Pdc Energy Intrinsic Value – PDC ENERGY Reports Q2 Earnings Results for Period Ending June 30, 2023
August 28, 2023
☀️Earnings Overview
On August 1, 2023, PDC ($NASDAQ:PDCE) Energy revealed their earnings results for the second quarter of FY2023, ending June 30, 2023. The total revenue for the quarter was USD 871.8 million, a year-over-year decrease of 29.7%, and net income was USD 288.7 million, representing a 56.4% decrease from the same period last year.
Price History
PDC Energy stock opened at $75.5 and closed at $75.3, down by 0.8% from last closing price of 75.9. PDC Energy also announced an increase in its full-year guidance for capital expenditures and operating costs; a shift in the composition of its gas production mix; and a decrease in its total debt to $1 billion. Going forward, PDC Energy is looking to focus on cost efficiencies and growth in its core fields.
Overall, PDC Energy had a relatively successful quarter considering the current economic environment and expectations for the sector. Investors are hopeful for stronger results in the upcoming quarters and are confident that PDC Energy will continue to succeed and grow in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pdc Energy. More…
| Total Revenues | Net Income | Net Margin |
| 4.68k | 1.85k | 47.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pdc Energy. More…
| Operations | Investing | Financing |
| 2.39k | -1.31k | -1.12k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pdc Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.36k | 3.94k | 50.84 |
Key Ratios Snapshot
Some of the financial key ratios for Pdc Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 60.1% | 322.8% | 52.4% |
| FCF Margin | ROE | ROA |
| 22.8% | 35.5% | 18.4% |
Analysis – Pdc Energy Intrinsic Value
GoodWhale has conducted an analysis of the wellbeing of PDC ENERGY. Our proprietary Valuation Line has calculated the intrinsic value per share of PDC ENERGY to be around $90.9. Currently, PDC ENERGY stock is being traded at $75.3, which makes it a fair price that is undervalued by 17.1%. More…
Peers
PDC Energy Inc is an oil and gas company with operations in the United States and Canada. The company’s competitors include Pine Cliff Energy Ltd, Traverse Energy Ltd, and SandRidge Energy Inc.
– Pine Cliff Energy Ltd ($TSX:PNE)
Pine Cliff Energy Ltd has a market cap of 596.68M as of 2022, a Return on Equity of 77.26%. The company is engaged in the exploration, development, production and marketing of natural gas and light oil in Western Canada.
– Traverse Energy Ltd ($NYSE:SD)
SandRidge Energy Inc is an American oil and natural gas company with a market cap of 660.25M as of 2022. The company has a Return on Equity of 30.54%. SandRidge Energy Inc is engaged in the exploration, development, and production of oil and natural gas properties.
Summary
PDC Energy reported its Q2 earnings for the period ended June 30 2023 with total revenue of USD 871.8 million and net income of USD 288.7 million. This resulted in a 29.7% decrease in revenue and 56.4% decrease in net income year over year. The downward trend is not good news for investors as PDC Energy’s share price has dropped significantly since the announcement.
Analysts suggest that continued low oil prices and market saturation will continue to put pressure on PDC Energy’s bottom line. Investors should watch closely to see if the company can stabilize in the coming quarters and make changes to increase profitability.
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