are expected to be in the $518 million to $543 million range, from initial guidance of $461 million to $498 million; and adjusted cash flows from operations, a non-U.S. GAAP financial measure defined below, are expected to be in the $275 million to $290 million range, from initial guidance of $270 million to $300 million. The capital expenditures budget is unchanged at $647 million for 2014.
For the fiscal year 2015, the company projects cash flow per share at over $12 per share or over 50% growth versus that of cash flow per share in 2014.
PDC turned in line 28 operated wells during the second quarter of 2014, substantially all of which were in the Wattenberg Field. In the first half of the year, 46 wells were turned in line. In addition, approximately 11 non-operated wells in the Wattenberg Field were turned in line during the second quarter. The Company spud two horizontal wells in the Utica Shale during the second quarter and 31 horizontal wells in the Wattenberg Field. PDC added a fifth drilling rig in the Wattenberg Field in early June and is currently drilling on a pad in its inner core area. The Company also added a second drilling rig to its Utica Shale development operations in July. As previously announced, PDC increased its Utica Shale leasehold to approximately 67,000 net acres. Production came in at 2.7 million BOE for the second quarter.