PDC Energy, Inc. (NASDAQ:PDCE) Q4 2022 Earnings Call Transcript

Lance Lauck: Yes. Hey, that’s a great question. Yes, sounds good. Good question. So as we look at the Wattenberg development as it continues to progress over time. We’re essentially sorting the 20 well to 24 well per section spacing per DSU. And we’ve got a lot of data in history that really shows that’s the right spacing to bring the value out of the DSU itself and deliver exceptionally strong economics. And that’s what you’re seeing in the economics table there as well. There will be a few areas we’re going to test something even tighter than that in a few areas just to see what the potential upside could look like. And keep in mind too, that some of those tighter spacings has us targeting some of the Niobrara A as well. And that was one of the things that SRC had done before PDC and SRC combined together.

So that’s kind of the general spacing that we have there. And it’s the spacing that really works well. It’s a basis for all of our type curves and analysis that you’re seeing today.

Bart Brookman: Dave, you want to add a little color to this?

Dave Lillo: Yes, I think that Wyndham facility is it’s going to be drilled at the end of 2024. It came over from SRC, where they planned a lot of A’s and Codell. So I think it’s a subject of the gun barrel with the Niobraras, the Codell, and the A’s being representative in that package.

Bertrand Donnes: Okay. Well, that sounds good. I mean, if Lance started it off, I’m sure it’s good. And maybe just to follow up is, are there any tighter spacing tests that maybe we should expect? Is there any comparison that you’d be able to give towards the end of the year or is that maybe the primary one?

Bart Brookman: Bert, I think, as we go through the next year or two, you can expect what Lance was talking about the 20 to 24 for us to continue especially as we move towards the northern black oil area. You’re going to see us test that 24 more and more. Okay. So without having all the calendar and the drill schedule in front of me, just expect that to be more information that we will obviously communicate to the market.

Dave Lillo: Yes, and I think there might be some comparisons on those spacings. We’re going to just start really drilling the Summit area up with the Chalk , the Whitney, the . So there could be some good comparisons to look at. And as we always evaluate our spacing and look backs and our production, we’ll be able to convey that out to you.

Bertrand Donnes: That’s great. Thanks for the update guys.

Operator: One moment for our next question. Our next question will come from Oliver Huang of TPH & Company. Your line is open.

Oliver Huang: Good morning, everyone, and thanks for taking my questions. I really appreciate the details that you all provided on the economics of the various phase windows within your Wattenberg portfolio. And maybe sort of a follow up to Arun question from earlier. But just kind of given where spot gas prices are trading at. Is there any inclination or even ability to move around some of the more gas directed drilling towards oilier areas within your program this year?