PDCE - PDC Energy: Strong Financial Outlook But Colorado Regulations Add Uncertainty

• PDC looks capable of generating over $450 million in positive cash flow from Q4 2020 to the end of 2021 at low- to mid-$40s WTI oil.
• It also is achieving this without relying on hedges or on sacrificing production.
• PDC's balance sheet appears healthy, with end of 2021 debt estimated at 1.3x EBITDAX.
• Colorado's 2,000 foot setback proposal adds a lot of uncertainty though, potentially affecting the majority of PDC's unpermitted Wattenberg locations.
• PDC has DUCs and permits to allow for close to four years of development though, giving it some nearer-term development certainty.

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