PDC Energy Releases 4Q15 Earnings Next Week: Are You Ready?



PDC Energy’s 4Q15 revenue estimates

PDC Energy (PDCE) will release its 4Q15 earnings on February 22. 4Q15 revenue estimates for the company sit at ~$179 million. PDC’s revenue in 4Q14 was ~$408 million.

In 3Q15, PDCE reported revenue of ~$176 million—about 22% lower than its 3Q14 revenue. 2Q15 revenue was ~$51 million. The company’s loss incurred due to commodity price risk management lowered its 2Q15 revenue by $49 million.

But for 2Q15, PDCE’s quarterly revenues came in higher than expectations in every quarter of 2015. Plus, revenues had increased in 3Q15 over 1Q15. Analysts’ expectations for 4Q15 are higher than any of the previous quarters of 2015. Investors will watch to see how things play out for the upstream company.

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PDC Energy’s 4Q15 earnings per share estimate

PDCE’s 4Q15 earnings per share or EPS estimate is ~$0.45. The corresponding quarter’s EPS in 2014 was $0.28. 3Q15 EPS was $0.38. In comparison, upstream peers Rice Energy (RICE), Energen Corporation (EGN), and Oasis Petroleum (OAS) are expected to report earnings per share of $0, $1.37, and ~$0.06, respectively, in 4Q15. All these companies make up ~6.5% of the SPDR S&P Oil and Gas Exploration and Production ETF (XOP).

PDCE’s fiscal 2015 revenue and earnings estimates

For 2015, analysts expect PDCE to report revenue of ~$609 million—about 29% lower than 2014 revenue of $856 million. Analysts expect PDCE to report adjusted 2015 EPS of ~$1.3 versus 2014’s EPS of ~$1.

PDCE’s earnings resilient amid lower prices

Unlike its upstream counterparts, PDCE’s earnings estimates show that markets expect PDCE to report higher earnings than in the previous quarters. There are several factors at play that have boosted the market’s optimism despite lower energy prices. These factors include PDCE’s lower cost structure, hedges, and strong financial position. Follow us through this series as we discuss these important factors in detail.


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