CONFORMED
COPY
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities and Exchange Act of 1934
For the period ended September 30, 1997
OR
[ ] Transition Report Pursuant to Section 13 of 15(d) of
the Securities and Exchange Act of 1934
For the transition period from to
Commission file number 0-7246
I.R.S. Employer Identification Number 95-2636730
PETROLEUM DEVELOPMENT CORPORATION
(A Nevada Corporation)
103 East Main Street
Bridgeport, WV 26330
Telephone: (304) 842-6256
Indicate by check mark whether the registrant (1) has filed all
reports
required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of
1934 during the preceding 12 months (or for such shorter period
that the
registrant was required to file such reports), and (2) has been
subject to
such filing requirements for the past 90 days. Yes XX No
Indicate the number of shares outstanding of each of the issuers
classes of
common stock, as of the latest practicable date: 10,985,753 shares
of the
Company's Common Stock ($.01 par value) were outstanding as of
September 30,
1997.<PAGE>
PETROLEUM DEVELOPMENT CORPORATION AND SUBSIDIARIES
INDEX
PART I - FINANCIAL INFORMATION
Page No.
Item 1. Financial Statements
Independent Auditors' Review Report
1
Condensed Consolidated Balance Sheets -
September 30, 1997 and December 31, 1996
2
Condensed Consolidated Statements of Operations -
Three Months and Nine Months Ended
September 30, 1997 and 1996
4
Condensed Consolidated Statements of Cash Flows - Nine
Months Ended September 30, 1997 and 1996
5
Notes to Condensed Consolidated Financial Statements
6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
8
PART II OTHER INFORMATION
Item 1. Legal Proceedings
12
Item 4. Submission of Matters to a Vote of Security Holders
12
Item 6. Exhibits and Reports on Form 8-K
12
<PAGE>
PART I - FINANCIAL INFORMATION
Independent Auditors' Review Report
The Board of Directors
Petroleum Development Corporation:
We have reviewed the accompanying condensed consolidated
balance
sheet of Petroleum Development Corporation and subsidiaries as of
September
30, 1997, and the related condensed consolidated statements of
operations
for the three-month and nine-month periods ended September 30, 1997
and 1996
and the related condensed consolidated statements of cash flows for
the
nine-month periods ended September 30, 1997 and 1996. These
financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards
established
by the American Institute of Certified Public Accountants. A
review of
interim financial information consists principally of applying
analytical
review procedures to financial data and making inquiries of persons
responsible for financial and accounting matters. It is
substantially less
in scope than an audit conducted in accordance with generally
accepted
auditing standards, the objective of which is the expression of an
opinion
regarding the financial statements taken as a whole. Accordingly,
we do not
express such an opinion.
Based on our review, we are not aware of any material
modifications
that should be made to the condensed consolidated financial
statements
referred to above for them to be in conformity with generally
accepted
accounting principles.
We have previously audited, in accordance with generally
accepted
auditing standards, the consolidated balance sheet of Petroleum
Development
Corporation and subsidiaries as of December 31, 1996 and the
related
consolidated statements of operations, retained earnings, and cash
flows for
the year then ended (not presented herein); and in our report dated
March 13,
1997, we expressed an unqualified opinion on those consolidated
financial
statements. In our opinion, the information set forth in the
accompanying
condensed consolidated balance sheet as of December 31, 1996, is
fairly
presented, in all material respects, in relation to the
consolidated balance
sheet from which it has been derived.
KPMG PEAT MARWICK
LLP
Pittsburgh, Pennsylvania
November 6, 1997
<PAGE>
PETROLEUM DEVELOPMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
September 30, 1997 and December 31, 1996
<TABLE>
<S> <S>
<S>
ASSETS
1997
1996
(Unaudited)
Current assets:
Cash and cash equivalents $10,302,000
$20,615,400
Accounts and notes receivable 5,001,800
6,696,000
Inventories 358,100
567,200
Prepaid expenses 1,485,800
740,900
Total current assets 17,147,700
28,619,500
Properties and equipment 61,407,500
56,962,000
Less accumulated depreciation, depletion,
and amortization 23,912,100
22,522,300
37,495,400
34,439,700
Other assets 651,300
545,000
$55,294,400
$63,604,200
</TABLE>
(Continued)
-2-
<PAGE>
PETROLEUM DEVELOPMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets, Continued
September 30, 1997 and December 31, 1996
<TABLE>
<S> <S>
<S>
LIABILITIES AND
STOCKHOLDERS' EQUITY
1997
1996
(Unaudited)
Current liabilities:
Accounts payable and accrued expenses $ 9,714,600
$11,715,700
Advances for future drilling contracts 6,164,800
18,397,000
Funds held for future distribution 1,127,000
864,000
Total current liabilities 17,006,400
30,976,700
Long-term debt 3,000,000
5,320,000
Other liabilities 1,310,900
1,094,200
Deferred income taxes 3,515,700
3,140,800
Stockholders' equity:
Common stock 109,900
104,600
Additional paid-in capital 8,582,800
6,617,300
Warrants outstanding 46,400
-
Retained earnings 21,789,900
16,427,400
Unamortized stock award (67,600)
(76,800)
Total stockholders' equity 30,461,400
23,072,500
$55,294,400
$63,604,200
</TABLE>
See accompanying notes to condensed consolidated financial
statements.
-3-
<PAGE>
PETROLEUM DEVELOPMENT CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Three and Nine Months ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<S> <S> <S>
<S> <S>
Three Months Ended
Nine Months Ended
September 30,
September 30,
1997 1996
1997 1996
Revenues:
Oil and gas well drilling operations $ 5,265,300 $2,991,300
$24,542,100 $13,723,900
Oil and gas sales 7,363,300 7,168,100
23,712,100 16,132,700
Well operations and pipeline income 1,111,500 1,017,600
3,359,600 2,864,700
Other income 214,900 140,000
666,400 370,700
13,955,000 11,317,000
52,280,200 33,092,000
Costs and expenses:
Cost of oil and gas well drilling
operations 3,833,500 2,455,100
19,592,300 11,225,300
Oil and gas purchases
and production costs 6,968,800 6,958,000
21,685,200 15,042,300
General and administrative expenses 631,900 651,000
1,723,400 1,762,900
Depreciation, depletion, and
amortization 607,400 583,400
1,827,800 1,790,800
Interest 83,600 106,400
288,100 245,800
12,125,200 10,753,900
45,116,800 30,067,100
Income before income taxes 1,829,800 563,100
7,163,400 3,024,900
Income taxes 376,800 152,600
1,800,900 674,500
Net income $ 1,453,000 $ 410,500 $
5,362,500 $ 2,350,400
Earnings per common and
common equivalent share $ .12 $ .04
$ .46 $ .21
</TABLE>
See accompanying notes to condensed consolidated
financial statements.
-4-
<PAGE>
PETROLEUM DEVELOPMENT CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
Nine Months Ended September 30, 1997 and
1996
(Unaudited)
<TABLE>
<S> <S>
<S>
1997
1996
Cash flows from operating activities:
Net income $ 5,362,500
$ 2,350,400
Adjustments to net income
to reconcile to cash used in
operating activities:
Deferred federal income taxes 374,900
142,600
Depreciation, depletion & amortization 1,827,800
1,790,800
Leasehold acreage expired or surrendered 100,000
130,300
Employee compensation paid in stock 9,200
14,900
Gain on disposal of assets (69,500)
(9,000)
Decrease in current assets 1,158,400
347,100
Increase in other assets (117,200)
(196,000)
Decrease in current liabilities (13,970,300)
(10,929,900)
Increase in other liabilities 216,700
217,500
Total adjustments (10,470,000)
(8,491,700)
Net cash used in
operating activities (5,107,500)
(6,141,300)
Cash flows from investing activities:
Capital expenditures (5,856,900)
(5,311,400)
Proceeds from sale of leases 882,800
444,600
Proceeds from sale of other assets 71,000
9,000
Net cash acquired from
purchase of subsidiary -
1,450,000
Net cash used in
investing activities (4,903,100)
(3,407,800)
Cash flows from financing activities:
Proceeds from borrowings -
4,200,000
Proceeds from sale of common stock 2,017,200
120,300
Purchase of treasury stock -
(1,000,000)
Retirement of debt (2,320,000)
(1,150,000)
Net cash (used in) provided by
financing activities (302,800)
2,170,300
Net changes in cash and cash equivalents (10,313,400)
(7,378,800)
Cash and cash equivalents, beginning of period 20,615,400
10,053,600
Cash and cash equivalents, end of period $10,302,000
$ 2,674,800
</TABLE>
See accompanying notes to condensed consolidated
financial statements.
-5-
<PAGE>
PETROLEUM DEVELOPMENT CORPORATION AND
SUBSIDIARIES
Notes to Condensed Consolidated Financial
Statements
September 30, 1997
(Unaudited)
1. Accounting Policies
Reference is hereby made to the Company's Annual Report on
Form 10-K
for 1996, which contains a summary of major accounting
policies
followed by the Company in the preparation of its
consolidated
financial statements. These policies were also followed
in
preparing the quarterly report included herein.
2. Basis of Presentation
The Management of the Company believes that all
adjustments
(consisting of only normal recurring accruals) necessary
to a fair
statement of the results of such periods have been made.
The results
of operations for the nine months ended September 30, 1997
are not
necessarily indicative of the results to be expected for
the full year.
3. Oil and Gas Properties
Oil and Gas Properties are reported on the successful
efforts method.
4. Common Stock
On September 15, 1997, the Company consummated a private
offering of
Common Stock (the "Private Placement"), pursuant to which it
issued and
sold 500,000 shares at a price of $4.00 per share, and issued
warrants for 125,000 shares of Common Stock exercisable
during a
two-year period ending September 15, 1999 at an exercise
price of $6.00
per share, resulting in proceeds to the Company of $2.0
million.
No registration rights were granted in connection with the
securities
issued in the Private Placement.
5. Earnings Per Share
Computation of earnings per common and common equivalent
share are
as follows for the nine months ended September 30, 1997
and 1996:
<TABLE>
<S> <S> <S>
<S> <S>
Three Months Ended
Nine Months Ended
September 30,
September 30,
1997 1996
1997 1996
Weighted average common
shares outstanding 11,908,283 11,497,179
11,785,294 11,367,140
Net income $ 1,453,000 $ 410,500 $
5,362,500 $ 2,350,400
Earnings per common and
common equivalent share $ .12 $ .04 $
.46 $ .21
</TABLE>
-6-
<PAGE>
PETROLEUM DEVELOPMENT CORPORATION AND
SUBSIDIARIES
Notes to Condensed Consolidated Financial
Statements
September 30, 1997
(Unaudited)
6. Commitments and Contingencies
The nature of the independent oil and gas industry
involves a
dependence on outside investor drilling capital and
involves a
concentration of gas sales to a few customers. The
Company sells
natural gas to various public utilities and industrial
customers.
One customer, Hope Gas Inc., a regulated public utility,
accounted
for 13.4 percent of total revenues in the first nine
months of 1997.
7. Subsequent Event
On November 3, 1997, The Company completed a transaction
for the
public offering of 3,850,000 shares of its common stock,
3,500,000
shares of which are being issued and sold by the Company
and 350,000 shares of which are being sold by certain
stockholders
of the Company, at a price to the public of $6.25 per
share. The
Company has granted the underwriters a 30-day option to
purchase
an additional 577,500 shares from the Company to cover
over
allotments, if any.
-7-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and
Results of Operations
Results of Operations
Three Months Ended September 30, 1997 Compared With September 30,
1996
Revenues. Total revenues for the three months ended
September 30,
1997 were $14.0 million compared to $11.3 million for the three
months ended
September 30, 1996, an increase of approximately $2.7 million, or
23.9
percent. Such increase was primarily a result of increased
drilling
revenues. Drilling revenues for the three months ended September
30, 1997
were $5.3 million compared to $3.0 million for the three months
ended September 30, 1996, an increase of approximately $2.3
million, or 77.7
percent. Such increase resulted from higher volumes of drilling
and
completion activities, due to increased levels of drilling
partnership-related
financing. Oil and gas sales for the three months ended September
30, 1997
were $7.4 million compared to $7.2 million for the three months
ended
September 30, 1996, an increase of approximately $200,000, or 2.8
percent.
Such increase was due primarily to natural gas marketing
activities, along
with increased natural gas production offset in part by lower
average sales
prices from the Company's producing properties. Well operations
and
pipeline income for the three months ended September 30, 1997 were
$1.1
million compared to $1.0 million for the three months ended
September 30,
1996, an increase of approximately $100,000, or 10.0 percent. Such
increase resulted from an increase in the number of wells operated
by the
Company. Other income for the three months ended September 30,
1997 was
$215,000 compared to $140,000 for the three months ended September
30, 1996, an increase of approximately $75,000, or 53.6 percent.
Such
increase resulted from interest earned on higher average cash
balances.
Costs and expenses. Costs and expenses for the three
months ended
September 30, 1997 were $12.1 million compared to $10.8 million for
the
three months ended September 30, 1996, an increase of approximately
$1.3 million or 12.0 percent. Oil and gas well drilling operations
costs
for the three months ended September 30, 1997 were $3.8 million
compared to
$2.5 million for the three months ended September 30, 1996, an
increase of approximately $1.3 million, or 52.0 percent. Such
increase
resulted from additional expenses resulting from increased drilling
activity.
Oil and gas purchases and production costs for the three months
ended
September 30, 1997 remained relatively constant at $6.9 million.
General
and administrative expenses for the three months ended September
30, 1997
remained relatively constant at $632,000 compared with $651,000 for
the three months ended September 30, 1996.
Net income. Net income for the three months ended
September 30,
1997 was $1.5 million compared to net income of $400,000 for the
three months
ended September 30, 1996, an increase of approximately $1.1
million, or 275.0 percent.
-8-
<PAGE>
Nine Months Ended September 30, 1997 Compared With September 30,
1996
Revenues. Total revenues for the nine months ended
September 30,
1997 were $52.3 million compared to $33.1 million for the nine
months ended
September 30, 1996, an increase of approximately $19.2 million, or
58.0
percent. Such increase was a result of increased drilling revenues
and oil
and gas sales. Drilling revenues for the nine months ended
September 30, 1997
were $24.5 million compared to $13.7 million for the nine months
ended
September 30, 1996, an increase of approximately $10.8 million, or
78.8
percent. Such increase resulted from higher volumes of drilling and
completion activities, due to increased levels of drilling
partnership-related financing. Oil and gas sales for the nine
months ended
September 30, 1997 were $23.7 million compared to $16.1 million for
the nine
months ended September 30, 1996, an increase of approximately $7.6
million,
or 47.2 percent. Such increase was due primarily to natural gas
marketing
activities, which accounted for $7.1 million of the increase.
Increased
natural gas production was offset in part by lower average sales
prices from
the Company's producing properties. Well operations and pipeline
income for
the nine months ended September 30, 1997 were $3.4 million compared
to $2.9
million for the nine months ended September 30, 1996, an increase
of
approximately $500,000, or 17.2 percent. Such increase resulted
from an
increase in the number of wells operated by the Company. Other
income for
the nine months ended September 30, 1997 was $666,000 compared to
$371,000
for the nine months ended September 30, 1996, an increase of
approximately $295,000, or 79.5 percent. Such increase resulted
from
interest earned on higher average cash balances together with a
gain on the
sale of equipment.
Costs and expenses. Costs and expenses for the nine
months ended
September 30, 1997 were $45.1 million compared to $30.1 million for
the nine
months ended September 30, 1996, an increase of approximately $15.0
million
or 49.8 percent. Oil and gas well drilling operations costs for
the nine
months ended September 30, 1997 were $19.6 million compared to
$11.2 million
for the nine months ended September 30, 1996, an increase of
approximately
$8.4 million, or 75.0 percent. Such increase resulted from
additional
expenses resulting from increased drilling activity. Oil and gas
purchases
and production costs for the nine months ended September 30, 1997
were $21.7
million compared to $15.0 million for the nine months ended
September 30,
1996, an increase of approximately $6.7 million, or 44.7 percent.
Such
increase was due primarily to purchases of natural gas for resale.
General
and administrative expenses for the nine months ended September 30,
1997
remained relatively constant at $1.7 million.
Net income. Net income for the nine months ended
September 30,
1997 was $5.4 million compared to net income of $2.4 for the nine
months
ended September 30, 1996, an increase of approximately $3.0
million,
or 125.0 percent.
-9-
<PAGE>
Liquidity and Capital Resources
The Company funds its operations through a combination of
cash flow
from operations, capital raised through drilling partnerships, and
use of the
Company's credit facility. Operational cash flow is generated by
sales of
natural gas from the Company's well interests, well drilling and
operating
activities for the Company's investor partners, natural gas
gathering and
transportation, and natural gas marketing. Cash payments from
Company-sponsored partnerships are used to drill and complete wells
for the
partnerships, with operating cash flow accruing to the Company to
the extent
payments exceed drilling costs. The Company utilizes its revolving
credit arrangement to meet the cash flow requirements of its
operating and
investment activities.
Sales volumes of natural gas have continued to increase
while natural
gas prices fluctuate monthly. The Company's natural gas sales
prices are
subject to increase and decrease based on various market-sensitive
indices.
A major factor in the variability of these indices is the seasonal
variation
of demand for natural gas, which typically peaks during the winter
months.
The volumes of natural gas sales are expected to continue to
increase as a
result of continued drilling activities. The Company utilizes
commodity-based derivative instruments (natural gas futures
contracts traded
on the NYMEX) as hedges to manage a portion of its exposure
to this price volatility. The futures contracts hedge committed
and
anticipated natural gas purchases and sales, generally forecasted
to occur
within a three to twelve-month period. As of September 30, 1997,
the Company
had futures contracts for the sale of $4.6 million of natural gas.
While
these contracts have nominal carrying value, their fair value,
represented by
the estimated amount that would be received upon termination of the
contracts, based on market quotes, was a net loss of $81,400 at
September 30,
1997. The Company is required to maintain margin deposits
($489,300 as of
September 30, 1997) with brokers for outstanding futures contracts.
On March 13, 1997, the Company amended and restated its
bank credit
agreement with First National Bank of Chicago, which provides a
borrowing
base of $10.0 million, subject to adequate oil and natural gas
reserves. At
the request of the Company, the bank, as its sole discretion, may
increase the
borrowing base to $20.0 million. As of September 30, 1997, the
balance
available under the line was $7.0 million. Interest accrues at
prime, with
LIBOR (London Interbank Market Rate) alternatives available at the
discretion
of the Company. No principal payments are required until the
credit agreement
expires on December 31, 1999.
The Company closed its first public drilling partnership
of 1997 in
the second quarter and drilled the wells funded thereby in the
second and
third quarters of 1997. The Company closed its second public
drilling
partnership of 1997 in September 1997 and plans to drill the wells
funded
thereby during the remainder of 1997. The Company's first and
second drilling
programs of 1997 closed with funding approximately 62 percent and
152
percent, respectively, higher than the first and second drilling
programs of
1996. The Company expects to close two additional partnerships in
1997.
Typically, the last partnership closed during each year is the
largest
partnership of the year; the last partnership of 1996 raised $15.3
million.
The Company generally invests, as its equity contribution to each
drilling
partnership, an additional sum approximating 20 percent of the
aggregate
subscriptions received for that particular drilling partnership.
As a
result, the Company is subject to substantial cash commitments at
the closing
of each drilling partnership. The funds received from these
programs are
restricted to use in future drilling operations. No assurance can
be made
that the Company will continue to receive this level of funding
from these or
future programs.
-10-
<PAGE>
On September 15 1997, the Company consummated a private
offering of
Common Stock (the "Private Placement"), pursuant to which it issued
and sold
500,000 shares at a price of $4.00 per share, and issued warrants
for 125,000
shares of Common Stock exercisable during a two-year period ending
September
15, 1999 at an exercise price of $6.00 per share, resulting in
proceeds to
the Company of $2.0 million. No registration rights were granted
in
connection with the securities issued in the Private Placement.
In September 1997, the Company was notified that it had
submitted a
successful bid for the acquisition of Columbia Gas Transmission
Company's
Rimersburg natural gas gathering system, located in northern
Pennsylvania.
If consummated, this transaction would occur in early to mid-1998
and would
add to the Company's existing natural gas gathering system 207
miles of
pipeline located in an area contiguous to the Company's
Pennsylvania drilling
operations, at a cost to the Company of $1.4 million.
On November 3, 1997, the Company completed a transaction
for the
public offering of 3,850,000 shares of its common stock, 3,500,000
shares of
which are being issued and sold by the Company and 350,000 shares
of which
are being sold by certain stockholders of the Company, at a price
to the
public of $6.25 per share. The Company has granted the
underwriters a 30-day
option to purchase an additional 577,500 shares from the Company to
cover
over allotments, if any. Net proceeds to the Company of
approximately $19.7
million from the sale of common stock will be used primarily to
fund
development drilling on new and existing properties, potential
acquisition of
producing properties and general corporate purposes, including
working
capital and possible acquisitions of complementary businesses.
The Company continues to pursue capital investment
opportunities in
producing natural gas properties as well as its plan to participate
in its
sponsored natural gas drilling partnerships, while pursuing
opportunities
for operating improvements and cost efficiencies. Management
believes that
the Company has adequate capital to meet its operating
requirements.
New Accounting Standards
In February 1997, the Financial Accounting Standards Board
issued
Statement of Financial Accounting Standards ("SFAS") No. 128,
Earnings per
Share. SFAS No. 128 supersedes APB Opinion No. 15, Earnings per
Share
("Opinion No. 15"), and requires the calculation and dual
presentation of
basic and diluted earnings per share ("EPS"), replacing the
measures of
primary and fully-diluted EPS as reported under Opinion No. 15.
SFAS No. 128
is effective for financial statements issued for periods ending
after December
15, 1997, earlier application is not permitted. Accordingly, EPS
for the
three- and nine-month periods ended September 30, 1997 and 1996
presented on
the accompanying statements of income are calculated under the
guidance of
Opinion 15.
Under SFAS No. 128. basic EPS would have been $0.51 and
$0.22 and
diluted EPS would have been $0.44 and $0.20 per share for the nine
months
ended September 30, 1997 and 1996, respectively. Also under SFAS
No. 128,
basic EPS would have been $0.14 and $0.04 and diluted EPS would
have been
$0.12 and $0.04 per share for the quarters ended September 30, 1997
and 1996,
respectively.
In June 1997, SFAS No. 130, "Reporting Comprehensive
Income," and
SFAS No. 131, "Disclosure about Segments of an Enterprise and
Related
Information," were issued. The Company will adopt these standards
in 1998.
-11-
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company is party to various legal actions in the
normal course
of business which would not materially affect the Company's
operations.
Item 4. Submission of Matters to a Vote of Security Holders
(a) An annual meeting of the Registrant's
stockholders was held
on July 15, 1997.
(c) The following matters were voted upon with the
results as
indicated below:
1) 1997 Incentive Stock Option Plan
Number of Votes Casted For - 5,809,723
Number of Votes Casted Against or Withheld -
628,090
Number of Abstentions - 68,771
Number of Broker Non-votes - 2,497,465
2) Deferred 1995 Restricted Stock Grant
Number of Votes Casted For - 4,872,285
Number of Votes Casted Against or Withheld -
721,177
Number of Abstentions - 69,381
Number of Broker Non-votes - 3,341,206
3) Ratification of Selection of KPMG Peat
Marwick as
Independent Accountants
Number of Votes Casted For - 8,919,437
Number of Votes Casted Against or Withheld -
60,855
Number of Abstentions - 23,757
Number of Broker Non-votes - None
Item 6. Exhibits and Reports on Form 8-K
(a) None.
(b) On September 15, 1997 the Registrant filed a Form
8-K (Item
5) for a Private Placement of 500,000 shares of
its common
stock.
-12-
<PAGE>
CONFORMED COPY
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934
the registrant has duly caused this report to be signed on its
behalf by the
undersigned thereunto duly authorized.
Petroleum Development Corporation
(Registrant)
Date: November 7, 1997 /s/ Steven R.
Williams
Steven R.
Williams
President
Date: November 7, 1997 /s/ Dale G.
Rettinger
Dale G.
Rettinger
Executive
Vice President
and
Treasurer
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 10,302,000
<SECURITIES> 0
<RECEIVABLES> 5,001,800
<ALLOWANCES> 0
<INVENTORY> 358,100
<CURRENT-ASSETS> 17,147,700
<PP&E> 61,407,500
<DEPRECIATION> 23,912,100
<TOTAL-ASSETS> 55,294,400
<CURRENT-LIABILITIES> 17,006,400
<BONDS> 0
0
0
<COMMON> 109,900
<OTHER-SE> 30,351,500
<TOTAL-LIABILITY-AND-EQUITY> 55,294,400
<SALES> 48,254,200
<TOTAL-REVENUES> 52,280,200
<CGS> 41,277,500
<TOTAL-COSTS> 44,828,700
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 288,100
<INCOME-PRETAX> 7,163,400
<INCOME-TAX> 1,800,900
<INCOME-CONTINUING> 5,362,500
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,362,500
<EPS-PRIMARY> .46
<EPS-DILUTED> 0
</TABLE>
