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PDC Energy (PDCE) Shares Gain Since Posting Q3 Earnings Beat
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The stock of upstream operator PDC Energy has gained 6.9% since its third-quarter earnings announcement on Nov 3. The company managed to score top and bottom-line beats.
What Did PDC Energy’s Earnings Unveil?
PDC Energy reported adjusted earnings per share of $2.33, comfortably ahead of the Zacks Consensus Estimate of $1.45. The company had reported a profit of $1.04 in the year-ago quarter. The outperformance can be primarily attributed to better-than-anticipated production volumes and higher commodity prices. Precisely, the Colorado-focused company’s output of 18,764 thousand barrels of oil equivalent (MBoe) surpassed the Zacks Consensus Estimate of 18,217 MBoe.
Meanwhile, PDC Energy recorded oil and gas sales of $703.1 million, ahead of the consensus mark by 24.5% and came in significantly higher than the year-ago level of $314.9 million.
PDC Energy, Inc. Price, Consensus and EPS Surprise
For the third quarter of 2021, PDC Energy’s production totaled 18,764 MBoe (60% liquids), reflecting an increase of 6% from 17,701 MBoe a year ago. Of the aggregate output, 16,047 MBoe (or some 86%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price increased from $1 per thousand cubic feet (Mcf) in the year-ago quarter to $3. PDC Energy sold NGLs at an average price of $28.33 per barrels (Bbls) compared to $9.97 a year ago. Meanwhile, the average oil price realization came in at $69.17 per barrel, 84.5% higher than $37.49 in the year-ago period. Overall, PDC Energy fetched $37.47 per MBoe compared with $17.79 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $149 million in the form of oil and gas capital investments. As of Sep 30, PDC Energy had approximately $99.9 million in cash and cash equivalents, and $1.2 billion in long-term debt, representing a debt-to-capitalization of 32.8%. During the quarter, the company bought back shares worth $60 million.
Guidance
PDC Energy still expects to churn out 190,000-195,000 Boe per day in 2021. It also reiterated its oil production guidance of 60,000-63,000 Bbls per day. Further, the company expects this year’s capital spending at the high end of the guidance range of $550-$$600 million and plans to generate free cash flow in excess of $900 million (at a WTI price of $75, natural gas at $5 and NGL at $30). The Zacks Rank #1 (Strong Buy) company believes it can produce 200,000-205,000 Boe per day in the fourth quarter, with oil constituting 66,000-69,000 Bbls per day.
As PDC Energy continues to generate free cash flows, it has committed to return a minimum of $210 million to shareholders in 2021, up from the previous target of $180 million. In the December quarter, the company plans to reward investors with $80 million through dividends (fixed and possibly even special) and buybacks.
Final Words
After suffering a frightening crash in 2020, the energy space has been uphill since the start of this year, thanks to surging demand from the economic reopening. The surge in oil and natural gas prices has allowed the operators to deliver a solid financial performance. In particular, upstream players like EOG Resources (EOG - Free Report) , Diamondback Energy (FANG - Free Report) and ConocoPhillips (COP - Free Report) turned in better-than-expected third-quarter bottom-line numbers.
ConocoPhillips reported third-quarter 2021 adjusted earnings per share of $1.77, comfortably beating the Zacks Consensus Estimate of $1.53. The outperformance stemmed from increased production volumes due to the Concho acquisition and rising realized commodity prices.
Based in Houston, TX, one of the world’s largest independent oil and gas producers’ capital expenditures and investments totaled $1.3 billion, and dividend payments grossed $579 million. ConocoPhillips’ net cash provided by operating activities was recorded at $4.8 billion, up from the year-ago figure of $868 million. COP generated a free cash flow of $2.8 billion in the third quarter.
EOG Resources reported third-quarter 2021 adjusted earnings per share of $2.16, beating the Zacks Consensus Estimate of $2.01 for earnings per share. The strong earnings were driven by increased production volumes and higher realization of commodity prices.
The company announced a quarterly dividend of 75 cents per share, indicating an 82% increase from the previous level. The dividend will be paid out on Jan 28, 2022, to shareholders of record as of Jan 14, 2022. EOG also declared a special dividend of $2 per share. Moreover, its board of directors updated its share repurchase authorization to $5 billion.
Diamondback Energy reported third-quarter 2021 adjusted earnings of $2.94 per share, which surpassed the Zacks Consensus Estimate of $2.81 and improved from the year-ago quarter’s earnings of 62 cents. The company’s bottom line was aided by better-than-expected production.
Diamondback’s board of directors declared a quarterly dividend of 50 cents per share for the third quarter. This signifies an 11.1% hike in its quarterly payout from the previous level of 45 cents. The amount will be paid out on Nov 18, 2021 to its shareholders of record as of Nov 11. FANG also generated a free cash flow of $740 million in the third quarter.
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PDC Energy (PDCE) Shares Gain Since Posting Q3 Earnings Beat
The stock of upstream operator PDC Energy has gained 6.9% since its third-quarter earnings announcement on Nov 3. The company managed to score top and bottom-line beats.
What Did PDC Energy’s Earnings Unveil?
PDC Energy reported adjusted earnings per share of $2.33, comfortably ahead of the Zacks Consensus Estimate of $1.45. The company had reported a profit of $1.04 in the year-ago quarter. The outperformance can be primarily attributed to better-than-anticipated production volumes and higher commodity prices. Precisely, the Colorado-focused company’s output of 18,764 thousand barrels of oil equivalent (MBoe) surpassed the Zacks Consensus Estimate of 18,217 MBoe.
Meanwhile, PDC Energy recorded oil and gas sales of $703.1 million, ahead of the consensus mark by 24.5% and came in significantly higher than the year-ago level of $314.9 million.
PDC Energy, Inc. Price, Consensus and EPS Surprise
PDC Energy, Inc. price-consensus-eps-surprise-chart | PDC Energy, Inc. Quote
Production & Prices
For the third quarter of 2021, PDC Energy’s production totaled 18,764 MBoe (60% liquids), reflecting an increase of 6% from 17,701 MBoe a year ago. Of the aggregate output, 16,047 MBoe (or some 86%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price increased from $1 per thousand cubic feet (Mcf) in the year-ago quarter to $3. PDC Energy sold NGLs at an average price of $28.33 per barrels (Bbls) compared to $9.97 a year ago. Meanwhile, the average oil price realization came in at $69.17 per barrel, 84.5% higher than $37.49 in the year-ago period. Overall, PDC Energy fetched $37.47 per MBoe compared with $17.79 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $149 million in the form of oil and gas capital investments. As of Sep 30, PDC Energy had approximately $99.9 million in cash and cash equivalents, and $1.2 billion in long-term debt, representing a debt-to-capitalization of 32.8%. During the quarter, the company bought back shares worth $60 million.
Guidance
PDC Energy still expects to churn out 190,000-195,000 Boe per day in 2021. It also reiterated its oil production guidance of 60,000-63,000 Bbls per day. Further, the company expects this year’s capital spending at the high end of the guidance range of $550-$$600 million and plans to generate free cash flow in excess of $900 million (at a WTI price of $75, natural gas at $5 and NGL at $30). The Zacks Rank #1 (Strong Buy) company believes it can produce 200,000-205,000 Boe per day in the fourth quarter, with oil constituting 66,000-69,000 Bbls per day.
You can see the complete list of today’s Zacks #1 Rank stocks here.
As PDC Energy continues to generate free cash flows, it has committed to return a minimum of $210 million to shareholders in 2021, up from the previous target of $180 million. In the December quarter, the company plans to reward investors with $80 million through dividends (fixed and possibly even special) and buybacks.
Final Words
After suffering a frightening crash in 2020, the energy space has been uphill since the start of this year, thanks to surging demand from the economic reopening. The surge in oil and natural gas prices has allowed the operators to deliver a solid financial performance. In particular, upstream players like EOG Resources (EOG - Free Report) , Diamondback Energy (FANG - Free Report) and ConocoPhillips (COP - Free Report) turned in better-than-expected third-quarter bottom-line numbers.
ConocoPhillips reported third-quarter 2021 adjusted earnings per share of $1.77, comfortably beating the Zacks Consensus Estimate of $1.53. The outperformance stemmed from increased production volumes due to the Concho acquisition and rising realized commodity prices.
Based in Houston, TX, one of the world’s largest independent oil and gas producers’ capital expenditures and investments totaled $1.3 billion, and dividend payments grossed $579 million. ConocoPhillips’ net cash provided by operating activities was recorded at $4.8 billion, up from the year-ago figure of $868 million. COP generated a free cash flow of $2.8 billion in the third quarter.
EOG Resources reported third-quarter 2021 adjusted earnings per share of $2.16, beating the Zacks Consensus Estimate of $2.01 for earnings per share. The strong earnings were driven by increased production volumes and higher realization of commodity prices.
The company announced a quarterly dividend of 75 cents per share, indicating an 82% increase from the previous level. The dividend will be paid out on Jan 28, 2022, to shareholders of record as of Jan 14, 2022. EOG also declared a special dividend of $2 per share. Moreover, its board of directors updated its share repurchase authorization to $5 billion.
Diamondback Energy reported third-quarter 2021 adjusted earnings of $2.94 per share, which surpassed the Zacks Consensus Estimate of $2.81 and improved from the year-ago quarter’s earnings of 62 cents. The company’s bottom line was aided by better-than-expected production.
Diamondback’s board of directors declared a quarterly dividend of 50 cents per share for the third quarter. This signifies an 11.1% hike in its quarterly payout from the previous level of 45 cents. The amount will be paid out on Nov 18, 2021 to its shareholders of record as of Nov 11. FANG also generated a free cash flow of $740 million in the third quarter.