The last three months or so haven't been particularly kind to a number of E&P companies, and PDC Energy (PDCE) is most definitely in that group. While regional rivals like Antero (AR) and Bill Barrett (BBG)
are still in the black over that short span of time (and PDC has done
fine over the past year), the recent performance has left a lot to be
desired.
Some of the problems with PDC Energy shares can be tied
to overheated expectations earlier in the year, coupled with a
disappointing third quarter and year-ahead guide. Some of it is also
likely due to ongoing mixed data from the companies Utica acreage.
Although I don't think the Utica results have been that bad, PDC Energy
looks attractive even excluding the Utica, making this an interesting
name to me at current prices given the ongoing success in the Codell and
Niobrara formations in the Wattenberg. I've been stubborn to lift my
long-term price estimates for natural gas, and I'm still less bullish
than most, but at $4 gas, PDC Energy starts looking like a very
interesting stock to me.
Please continue here:
With Strong Wattenberg Results, Utica Could Be Gravy For PDC Energy
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