PDCE - PDC Energy updates annual guidance - free cash flow forecasts look light

PDC Energy (PDCE) provided updated guidance ahead of the market open Friday, following the close of its Great Western acquisition earlier in the month. Management provided pro-forma forecasts at the time of the acquisition announcement in February, and assumed a Q2 close (actual close May 6). Friday's update looks broadly in-line with the pro-forma forecasts from February, though the free cash flow guidance appears light:  Production - 2022 production guidance was lifted 4.3% above the prior pro-forma forecast, to 242.5kboe/d (midpoint). Capex - capital spending was lifted 2.6%, to $975m (midpoint). Free cash flow - on the company's updated price deck, assuming $95 WTI and $6.00 Henry Hub, management expects to generate $1.7b in free cash flow (25% of current market cap); previously management guided to pro-forma free cash flow of $1.3b on $75 WTI and $4.00 Henry Hub. Shareholder return - in conjunction with the higher free cash flow outlook

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PDC Energy updates annual guidance - free cash flow forecasts look light