PDC Energy, Inc. (NASDAQ:PDCE) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 11:00 am ET
Good day, ladies and gentlemen, and welcome to the PDC Energy Second Quarter 2020 Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to your host, Kyle Sourk, Investor Relations sir, you may begin.
Thank you and good morning. On today's call we have President and CEO, Bart Brookman; Executive Vice President, Lance Lauck; Chief Financial Officer, Scott Meyers; Chief Operating Officer, Scott Reasoner; and Senior Vice President of Operations, Dave Logan. Yesterday afternoon we issued a press release and posted a presentation that accompanies our remarks today. We also filed our Form 10-Q. The press release and presentation are available on the Investor Relations page of our website www.pdce.com. On today's call we will reference both forward-looking statements and non-US GAAP financial measures, the appropriate disclosures and reconciliations can be found on slide two in the appendix of that presentation. With that, I'll turn the call over to our CEO for Bart Brookman.
Barton R. Brookman
Thank you. Kyle, and hello everyone. Today, I hope we can effectively communicate our exceptional quarterly results and an outlook, I believe, clearly differentiates PDC. Throughout the call, we will highlight a multi-year business plan capable of generating significant and sustainable free cash flow in this low-price world. That is complemented by an enhanced midstream in operating environment in the DJ Basin in an improved Colorado, political and regulatory backdrop, as a company, we have adapted and made the necessary and at times difficult changes, but we are positioned to endure as we look to the future. As we finalize the integration of SRC Energy, our vision of improved scale and efficiencies is evident in our operating and financial results. Some things to note, as we go through the call today. Absolutely free cash flow, free cash yield and free cash flow margin for the quarter and within our outlook. Improved capital efficiencies and improved per well costs. The tremendous progress in the cost structure of the company, both LOE and G&A
Strong production levels a result of both the merger and dramatically improved line pressures on the DCP Midstream system. And last, our commitment to strengthen the balance sheet. This year, and as we go through 2020. Let me hit some quarterly highlights. For the quarter free cash flow of approximately $60 million, that is on a capital spend of approximately $120 million. We exited the quarter with one rig running in Wattenberg, no rigs in Delaware and no completion crews for the company. Production for the quarter was 17.2 million barrels of oil equivalent or 190,000 BOE per day, a 39% improvement from the same quarter in 2019. This growth primarily due to the SRC merger. From a financial standpoint, the leverage ratio at the end of the quarter stood at 1.8 and liquidity remained over $1 billion for the company. And last on the operating cost structure lifting costs of $2.08 per BOE and combined lifting costs in G&A for the company came in just over $4 per BOE.