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PDC Energy Brutally Refutes Kimmeridge Energy Claims

Share Print Bookmark    |    Thursday,May 16,2019

PDC Energy is not backing down from activist investor Kimmeridge Energy.  Today, the company filed a new presentation outlining all the issues it has with Kimmeridge.

The presentation highlights PDC’s successful execution of its operating plan and corrects erroneous and misleading information in the presentations Kimmeridge Energy Management recently filed with the SEC.

PDC President and Chief Executive Officer, Bart Brookman commented, “Kimmeridge previously advocated dangerous ideas – such as recklessly slashing necessary investments in operations, initiating an excessive dividend, and pursuing self-serving M&A opportunities.  Now that those suggestions have been rejected by analysts and investors, Kimmeridge has resorted to presenting flawed analyses in an effort to mislead PDC shareholders. We continue to urge all PDC shareholders to protect the value of their investment by voting on the WHITE proxy card “FOR” all three of the Company’s nominees.”

Highlights of PDC’s presentation include:

• PDC is a best-in-class operator in the Wattenberg area of the DJ Basin, which makes up more than 75% of the Company’s production and proved reserves;
• PDC’s wells in the Delaware are among the most prolific in the basin, and PDC is achieving well cost reductions and operational efficiency in the Delaware by successfully applying similar operational improvements it has refined on its Wattenberg acreage;
• PDC has significantly improved upon Kimmeridge’s operations in the Delaware Basin post its acquisition, as evidenced in multiple areas, including superior well performance, longer lateral lengths and significantly improved regulatory compliance;
• PDC’s peer group is annually refreshed with input from independent third party consultants (including PDC’s compensation consultant Meridian Compensation Partners) based on comparable size, basins, and other operating parameters. Kimmeridge’s peers are ever-changing and self-serving, at times even contradicting its own prior attacks;
• PDC compares favorably against its peer group with respect to generally-accepted methodologies for calculating recycle ratio; and
• PDC’s G&A falls well within its peer group range when compared to relative production and active wells drilled.