Key Developments For Petroleum Development Corp
Petroleum Development Corp (PETD.O) (Nasdaq)
Petroleum Development Corp. Issues Q4, FY 2009 Production Outlook
Petroleum Development Corp. announced that for the fourth quarter of 2009, it expects production to be just under 10 Bcf. For fiscal 2009, the Company expects production to end up in the 43.1 Bcf range.
Petroleum Development Corp. Announces Appalachian Joint Venture With Lime Rock Partners To Develop Marcellus Shale Play
Petroleum Development Corp. and Lime Rock Partners, a provider of growth capital to energy companies worldwide, announced the formation of PDC Mountaineer, LLC, a joint venture company (JV) principally focused in the Marcellus Shale region. Petroleum Development will contribute acreage, producing properties, reserves and related gathering assets valued at approximately $158.5 million. Lime Rock funded $45 million as a return of capital at closing, and Petroleum Development has an option to take a second cash contribution of $11.5 million by year end 2010. Lime Rock has an obligation to fund in full by December 31, 2011 to earn a 50% interest in the joint venture. Lime Rock anticipates it will satisfy its funding obligation by early to mid 2011, at which time all costs and capital investment in the JV will be shared equally. Petroleum Development's interest in the joint venture, including; (1) land and drilling expenditures, (2) future net gas revenues, and (3) future gas reserves, will be reflected in its financial statements. Under the terms of the agreement: Petroleum Development will contribute approximately 115,000 net acres in the Appalachia Basin, of which approximately 55,000 acres are considered to be prospective in the Marcellus. The acreage has: Approximately 12 MMcf per day of current production 113 Bcfe of total proved reserves as of 12/31/08, primarily attributable to the shallow Devonian sands existing low pressure gathering and compression facilities
Petroleum Development Corp. Closes Public Offering Of 4,312,500 Shares Of Common Stock
Petroleum Development Corp. announced that it has closed its public offering of 4,312,500 shares of common stock, including 562,500 shares issued upon full exercise of underwriters' over-allotment option, at a price to the public of $12.00 per share. The net proceeds from the offering were approximately $48.6 million (after deducting underwriting discounts and commissions and estimated expenses). Petroleum Development Corporation intends to use the net proceeds of the offering to repay borrowings under its credit facility. J.P. Morgan Securities Inc. acted as sole book-running manager for the common stock offering.
Petroleum Development Corp. Announces Pricing of Common Stock Offering
Petroleum Development Corp. announced that it has priced its public offering of 3,750,000 shares of common stock at a price of $12.00 per share. The offering is expected to close on August 17, 2009. The Company has also granted the underwriters a 30-day option to purchase up to an additional 562,500 shares of common stock. The Company intends to use the net proceeds of the offering to repay borrowings under its credit facility. J.P. Morgan Securities Inc. is acting as sole book-running manager for the common stock offering.
Petroleum Development Corp. Announces Common Stock Offering
Petroleum Development Corp. announced an underwritten public offering of 3,750,000 shares of common stock. The underwriters for the offering will also have a 30-day option to purchase up to 562,500 additional shares of common stock to cover any over-allotments. Petroleum Development Corporation intends to use the net proceeds from the offering to repay borrowings under its credit facility. J.P. Morgan Securities Inc. is acting as sole book-running manager for the common stock offering.
