Colorado’s PDC Raising Capex, Production Forecasts Following Great Western Acquisition

Denver-based independent PDC Energy Inc. has updated its 2022 production and spending guidance to the high side, citing year-to-date performance and the timing of closing its acquisition of Great Western Petroleum LLC.

PDC snapped up Great Western, a privately held operator focused on Colorado’s Wattenberg field, in a $1.3 billion cash-and-stock deal announced in February. The transaction closed earlier this month.

PDC expects capital investments to total $950 million to $1 billion this year, up from a previous forecast of $900 million to $1 billion. Production is expected to range from 235,000-250,000 boe/d (78,000-83,000 b/d oil), versus prior guidance of 225,000-240,000 boe/d.

“In the face of significant inflation, our operating teams have done a tremendous job...