PDC Energy Extends Maturity of Its Revolving Credit Facility to 2018 With Post-Divestiture Borrowing Base of $450 Million

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DENVER, May 23, 2013 (GLOBE NEWSWIRE) -- PDC Energy, Inc. ("PDC" or the "Company") (Nasdaq:PDCE) today announced that on May 21, 2013, the Company entered into its third amended and restated credit agreement with its current group of lenders led by JPMorgan Chase Bank, N.A., as Administrative Agent. The new facility maintained the Company's borrowing base at $450 million post the planned divestiture of non-core Colorado natural gas assets, subject to normal semi-annual redetermination, and extended the maturity date by approximately two and one-half years to May 21, 2018. The new facility also amends certain other provisions, including a reduction of the applicable interest rate on its borrowing options and increased flexibility for hedging positions related to the Company's expected production.

Gysle Shellum, Chief Financial Officer, stated, "We felt the timing was right to extend the maturity of our revolver, and we are pleased with the improved pricing and borrowing base of $450 million considering the pending sale of our non-core Colorado gas properties. We expect to substantially fund our 2013 capital program with proceeds from the divestiture and cash flow from operations, and to exit the year with an expanded borrowing base and ample liquidity."

Upcoming Investor Presentations

PDC management is currently scheduled to present at the IBERIA Capital Partners' Oil & Gas Day in New York, New York, on Thursday, May 23, 2013, at 11:15am ET, and at the SunTrust Play by Play Conference in New York, New York, on Thursday, May 30, 2013, at 1:35pm ET. Please see the Company's website at www.pdce.com for full details. The related slide presentations are expected to be available on the Company's website immediately prior to the events.

About PDC Energy, Inc.

PDC Energy is a domestic independent energy company engaged in the exploration, development and production of crude oil, NGLs and natural gas. Its operations are focused primarily in the liquid-rich Wattenberg Field of Colorado, including the horizontal Niobrara and Codell plays, the Utica Shale in Ohio and the Marcellus Shale in West Virginia. PDC is included in the S&P SmallCap 600 Index and the Russell 3000 Index of Companies.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding PDC's business, financial condition, results of operations and prospects. All statements other than statements of historical facts included in this Press Release are forward-looking statements. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements herein, which include statements regarding the funding for PDC's 2013 capital expenditure plans, future liquidity and changes in the borrowing base under the new revolving credit facility, and the closing of and expected proceeds from PDC's pending asset disposition. However, these are not the exclusive means of identifying forward-looking statements herein. Although forward-looking statements contained in this Press Release reflect the Company's good faith judgment, such statements can only be based on facts and factors currently known to PDC. Consequently, forward-looking statements are inherently subject to risks and uncertainties, including risks and uncertainties incidental to the exploration for, and the acquisition, development, production and marketing of natural gas and oil, and actual outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to:

  • changes in production volumes, demand and commodity prices for natural gas, oil and NGLs;
  • the availability of sufficient pipeline, gathering and other transportation facilities and related infrastructure to process and transport PDC's production, particularly in the Wattenberg Field and Utica Shale; the impact of these facilities and infrastructure on price and possible impediments to anticipated increases in midstream capacity;
  • changes in estimates of proved reserves;
  • declines in the values of PDC's natural gas and oil properties resulting in impairments;
  • the timing and extent of the Company's success in discovering, acquiring, developing and producing natural gas and oil reserves;
  • PDC's ability to acquire leases, drilling rigs, supplies and services at reasonable prices;
  • reductions in the borrowing base under the Company's credit facility or other adverse changes to the Company's liquidity;
  • risks incident to the drilling and operation of natural gas and oil wells;
  • future production and development costs;
  • the effect of existing and future laws, governmental regulations and the political and economic climate of the United States of America;
  • changes in environmental laws and the regulations and enforcement related to those laws and the timely receipt of permits under those laws;
  • the identification of and severity of environmental events and governmental responses to the events;
  • the effect of natural gas and oil derivative activities;
  • potential obstacles to completing PDC's pending asset disposition or other transactions in a timely manner or at all, and purchase price or other adjustments relating to those transactions that may be unfavorable to PDC;
  • conditions in the capital markets; and
  • losses possible from pending or future litigation.

Further, PDC urges you to carefully review and consider the cautionary statements made in this press release, the Item 1-A Risk Factors in the 2012 Annual Report on Form 10-K for the year ended December 31, 2012, filed with the Securities and Exchange Commission ("SEC") on February 27, 2013, and other filings with the SEC for further information on risks and uncertainties that could affect the Company's business, financial condition and results of operations, which are incorporated by this reference as though fully set forth herein. The Company cautions you not to place undue reliance on forward-looking statements, which speak only as of the date made. PDC undertakes no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this release or currently unknown facts or conditions or the occurrence of unanticipated events. All forward looking statements are qualified in their entirety by this cautionary statement. Estimates of non-proved reserves are subject to significantly greater risk of not being produced than proved reserves. Initial and test results from a well are not necessarily indicative of the well's long-term performance.

CONTACT: Michael Edwards Senior Director Investor Relations 303-860-5820 michael.edwards@pdce.com Marti Dowling Investor Relations Manager 303-831-3926 marti.dowling@pdce.com

Source:PDC Energy