| ·   | The Company reported net income for the quarter ended March 31, 2010 of $23.7 million, or $1.23 per diluted share, compared with a March 31, 2009 quarterly net loss of $5.7 million, or a $0.38 loss per diluted share. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Adjusted net income attributable to shareholders, a non-GAAP financial measure defined below, for the first quarter 2010 was $10.9 million, or $0.57 per diluted share, compared to $4.1 million, or $0.27 per diluted share in the same 2009 period. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | First quarter 2010 results reflect a 30% increase in average realized sales prices (including realized gains on derivatives), to $9.20 per Mcfe for Q1 2010 compared to $7.08 per Mcfe for Q1 2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Adjusted cash flow from operations, a non-GAAP financial measure defined below, for the first quarter 2010 was $49.3 million, compared to $39.7 million for the first quarter 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | First quarter 2010 production of 9.1 Bcfe exceeded the Company’s guidance of 8.5 Bcfe by 7%, primarily due to increased production from the Wattenberg Field. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company drilled 38.6 total net wells during the first quarter 2010, compared to 24.9 total net wells drilled in the same 2009 period. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating costs and G&A are in line with expectations. |
|--------------------|------------------------------------------------------------|

| ·   | The Company’s liquidity at March 31, 2010 improved to $253.8 million, compared to $238.2 million at December 31, 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

|   |                        |                                                                                              |   |                                                                                  |   |                                                                                        |   |                                                                        |
|--------|-----------------------------|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|
|   | Wells Drilled               |
|   |                        |                                                                                              |   |                                                                                  |   |                                                                                        |   |                                                                        |
|   |                        | Three Months Ended March 31,                                                                      |   |                                                                                  |
|   |                        | 2010                                                                                              |   |                                                                                  |   | 2009                                                                                        |   |                                                                        |
|   |                        | Gross                                                                                             |   | Net                                                                                   |   | Gross                                                                                       |   | Net                                                                         |
|   | Rocky Mountain Region:      |                                                                                              |   |                                                                                  |   |                                                                                        |   |                                                                        |
|   | Wattenberg                  |              38                  |   |           33.8                      |   |              18            |   | 17.9                                                                        |
|   | Piceance                    |                4       |   |             4.0           |   |                1 |   | 1.0                                                                         |
|   | NECO                        |                 - |   |               - |   |                5 |   | 2.5                                                                         |
|   | Other                       |                1       |   |             0.1           |   |                1 |   |             0.5 |
|   | Total Rocky Mountain Region |              43                  |   |           37.9                      |   |              25            |   | 21.9                                                                        |
|   | Appalachian Basin           | 1                                                                                                 |   | 0.7                                                                                   |   |                3 |   | 3.0                                                                         |
|   | Total Wells Drilled         | 44                                                                                                |   | 38.6                                                                                  |   | 28                                                                                          |   | 24.9                                                                        |
|   |                        |                                                                                              |   |                                                                                  |   |                                                                                        |   |                                                                        |

|   |                                                                                |                                                                    |                                                                    |                                                                    |                                                                    |
|--------|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------|
|   | Average Costs Related to Oil and Gas Operations (per Mcfe)                          |
|   |                                                                                |                                                                    |                                                                    |                                                                    |                                                                    |
|   |                                                                                |                                                                    | Three Months Ended March 31,                                            |
|   |                                                                                |                                                                    |                                                                    |                                                                    |                                                                    |
|   |                                                                                |                                                                    | 2010                                                                    |                                                                    | 2009                                                                    |
|   | Average lifting costs (lease operating expense, exclusive of production taxes) |  $          1.04 |                                                                    |  $          0.93 |
|   | Exploration expense (less impairment and amortization)                              |                                                                    |  $          0.64 |                                                                    |  $          0.45 |
|   | DD&A (oil and gas properties only)                                              |                                                                    |  $          2.91 |                                                                    |  $          2.90 |
|   |                                                                                |                                                                    |                                                                    |                                                                    |                                                                    |

|                                  |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |
|---------------------------------------|------------------------------|--------|------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                  | Three Months Ended March 31, |   |       |
|                                  | 2010                         |   | 2009       |   | % Change                                                                                                                                                                                                                                                                                                                                       |
| Natural Gas (Mcf)                     |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |
| Rocky Mountain Region                 | 6,275,218                    |   | 7,788,034  |   | -19%                                                                                                                                                                                                                                                                                                                                           |
| Appalachian Basin                     | 630,510                      |   | 975,681    |   | -35%                                                                                                                                                                                                                                                                                                                                           |
| Other                                 | 368,799                      |   | 326,546    |   | 13%                                                                                                                                                                                                                                                                                                                                            |
| Total                                 | 7,274,527                    |   | 9,090,261  |   | -20%                                                                                                                                                                                                                                                                                                                                           |
|                                  |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |
| Weighted Average Sales Price per Mcf  | $5.30                        |   | $3.23      |   | 64%                                                                                                                                                                                                                                                                                                                                            |
|                                  |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |
| Oil (Bbls)                            |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |
| Rocky Mountain Region                 | 294,876                      |   | 341,183    |   | -14%                                                                                                                                                                                                                                                                                                                                           |
| Appalachian Basin                     | 722                          |   | 1,704      |   | -58%                                                                                                                                                                                                                                                                                                                                           |
| Other                                 | 1,080                        |   | 997        |   | 8%                                                                                                                                                                                                                                                                                                                                             |
| Total                                 | 296,678                      |   | 343,884    |   | -14%                                                                                                                                                                                                                                                                                                                                           |
|                                  |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |
| Weighted Average Sales Price per Bbl  | $73.55                       |   | $37.77     |   | 95%                                                                                                                                                                                                                                                                                                                                            |
|                                  |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |
| Natural Gas Equivalents (Mcfe)*       |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |
| Rocky Mountain Region                 | 8,044,474                    |   | 9,835,132  |   | -18%                                                                                                                                                                                                                                                                                                                                           |
| Appalachian Basin                     | 634,842                      |   | 985,905    |   | -36%                                                                                                                                                                                                                                                                                                                                           |
| Other                                 | 375,279                      |   | 332,528    |   | 13%                                                                                                                                                                                                                                                                                                                                            |
| Total                                 | 9,054,595                    |   | 11,153,565 |   | -19%                                                                                                                                                                                                                                                                                                                                           |
|                                  |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |
| Weighted Average Sales Price per Mcfe | $6.67                        |   | $3.79      |   |                                                         76% |
|                                  |                         |   |       |   |                                                                                                                                                                                                                                                                                                                                           |

|   |                                             |   |                                                                                              |   |                                                                    |
|--------|--------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|
|   | Adjusted Cash Flow from Operations               |
|   |                                             |   |                                                                                              |   |                                                                    |
|   |                                             |   | Three Months Ended March 31,                                                                      |
|   |                                             |   |                                                                                              |   |                                                                    |
|   |                                             |   | 2010                                                                                              |   | 2009                                                                    |
|   | Net cash provided by operating activities        |   |  $      51,345                                                 |   |  $      35,879                       |
|   | Changes in assets and liabilities                |   | (2,016)                                                                                           |   | 3,862                                                                   |
|   | Adjusted cash flow from operations               |   |  $      49,329                                                 |   |  $      39,741                       |
|   |                                             |   |                                                                                              |   |                                                                    |
|   |                                             |   |                                                                                              |   |                                                                    |
|   |                                             |   |                                                                                              |   |                                                                    |
|   | Adjusted Net Income Attributable to Shareholders |
|   |                                             |   |                                                                                              |   |                                                                    |
|   |                                             |   | Three Months Ended March 31,                                                                      |
|   |                                             |   |                                                                                              |   |                                                                    |
|   |                                             |   | 2010                                                                                              |   | 2009                                                                    |
|   | Net income (loss) attributable to shareholders   |   |  $      23,724                                                 |   |  $      (5,703)                      |
|   | Unrealized (gain) loss on derivatives, net       |   |        (20,490)                                                |   |          13,188            |
|   | Provision for underpayment of gas sales          |   |                 - |   |            2,581 |
|   | Tax effect of above adjustments                  |   |            7,689                           |   |          (6,012)           |
|   | Adjusted net income attributable to shareholders |   |  $      10,923                                                 |   |  $        4,054            |
|   | Weighted average diluted shares outstanding      |   |          19,287                                      |   |          14,793            |
|   | Adjusted earnings per share - diluted            |   |  $          0.57                           |   |  $          0.27 |
|   |                                             |   |                                                                                              |   |                                                                    |

| PETROLEUM DEVELOPMENT CORPORATION                                         |
|---------------------------------------------------------------------------|
| Condensed Consolidated Statements of Operations                           |
| (unaudited; in thousands, except per share data)                          |
|                                                                      |   |   |   |
|                                                                      | Three Months EndedMarch 31, |
|                                                                      | 2010 |   | 2009 |
| Revenues:                                                                 |   |   |   |
| Natural gas and oil sales                                                 |  $        60,368 |   |  $        39,742 |
| Sales from natural gas marketing                                          |            24,311 |   |            22,389 |
| Commodity price risk management gain, net                                 |            43,222 |   |            23,683 |
| Well operations, pipeline income and other                                |              2,845 |   |              2,838 |
| Total revenues                                                            |          130,746 |   |            88,652 |
|                                                                      |   |   |   |
| Costs and expenses:                                                       |   |   |   |
| Natural gas and oil production and well operations costs             |            15,676 |   |            16,361 |
| Cost of natural gas marketing                                             |            23,854 |   |            21,878 |
| Exploration expense and impairment of natural gas and oil properties |              6,418 |   |              5,643 |
| General and administrative expense                                        |            10,694 |   |            12,094 |
| Depreciation, depletion and amortization                                  |            28,389 |   |            34,360 |
| Total costs and expenses                                                  |            85,031 |   |            90,336 |
|                                                                      |   |   |   |
| Gain on sale of leaseholds                                                |                      - |   |                 120 |
|                                                                      |   |   |   |
| Income (loss) from operations                                             |            45,715 |   |            (1,564) |
| Interest income                                                           |                     5 |   |                   20 |
| Interest expense                                                          |            (7,800) |   |            (8,383) |
| Income from continuing operations before income taxes                     |            37,920 |   |            (9,927) |
| Provision (benefit) for income taxes                                      |            14,251 |   |            (4,095) |
| Income (loss) from continuing operations                                  |            23,669 |   |            (5,832) |
| Income from discontinued operations, net of tax                           |                      - |   |                 113 |
| Net income (loss)                                                         |            23,669 |   |            (5,719) |
| Less: net loss attributable to noncontrolling interests              |                 (55) |   |                 (16) |
| Net income (loss) attributable to shareholders                            |  $        23,724 |   |  $        (5,703) |
|                                                                      |   |   |   |
| Amounts attributable to PDC shareholders:                                 |   |   |   |
| Income (loss) from continuing operations                                  |  $        23,724 |   |  $        (5,816) |
| Income from discontinued operations, net of tax                           |                      - |   |                 113 |
| Net income (loss) attributable to shareholders                            |  $        23,724 |   |  $        (5,703) |
|                                                                      |   |   |   |
| Earnings (loss) per share attributable to shareholders - diluted:    |   |   |
| Income (loss) from continuing operations                                  |  $            1.23 |   |  $          (0.39) |
| Income from discontinued operations                                       |                    - |   |                0.01 |
| Net income (loss) attributable to shareholders                            |  $            1.23 |   |  $          (0.38) |
|                                                                      |   |   |   |
| Weighted average common shares outstanding - diluted                      |            19,287 |   |            14,793 |
|                                                                      |   |   |   |
|                                                                      |   |   |   |

| ·   | changes in production volumes, worldwide demand, and commodity prices for oil and natural gas; |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | the timing and extent of our success in discovering, acquiring, developing and producing natural gas and oil reserves; |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | our ability to acquire leases, drilling rigs, supplies and services at reasonable prices; |
|--------------------|-------------------------------------------------------------------------------------------|

| ·   | the availability and cost of capital to us; |
|--------------------|---------------------------------------------|

| ·   | risks incident to the drilling and operation of natural gas and oil wells; |
|--------------------|----------------------------------------------------------------------------|

| ·   | future production and development costs; |
|--------------------|------------------------------------------|

| ·   | the availability of sufficient pipeline and other transportation facilities to carry our production and the impact of these facilities on price; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the effect of existing and future laws, governmental regulations and the political and economic climate of the United States of America; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the effect of natural gas and oil derivatives activities; |
|--------------------|-----------------------------------------------------------|

| ·   | conditions in the capital markets; and |
|--------------------|----------------------------------------|

| ·   | losses possible from pending or future litigation. |
|--------------------|----------------------------------------------------|

----