Subsidiary Guarantor SUBSIDIARY GUARANTOR (Notes)

12 Months Ended

Dec. 31, 2019

Guarantor Obligations [Line Items]

Guarantees [Text Block]

SUBSIDIARY GUARANTOR

PDC Permian, Inc., our wholly-owned subsidiary, guarantees our obligations under our publicly-registered senior notes. The following presents the consolidating financial information separately for:

(i)	PDC Energy, Inc. ("Parent"), the issuer of the guaranteed obligations, including non-material subsidiaries;
(ii)	PDC Permian, Inc., the guarantor subsidiary ("Guarantor"), as specified in the indentures related to our senior notes;
(iii)	Eliminations representing adjustments to (a) eliminate intercompany transactions between or among Parent, Guarantor and our other subsidiaries and (b) eliminate the investments in our subsidiaries; and
(iv)	Parent and subsidiaries on a consolidated basis ("Consolidated").

The Guarantor is 100 percent owned by the Parent. The senior notes are fully and unconditionally guaranteed on a joint and several basis by the Guarantor. The guarantee is subject to release in limited circumstances only upon the occurrence of certain customary conditions. Each entity in the consolidating financial information follows the same accounting policies as described in the notes to the consolidated financial statements.

The following consolidating financial statements have been prepared on the same basis of accounting as our consolidated financial statements. Investments in subsidiaries are accounted for under the equity method. Accordingly, the entries necessary to consolidate the Parent and Guarantor are reflected in the eliminations column.

	Consolidating Balance Sheets
	December 31, 2019
	Parent			Guarantor			Eliminations			Consolidated
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	963		$	—		$	—		$	963
Accounts receivable, net	140,742			125,612			—			266,354
Fair value of derivatives	28,078			—			—			28,078
Prepaid expenses and other current assets	8,204			431			—			8,635
Total current assets	177,987			126,043			—			304,030
Properties and equipment, net	2,328,337			1,766,865			—			4,095,202
Intercompany receivable	348,818			—			(348,818		)	—
Investment in subsidiaries	1,286,931			—			(1,286,931		)	—
Fair value of derivatives	3,746			—			—			3,746
Other assets	38,863			6,839			—			45,702
Total Assets	$	4,184,682		$	1,899,747		$	(1,635,749	)	$	4,448,680
Liabilities and Stockholders' Equity
Liabilities
Current liabilities:
Accounts payable	$	72,212		$	26,722		$	—		$	98,934
Production tax liability	67,509			8,727			—			76,236
Fair value of derivatives	2,921			—			—			2,921
Funds held for distribution	83,072			15,321			—			98,393
Accrued interest payable	14,281			3			—			14,284
Other accrued expenses	68,803			1,659			—			70,462
Total current liabilities	308,798			52,432			—			361,230
Intercompany payable	—			348,818			(348,818		)	—
Long-term debt	1,177,226			—			—			1,177,226
Deferred income taxes	169,520			26,321			—			195,841
Asset retirement obligations	87,749			7,302			—			95,051
Fair value of derivatives	692			—			—			692
Other liabilities	105,190			177,943			—			283,133
Total liabilities	1,849,175			612,816			(348,818		)	2,113,173
Commitments and contingent liabilities
Stockholders' equity
Common shares	617			—			—			617
Additional paid-in capital	2,384,309			1,766,775			(1,766,775		)	2,384,309
Retained deficit	(47,945		)	(479,844		)	479,844			(47,945		)
Treasury shares	(1,474		)	—			—			(1,474		)
Total stockholders' equity	2,335,507			1,286,931			(1,286,931		)	2,335,507
Total Liabilities and Stockholders' Equity	$	4,184,682		$	1,899,747		$	(1,635,749	)	$	4,448,680

	Consolidating Balance Sheets
	December 31, 2018
	Parent			Guarantor			Eliminations			Consolidated
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	1,398		$	—		$	—		$	1,398
Accounts receivable, net	146,529			34,905			—			181,434
Fair value of derivatives	84,492			—			—			84,492
Prepaid expenses and other current assets	6,725			411			—			7,136
Total current assets	239,144			35,316			—			274,460
Properties and equipment, net	2,270,711			1,732,151			—			4,002,862
Assets held-for-sale, net	—			140,705			—			140,705
Intercompany receivable	451,601			—			(451,601		)	—
Investment in subsidiaries	1,316,945			—			(1,316,945		)	—
Fair value of derivatives	93,722			—			—			93,722
Other assets	30,084			2,312			—			32,396
Total Assets	$	4,402,207		$	1,910,484		$	(1,768,546	)	$	4,544,145
Liabilities and Stockholders' Equity
Liabilities
Current liabilities:
Accounts payable	$	110,847		$	71,017		$	—		$	181,864
Production tax liability	53,309			7,410			—			60,719
Fair value of derivatives	3,364			—			—			3,364
Funds held for distribution	90,183			15,601			—			105,784
Accrued interest payable	14,143			7			—			14,150
Other accrued expenses	73,689			1,444			—			75,133
Total current liabilities	345,535			95,479			—			441,014
Intercompany payable	—			451,601			(451,601		)	—
Long-term debt	1,194,876			—			—			1,194,876
Deferred income taxes	162,368			35,728			—			198,096
Asset retirement obligations	79,904			5,408			—			85,312
Liabilities held-for-sale	—			4,111			—			4,111
Fair value of derivatives	1,364			—			—			1,364
Other liabilities	91,452			1,212			—			92,664
Total liabilities	1,875,499			593,539			(451,601		)	2,017,437
Commitments and contingent liabilities
Stockholders' equity
Common shares	661			—			—			661
Additional paid-in capital	2,519,423			1,766,775			(1,766,775		)	2,519,423
Retained earnings (deficit)	8,727			(449,830		)	449,830			8,727
Treasury shares	(2,103		)	—			—			(2,103		)
Total stockholders' equity	2,526,708			1,316,945			(1,316,945		)	2,526,708
Total Liabilities and Stockholders' Equity	$	4,402,207		$	1,910,484		$	(1,768,546	)	$	4,544,145

	Consolidating Statements of Operations
	Year Ended December 31, 2019
	Parent			Guarantor			Eliminations		Consolidated
	(in thousands)
Revenues
Crude oil, natural gas and NGLs sales	$	999,250		$	308,025		$	—	$	1,307,275
Commodity price risk management loss, net	(162,844		)	—			—		(162,844		)
Other income	10,972			720			—		11,692
Total revenues	847,378			308,745			—		1,156,123
Costs, expenses and other
Lease operating expenses	94,829			47,419			—		142,248
Production taxes	61,577			19,177			—		80,754
Transportation, gathering and processing expenses	23,719			22,634			—		46,353
Exploration, geologic and geophysical expense	1,111			2,943			—		4,054
General and administrative expense	144,345			17,408			—		161,753
Depreciation, depletion and amortization	451,282			192,870			—		644,152
Accretion of asset retirement obligations	5,446			671			—		6,117
Impairment of properties and equipment	292			38,244			—		38,536
(Gain) loss on sale of properties and equipment	(853		)	10,587			—		9,734
Other expenses	11,317			—			—		11,317
Total costs, expenses and other	793,065			351,953			—		1,145,018
Income (loss) from operations	54,313			(43,208		)	—		11,105
Interest expense	(75,257		)	4,086			—		(71,171		)
Interest income	71			1			—		72
Loss before income taxes	(20,873		)	(39,121		)	—		(59,994		)
Income tax (expense) benefit	(5,784		)	9,106			—		3,322
Equity in loss of subsidiary	(30,015		)	—			30,015		—
Net loss	$	(56,672	)	$	(30,015	)	$	30,015	$	(56,672	)

	Consolidating Statements of Operations
	Year Ended December 31, 2018
	Parent			Guarantor			Eliminations		Consolidated
	(in thousands)
Revenues
Crude oil, natural gas and NGLs sales	$	1,050,696		$	339,265		$	—	$	1,389,961
Commodity price risk management gain, net	145,237			—			—		145,237
Other income	10,744			2,717			—		13,461
Total revenues	1,206,677			341,982			—		1,548,659
Costs, expenses and other
Lease operating expenses	92,228			38,729			—		130,957
Production taxes	67,819			22,538			—		90,357
Transportation, gathering and processing expenses	16,607			20,796			—		37,403
Exploration, geologic and geophysical expense	1,234			4,970			—		6,204
General and administrative expense	152,798			17,706			—		170,504
Depreciation, depletion and amortization	389,841			169,952			—		559,793
Accretion of asset retirement obligations	4,617			458			—		5,075
Impairment of properties and equipment	27			458,370			—		458,397
(Gain) loss on sale of properties and equipment	(4,387		)	4,781			—		394
Other expenses	11,829			—			—		11,829
Total costs, expenses and other	732,613			738,300			—		1,470,913
Income (loss) from operations	474,064			(396,318		)	—		77,746
Interest expense	(73,251		)	2,521			—		(70,730		)
Interest income	413			—			—		413
Income (loss) before income taxes	401,226			(393,797		)	—		7,429
Income tax (expense) benefit	(98,611		)	93,205			—		(5,406		)
Equity in loss of subsidiary	(300,592		)	—			300,592		—
Net income (loss)	$	2,023		$	(300,592	)	$	300,592	$	2,023

Net loss for the Guarantor for the year ended 2018 is primarily the result of impairment of certain unproved Delaware Basin leasehold positions.

	Consolidating Statements of Operations
	Year Ended December 31, 2017
	Parent			Guarantor			Eliminations		Consolidated
	(in thousands)
Revenues
Crude oil, natural gas, and NGLs sales	$	788,400		$	124,684		$	—	$	913,084
Commodity price risk management loss, net	(3,936		)	—			—		(3,936		)
Other income	11,901			567			—		12,468
Total revenues	796,365			125,251			—		921,616
Costs, expenses and other
Lease operating expenses	68,031			21,610			—		89,641
Production taxes	53,236			7,481			—		60,717
Transportation, gathering and processing expenses	23,301			9,919			—		33,220
Exploration, geologic and geophysical expense	1,092			46,242			—		47,334
General and administrative expense	107,518			12,852			—		120,370
Depreciation, depletion and amortization	403,984			65,100			—		469,084
Accretion of asset retirement obligations	5,965			341			—		6,306
Impairment of properties and equipment	4,951			280,936			—		285,887
Impairment of goodwill	—			75,121			—		75,121
Gain on sale of properties and equipment	(766		)	—			—		(766		)
Provision for uncollectible notes receivable	(40,203		)	—			—		(40,203		)
Other expenses	13,157			—			—		13,157
Total costs, expenses and other	640,266			519,602			—		1,159,868
Income (loss) from operations	156,099			(394,351		)	—		(238,252		)
Loss on extinguishment of debt	(24,747		)	—			—		(24,747		)
Interest expense	(79,919		)	1,225			—		(78,694		)
Interest income	2,261			—			—		2,261
Income (loss) before income taxes	53,694			(393,126		)	—		(339,432		)
Income tax (expense) benefit	(33,643		)	245,571			—		211,928
Equity in loss of subsidiary	(147,555		)	—			147,555		—
Net loss	$	(127,504	)	$	(147,555	)	$	147,555	$	(127,504	)

Net loss for the Guarantor for the year ended 2017 is primarily the result of the exploratory dry hole expense, impairment of certain unproved Delaware Basin leasehold positions and the impairment of goodwill.

	Consolidating Statements of Cash Flows
	Year Ended December 31, 2019
	Parent			Guarantor			Eliminations			Consolidated
	(in thousands)
Cash flows from operating activities	$	579,464		$	278,762		$	—		$	858,226
Cash flows from investing activities:
Capital expenditures for development of crude oil and natural gas properties	(485,725		)	(370,183		)	—			(855,908		)
Capital expenditures for other properties and equipment	(20,361		)	(478		)	—			(20,839		)
Acquisition of crude oil and natural gas properties	(12,141		)	(1,066		)	—			(13,207		)
Proceeds from sale of properties and equipment	399			1,706			—			2,105
Proceeds from divestiture	5,515			196,561			—			202,076
Restricted cash	8,001			—			—			8,001
Intercompany transfers	105,004			—			(105,004		)	—
Net cash from investing activities	(399,308		)	(173,460		)	(105,004		)	(677,772		)
Cash flows from financing activities:
Proceeds from revolving credit facility	1,577,000			—			—			1,577,000
Repayment of revolving credit facility	(1,605,500		)	—			—			(1,605,500		)
Payment of debt issuance costs	(72		)	—			—			(72		)
Purchase of treasury stock	(154,363		)	—			—			(154,363		)
Purchase of treasury shares for employee stock-based compensation tax withholding obligations	(4,003		)	—			—			(4,003		)
Principal payments under financing lease obligations	(1,654		)	(298		)	—			(1,952		)
Intercompany transfers	—			(105,004		)	105,004			—
Net cash from financing activities	(188,592		)	(105,302		)	105,004			(188,890		)
Net change in cash, cash equivalents and restricted cash	(8,436		)	—			—			(8,436		)
Cash, cash equivalents and restricted cash, beginning of period	9,399			—			—			9,399
Cash, cash equivalents and restricted cash, end of period	$	963		$	—		$	—		$	963

	Consolidating Statements of Cash Flows
	Year Ended December 31, 2018
	Parent			Guarantor			Eliminations			Consolidated
	(in thousands)
Cash flows from operating activities	$	625,206		$	264,096		$	—		$	889,302
Cash flows from investing activities:
Capital expenditures for development of crude oil and natural gas properties	(482,534		)	(463,816		)	—			(946,350		)
Capital expenditures for other properties and equipment	(9,806		)	(1,249		)	—			(11,055		)
Acquisition of crude oil and natural gas properties	(179,955		)	(71		)	—			(180,026		)
Proceeds from sale of properties and equipment	1,929			1,633			—			3,562
Proceeds from divestiture	44,693			—			—			44,693
Restricted cash	1,249			—			—			1,249
Intercompany transfers	(199,584		)	—			199,584			—
Net cash from investing activities	(824,008		)	(463,503		)	199,584			(1,087,927		)
Cash flows from financing activities:
Proceeds from revolving credit facility	1,072,500			—			—			1,072,500
Repayment of revolving credit facility	(1,040,000		)	—			—			(1,040,000		)
Payment of debt issuance costs	(7,704		)	—			—			(7,704		)
Purchase of treasury shares for employee stock-based compensation tax withholding obligations	(5,147		)	—			—			(5,147		)
Principal payments under financing lease obligations	(1,318		)	(177		)	—			(1,495		)
Other	(55		)	—			—			(55		)
Intercompany transfers	—			199,584			(199,584		)	—
Net cash from financing activities	18,276			199,407			(199,584		)	18,099
Net change in cash, cash equivalents and restricted cash	(180,526		)	—			—			(180,526		)
Cash, cash equivalents and restricted cash, beginning of period	189,925			—			—			189,925
Cash, cash equivalents and restricted cash, end of period	$	9,399		$	—		$	—		$	9,399

	Consolidating Statements of Cash Flows
	Year Ended December 31, 2017
	Parent			Guarantor			Eliminations			Consolidated
	(in thousands)
Cash flows from operating activities	$	546,954		$	50,859		$	—		$	597,813
Cash flows from investing activities:
Capital expenditures for development of crude oil and natural gas properties	(439,897		)	(297,311		)	—			(737,208		)
Capital expenditures for other properties and equipment	(3,539		)	(1,555		)	—			(5,094		)
Acquisition of crude oil and natural gas properties	(21,000		)	5,372			—			(15,628		)
Proceeds from sale of properties and equipment	10,084			(93		)	—			9,991
Sale of promissory note	40,203			—			—			40,203
Restricted cash	(9,250		)	—			—			(9,250		)
Sales of short-term investments	49,890			—			—			49,890
Purchases of short-term investments	(49,890		)	—			—			(49,890		)
Intercompany transfers	(239,191		)	—			239,191			—
Net cash from investing activities	(662,590		)	(293,587		)	239,191			(716,986		)
Cash flows from financing activities:
Proceeds from issuance of senior notes	592,366			—			—			592,366
Redemption of senior notes	(519,375		)	—			—			(519,375		)
Payment of debt issuance costs	(50		)	—			—			(50		)
Purchase of treasury shares for employee stock-based compensation tax withholding obligations	(6,672		)	—			—			(6,672		)
Principal payments under financing lease obligations	(1,092		)	(76		)	—			(1,168		)
Other	(103		)	—			—			(103		)
Intercompany transfers	—			239,191			(239,191		)	—
Net cash from financing activities	65,074			239,115			(239,191		)	64,998
Net change in cash, cash equivalents and restricted cash	(50,562		)	(3,613		)	—			(54,175		)
Cash, cash equivalents and restricted cash, beginning of period	240,487			3,613			—			244,100
Cash, cash equivalents and restricted cash, end of period	$	189,925		$	—		$	—		$	189,925