·	The Company reported net income for the quarter ended March 31, 2010 of $23.7 million, or $1.23 per diluted share, compared with a March 31, 2009 quarterly net loss of $5.7 million, or a $0.38 loss per diluted share.

·	Adjusted net income attributable to shareholders, a non-GAAP financial measure defined below, for the first quarter 2010 was $10.9 million, or $0.57 per diluted share, compared to $4.1 million, or $0.27 per diluted share in the same 2009 period.

·	First quarter 2010 results reflect a 30% increase in average realized sales prices (including realized gains on derivatives), to $9.20 per Mcfe for Q1 2010 compared to $7.08 per Mcfe for Q1 2009.

·	Adjusted cash flow from operations, a non-GAAP financial measure defined below, for the first quarter 2010 was $49.3 million, compared to $39.7 million for the first quarter 2009.

·	First quarter 2010 production of 9.1 Bcfe exceeded the Company’s guidance of 8.5 Bcfe by 7%, primarily due to increased production from the Wattenberg Field.

·	The Company drilled 38.6 total net wells during the first quarter 2010, compared to 24.9 total net wells drilled in the same 2009 period.

·	Operating costs and G&A are in line with expectations.

·	The Company’s liquidity at March 31, 2010 improved to $253.8 million, compared to $238.2 million at December 31, 2009.

	Three Months Ended March 31,
	2010		2009		% Change
Natural Gas (Mcf)
Rocky Mountain Region	6,275,218		7,788,034		-19%
Appalachian Basin	630,510		975,681		-35%
Other	368,799		326,546		13%
Total	7,274,527		9,090,261		-20%
Weighted Average Sales Price per Mcf	$5.30		$3.23		64%
Oil (Bbls)
Rocky Mountain Region	294,876		341,183		-14%
Appalachian Basin	722		1,704		-58%
Other	1,080		997		8%
Total	296,678		343,884		-14%
Weighted Average Sales Price per Bbl	$73.55		$37.77		95%
Natural Gas Equivalents (Mcfe)*
Rocky Mountain Region	8,044,474		9,835,132		-18%
Appalachian Basin	634,842		985,905		-36%
Other	375,279		332,528		13%
Total	9,054,595		11,153,565		-19%
Weighted Average Sales Price per Mcfe	$6.67		$3.79		76%

 

PETROLEUM DEVELOPMENT CORPORATION
Condensed Consolidated Statements of Operations
(unaudited; in thousands, except per share data)
	Three Months Ended March 31,
	2010		2009
Revenues:
Natural gas and oil sales	$        60,368		$        39,742
Sales from natural gas marketing	24,311		22,389
Commodity price risk management gain, net	43,222		23,683
Well operations, pipeline income and other	2,845		2,838
Total revenues	130,746		88,652
Costs and expenses:
Natural gas and oil production and well  operations costs	15,676		16,361
Cost of natural gas marketing	23,854		21,878
Exploration expense and impairment of natural gas  and oil properties	6,418		5,643
General and administrative expense	10,694		12,094
Depreciation, depletion and amortization	28,389		34,360
Total costs and expenses	85,031		90,336
Gain on sale of leaseholds	-		120
Income (loss) from operations	45,715		(1,564)
Interest income	5		20
Interest expense	(7,800)		(8,383)
Income from continuing operations before income taxes	37,920		(9,927)
Provision (benefit) for income taxes	14,251		(4,095)
Income (loss) from continuing operations	23,669		(5,832)
Income from discontinued operations, net of tax	-		113
Net income (loss)	23,669		(5,719)
Less: net loss attributable to noncontrolling  interests	(55)		(16)
Net income (loss) attributable to shareholders	$        23,724		$        (5,703)
Amounts attributable to PDC shareholders:
Income (loss) from continuing operations	$        23,724		$        (5,816)
Income from discontinued operations, net of tax	-		113
Net income (loss) attributable to shareholders	$        23,724		$        (5,703)
Earnings (loss) per share attributable to shareholders -  diluted:
Income (loss) from continuing operations	$            1.23		$          (0.39)
Income from discontinued operations	-		0.01
Net income (loss) attributable to shareholders	$            1.23		$          (0.38)
Weighted average common shares outstanding - diluted	19,287		14,793

 

·	changes in production volumes, worldwide demand, and commodity prices for oil and natural gas;

·	the timing and extent of our success in discovering, acquiring, developing and producing natural gas and oil reserves;

·	our ability to acquire leases, drilling rigs, supplies and services at reasonable prices;

·	the availability and cost of capital to us;

·	risks incident to the drilling and operation of natural gas and oil wells;

·	future production and development costs;

·	the availability of sufficient pipeline and other transportation facilities to carry our production and the impact of these facilities on price;

·	the effect of existing and future laws, governmental regulations and the political and economic climate of the United States of America;

·	the effect of natural gas and oil derivatives activities;

·	conditions in the capital markets; and

·	losses possible from pending or future litigation.