It has been about a month since the last earnings report for PDC Energy . Shares have added about 49.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PDC Energy due for a pullback? 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 catalysts.
PDC Energy Q3 Earnings Top on Strong Production
PDC Energy reported adjusted earnings per share of $1.04, comfortably ahead of the Zacks Consensus Estimate of 68 cents. The company had reported loss of 39 cents in the year-ago quarter. The outperformance can be primarily attributed to better-than-anticipated production volumes. Precisely, the Colorado-focused company’s output of 17,701 thousand barrels of oil-equivalent (MBoe) surpassed the Zacks Consensus Estimate of 16,954 MBoe.
Meanwhile, PDC Energy recorded oil and gas sales (plus other income) of $317.3 million, missing the consensus mark by 14.4% due to lower oil price realizations. However, the top line came in higher than the year-ago level of $311.1 million.
Production & Prices
For the third quarter of 2020, PDC Energy’s production totaled 17,701 MBoe (61% liquids), reflecting an increase of 39.2% from 12,714 MBoe a year ago. Of the aggregate output, 14,803 MBoe (or 84%) came from the Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price increased from 91 cents per million cubic feet (MMcf) in the year-ago quarter to $1.00. PDC Energy sold NGLs at an average price of $9.97 per thousand barrels (MBbls) compared to $8.43 a year ago. Meanwhile, the average oil price realization came in at $37.49 per barrel, 28.9% lower than $52.70 in the year-ago period. Overall, the company fetched $17.79 per MBoe compared with $24.18 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $35 million in the form of oil and gas capital investments. As of Sep 30, PDC Energy had approximately $3.8 million in cash and cash equivalents, and $1.5 billion in long-term debt, representing a debt-to-capitalization of 36.8%.
Guidance
PDC Energy maintained its projection of churning out 175,000-185,000 Boe per day in 2020. It also reiterated its oil production guidance of 64,000-68,000 Bbls per day. Further, the company still expects to spend between $500 million and $550 million this year, PDC Energy plans to generate free cash flow in excess of $350 million (at a WTI price of $35 per barrel), up $50 from the earlier guidance.
The company also reiterated the preliminary outlook for 2021, per which it plans to keep its capital expenditures within $500 million to $600 million. PDC Energy aims to generate free cash flow of approximately $300 million at $40 WTI (compared to $250 million earlier), while churning out essentially flat volumes year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, PDC Energy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. 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
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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PDC Energy (PDCE) Up 49.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for PDC Energy . Shares have added about 49.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PDC Energy due for a pullback? 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 catalysts.
PDC Energy Q3 Earnings Top on Strong Production
PDC Energy reported adjusted earnings per share of $1.04, comfortably ahead of the Zacks Consensus Estimate of 68 cents. The company had reported loss of 39 cents in the year-ago quarter. The outperformance can be primarily attributed to better-than-anticipated production volumes. Precisely, the Colorado-focused company’s output of 17,701 thousand barrels of oil-equivalent (MBoe) surpassed the Zacks Consensus Estimate of 16,954 MBoe.
Meanwhile, PDC Energy recorded oil and gas sales (plus other income) of $317.3 million, missing the consensus mark by 14.4% due to lower oil price realizations. However, the top line came in higher than the year-ago level of $311.1 million.
Production & Prices
For the third quarter of 2020, PDC Energy’s production totaled 17,701 MBoe (61% liquids), reflecting an increase of 39.2% from 12,714 MBoe a year ago. Of the aggregate output, 14,803 MBoe (or 84%) came from the Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price increased from 91 cents per million cubic feet (MMcf) in the year-ago quarter to $1.00. PDC Energy sold NGLs at an average price of $9.97 per thousand barrels (MBbls) compared to $8.43 a year ago. Meanwhile, the average oil price realization came in at $37.49 per barrel, 28.9% lower than $52.70 in the year-ago period. Overall, the company fetched $17.79 per MBoe compared with $24.18 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $35 million in the form of oil and gas capital investments. As of Sep 30, PDC Energy had approximately $3.8 million in cash and cash equivalents, and $1.5 billion in long-term debt, representing a debt-to-capitalization of 36.8%.
Guidance
PDC Energy maintained its projection of churning out 175,000-185,000 Boe per day in 2020. It also reiterated its oil production guidance of 64,000-68,000 Bbls per day. Further, the company still expects to spend between $500 million and $550 million this year, PDC Energy plans to generate free cash flow in excess of $350 million (at a WTI price of $35 per barrel), up $50 from the earlier guidance.
The company also reiterated the preliminary outlook for 2021, per which it plans to keep its capital expenditures within $500 million to $600 million. PDC Energy aims to generate free cash flow of approximately $300 million at $40 WTI (compared to $250 million earlier), while churning out essentially flat volumes year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
At this time, PDC Energy has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. 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
PDC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.