PDC Energy posts $47M loss for 2Q

Shares of PDC Energy Inc. (Nasdaq: PDCE), which bases most of its oil and gas operations in Northern Colorado, rose in value by nearly 11 percent Monday despite an earnings report that fell short of analyst expectations.

Denver-based PDC posted a net loss for the second quarter that ended June 30 of $46.9 million, or $1.17 per diluted share. That’s compared to a loss of $28.2 million, or 78 cents per share, for the same period a year ago. Revenue, meanwhile, fell from $101.3 million during the period last year to $51 million this year as oil prices continue their slump.

But the company, which has rapidly increased production this year due to increased drilling efficiency and decreased well costs, also increased its guidance for 2015 for production and cash flows from operations.

PDC shares were trading at $52 by late afternoon Monday, up $5.13 from Friday’s close.

“The improvements we are seeing in our operational efficiencies are truly remarkable and we are tremendously pleased with the ability of all our teams to keep pace throughout this process,” PDC chief executive Bart Brookman said in a prepared statement.

PDC reported production of 37,001 barrels of oil equivalent per day during the second quarter, up 46 percent from last year and 15 percent from the first quarter of this year. The growth versus last year was due in large part to the addition of a fifth drilling rig in Northern Colorado’s Wattenberg field last summer, as well as improved well efficiency.

The company projects production for the entire year of 2015 to be between 14.7 million and 15 million barrels, up from the previous range of 13.5 million to 14.5 million barrels. The company is projecting total revenue of between $600 million and $620 million.

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