Koppers Holdings Inc. (NYSE:KOP) Q4 2017 Earnings Conference Call - Final Transcript
Feb 27, 2018 • 11:00 am ET
Good day, ladies and gentlemen, and welcome to the PDC Energy Fourth Quarter and Year-End Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. (Operator Instructions) As a reminder, today's conference is being recorded.
I would now like to introduce your host for today's conference call, Mr. Mike Edwards, Senior Director, IR. You may begin, sir.
Good morning, everyone, and welcome. On the call today, we have Bart Brookman, President and CEO; Lance Lauck, EVP; Scott Reasoner, COO; and Scott Meyers, CFO.
Yesterday afternoon, we issued our press release and posted a slide presentation that accompanies our remarks today. We also filed our 10-K this morning. The press release and the presentation are available on the IR page of our website which is pdce.com.
(Forward-Looking Cautionary Statements)
We will present some non-US GAAP financial numbers today, so I'd also like to call your attention to the appendix slides of that presentation where you'll find a reconciliation of those non-US GAAP financial measures.
With that, we can get started and I'll turn the call over to Bart Brookman, our CEO. Bart?
Thank you, Mike, and welcome, everyone. 2017, a solid year of growth and ongoing operational execution. The company enters 2018 as strong as ever with two premier assets. We are extremely pleased with the exceptional talent we have assembled on our Wattenberg and Delaware teams and for 2018, expect tremendous financial strength to emerge as we continue with our value-focused drilling programs and strong production growth.
Let me hit some 2017 highlights, a 44% increase in production to 31.8 million barrels of oil equivalent. We exited the year at 97,000 barrels of oil equivalent per day, and we're very pleased to increase our oil production 48% as we began to see the strong oil contribution from the Delaware Basin. We recently announced year-end 2017 proved reserves of 453 million barrels of oil equivalent to 33% increase from year-end 2016 and a reserve replacement of approximately 450%.
In Wattenberg, two significant acreage swaps and one acquisition helped create our three focus areas: the Kersey, Plains, and Prairie acreage blocks. These three areas are instrumental in providing opportunity for two-mile laterals and enhanced capital and operating efficiencies. In Delaware, we gained operating momentum throughout the year as we staffed our team and exited 2017 with strong production growth, improved drill times, and line of sight to a tremendous resource potential. Scott and Lance will cover this in a lot more detail in a moment.
Some key financial metrics for 2017, lifting costs held under $3 per barrel of oil equivalent, liquidity year-end was just under $900 million, year-end leverage ratio, 1.9%, capital spend for the year ended up at $790 million and our net cash from operating activities improved 20%. Overall, we were very pleased with the financial condition of the company as we wrapped up 2017.
Now, let me update everyone on 2018. Our capital