Business Combination Purchase Price Transaction Details (Tables)

9 Months Ended

Sep. 30, 2022

Business Combination, Separately Recognized Transactions [Line Items]

Business Combination, Separately Recognized Transactions [Table Text Block]

The following table presents our preliminary allocation of the total purchase price of Great Western to the identifiable assets acquired and liabilities assumed based on the fair values as of the acquisition date:

	(in thousands, except share and per share data)
Consideration:
Cash	$	542,500
Retirement of Great Western’s credit facility	235,822
Extinguishment of Great Western’s secured senior notes	361,231
Total cash consideration	$	1,139,553
Common stock issued	4,007,018
Fair value of PDC common stock on May 6, 2022	$	73.20
Total fair value of common stock issued	293,314
Total consideration	$	1,432,867
Assets acquired:
Cash	$	63,183
Accounts receivable	164,026
Other current assets	3,129
Properties and equipment, net - proved	2,089,443
Properties and equipment, net - other	7,035
Other noncurrent assets	21,888
Total assets acquired	$	2,348,704
Liabilities assumed:
Accounts payable	$	(118,485)
Production tax liability	(110,940)
Funds held for distribution	(166,212)
Other current liabilities	(18,603)
Fair value of derivatives	(319,600)
Asset retirement obligations	(23,442)
Deferred tax liabilities	(30,100)
Other liabilities	(32,803)
Total liabilities assumed	$	(820,185)
Total identifiable net assets acquired	$	1,528,519
Gain on bargain purchase	95,652
Purchase price consideration	$	1,432,867

Business Acquisition, Pro Forma Information [Table Text Block]

The information below reflects certain nonrecurring pro forma adjustments that were directly related to the business combination based on available information and certain assumptions that we believe are reasonable, including (i) our common stock issued to the owners of Great Western, (ii) the increase in depletion reflecting the relative fair values and production volumes attributable to Great Western’s properties and the revision to the depletion rate reflecting the reserve volumes acquired, (iii) adjustments to interest expense as a result of payoff of Great Western’s credit facility and secured senior notes, (iv) the adjustment to reflect the gain on bargain purchase, and (v) the estimated tax impacts of the pro forma adjustments. In addition, pro forma earnings were adjusted to exclude acquisition-related costs incurred by us and Great Western totaling approximately $4.9 million and $33.4 million for the three and nine months ended September 30, 2022, respectively, and included the total costs of $33.4 million for the nine months ended September 30, 2021.

	Three months ended September 30,		Nine months ended September 30,
	2021		2022		2021
	(in thousands, except per share data)
Total revenues	$	570,736	$	3,017,856	$	1,189,724
Net income (loss)	128,818		1,299,632		(8,654)
Earnings (loss) per share:
Basic	$	1.26	$	12.99	$	(0.08)
Diluted	1.24		12.81		(0.08)