Published:
Petroleum Development Corporation Resets and Adds to Natural Gas Derivative Positions
BRIDGEPORT, W.Va., July 11 /PRNewswire-FirstCall/ -- Petroleum Development
Corporation (Nasdaq: PETD) announced that the Company has reset and added to
previously published natural gas derivative positions to protect against
possible price instability in future periods.
For the period from November 2008 through March 2009, the Company replaced
a Nymex collar with a swap. A Nymex based collar with a floor of $9.00/Mmbtu
and a call of $11.32/Mmbtu was replaced by a Nymex swap net of all unwinding
collar costs of $10.425/Mmbtu. This collar covers approximately 36% of
production in the Appalachian andMichigan basins.
For the same period, the Company replaced a costless PEPL collar with a
swap. A PEPL based collar with a floor of $7.25/Mmbtu and a call of
$10.05/Mmbtu was replaced by a PEPL swap net of all unwinding collar costs of
$9.00/Mmbtu. This collar covers approximately 15% of production for the
Northeast Colorado (NECO) properties.
For the same period, the Company replaced a costless CIG collar with a
swap. A CIG based collar with a floor of $7.00/Mmbtu and a call of
$9.70/Mmbtu was replaced by a CIG swap net of all unwinding collar costs of
$8.52/Mmbtu. This collar covers approximately 16% of production in the Grand
Valley and Wattenberg fields.
For the period from November 2009 through March 2010, the Company entered
into CIG swaps for approximately 33% and costless collars for approximately
45% of estimated production for the Grand Valley and Wattenberg fields; the
swaps were at $9.20/Mmbtu and collars, with floors of $7.50/Mmbtu and calls of
$11.40/Mmbtu. For the same period, PEPL swaps of $10.91/Mmbtu and collars with
floors of $9.00/Mmbtu and calls of $14.00/Mmbtu were entered into for the NECO
properties, which represent approximately 33% and 45% of production,
respectively of this field.
For the same period, the Company entered into costless collars for
approximately 66% of the production for the Appalachian andMichigan basins.
Floors were set at $10.00/Mmbtu with calls set at $17.15/Mmbtu.
The positions in effect as of today shown in the table on the next page on
a gross basis include both the Company and Partnership volumes; the net
columns show the Company's share of production by area. Please be aware that
the Company's share of production can change based upon the production volumes
and the Company's interest in specific wells.
Floors
Gross PDC Net
Monthly Monthly
Quantity Quantity Floor
Month Set Month Mmbtu/Bbls Mmbtu/Bbls Price
Colorado Interstate Gas (CIG) Based Derivatives (Piceance Basin)
Feb-08 04/08-10/08 750,000 -- --
Jan-08 04/08-10/08 630,000 -- --
Apr-08 11/08-03/09 570,000 -- --
Jul-08 11/08-03/09 340,000 -- --
Feb-08 11/08-03/09 340,000 -- --
Jan-08 04/09-10/09 570,000 345,534 $5.75
Mar-08 04/09-10/09 560,000 339,472 $5.75
Jul-08 11/09-03/10 450,000 -- --
Jul-08 11/09-03/10 640,000 387,968 $7.50
Swaps
Ceilings (Fixed Prices)
PDC Net PDC Net
Monthly Monthly
Quantity Ceiling Quantity
Month Set Mmbtu/Bbls Price Mmbtu/Bbls Price
Colorado Interstate Gas (CIG) Based Derivatives (Piceance Basin)
Feb-08 -- -- 454,650 $7.05
Jan-08 -- -- 381,906 $6.54
Apr-08 -- -- 345,534 $7.76
Jul-08 -- -- 206,108 $8.52
Feb-08 -- -- 206,108 $8.18
Jan-08 345,534 $8.75 -- --
Mar-08 339,472 $9.05 -- --
Jul-08 -- -- 272,790 $9.20
Jul-08 387,968 $11.40 -- --
Floors
Gross PDC Net
Monthly Monthly
Quantity Quantity Floor
Month Set Month Mmbtu/Bbls Mmbtu/Bbls Price
Nymex Based Derivatives (Appalachian and Michigan Basins)
Feb-08 04/08-10/08 170,000 -- --
Feb-08 04/08-10/08 170,000 -- --
Jul-08 11/08-03/09 170,000 -- --
Feb-08 11/08-03/09 100,000 73,390 $8.40
Feb-08 11/08-03/09 100,000 -- --
Jan-08 04/09-10/09 170,000 124,763 $6.75
Mar-08 04/09-10/09 170,000 124,763 $7.50
May-08 04/09-03/12 60,000 -- --
Jul-08 11/09-03/10 320,000 234,848 $10.00
Feb-08 04/08-02/11 90,000 -- --
Swaps
Ceilings (Fixed Prices)
PDC Net PDC Net
Monthly Monthly
Quantity Ceiling Quantity
Month Set Mmbtu/Bbls Price Mmbtu/Bbls Price
Nymex Based Derivatives (Appalachian and Michigan Basins)
Feb-08 -- -- 124,763 $8.33
Feb-08 -- -- 124,763 $8.58
Jul-08 -- -- 124,763 $10.42
Feb-08 73,390 $13.05 -- --
Feb-08 -- -- 73,390 $9.62
Jan-08 124,763 $12.45 -- --
Mar-08 124,763 $13.25 -- --
May-08 -- -- 44,034 $9.89
Jul-08 234,848 $17.15 -- --
Feb-08 -- -- 90,000 $8.62
Floors
Gross PDC Net
Monthly Monthly
Quantity Quantity Floor
Month Set Month Mmbtu/Bbls Mmbtu/Bbls Price
Panhandle Based Derivatives (NECO)
Feb-08 04/08-10/08 180,000 -- --
Jan-08 04/08-10/08 120,000 -- --
Apr-08 11/08-03/09 110,000 -- --
Jul-08 11/08-03/09 80,000 -- --
Feb-08 11/08-03/09 80,000 -- --
Jan-08 04/09-10/09 110,000 110,000 $6.00
Mar-08 04/09-10/09 130,000 130,000 $6.25
Jul-08 11/09-03/10 120,000
Jul-08 11/09-03/10 170,000 170,000 $9.00
Swaps
Ceilings (Fixed Prices)
PDC Net PDC Net
Monthly Monthly
Quantity Ceiling Quantity
Month Set Mmbtu/Bbls Price Mmbtu/Bbls Price
Panhandle Based Derivatives (NECO)
Feb-08 -- -- 180,000 $7.45
Jan-08 -- -- 120,000 $6.80
Apr-08 -- -- 110,000 $8.09
Jul-08 -- -- 80,000 $9.00
Feb-08 -- -- 80,000 $8.44
Jan-08 110,000 $9.70 -- --
Mar-08 130,000 $11.75 -- --
Jul-08 120,000 $10.91
Jul-08 170,000 $14.00 -- --
Floors
Gross PDC Net
Monthly Monthly
Quantity Quantity Floor
Month Set Month Mmbtu/Bbls Mmbtu/Bbls Price
Colorado Interstate Gas (CIG) Based Derivatives (Wattenberg Basin)
Feb-08 04/08-10/08 450,000 -- --
Jan-08 04/08-10/08 290,000 -- --
Apr-08 11/08-03/09 320,000 -- --
Jul-08 11/08-03/09 180,000 -- --
Feb-08 11/08-03/09 180,000 -- --
Jan-08 04/09-10/09 320,000 241,460 $5.75
Mar-08 04/09-10/09 290,000 218,600 $5.75
Jul-08 11/09-03/10 250,000 -- --
Jul-08 11/09-03/10 360,000 263,610 $7.50
Swaps
Ceilings (Fixed Prices)
PDC Net PDC Net
Monthly Monthly
Quantity Ceiling Quantity
Month Set Mmbtu/Bbls Price Mmbtu/Bbls Price
Colorado Interstate Gas (CIG) Based Derivatives (Wattenberg Basin)
Feb-08 -- -- 321,480 $7.05
Jan-08 -- -- 211,460 $6.54
Apr-08 -- -- 241,460 $7.76
Jul-08 -- -- 133,590 $8.52
Feb-08 -- -- 133,590 $8.18
Jan-08 241,460 $8.75 -- --
Mar-08 218,600 $9.05 -- --
Jul-08 -- -- 178,600 $9.20
Jul-08 263,610 $11.40 -- --
Floors
Gross PDC Net
Monthly Monthly
Quantity Quantity Floor
Month Set Month Mmbtu/Bbls Mmbtu/Bbls Price
Oil - Nymex Based (Wattenberg Basin)
Oct-07 04/08-12/08 48,667 -- --
May-08 06/08-12/08 36,686 -- --
Jan-08 01/09-12/09 30,417 -- --
Jan-08 01/09-12/09 30,417 -- --
May-08 01/09-12/09 12,167 -- --
May-08 01/10-12/10 30,417 -- --
May-08 01/10-12/10 30,417 -- --
Swaps
Ceilings (Fixed Prices)
PDC Net PDC Net
Monthly Monthly
Quantity Ceiling Quantity
Month Set Mmbtu/Bbls Price Mmbtu/Bbls Price
Oil - Nymex Based (Wattenberg Basin)
Oct-07 -- -- 31,741 $84.20
May-08 -- -- 23,927 $108.05
Jan-08 -- -- 19,838 $84.90
Jan-08 -- -- 19,838 $85.40
May-08 -- -- 7,935 $117.35
May-08 -- -- 19,838 $92.74
May-08 -- -- 19,838 $93.17
About Petroleum Development Corporation
Petroleum Development Corporation (www.petd.com) is an independent energy
company engaged in the exploration, production and marketing of natural gas
and oil. Its operations are focused in the Rocky Mountains with additional
operations in the Appalachian and Michigan Basins. PDC is included in the S&P
SmallCap 600 Index. Additionally, PDC was added to the Russell 3000 Index of
Companies in 2003.
SOURCE Petroleum Development Corporation
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