NasdaqGS:PDCE

Stock Analysis Report

Executive Summary

PDC Energy, Inc., an independent exploration and production company, acquires, explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the United States.

Rewards

Trading at 49.2% below its fair value

Earnings are forecast to grow 45.41% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months



Snowflake Analysis

Undervalued with reasonable growth potential.


Similar Companies

Share Price & News

How has PDC Energy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PDCE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.1%

PDCE

1.6%

US Oil and Gas

0.03%

US Market


1 Year Return

-32.1%

PDCE

-10.2%

US Oil and Gas

18.6%

US Market

Return vs Industry: PDCE underperformed the US Oil and Gas industry which returned -10.2% over the past year.

Return vs Market: PDCE underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

PDCEIndustryMarket
7 Day2.1%1.6%0.03%
30 Day-9.3%-3.4%1.7%
90 Day-24.4%-0.2%5.7%
1 Year-32.1%-32.1%-7.0%-10.2%21.1%18.6%
3 Year-70.8%-70.8%-12.4%-20.4%45.6%36.2%
5 Year-29.9%-29.9%-7.7%-21.4%71.1%52.3%

Price Volatility Vs. Market

How volatile is PDC Energy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PDC Energy undervalued compared to its fair value and its price relative to the market?

49.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PDCE ($23.21) is trading below our estimate of fair value ($45.66)

Significantly Below Fair Value: PDCE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PDCE is poor value based on its PE Ratio (10.6x) compared to the Oil and Gas industry average (9.9x).

PE vs Market: PDCE is good value based on its PE Ratio (10.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: PDCE is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: PDCE is good value based on its PB Ratio (0.6x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is PDC Energy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

45.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDCE's forecast earnings growth (45.4% per year) is above the savings rate (1.7%).

Earnings vs Market: PDCE's earnings (45.4% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PDCE's revenue (19.8% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: PDCE's revenue (19.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PDCE's Return on Equity is forecast to be low in 3 years time (0.1%).


Next Steps

Past Performance

How has PDC Energy performed over the past 5 years?

-13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDCE has high quality earnings.

Growing Profit Margin: PDCE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PDCE has become profitable over the past 5 years, growing earnings by -13.3% per year.

Accelerating Growth: PDCE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PDCE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-15.6%).


Return on Equity

High ROE: PDCE's Return on Equity (6.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PDC Energy's financial position?


Financial Position Analysis

Short Term Liabilities: PDCE's short term assets ($341.4M) do not cover its short term liabilities ($407.8M).

Long Term Liabilities: PDCE's short term assets ($341.4M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: PDCE's debt to equity ratio (53.7%) is considered high.

Reducing Debt: PDCE's debt to equity ratio has reduced from 67.3% to 53.7% over the past 5 years.

Debt Coverage: PDCE's debt is well covered by operating cash flow (77.9%).

Interest Coverage: PDCE's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet

Inventory Level: PDCE has a high level of physical assets or inventory.

Debt Coverage by Assets: PDCE's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is PDC Energy's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PDCE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PDCE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PDCE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PDCE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PDCE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of PDC Energy's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Bart Brookman (57yo)

4.9yrs

Tenure

US$6,967,823

Compensation

Mr. Barton R. Brookman, Jr., also known as Bart, has been the Chief Executive Officer and President at PDC Energy, Inc., since January 1, 2015 and June 2014 respectively. Mr. Brookman served as the Chief O ...


CEO Compensation Analysis

Compensation vs Market: Bart's total compensation ($USD6.97M) is above average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Bart's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.9yrs

Average Tenure

58yo

Average Age

Experienced Management: PDCE's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

4.9yrs

Average Tenure

57yo

Average Age

Experienced Board: PDCE's board of directors are considered experienced (4.9 years average tenure).


Insider Trading

Insider Buying: PDCE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$52,63518 Sep 19
Anthony Crisafio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$35.09
SellUS$3,406,00019 Jun 19
Kimmeridge Energy Management Company, LLC
EntityCompany
Shares100,000
Max PriceUS$34.06
SellUS$28,84013 May 19
David Parke
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares800
Max PriceUS$36.05
BuyUS$373,00013 May 19
Mark Ellis
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$37.30
SellUS$22,62018 Apr 19
Nicole Martinet
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares500
Max PriceUS$45.24
SellUS$67,65016 Apr 19
Barton Brookman
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares1,500
Max PriceUS$45.10
SellUS$22,50016 Apr 19
Lance Lauck
EntityIndividual
Role
Head of Corporate Development
Executive Vice President of Corporate Development & Strategy
Shares500
Max PriceUS$45.00
SellUS$75,43316 Apr 19
Scott Reasoner
EntityIndividual
Role
Chief Operating Officer
Senior VP & COO
Shares1,714
Max PriceUS$44.01
SellUS$22,00516 Apr 19
Nicole Martinet
EntityIndividual
Role
Chief Legal Officer
General Counsel
Shares500
Max PriceUS$44.01
SellUS$22,50022 Mar 19
Lance Lauck
EntityIndividual
Role
Head of Corporate Development
Executive Vice President of Corporate Development & Strategy
Shares500
Max PriceUS$45.00
BuyUS$27,58418 Mar 19
Alice Gould
EntityIndividual
Shares680
Max PriceUS$40.66
BuyUS$26,41018 Mar 19
James Adelson
EntityIndividual
Shares650
Max PriceUS$40.63
SellUS$52,00015 Mar 19
Scott Reasoner
EntityIndividual
Role
Chief Operating Officer
Senior VP & COO
Shares1,300
Max PriceUS$40.00
BuyUS$114,747,96822 Feb 19
Kimmeridge Energy Management Company, LLC
EntityCompany
Shares3,382,900
Max PriceUS$33.92
SellUS$51,31505 Feb 19
Anthony Crisafio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$34.21

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Bart Brookman (57yo)

    CEO, President & Director

    • Tenure: 4.9yrs
    • Compensation: US$6.97m
  • Scott Reasoner (58yo)

    Senior VP & COO

    • Tenure: 2.9yrs
    • Compensation: US$2.69m
  • Mike Edwards (60yo)

    Senior Director of Investor Relations

    • Tenure: 10.4yrs
  • Douglas Griggs (59yo)

    Chief Accounting Officer

    • Tenure: 1.5yrs
  • George Courcier (62yo)

    Vice President of Marketing & Midstream

    • Tenure: 0yrs
  • R. Meyers (44yo)

    Senior VP & CFO

    • Tenure: 1.9yrs
    • Compensation: US$1.97m
  • John DeLawder (58yo)

    Senior Vice President of Corporate Administration

    • Tenure: 2.9yrs
  • Lance Lauck (57yo)

    Executive Vice President of Corporate Development & Strategy

    • Tenure: 4.9yrs
    • Compensation: US$2.77m
  • Nicole Martinet (42yo)

    General Counsel

    • Tenure: 0.9yrs
  • Erik Roach

    Director of Reservoir Engineering & Technology

    • Tenure: 1.3yrs

Board Members

  • Jeffrey Swoveland (64yo)

    Non-Executive Chairman

    • Tenure: 8.5yrs
    • Compensation: US$383.47k
  • Randy Nickerson (57yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$258.77k
  • Bart Brookman (57yo)

    CEO, President & Director

    • Tenure: 4.9yrs
    • Compensation: US$6.97m
  • David Parke (52yo)

    Independent Director

    • Tenure: 16.1yrs
    • Compensation: US$263.77k
  • Tony Crisafio (66yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$273.77k
  • Mark Ellis (63yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$238.77k
  • Christina Ibrahim (51yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$238.77k

Company Information

PDC Energy, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PDC Energy, Inc.
  • Ticker: PDCE
  • Exchange: NasdaqGS
  • Founded: 1969
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$1.381b
  • Shares outstanding: 61.62m
  • Website: https://www.pdce.com

Number of Employees


Location

  • PDC Energy, Inc.
  • 1775 Sherman Street
  • Suite 3000
  • Denver
  • Colorado
  • 80203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PDCENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1976
PD3DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1976

Biography

PDC Energy, Inc., an independent exploration and production company, acquires, explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the United States. Its operations are  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:41
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.