PDC Energy’s 4Q earnings surge

PDC Energy Inc. (Nasdaq: PDCE), which drills oil and natural-gas wells in Weld County, said Thursday that it earned $133.8 million during the fourth quarter compared with $13.2 million during the same period a year earlier.

Denver-based PDC Energy posted revenue of $407.7 million during the fourth quarter vs. $135.4 million during the same quarter a year earlier. Fourth-quarter production soared 29 percent to 28,000 barrels of oil equivalent from 21,700 barrels of oil equivalent during the same quarter a year earlier. The increase came from successful horizontal drilling in the Wattenberg field, an area spanning a large portion of Weld County.

The company also said it reduced to $473 million its 2015 capital budget from the previously announced $557 million, a decrease of 15 percent, due to the company’s declining service costs amid falling oil prices.

“We have seen significant reductions to our capital cost structure and expect to benefit from strong operational enhancements, both of which will increase our drilling economics in 2015,” CEO Bart Brookman said in an earnings statement. “These improvements generate solid returns for PDC and our shareholders, even in this challenging commodity price environment.”

For 2014, the company earned $155.4 million compared with a loss of $22.3 million in 2013. PDC Energy reported 2014 revenue of $856.2 million, up from $392.7 million in 2013. The company had lower production costs last year and during the fourth quarter.

PDC Energy, which has five rigs exploring for oil and gas in the Wattenberg, added that it aims to achieve 51-percent production growth this year.

Company shares rose more than 3 percent to $49.49 in afternoon trading.

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