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| We also receive incremental cost benefits today from insulating ourself from diesel costs and realizing environmental benefits on emissions and reduced noise levels |
| The first quarter, a solid performance for the company production of 22 million barrels of oil equivalent or 244,000 Boe per day in line with our expectations |
| Starting on Slide 9, our free cash flow profile is extremely robust |
| In April, we placed on Flowback our six well lost keypad, although, we don’t have many days of production, I can share that we are very encouraged by the early results which this helped, along with the Redhorn to set new production targets in the basin |
| CapEx coming in better than our expectations as we are seeing per well cost improvements in both basins |
| Both metrics beating our expectations |
| We are – we exited the quarter with a 0.5 times leverage ratio and an extremely strong balance sheet |
| Again, great results, a solid quarter with solid execution |
| The shareholder return program is intended to be an annual program and we feel comfortable being ahead of our 60 plus percent in the first quarter as we expect incremental free cash flow to be driven from lighter capital activity for the remainder of the year |
| April is experiencing record production for both basins |
| A result of exceptional midstream and individual well performance along with an accelerated Q1 turn in line schedule were two-thirds of the quarterly TILs occurred in March |
| We’re pleased at the outlook for the second quarter production has been increased to a range of 265,000 to 277,000 Boe per day and our 2023 annual production guidance is now anticipated to be near the upper end of our guidance range |
| We are on track to further reduce debt in the back half of the year and are encouraged by our free cash flow profile and the quarters to come |
| These are encouraging improvements in our outlook for production, capital spend, free cash flow and overall capital efficiency, laying the groundwork for a very strong second quarter and a successful 2023 |
| So maybe that’s a good thing, good communications on our part in a great quarter |
| To give a window into this production ramp already well underway, our March production averaged 253,000 Boe per day with oil production average in 81,000 barrels per day and our April production has been even stronger as we set PDC field records almost every day across both basins |
| And thank you for all those who did join and we really are excited about the outlook for second quarter and the balance of the year |
| These are very strong, highly economic wells that we are excited to have in our inventory today |
| Both basins are approaching five years with no lost time injuries to PDC employees an exceptional accomplishment |
| I am proud that we have positioned PDC and its shareholders to thrive in nearly every part of the commodity cycle |
| This is quite strong considering the elevated capital level, and the current natural gas price environment |
| The team has done a great job at continuing to look at all parts of our operations and identifying opportunities for improvement |
| We highlighted in the chart at the bottom of the slide are per well and PV-10 by lateral length and you can see a very linear relationship moving from one mile to three miles at this point, continued success in development with longer laterals provide ongoing opportunities for step change improvements and efficiencies, as well as opportunities to recover incremental resources |
| Our results to date give us good confidence to continue to complete three mile laterals going forward |
| We’ve been very good at implementing SIMOPS operations with two drill out rigs and at the same time we have flowback |
| Finally, on Slide 11, I want to wrap up our prepared comments by highlighting our progress in the first quarter has set us up well to execute on our 2023 plans |
| Basically it shouldn’t change any of our yearly production volumes, but the second quarter will benefit from this since they were turned on this month or last month |
| Today in the Wattenberg, all the Gus and Cordon wells are online and meeting or slightly exceeding expectations |
| We have tremendous economics on the drilling projects |
| So we feel very comfortable able to do this year after year |
| Statement |
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| Oil production for the quarter was slightly below guidance expectation as a result of turn-in lines in two large pads, the Gus and the Cordon in the black oil South acreage in the DJ |
| Although, the timing delays were a matter of days per our compared to our guidance forecast, they took a bit longer to hit peak production |
| For the quarter, we invested approximately $415 million below the mid-point of our guidance |
| I think it impacted volumes a little bit |
| Scott Meyers Right, and just to reiterate that, I mean, this is a matter of a couple days and when you’re turning this many wells on this quickly, a week delay in production ends up being a little material |
| We’ve reduced our anticipated full year 2023 capital investment range to 1.35 billion to 1.45 billion to reflect savings we’ve already locked in for the second half of the year |
| Though we cannot predict the ever-changing macro environment with our long lived inventory of tier one assets, PDC is ready for the continued volatility to come |
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