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Energy Company of the Year - small cap, 2016: PDC Energy

Defying market performance, PDC has had a strong year, owing to a number of strategic manoeuvres that have allowed it to grow. Notably, agreements with a number of affiliates to utilise greater synergies has stamped out a clear and definitive path for companies of this size to move from strength to strength.

One of the most significant moves for the firm this year was its agreement with Noble Energy to consolidate certain acreage positions in the Core Wattenberg field located in Weld County, Colorado. As part of the deal PDC expects to receive approximately 13,500 net acres from Noble in exchange for around 11,700 net acres.

Bart Brookman, PDC’s President and CEO, said the agreement, “will enable us to design more comprehensive, long-term development plans, capture operational synergies and streamline marketing and midstream. Most significantly, the trade increases opportunities for longer horizontal laterals with significantly increased working interests, all while minimising potential surface impact.”

In terms of M&A, in August the group announced plans to spend $1.5bn in buying two companies with a combined 57,000 acres in the Permian Basin in West Texas, the biggest oil field in the US. The acres in Reeves and Culberson counties in Texas produce the equivalent of about 7,000 barrels of oil a day. Prior to this move, PDC had concentrated on wells in Colorado and Ohio.

The company, now forty years old, is widely acclaimed for its efficient methods, optimising operations, environmental consciousness, and progressive attitude toward sustainable corporate growth.

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