DUG East Conference 2010

November 3, 2010
Disclaimer

The following information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on Management’s current expectations and beliefs, as well as a number of assumptions concerning future
events.
These statements are based on certain assumptions and analyses made by Management in light of its experience and its perception of historical
trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However,
whether actual results and developments will conform with Management’s expectations and predictions is subject to a number of risks and
uncertainties, general economic, market or business conditions; the opportunities (or lack thereof) that may be presented to and pursued by
Petroleum Development Corporation; actions by competitors; changes in laws or regulations; and other factors, many of which are beyond the
control of Petroleum Development Corporation.
You are cautioned not to put undue reliance on such forward-looking statements because actual results may vary materially from those expressed
or implied, as more fully discussed in our safe harbor statements found in our SEC filings, including, without limitation, the discussion under the
heading “Risk Factors” in the Company’s 2009 annual report on Form 10-K and in subsequent Form 10-Qs. All forward-looking statements are
based on information available to Management on this date and Petroleum Development Corporation assumes no obligation to, and expressly
disclaims any obligation to, update or revise any forward looking statements, whether as a result of new information, future events or otherwise.
The SEC permits oil and gas companies to disclose in their filings with the SEC proved reserves, probable reserves and possible reserves. SEC
regulations define “proved reserves” as those quantities of oil or gas which, by analysis of geosciences and engineering data, can be estimated
with reasonable certainty to be economically producible in future years from known reservoirs under existing economic conditions, operating
methods and government regulations; “probable reserves” as unproved reserves which, together with proved reserves, are as likely as not to be
recovered; and “possible reserves” as unproved reserves which are less certain to be recovered than probable reserves. Estimates of probable
and possible reserves which may potentially be recoverable through additional drilling or recovery techniques are by nature more uncertain than
estimates of proved reserves and accordingly are subject to substantially greater risk of not actually being realized by the Company. In addition,
the Company’s reserves and production forecasts and expectations for future periods are dependent upon many assumptions, including estimates
of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant
commodity price declines or drilling cost increases.
This material also contains certain non-GAAP financial measures as defined under the Securities and Exchange Commission rules.

11/3/2010 2
Corporate Profile

Corporate Summary Capitalization

• PDC Energy is an independent oil and natural 06/30/2009 06/30/2010
gas company with operations primarily in the Net Debt Total $397 $218
Rocky Mountain region, Appalachian Basin and Common Equity 476 516
Permian Basin
Minority Interest (1) 1 -
• PDC was founded in 1969 in Bridgeport, WV Total Capitalization ($MM) $873 $734
and is headquartered in Denver, CO Debt Ratios:
Debt/EBITDAX (LTM) 1.88x 1.28x
Senior Debt/EBITDAX (LTM) 0.90x 1.08x
Enterprise Value EBITDAX/ Interest Net (LTM) 6.5x 5.3x
Debt/Book Cap 47% 32%
09/30/2009 09/30/2010
Share Price $18.66 $27.60
Diluted Share Outstanding (MM) 14.8 19.3
Market Capitalization ($MM) $276 $533
52-Week High ($/share) $44.37 $30.36
52-Week Low ($/share) $9.70 $16.44

11/3/2010 3
 Core Operating Regions

Rocky Mountains Michigan Basin (Divested)

2010E Production: 32.6 Bcfe 2010E Production: 0.8 Bcfe**
2010E Production
36.4 Bcfe

Appalachian Basin (7%)

West Texas (1%)
Michigan
Basin (2%)

Rocky
Mountains (90%)

West Texas
2010E Production: 0.5 Bcfe

Appalachian Basin (PDCM)

2009 YE Proved Reserves : 717 Bcfe
2010E Production: 2.5 Bcfe

2009 YE 3P Reserves: 990 Bcfe

11/3/2010 4
PDC Appalachian Basin History

• PDC was founded in 1969 in Bridgeport, WV

• From 1969 through 1995, PDC drilled over 2,000 shallow Devonian wells throughout
the basin, mainly centered in West Virginia
– Funding was achieved through a series of private and public drilling partnerships
– 120,000 net acres in shallow Devonian

• From 1995 through 1999, PDC continued to grow with development drilling in
Michigan’s Antrim Shale play

• In 1999 PDC expanded its operations to the Rocky Mountains

– Drilled and completed over 1,000 wells in Wattenberg Field
– Drilled and completed over 250 wells in the Piceance Basin
– Expanded operations into the shallow Niobrara gas play

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PDC Appalachian Basin History

• In 2007 PDC took a renewed look at its legacy Appalachian assets

– Re-established development efforts in the shallow Devonian
– Expanded technical staff to re-focus operational efforts in the east
– Acquired $60 MM of assets in Pennsylvania

• 2007-2008 initiated land and technical focus on Marcellus

– Determined approximately 50,000 net acres of Marcellus leasehold existed on PDC’s legacy
acreage
– Initiated full geologic study of Marcellus
– Began planning for vertical Marcellus delineation program

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2009 Overview – Appalachian Basin

• Full geological basin study of the Marcellus development

• Vertical well delineation

– Assessed WV lease holdings with seven vertical wells
– Cored two wells in WV to define rock properties, GIP, etc.
– Full suite of state of the art logging program implemented
– Tested multiple completion designs on all vertical wells
– Conducted reservoir testing

• Implemented 3D program across acreage position

– Identification of Geo-hazards
– Confirmation of potential horizontal locations

• Key conclusions
– Data supports horizontal development in the Marcellus
– Substantial resource potential exists
– Over-pressured reservoir
– PDC determined an outside partner was required to fully develop the Marcellus

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PDC Energy Leasehold: West Virginia
44,250 Net Acres

Note: Net acreage represents total JV acreage.

11/3/2010 8
Marcellus – Technical Data

Gas Shale PDC

Success Marcellus
Factors Barnett Fayetteville Haynesville Marcellus Wells
Depth 5,400’ -9,600’ 1,200’ - 7,500’ 10,000’-13,000’ 2,500’ - 8,500’ 7,100’ - 7,650’

Thickness 200’ – 500’ 50’ – 200’ 200’ – 300’ 50’ – 300’ 103’ - 168’

TOC (Total
2% - 7% 2% - 5% ≈ 4% 2% - 14% 1% - 12%
Organic Carbon)
Maturity (%Ro) 1.1% - 1.7% 1.2% - 3.0% 2.2% - 3.0% 0.4% - 3.5% 1.5% - 2.5%+

Avg. Log Porosity 7% 4% - 12% 10% 5.5% - 7.5% 2% - 16%

Water Saturation 25% - 35% 15% - 50% 15% - 20% 2% - 35% 5% - 33%

Pressure (psi/ft) 0.52 0.435 0.9 0.4 - 0.7 0.55-0.60

• PDC’s West Virginia acreage is over-pressured

– This is a success factor for all Shale plays
• Porosity ranges are within the “success” window and results with horizontal
wells are encouraging
• High maturity which yields low Btu gas
– 1000 to1050 Btu/Scf gas

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PDC Mountaineer Joint Venture

PDC Mountaineer, LLC

+ =
PA
• Appalachian JV effective Oct 1, 2009
• Strategic joint venture with Lime Rock Partners formed
WV
to develop our Marcellus and Shallow Devonian
acreage
• Allows for a more aggressive development of the asset
• Provides PDC with cash
• Gives PDC more financial flexibility in developing other
assets and in the A&D markets
• Operations funded by Lime Rock until 50/50 parity is
reached
• PDC ownership % goes down as more capital is
contributed by Lime Rock
• Managed by a joint board of PDC and Lime Rock

11/3/2010 10
PDC Mountaineer JV
2010 Year to Date

• Drilled and completed three horizontal wells

– Averaged 28 day drill time
• Well #1: 24 days
• Well #2: 44 days
• Well #3: 16 days
– First horizontal completion executed in late June – 15 stages
• Selling gas at rates above 3 Bcf type curve, anticipate reserves at 3 to 5 Bcf
• Less than 10% load recovery
• Flowing up 5-1/2” casing
– Second and third horizontal wells completed in July and August
• WOPL until mid October
• Initial gas rates above 3 Bcf type curve
• Less than 10% load recovery
• Three 3D seismic shoots completed – 20 square miles
– Clean resolution of Marcellus, no major geohazards identified
• Microseismic conducted on first and second horizontal completions
– Outstanding individual stage placement within Marcellus
– Clean orientation established
– Microseismic being utilized to optimize completion design

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PDC Mountaineer JV
Forward Looking

• Secured a drilling rig in Q3 2010 on a long term contract

• Spud fourth horizontal well in early Q4

• Continuous drilling through year end 2010 and early 2011

• Additional completions planned in Q4 and early Q1 2011

• Drilled one vertical delineation well on eastern most acreage

• Continue to pursue farm-in and leasing opportunities

• Next 3D seismic shoot anticipated in fall 2011

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Marcellus Economics

Economic Drivers
• Drilling Efficiencies
•Rig moves
•Construction cost controls
•Water supply and disposal
•Completion Optimization
•Lateral length
•Completion cost escalation
•Completion design
•Microseismic and log selection
•Economic Balance
•Cost controls (long term)
•Long term gathering options
•Infrastructure costs in early years
•Environmental and Regulatory
•Be proactive in state and local agencies
•More regulation on the way

11/3/2010 13
Marcellus Shale Resource Potential –
West Virginia

West Virginia Resource Potential – Marcellus (unrisked)

• Vertical/horizontal drilling opportunities exist on all 44,000 acres of leasehold
– 55 to 70 Bcf in place per section
– 3.8 to 4.8 Tcf gas in place
– Range between 378 Bcf and 1.44 Tcf of recoverable reserves (10%-30%
recovery factor)

Initial Reserve/Horizontal Drilling Potential

• Identification of over 200 horizontal drilling locations in West Virginia
• Potential for 500 Bcfe to 875 Bcfe - 8/8ths to the joint venture
• 3D seismic provides excellent geo-hazard control for booking offset reserves

11/3/2010 14
Marcellus Midstream Efforts

• PDCM’s JV Board approved a ten year commitment to firm takeaway

capacity escalating to 26 MMcf/d in the first two years

• Firm takeaway satisfies capacity commitment of 2010 and 2011 volume

projections

• 2010 and 2011 drilling and completions timeline should provide quick to
market sales

• Commitments are with an existing pipeline; no significant construction delays

anticipated

• Current gas quality is 1,050 Btu/Scf

• Processing requirements not anticipated for WV development

• 2013 and beyond midstream strategy being pursued

11/3/2010 15
Takeaways

• PDC Mountaineer has a significant acreage position with up to one Tcf

reserve potential

• PDC Mountaineer has a fully staffed, experienced operating team located in

the heart of its acreage position

• The Company’s acreage position is HBP, with no drilling commitments or

significant up front acreage costs

• Early geologic and production data strongly supports reserves of

3 to 5 Bcfe/well

• Gas sales will be quick to market and PDC has secured longer-term
takeaway in area

• Two year rig commitment recently executed and currently drilling fourth
horizontal well

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DUG East Conference 2010

November 3, 2010