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|                          |  |
| Nevada                   | 95-2636730 |
| (State of incorporation) | (I.R.S. Employer Identification No.) |

|                                                                                      |
|--------------------------------------------------------------------------------------|
|                                                                                      |  |
| Large accelerated filer  x                                                 | Accelerated filer  o |
| Non-accelerated filer  £(Do not check if a smaller reporting company) | Smaller reporting company  o |

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|-----------------------------------|
|                                   |  |  |  |
|                              | PART I – FINANCIAL INFORMATION |   | Page |
|                              |   |   |   |
| Item 1.                           | Financial Statements |   |   |
|                              | Condensed Consolidated Balance Sheets (unaudited) |   | 1 |
|                              | Condensed Consolidated Statements of Operations (unaudited) |   | 2 |
|                              | Condensed Consolidated Statements of Cash Flows (unaudited) |   | 3 |
|                              | Notes to Condensed Consolidated Financial Statements |   | 4 |
| Item 2.                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 19 |
| Item 3.                           | Quantitative and Qualitative Disclosures About Market Risk |   | 32 |
| Item 4.                           | Controls and Procedures |   | 34 |
|                              |   |   |   |
| PART II – OTHER INFORMATION |
|                              |   |   |   |
| Item 1.                           | Legal Proceedings |   | 34 |
| Item 1A.                          | Risk Factors |   | 34 |
| Item 2.                           | Unregistered Sales of Equity Securities and Use of Proceeds |   | 35 |
| Item 3.                           | Defaults Upon Senior Securities |   | 35 |
| Item 4.                           | Mine Safety Disclosures |   | 35 |
| Item 5.                           | Other Information |   | 35 |
| Item 6.                           | Exhibits |   | 36 |
|                              |   |   |   |
|                              | SIGNATURES |   | 37 |

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|         |                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------|
| • | changes in worldwide production volumes and demand, including economic conditions that might impact demand; |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | volatility of commodity prices for crude oil, natural gas and NGLs; |

|         |                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | the impact of governmental policies and/or regulations, including changes in environmental and other laws, the interpretation and enforcement related to those laws and regulations, liabilities arising thereunder and the costs to comply with those laws and regulations; |

|         |                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------|
| • | potential declines in the value of our crude oil, natural gas and NGLs properties resulting in impairments; |

|         |                                          |
|---------|------------------------------------------|
| • | changes in estimates of proved reserves; |

|         |                                                                |
|---------|----------------------------------------------------------------|
| • | inaccuracy of reserve estimates and expected production rates; |

|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | potential for production decline rates from our wells being greater than expected; |

|         |                                                                                                |
|---------|------------------------------------------------------------------------------------------------|
| • | timing and extent of our success in discovering, acquiring, developing and producing reserves; |

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

|         |                                                                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | availability of sufficient pipeline, gathering and other transportation facilities and related infrastructure to process and transport our production, particularly in the Wattenberg Field and the Utica Shale, and the impact of these facilities and regional capacity on the prices we receive for our production; |

|         |                                                     |
|---------|-----------------------------------------------------|
| • | timing and receipt of necessary regulatory permits; |

|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | risks incidental to the drilling and operation of crude oil and natural gas wells; |

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | our future cash flows, liquidity and financial condition; |

|         |                                              |
|---------|----------------------------------------------|
| • | competition within the oil and gas industry; |

|         |                                   |
|---------|-----------------------------------|
| • | availability and cost of capital; |

|         |                                                                       |
|---------|-----------------------------------------------------------------------|
| • | reductions in the borrowing base under our revolving credit facility; |

|         |                                                           |
|---------|-----------------------------------------------------------|
| • | our success in marketing crude oil, natural gas and NGLs; |

|         |                                                             |
|---------|-------------------------------------------------------------|
| • | effect of crude oil and natural gas derivatives activities; |

|         |                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | impact of environmental events, governmental and other third-party responses to such events, and our ability to insure adequately against such events; |

|         |                                       |
|---------|---------------------------------------|
| • | cost of pending or future litigation; |

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | effect that acquisitions we may pursue have on our capital expenditures; |

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | our ability to retain or attract senior management and key technical employees; and |

|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | success of strategic plans, expectations and objectives for our future operations. |

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|                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                              |  |  |  |  |  |  |  |  |
|                                                                                                                                                         |   | March 31, 2014 |   | December 31, 2013 |
| Assets                                                                                                                                                       |   |   |   |   |
| Current assets:                                                                                                                                              |   |   |   |   |
| Cash and cash equivalents                                                                                                                                    |   | $ | 147,194 |  |   | $ | 193,243 |  |
| Restricted cash                                                                                                                                              |   | 2,215 |  |   | 2,214 |  |
| Accounts receivable, net                                                                                                                                     |   | 104,256 |  |   | 94,085 |  |
| Accounts receivable affiliates                                                                                                                               |   | 8,252 |  |   | 6,614 |  |
| Fair value of derivatives                                                                                                                                    |   | 827 |  |   | 2,572 |  |
| Deferred income taxes                                                                                                                                        |   | 25,795 |  |   | 22,374 |  |
| Prepaid expenses and other current assets                                                                                                                    |   | 5,063 |  |   | 4,711 |  |
| Total current assets                                                                                                                                         |   | 293,602 |  |   | 325,813 |  |
| Properties and equipment, net                                                                                                                                |   | 1,725,792 |  |   | 1,656,230 |  |
| Fair value of derivatives                                                                                                                                    |   | 2,566 |  |   | 5,601 |  |
| Other assets                                                                                                                                                 |   | 43,208 |  |   | 37,559 |  |
| Total Assets                                                                                                                                                 |   | $ | 2,065,168 |  |   | $ | 2,025,203 |  |
|                                                                                                                                                         |   |   |   |   |
| Liabilities and Shareholders' Equity                                                                                                                         |   |   |   |   |
| Liabilities                                                                                                                                                  |   |   |   |   |
| Current liabilities:                                                                                                                                         |   |   |   |   |
| Accounts payable                                                                                                                                             |   | $ | 106,501 |  |   | $ | 109,555 |  |
| Accounts payable affiliates                                                                                                                                  |   | — |  |   | 41 |  |
| Production tax liability                                                                                                                                     |   | 22,094 |  |   | 23,421 |  |
| Fair value of derivatives                                                                                                                                    |   | 29,214 |  |   | 15,515 |  |
| Funds held for distribution                                                                                                                                  |   | 39,927 |  |   | 32,578 |  |
| Current portion of long-term debt                                                                                                                            |   | 105,947 |  |   | — |  |
| Accrued interest payable                                                                                                                                     |   | 19,846 |  |   | 9,251 |  |
| Other accrued expenses                                                                                                                                       |   | 16,306 |  |   | 23,059 |  |
| Total current liabilities                                                                                                                                    |   | 339,835 |  |   | 213,420 |  |
| Long-term debt                                                                                                                                               |   | 561,250 |  |   | 656,990 |  |
| Deferred income taxes                                                                                                                                        |   | 120,552 |  |   | 118,767 |  |
| Asset retirement obligation                                                                                                                                  |   | 39,297 |  |   | 39,872 |  |
| Fair value of derivatives                                                                                                                                    |   | 3,467 |  |   | 3,015 |  |
| Other liabilities                                                                                                                                            |   | 32,631 |  |   | 25,545 |  |
| Total liabilities                                                                                                                                            |   | 1,097,032 |  |   | 1,057,609 |  |
|                                                                                                                                                         |   |   |   |   |
| Commitments and contingent liabilities                                                                                                                       |   |  |   |  |
|                                                                                                                                                         |   |   |   |   |
| Shareholders' equity                                                                                                                                         |   |   |   |   |
| Preferred shares - par value $0.01 per share, 50,000,000 shares authorized, none issued                                                                      |   | — |  |   | — |  |
| Common shares - par value $0.01 per share, 100,000,000 authorized, 35,778,057 and 35,675,656 issued as of March 31, 2014 and December 31, 2013, respectively |   | 358 |  |   | 357 |  |
| Additional paid-in capital                                                                                                                                   |   | 677,366 |  |   | 674,211 |  |
| Retained earnings                                                                                                                                            |   | 291,140 |  |   | 293,267 |  |
| Treasury shares - at cost, 14,897 and 5,508 as of March 31, 2014 and December 31, 2013, respectively                                                         |   | (728 | ) |   | (241 | ) |
| Total shareholders' equity                                                                                                                                   |   | 968,136 |  |   | 967,594 |  |
| Total Liabilities and Shareholders' Equity                                                                                                                   |   | $ | 2,065,168 |  |   | $ | 2,025,203 |  |

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|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |
|                                                |   | Three Months Ended March 31, |
|                                                |   | 2014 |   | 2013 |
| Revenues                                            |   |   |   |   |
| Crude oil, natural gas and NGLs sales               |   | $ | 129,844 |  |   | $ | 79,439 |  |
| Sales from natural gas marketing                    |   | 26,937 |  |   | 13,670 |  |
| Commodity price risk management loss, net           |   | (27,155 | ) |   | (22,355 | ) |
| Well operations, pipeline income and other          |   | 636 |  |   | 1,072 |  |
| Total revenues                                      |   | 130,262 |  |   | 71,826 |  |
| Costs, expenses and other                           |   |   |   |   |
| Production costs                                    |   | 21,204 |  |   | 15,858 |  |
| Cost of natural gas marketing                       |   | 26,870 |  |   | 13,736 |  |
| Exploration expense                                 |   | 307 |  |   | 1,689 |  |
| Impairment of crude oil and natural gas properties  |   | 979 |  |   | 46,459 |  |
| General and administrative expense                  |   | 23,612 |  |   | 15,115 |  |
| Depreciation, depletion, and amortization           |   | 46,639 |  |   | 27,949 |  |
| Accretion of asset retirement obligations           |   | 861 |  |   | 1,148 |  |
| (Gain) loss on sale of properties and equipment     |   | 725 |  |   | (38 | ) |
| Total cost, expenses and other                      |   | 121,197 |  |   | 121,916 |  |
| Income (loss) from operations                       |   | 9,065 |  |   | (50,090 | ) |
| Interest expense                                    |   | (12,830 | ) |   | (13,357 | ) |
| Interest income                                     |   | 251 |  |   | — |  |
| Loss from continuing operations before income taxes |   | (3,514 | ) |   | (63,447 | ) |
| Provision for income taxes                          |   | 1,387 |  |   | 22,492 |  |
| Loss from continuing operations                     |   | (2,127 | ) |   | (40,955 | ) |
| Income from discontinued operations, net of tax     |   | — |  |   | 1,537 |  |
| Net loss                                            |   | $ | (2,127 | ) |   | $ | (39,418 | ) |
|                                                |   |   |   |   |
| Earnings per share:                                 |   |   |   |   |
| Basic                                               |   |   |   |   |
| Loss from continuing operations                     |   | $ | (0.06 | ) |   | $ | (1.35 | ) |
| Income from discontinued operations, net of tax     |   | — |  |   | 0.05 |  |
| Net loss                                            |   | $ | (0.06 | ) |   | $ | (1.30 | ) |
|                                                |   |   |   |   |
| Diluted                                             |   |   |   |   |
| Loss from continuing operations                     |   | $ | (0.06 | ) |   | $ | (1.35 | ) |
| Income from discontinued operations, net of tax     |   | — |  |   | 0.05 |  |
| Net loss                                            |   | $ | (0.06 | ) |   | $ | (1.30 | ) |
|                                                |   |   |   |   |
| Weighted-average common shares outstanding:         |   |   |   |   |
| Basic                                               |   | 35,690 |  |   | 30,270 |  |
| Diluted                                             |   | 35,690 |  |   | 30,270 |  |
|                                                |   |   |   |   |

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|------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                              |  |  |  |  |  |  |  |  |
|                                                                                                                         |   | Three Months Ended March 31, |
|                                                                                                                         |   | 2014 |   | 2013 |
| Cash flows from operating activities:                                                                                        |   |   |   |   |
| Net loss                                                                                                                     |   | $ | (2,127 | ) |   | $ | (39,418 | ) |
| Adjustments to net loss to reconcile to net cash from operating activities:                                                  |   |   |   |   |
| Net change in fair value of unsettled derivatives                                                                            |   | 18,931 |  |   | 30,721 |  |
| Depreciation, depletion and amortization                                                                                     |   | 46,639 |  |   | 30,207 |  |
| Impairment of crude oil and natural gas properties                                                                           |   | 979 |  |   | 46,462 |  |
| Accretion of asset retirement obligation                                                                                     |   | 861 |  |   | 1,245 |  |
| Stock-based compensation                                                                                                     |   | 3,847 |  |   | 2,602 |  |
| (Gain) loss on sale of properties and equipment                                                                              |   | 725 |  |   | (38 | ) |
| Amortization of debt discount and issuance costs                                                                             |   | 1,709 |  |   | 1,752 |  |
| Deferred income taxes                                                                                                        |   | (1,636 | ) |   | (21,150 | ) |
| Other                                                                                                                        |   | (272 | ) |   | (36 | ) |
| Changes in assets and liabilities                                                                                            |   | 10,835 |  |   | (8,085 | ) |
| Net cash from operating activities                                                                                           |   | 80,491 |  |   | 44,262 |  |
| Cash flows from investing activities:                                                                                        |   |   |   |   |
| Capital expenditures                                                                                                         |   | (135,758 | ) |   | (61,873 | ) |
| Proceeds from acquisition adjustments                                                                                        |   | — |  |   | 7,579 |  |
| Proceeds from sale of properties and equipment                                                                               |   | 769 |  |   | 38 |  |
| Net cash from investing activities                                                                                           |   | (134,989 | ) |   | (54,256 | ) |
| Cash flows from financing activities:                                                                                        |   |   |   |   |
| Proceeds from revolving credit facility                                                                                      |   | 9,250 |  |   | 95,500 |  |
| Repayment of revolving credit facility                                                                                       |   | — |  |   | (85,000 | ) |
| Other                                                                                                                        |   | (801 | ) |   | (469 | ) |
| Net cash from financing activities                                                                                           |   | 8,449 |  |   | 10,031 |  |
| Net change in cash and cash equivalents                                                                                      |   | (46,049 | ) |   | 37 |  |
| Cash and cash equivalents, beginning of period                                                                               |   | 193,243 |  |   | 2,457 |  |
| Cash and cash equivalents, end of period                                                                                     |   | $ | 147,194 |  |   | $ | 2,494 |  |
|                                                                                                                         |   |   |   |   |
| Supplemental cash flow information:                                                                                          |   |   |   |   |
| Cash payments for:                                                                                                           |   |   |   |   |
| Interest, net of capitalized interest                                                                                        |   | $ | 1,159 |  |   | $ | 1,196 |  |
| Income taxes                                                                                                                 |   | 1,800 |  |   | 2 |  |
| Non-cash investing activities:                                                                                               |   |   |   |   |
| Change in accounts payable related to purchases of properties and equipment                                                  |   | $ | (10,978 | ) |   | $ | 8,413 |  |
| Change in asset retirement obligation, with a corresponding change to crude oil and natural gas properties, net of disposals |   | 137 |  |   | 98 |  |

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|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | March 31, 2014 |   | December 31, 2013 |
|                                  | Significant OtherObservableInputs(Level 2) |    | SignificantUnobservableInputs(Level 3) |    | Total |   | Significant OtherObservableInputs(Level 2) |    | SignificantUnobservableInputs(Level 3) |    | Total |
|                                  | (in thousands) |
| Assets:                               |   |   |   |   |   |   |   |   |   |   |   |
| Commodity-based derivative contracts  | $ | 1,810 |  |   | $ | 1,498 |  |   | $ | 3,308 |  |   | $ | 5,325 |  |     | $ | 2,385 |  |     | $ | 7,710 |  |
| Basis protection derivative contracts | 85 |  |   | — |  |   | 85 |  |   | 463 |  |   | — |  |   | 463 |  |
| Total assets                          | 1,895 |  |   | 1,498 |  |   | 3,393 |  |   | 5,788 |  |   | 2,385 |  |   | 8,173 |  |
| Liabilities:                          |   |   |   |   |   |   |   |     |   |     |   |
| Commodity-based derivative contracts  | 31,166 |  |   | 1,393 |  |   | 32,559 |  |   | 17,537 |  |   | 988 |  |     | 18,525 |  |
| Basis protection derivative contracts | 122 |  |   | — |  |   | 122 |  |   | 5 |  |   | — |  |     | 5 |  |
| Total liabilities                     | 31,288 |  |   | 1,393 |  |   | 32,681 |  |   | 17,542 |  |   | 988 |  |   | 18,530 |  |
| Net asset (liability)                 | $ | (29,393 | ) |   | $ | 105 |  |   | $ | (29,288 | ) |   | $ | (11,754 | ) |   | $ | 1,397 |  |   | $ | (10,357 | ) |
|                                  |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                  |
|--------------------------------------------------------------------------------------------------|
|                                                                                                  |  |  |  |  |  |  |  |  |
|                                                                                             |   | Three Months Ended March 31, |
|                                                                                             |   | 2014 |   | 2013 |
|                                                                                             | (in thousands) |
| Fair value, net asset, beginning of period                                                       |   | $ | 1,397 |  |   | $ | 13,669 |  |
| Changes in fair value included in statement of operations line item:                             |   |   |   |   |
| Commodity price risk management loss, net                                                        |   | (1,395 | ) |   | (2,731 | ) |
| Sales from natural gas marketing                                                                 |   | (22 | ) |   | (16 | ) |
| Settlements included in statement of operations line items:                                      |   |   |   |   |
| Commodity price risk management gain (loss), net                                                 |   | 119 |  |   | (3,234 | ) |
| Sales from natural gas marketing                                                                 |   | 6 |  |   | (25 | ) |
| Fair value, net asset end of period                                                              |   | $ | 105 |  |   | $ | 7,663 |  |
|                                                                                             |   |   |   |   |
| Net change in fair value of unsettled derivatives included in statement of operations line item: |   |   |   |   |
| Commodity price risk management loss, net                                                        |   | $ | (1,531 | ) |   | $ | (2,739 | ) |
| Sales from natural gas marketing                                                                 |   | (5 | ) |   | (16 | ) |
| Total                                                                                            |   | $ | (1,536 | ) |   | $ | (2,755 | ) |
|                                                                                             |   |   |   |   |

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|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |
| Counterparty Name                              |   | Fair Value ofDerivative Assets |
|                                           |   | (in thousands) |
| Wells Fargo Bank, N.A. (1)                     |   | $ | 904 |  |
| Bank of Montreal (1)                           |   | 716 |  |
| Bank of Nova Scotia (1)                        |   | 425 |  |
| JP Morgan Chase Bank, N.A (1)                  |   | 380 |  |
| Other lenders in our revolving credit facility |   | 756 |  |
| Various (2)                                    |   | 212 |  |
| Total                                          |   | $ | 3,393 |  |
|                                           |   |   |

|         |                                                                                                                                                                                                                                                                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | For crude oil and natural gas sales, we enter into derivative contracts to protect against price declines in future periods. While we structure these derivatives to reduce our exposure to changes in price associated with the derivative commodity, they also limit the benefit we might otherwise have received from price increases in the physical market; and |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | For natural gas marketing, we enter into fixed-price physical purchase and sale agreements that qualify as derivative contracts. In order to offset the fixed-price physical derivatives in our natural gas marketing, we enter into financial derivative instruments that have the effect of locking in the prices we will receive or pay for the same volumes and period, offsetting the physical derivative. |

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|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |
|                         |   |   |   |   | Fair Value |
| Derivatives instruments:     |   | Balance sheet line item |   | March 31, 2014 |   | December 31, 2013 |
|                         |   |   |   |   | (in thousands) |
| Derivative assets:           | Current |   |   |   |   |   |   |
|                         | Commodity contracts |   |   |   |   |   |   |
|                         | Related to crude oil and natural gas sales |   | Fair value of derivatives |   | $ | 552 |  |   | $ | 2,016 |  |
|                         | Related to natural gas marketing |   | Fair value of derivatives |   | 275 |  |   | 361 |  |
|                         | Basis protection contracts |   |   |   |   |   |   |
|                         | Related to crude oil and natural gas sales |   | Fair value of derivatives |   | — |  |   | 195 |  |
|                         |   |   |   |   | 827 |  |   | 2,572 |  |
|                         | Non-current |   |   |   |   |   |   |
|                         | Commodity contracts |   |   |   |   |   |   |
|                         | Related to crude oil and natural gas sales |   | Fair value of derivatives |   | 2,214 |  |   | 5,055 |  |
|                         | Related to natural gas marketing |   | Fair value of derivatives |   | 202 |  |   | 278 |  |
|                         | Basis protection contracts |   |   |   |   |   |   |
|                         | Related to crude oil and natural gas sales |   | Fair value of derivatives |   | 150 |  |   | 268 |  |
|                         |   |   |   |   | 2,566 |  |   | 5,601 |  |
| Total derivative assets      |   |   |   |   | $ | 3,393 |  |   | $ | 8,173 |  |
|                         |   |   |   |   |   |   |   |
| Derivative liabilities:      | Current |   |   |   |   |   |   |
|                         | Commodity contracts |   |   |   |   |   |   |
|                         | Related to crude oil and natural gas sales |   | Fair value of derivatives |   | $ | 28,921 |  |   | $ | 15,263 |  |
|                         | Related to natural gas marketing |   | Fair value of derivatives |   | 171 |  |   | 247 |  |
|                         | Basis protection contracts |   |   |   |   |   |   |
|                         | Related to crude oil and natural gas sales |   | Fair value of derivatives |   | 120 |  |   | — |  |
|                         | Related to natural gas marketing |   | Fair value of derivatives |   | 2 |  |   | 5 |  |
|                         |   |   |   |   | 29,214 |  |   | 15,515 |  |
|                         | Non-current |   |   |   |   |   |   |
|                         | Commodity contracts |   |   |   |   |   |   |
|                         | Related to crude oil and natural gas sales |   | Fair value of derivatives |   | 3,302 |  |   | 2,782 |  |
|                         | Related to natural gas marketing |   | Fair value of derivatives |   | 165 |  |   | 233 |  |
|                         |   |   |   |   | 3,467 |  |   | 3,015 |  |
| Total derivative liabilities |   |   |   |   | $ | 32,681 |  |   | $ | 18,530 |  |

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|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |
|                                                     |   | Three Months Ended March 31, |
| Condensed consolidated statement of operations line item |   | 2014 |   | 2013 |
|                                                     |   | (in thousands) |
| Commodity price risk management loss, net                |   |   |   |   |
| Net settlements                                          |   | $ | (8,240 | ) |   | $ | 8,474 |  |
| Net change in fair value of unsettled derivatives        |   | (18,915 | ) |   | (30,829 | ) |
| Total commodity price risk management loss, net          |   | $ | (27,155 | ) |   | $ | (22,355 | ) |
| Sales from natural gas marketing                         |   |   |   |   |
| Net settlements                                          |   | $ | (476 | ) |   | $ | 201 |  |
| Net change in fair value of unsettled derivatives        |   | (312 | ) |   | (968 | ) |
| Total sales from natural gas marketing                   |   | $ | (788 | ) |   | $ | (767 | ) |
| Cost of natural gas marketing                            |   |   |   |   |
| Net settlements                                          |   | $ | 535 |  |   | $ | (162 | ) |
| Net change in fair value of unsettled derivatives        |   | 296 |  |   | 1,076 |  |
| Total cost of natural gas marketing                      |   | $ | 831 |  |   | $ | 914 |  |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |
| As of March 31, 2014             |   | Derivatives instruments, recorded in condensed consolidated balance sheet, gross |   | Effect of master netting agreements |   | Derivative instruments, net |
|                                  |   | (in thousands) |
| Asset derivatives:                    |   |   |   |   |   |   |
| Derivative instruments, at fair value |   | $ | 3,393 |  |   | $ | (2,164 | ) |   | $ | 1,229 |  |
|                                  |   |   |   |   |   |   |
| Liability derivatives:                |   |   |   |   |   |   |
| Derivative instruments, at fair value |   | $ | 32,681 |  |   | $ | (2,164 | ) |   | $ | 30,517 |  |
|                                  |   |   |   |   |   |   |

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |
| As of December 31, 2013          |   | Derivatives instruments, recorded in condensed consolidated balance sheet, gross |   | Effect of master netting agreements |   | Derivative instruments, net |
|                                  |   | (in thousands) |
| Asset derivatives:                    |   |   |   |   |   |   |
| Derivative instruments, at fair value |   | $ | 8,173 |  |   | $ | (5,623 | ) |   | $ | 2,550 |  |
|                                  |   |   |   |   |   |   |
| Liability derivatives:                |   |   |   |   |   |   |
| Derivative instruments, at fair value |   | $ | 18,530 |  |   | $ | (5,623 | ) |   | $ | 12,907 |  |
|                                  |   |   |   |   |   |   |

----

Table of contents

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |
|                                       | March 31, 2014 |   | December 31, 2013 |
|                                       | (in thousands) |
| Properties and equipment, net:             |   |   |   |
| Crude oil and natural gas properties       |   |   |   |
| Proved                                     | $ | 1,876,762 |  |   | $ | 1,784,466 |  |
| Unproved                                   | 308,865 |  |   | 307,203 |  |
| Total crude oil and natural gas properties | 2,185,627 |  |   | 2,091,669 |  |
| Pipelines and related facilities           | 21,597 |  |   | 21,781 |  |
| Equipment and other                        | 29,439 |  |   | 29,246 |  |
| Land and buildings                         | 13,617 |  |   | 13,617 |  |
| Construction in progress                   | 75,447 |  |   | 53,810 |  |
| Properties and equipment, at cost          | 2,325,727 |  |   | 2,210,123 |  |
| Accumulated DD&A                       | (599,935 | ) |   | (553,893 | ) |
| Properties and equipment, net              | $ | 1,725,792 |  |   | $ | 1,656,230 |  |
|                                       |   |   |   |

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |
|                                                           | Three Months Ended March 31, |
|                                                           | 2014 |   | 2013 |
|                                                           | (in thousands) |
| Continuing operations:                                         |   |   |   |
| Impairment of proved properties                                | $ | — |  |   | $ | 45,000 |  |
| Impairment of individually significant unproved properties     | — |  |   | 154 |  |
| Amortization of individually insignificant unproved properties | 979 |  |   | 1,305 |  |
| Total continuing operations                                    | 979 |  |   | 46,459 |  |
| Discontinued operations:                                       |   |   |   |
| Amortization of individually insignificant unproved properties | — |  |   | 3 |  |
| Total discontinued operations                                  | — |  |   | 3 |  |
| Total impairment of crude oil and natural gas properties       | $ | 979 |  |   | $ | 46,462 |  |
|                                                           |   |   |   |

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Table of contents

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |
|                                                     | March 31, 2014 |   | December 31, 2013 |
|                                                     | (in thousands) |
| Senior notes:                                            |   |   |   |
| 3.25% Convertible senior notes due 2016:                 |   |   |   |
| Principal amount                                         | $ | 115,000 |  |   | $ | 115,000 |  |
| Unamortized discount                                     | (9,053 | ) |   | (10,010 | ) |
| 3.25% Convertible senior notes due 2016, net of discount | 105,947 |  |   | 104,990 |  |
| 7.75% Senior notes due 2022                              | 500,000 |  |   | 500,000 |  |
| Total senior notes                                       | 605,947 |  |   | 604,990 |  |
| Credit facilities:                                       |   |   |   |
| Corporate                                                | — |  |   | — |  |
| PDCM                                                     | 46,250 |  |   | 37,000 |  |
| Total credit facilities                                  | 46,250 |  |   | 37,000 |  |
| PDCM second lien term loan                               | 15,000 |  |   | 15,000 |  |
| Total debt                                               | 667,197 |  |   | 656,990 |  |
| Less: Current portion of long-term debt                  | 105,947 |  |   | — |  |
| Long-term debt                                           | $ | 561,250 |  |   | $ | 656,990 |  |

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Table of contents

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |
|                                                                         | Amount |
|                                                                         | (in thousands) |
|                                                                         |   |
| Balance at beginning of period, January 1                                    | $ | 41,030 |  |
| Obligations incurred with development activities                             | 137 |  |
| Accretion expense                                                            | 861 |  |
| Revisions in estimated cash flows                                            | (12 | ) |
| Obligations discharged with divestitures of properties and asset retirements | (1,561 | ) |
| Balance end of period, March 31                                              | 40,455 |  |
| Less: Current portion                                                        | (1,158 | ) |
| Long-term portion                                                            | $ | 39,297 |  |
|                                                                         |   |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             |   | For the Twelve Months Ending March 31, |   |   |   |   |
| Area                             |   | 2015 |   | 2016 |   | 2017 |   | 2018 |   | 2019 andThroughExpiration |   | Total |   | ExpirationDate |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Volume (MMcf)                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marcellus Shale                  |   | 19,072 |  |   | 19,361 |  |   | 20,987 |  |   | 20,987 |  |   | 120,161 |  |   | 200,568 |  |   | January 31, 2026 |
| Utica Shale                      |   | 2,623 |  |   | 2,745 |  |   | 2,737 |  |   | 2,737 |  |   | 14,611 |  |   | 25,453 |  |   | July 22, 2023 |
| Total                            |   | 21,695 |  |   | 22,106 |  |   | 23,724 |  |   | 23,724 |  |   | 134,772 |  |   | 226,021 |  |   |   |
|                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dollar commitment (in thousands) |   | $ | 7,323 |  |   | $ | 7,429 |  |   | $ | 7,745 |  |   | $ | 7,287 |  |   | $ | 36,807 |  |   | $ | 66,591 |  |   |   |

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Table of contents

|                                      |
|--------------------------------------|
|                                      |  |  |  |  |  |  |  |  |
|                                 |   | Three Months Ended March 31, |
|                                 |   | 2014 |   | 2013 |
|                                 |   | (in thousands) |
|                                 |   |   |   |   |
| Stock-based compensation expense     |   | $ | 3,847 |  |   | $ | 2,602 |  |
| Income tax benefit                   |   | (1,462 | ) |   | (994 | ) |
| Net stock-based compensation expense |   | $ | 2,385 |  |   | $ | 1,608 |  |
|                                 |   |   |   |   |

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |
|                                             | Three Months Ended March 31, |
|                                             | 2014 |   | 2013 |
|                                             |   |   |   |
| Expected term of award                           | 6 years |  |   | 6 years |  |
| Risk-free interest rate                          | 2.1 | % |   | 1.0 | % |
| Expected volatility                              | 65.6 | % |   | 65.5 | % |
| Weighted-average grant date fair value per share | $ | 29.96 |  |   | $ | 21.96 |  |

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Table of contents

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | Three Months Ended March 31, |
|                                      | 2014 |   | 2013 |
|                                      | Number ofSARs |   | Weighted-AverageExercisePrice |   | Average Remaining ContractualTerm        (in years) |   | Aggregate IntrinsicValue              (in thousands) |   | Number ofSARs |   | Weighted-AverageExercisePrice |   | Average Remaining ContractualTerm        (in years) |   | Aggregate IntrinsicValue              (in thousands) |
| Outstanding beginning of year, January 1, | 190,763 |  |   | $ | 33.77 |  |   |   |   |   |   | 118,832 |  |   | $ | 30.80 |  |   |   |   |   |
| Awarded                                   | 88,248 |  |   | 49.57 |  |   |   |   |   |   | 87,078 |  |   | 37.18 |  |   |   |   |   |
| Outstanding at March 31,                  | 279,011 |  |   | 38.76 |  |   | 8.6 |   | 6,555 |  |   | 205,910 |  |   | 33.50 |  |   | 8.9 |   | 3,310 |  |
| Vested and expected to vest at March 31,  | 266,369 |  |   | 38.50 |  |   | 8.5 |   | 6,329 |  |   | 194,689 |  |   | 33.38 |  |   | 8.8 |   | 3,152 |  |
| Exercisable at March 31,                  | 109,920 |  |   | 32.71 |  |   | 7.6 |   | 3,248 |  |   | 56,430 |  |   | 31.04 |  |   | 8.0 |   | 1,046 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |
|                            | Shares |   | Weighted-AverageGrant-DateFair Value |
|                            |   |   |   |
| Non-vested at December 31, 2013 | 651,781 |  |   | $ | 36.36 |  |
| Granted                         | 126,102 |  |   | 49.62 |  |
| Vested                          | (84,235 | ) |   | 35.09 |  |
| Forfeited                       | (15,466 | ) |   | 36.59 |  |
| Non-vested at March 31, 2014    | 678,182 |  |   | 38.98 |  |
|                            |   |   |   |

|                                                       |
|-------------------------------------------------------|
|                                                       |  |  |  |  |  |  |  |
|                                                  | As of/Three Months Ended March 31, |
|                                                  | 2014 |   | 2013 |
|                                                  | (in thousands, except per share data) |
|                                                  |   |   |   |
| Total intrinsic value of time-based awards vested     | $ | 4,317 |  |   | $ | 2,303 |  |
| Total intrinsic value of time-based awards non-vested | 42,224 |  |   | 34,572 |  |
| Market price per common share as of March 31,         | 62.26 |  |   | 49.57 |  |
| Weighted-average grant date fair value per share      | 49.62 |  |   | 36.82 |  |

----

Table of contents

|                                                  |
|--------------------------------------------------|
|                                                  |  |  |  |  |  |  |  |  |
|                                             |   | Three Months Ended March 31, |
|                                             |   | 2014 |   | 2013 |
|                                             |   |   |   |   |
| Expected term of award                           |   | 3 years |  |   | 3 years |  |
| Risk-free interest rate                          |   | 0.8 | % |   | 0.4 | % |
| Expected volatility                              |   | 55.2 | % |   | 56.6 | % |
| Weighted-average grant date fair value per share |   | $ | 56.87 |  |   | $ | 49.04 |  |

|                                 |
|---------------------------------|
|                                 |  |  |  |  |  |  |  |
|                            |   | Shares |   | Weighted-AverageGrant-DateFair Value per Share |
|                            |   |   |   |   |
| Non-vested at December 31, 2013 |   | 72,111 |  |   | $ | 43.75 |  |
| Granted                         |   | 42,151 |  |   | 56.87 |  |
| Non-vested at March 31, 2014    |   | 114,262 |  |   | 48.59 |  |
|                            |   |   |   |   |

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |
|                                                    | As of/Three Months Ended March 31, |
|                                                    | 2014 |   | 2013 |
|                                                    | (in thousands, except per share data) |
|                                                    |   |   |   |
| Total intrinsic value of market-based awards vested     | $ | — |  |   | $ | — |  |
| Total intrinsic value of market-based awards non-vested | 7,114 |  |   | 4,078 |  |
| Market price per common share as of March 31,           | 62.26 |  |   | 49.57 |  |
| Weighted-average grant date fair value per share        | 56.87 |  |   | 49.04 |  |

----

Table of contents

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |  |  |
|                                                                 | Three Months Ended March 31, |
|                                                                 | 2014 |   | 2013 |
|                                                                 | (in thousands) |
|                                                                 |   |   |   |
| Weighted-average common shares outstanding - basic                   | 35,690 |  |   | 30,270 |  |
| Weighted-average common shares and equivalents outstanding - diluted | 35,690 |  |   | 30,270 |  |
|                                                                 |   |   |   |

|                                                                          |
|--------------------------------------------------------------------------|
|                                                                          |  |  |  |  |  |
|                                                                     | Three Months Ended March 31, |
|                                                                     | 2014 |   | 2013 |
|                                                                     | (in thousands) |
|                                                                     |   |   |   |
| Weighted-average common share equivalents excluded from diluted earnings |   |   |   |
| per share due to their anti-dilutive effect:                             |   |   |   |
| Restricted stock                                                         | 832 |  |   | 844 |  |
| SARs                                                                     | 97 |  |   | 45 |  |
| Stock options                                                            | 3 |  |   | 3 |  |
| Non-employee director deferred compensation                              | 5 |  |   | 4 |  |
| Convertible notes                                                        | 614 |  |   | 48 |  |
| Total anti-dilutive common share equivalents                             | 1,551 |  |   | 944 |  |
|                                                                     |   |   |   |

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|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |
| Condensed consolidated statements of operations - discontinued operations |   | Three Months Ended March 31, 2013 |
|                                                                      |   |   |
| Revenues                                                                  |   |   |
| Crude oil, natural gas and NGLs sales                                     |   | $ | 10,274 |  |
| Sales from natural gas marketing                                          |   | 450 |  |
| Well operations, pipeline income and other                                |   | 450 |  |
| Total revenues                                                            |   | 11,174 |  |
|                                                                      |   |   |
| Costs, expenses and other                                                 |   |   |
| Production costs                                                          |   | 5,393 |  |
| Cost of natural gas marketing                                             |   | 454 |  |
| Depreciation, depletion and amortization                                  |   | 2,258 |  |
| Other                                                                     |   | 495 |  |
| Total costs, expenses and other                                           |   | 8,600 |  |
|                                                                      |   |   |
| Income from discontinued operations                                       |   | 2,574 |  |
| Provision for income taxes                                                |   | (1,037 | ) |
| Income from discontinued operations, net of tax                           |   | $ | 1,537 |  |
|                                                                      |   |   |

|                                                          |
|----------------------------------------------------------|
|                                                          |  |  |  |  |  |  |  |  |
|                                                     |   | Three Months Ended March 31, |
| Condensed consolidated statement of operations line item |   | 2014 |   | 2013 |
|                                                     | (in thousands) |
|                                                     |   |   |   |   |
| Production costs                                         |   | $ | 605 |  |   | $ | 1,066 |  |
| Exploration expense                                      |   | — |  |   | 105 |  |
| General and administrative expense                       |   | 556 |  |   | 515 |  |

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Table of contents

|                                            |
|--------------------------------------------|
|                                            |  |  |  |  |  |  |  |
|                                       | Three Months Ended March 31, |
|                                       | 2014 |   | 2013 |
|                                       | (in thousands) |
| Segment revenues:                          |   |   |   |
| Oil and gas exploration and production     | $ | 103,325 |  |   | $ | 58,156 |  |
| Gas marketing                              | 26,937 |  |   | 13,670 |  |
| Total revenues                             | $ | 130,262 |  |   | $ | 71,826 |  |
|                                       |   |   |   |
| Segment income (loss) before income taxes: |   |   |   |
| Oil and gas exploration and production     | $ | 34,006 |  |   | $ | (33,702 | ) |
| Gas marketing                              | 67 |  |   | (66 | ) |
| Unallocated                                | (37,587 | ) |   | (29,679 | ) |
| Loss before income taxes                   | $ | (3,514 | ) |   | $ | (63,447 | ) |
|                                       |   |   |   |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |
|                                   | March 31, 2014 |   | December 31, 2013 |
|                                   | (in thousands) |
| Segment assets:                        |   |   |   |
| Oil and gas exploration and production | $ | 1,965,354 |  |   | $ | 1,937,251 |  |
| Gas marketing                          | 28,366 |  |   | 20,342 |  |
| Unallocated                            | 71,448 |  |   | 67,610 |  |
| Total assets                           | $ | 2,065,168 |  |   | $ | 2,025,203 |  |
|                                   |   |   |   |

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|         |                                                                                            |
|---------|--------------------------------------------------------------------------------------------|
| • | Adjusted net income of $9.6 million compared to an adjusted net loss of $20.4 million; |

|         |                                                                                         |
|---------|-----------------------------------------------------------------------------------------|
| • | Adjusted cash flows from operations of $69.7 million compared to $52.4 million; and |

|         |                                                                 |
|---------|-----------------------------------------------------------------|
| • | Adjusted EBITDA of $76.5 million compared to $61.1 million. |

----

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Table of contents

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |  |  |
|                                                           | Three Months Ended March 31, |
|                                                           | 2014 |   | 2013 |   | Percentage Change |
|                                                           | (dollars in millions, except per unit data) |
| Production (1)                                                 |   |   |   |   |   |
| Crude oil (MBbls)                                              | 1,042.9 |  |   | 668.3 |  |   | 56.1 |  % |
| Natural gas (MMcf)                                             | 5,878.3 |  |   | 4,549.8 |  |   | 29.2 |  % |
| NGLs (MBbls)                                                   | 379.5 |  |   | 238.3 |  |   | 59.3 |  % |
| Crude oil equivalent (MBoe) (2)                                | 2,402.1 |  |   | 1,665.0 |  |   | 44.3 |  % |
| Average MBoe per day                                           | 26.7 |  |   | 18.5 |  |   | 44.3 |  % |
| Crude Oil, Natural Gas and NGLs Sales                          |   |   |   |   |   |
| Crude oil                                                      | $ | 89.7 |  |   | $ | 58.1 |  |   | 54.4 |  % |
| Natural gas                                                    | 26.8 |  |   | 14.0 |  |   | 91.4 |  % |
| NGLs                                                           | 13.3 |  |   | 7.3 |  |   | 82.2 |  % |
| Total crude oil, natural gas and NGLs sales                    | $ | 129.8 |  |   | $ | 79.4 |  |   | 63.5 |  % |
|                                                           |   |   |   |   |   |
| Net Settlements on Derivatives (3)                             |   |   |   |   |   |
| Natural gas                                                    | $ | (3.9 | ) |   | $ | 8.0 |  |   | * |  |
| Crude oil                                                      | (4.3 | ) |   | 0.5 |  |   | * |  |
| Total net settlements on derivatives                           | $ | (8.2 | ) |   | $ | 8.5 |  |   | (196.5 | )% |
|                                                           |   |   |   |   |   |
| Average Sales Price (excluding net settlements on derivatives) |   |   |   |   |   |
| Crude oil (per Bbl)                                            | $ | 86.02 |  |   | $ | 86.96 |  |   | (1.1 | )% |
| Natural gas (per Mcf)                                          | 4.56 |  |   | 3.09 |  |   | 47.6 |  % |
| NGLs (per Bbl)                                                 | 35.18 |  |   | 30.48 |  |   | 15.4 |  % |
| Crude oil equivalent (per Boe)                                 | 54.05 |  |   | 47.71 |  |   | 13.3 |  % |
|                                                           |   |   |   |   |   |
| Average Lifting Cost (per Boe) (4)                             |   |   |   |   |   |
| Wattenberg Field                                               | $ | 4.10 |  |   | $ | 3.79 |  |   | 8.2 |  % |
| Utica Shale                                                    | 0.77 |  |   | 2.76 |  |   | (72.1 | )% |
| Marcellus Shale                                                | 1.34 |  |   | 5.07 |  |   | (73.6 | )% |
| Weighted-average                                               | 3.41 |  |   | 3.98 |  |   | (14.3 | )% |
|                                                           |   |   |   |   |   |
| Natural Gas Marketing Contribution Margin (5)                  | $ | — |  |   | $ | — |  |   | * |  |
|                                                           |   |   |   |   |   |
| Other Costs and Expenses                                       |   |   |   |   |   |
| Exploration expense                                            | $ | 0.3 |  |   | $ | 1.7 |  |   | (81.8 | )% |
| Impairment of crude oil and natural gas properties             | 1.0 |  |   | 46.5 |  |   | * |  |
| General and administrative expense                             | 23.6 |  |   | 15.1 |  |   | 56.2 |  % |
| Depreciation, depletion and amortization                       | 46.6 |  |   | 27.9 |  |   | 66.9 |  % |
|                                                           |   |   |   |   |   |
| Interest Expense                                               | $ | 12.8 |  |   | $ | 13.4 |  |   | (3.9 | )% |

|   |                                                                       |
|---|-----------------------------------------------------------------------|
| * | Percentage change is not meaningful or equal to or greater than 300%. |

|     |                                                                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Production is net and determined by multiplying the gross production volume of properties in which we have an interest by our ownership percentage. |

|     |                                                            |
|-----|------------------------------------------------------------|
| (2) | One Bbl of crude oil or NGL equals six Mcf of natural gas. |

|     |                                                                                                                                                                             |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Represents net settlements on derivatives related to crude oil and natural gas sales, which do not include net settlements on derivatives related to natural gas marketing. |

|     |                                                                                          |
|-----|------------------------------------------------------------------------------------------|
| (4) | Represents lease operating expenses, exclusive of production taxes, on a per unit basis. |

|     |                                                                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | Represents sales from natural gas marketing, net of costs of natural gas marketing, including net settlements and net change in fair value of unsettled derivatives related to natural gas marketing activities. |

----

Table of contents

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |
|                           | Three Months Ended March 31, |
| Production by Operating Region | 2014 |   | 2013 |   | Percentage Change |
| Crude oil (MBbls)              |   |   |   |   |   |
| Wattenberg Field               | 952.6 |  |   | 650.7 |  |   | 46.4 |  % |
| Utica Shale                    | 90.3 |  |   | 16.7 |  |   | * |  |
| Appalachia-Marcellus Shale     | — |  |   | 0.9 |  |   | (100.0 | )% |
| Total                          | 1,042.9 |  |   | 668.3 |  |   | 56.1 |  % |
|  Natural gas (MMcf)       |   |   |   |   |   |
| Wattenberg Field               | 3,315.0 |  |   | 2,975.5 |  |   | 11.4 |  % |
| Utica Shale                    | 429.3 |  |   | 0.3 |  |   | * |  |
| Appalachia-Marcellus Shale     | 2,134.0 |  |   | 1,574.0 |  |   | 35.6 |  % |
| Total                          | 5,878.3 |  |   | 4,549.8 |  |   | 29.2 |  % |
| NGLs (MBbls)                   |   |   |   |   |   |
| Wattenberg Field               | 343.9 |  |   | 238.3 |  |   | 44.3 |  % |
| Utica Shale                    | 35.6 |  |   | — |  |   | * |  |
| Total                          | 379.5 |  |   | 238.3 |  |   | 59.3 |  % |
| Crude oil equivalent (MBoe)    |   |   |   |   |   |
| Wattenberg Field               | 1,848.9 |  |   | 1,385.0 |  |   | 33.5 |  % |
| Utica Shale                    | 197.5 |  |   | 16.8 |  |   | * |  |
| Appalachia-Marcellus Shale     | 355.7 |  |   | 263.2 |  |   | 35.1 |  % |
| Total                          | 2,402.1 |  |   | 1,665.0 |  |   | 44.3 |  % |

|   |                                                                       |
|---|-----------------------------------------------------------------------|
| * | Percentage change is not meaningful or equal to or greater than 300%. |

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |
|                                          |   | Three Months Ended March 31, |
|  Average Sales Price by Operating Region |   |   |   |   |   | Percentage Change |
| (excluding net settlements on derivatives)    |   | 2014 |   | 2013 |   |
| Crude oil (per Bbl)                           |   |   |   |   |   |   |
| Wattenberg Field                              |   | $ | 86.03 |  |   | $ | 86.89 |  |   | (1.0)% |
| Utica Shale                                   |   | 85.92 |  |   | 89.89 |  |   | (4.4)% |
| Appalachia-Marcellus Shale                    |   | — |  |   | 87.79 |  |   | (100.0)% |
| Weighted-average price                        |   | 86.02 |  |   | 86.96 |  |   | (1.1)% |
|  Natural gas (per Mcf)                   |   |   |   |   |   |   |
| Wattenberg Field                              |   | $ | 4.47 |  |   | $ | 3.02 |  |   | 48.0% |
| Utica Shale                                   |   | 4.63 |  |   | 2.39 |  |   | 93.7% |
| Appalachia-Marcellus Shale                    |   | 4.67 |  |   | 3.23 |  |   | 44.6% |
| Weighted-average price                        |   | 4.56 |  |   | 3.09 |  |   | 47.6% |
| NGLs (per Bbl)                                |   |   |   |   |   |   |
| Wattenberg Field                              |   | $ | 32.63 |  |   | $ | 30.48 |  |   | 7.1% |
| Utica Shale                                   |   | 59.83 |  |   | — |  |   | * |
| Weighted-average price                        |   | 35.18 |  |   | 30.48 |  |   | 15.4% |
| Crude oil equivalent (per Boe)                |   |   |   |   |   |   |
| Wattenberg Field                              |   | $ | 58.41 |  |   | $ | 52.55 |  |   | 11.2% |
| Utica Shale                                   |   | 60.15 |  |   | 89.62 |  |   | (32.9)% |
| Appalachia-Marcellus Shale                    |   | 28.04 |  |   | 19.59 |  |   | 43.1% |
| Weighted-average price                        |   | 54.05 |  |   | 47.71 |  |   | 13.3% |

|   |                                                                       |
|---|-----------------------------------------------------------------------|
| * | Percentage change is not meaningful or equal to or greater than 300%. |

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|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |
| Increase in production                                          | $ | 41.0 |  |
| Increase in average natural gas price                           | 8.6 |  |
| Increase in average NGLs price                                  | 1.8 |  |
| Decrease in average crude oil price                             | (1.0 | ) |
| Total increase in crude oil, natural gas and NGLs sales revenue | $ | 50.4 |  |

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|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |
|                                              | Three Months Ended March 31, |
|                                              | 2014 |   | 2013 |
|                                              | (in millions) |
|                                              |   |   |   |
| Lease operating expenses                          | $ | 8.2 |  |   | $ | 6.6 |  |
| Production taxes                                  | 7.6 |  |   | 5.4 |  |
| Transportation, gathering and processing expenses | 2.2 |  |   | 1.6 |  |
| Overhead and other production expenses            | 3.2 |  |   | 2.3 |  |
| Total production costs                            | $ | 21.2 |  |   | $ | 15.9 |  |
| Total production costs per Boe                    | $ | 8.83 |  |   | $ | 9.52 |  |
|                                              |   |   |   |

|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |
|                                              | Three Months Ended March 31, |
|                                              | 2014 |   | 2013 |
|                                              | (in millions) |
| Commodity price risk management loss, net:        |   |   |   |
| Net settlements                                   | $ | (8.2 | ) |   | $ | 8.5 |  |
| Net change in fair value of unsettled derivatives | (19.0 | ) |   | (30.9 | ) |
| Total commodity price risk management loss, net   | $ | (27.2 | ) |   | $ | (22.4 | ) |
|                                              |   |   |   |

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|                                                   |
|---------------------------------------------------|
|                                                   |  |  |  |  |  |  |  |
|                                              | Three Months Ended March 31, |
|                                              | 2014 |   | 2013 |
|                                              | (in millions) |
| Natural gas sales revenue                         | $ | 27.6 |  |   | $ | 14.4 |  |
| Net settlements from derivatives                  | (0.5 | ) |   | 0.2 |  |
| Net change in fair value of unsettled derivatives | (0.3 | ) |   | (1.0 | ) |
| Other                                             | 0.1 |  |   | 0.1 |  |
| Total sales from natural gas marketing            | 26.9 |  |   | 13.7 |  |
|                                              |   |   |   |
| Costs of natural gas purchases                    | 27.3 |  |   | 14.2 |  |
| Net settlements from derivatives                  | (0.5 | ) |   | 0.2 |  |
| Net change in fair value of unsettled derivatives | (0.3 | ) |   | (1.1 | ) |
| Other                                             | 0.4 |  |   | 0.4 |  |
| Total costs of natural gas marketing              | 26.9 |  |   | 13.7 |  |
|                                              |   |   |   |
| Natural gas marketing contribution margin         | $ | — |  |   | $ | — |  |
|                                              |   |   |   |

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|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |
|                             | Three Months Ended March 31, |
|                             | 2014 |   | 2013 |
|                             | (in millions) |
|                             |   |   |   |
| Geological and geophysical costs | $ | — |  |   | $ | 0.5 |  |
| Operating, personnel and other   | 0.3 |  |   | 1.2 |  |
| Total exploration expense        | $ | 0.3 |  |   | $ | 1.7 |  |
|                             |   |   |   |

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |
|                                                           | Three Months Ended March 31, |
|                                                           | 2014 |   | 2013 |
|                                                           | (in millions) |
|                                                           |   |   |   |
| Impairment of proved properties                                | $ | — |  |   | $ | 45.0 |  |
| Impairment of individually significant unproved properties     | — |  |   | 0.2 |  |
| Amortization of individually insignificant unproved properties | 1.0 |  |   | 1.3 |  |
| Total impairment of crude oil and natural gas properties       | $ | 1.0 |  |   | $ | 46.5 |  |
|                                                           |   |   |   |

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|                            |
|----------------------------|
|                            |  |  |  |  |  |  |  |
|                       | Three Months Ended March 31, |
| Operating Region/Area      | 2014 |   | 2013 |
|                       | (per Boe) |
| Wattenberg Field           | $ | 19.16 |  |   | $ | 17.00 |  |
| Utica Shale                | 32.56 |  |   | — |  |
| Appalachia-Marcellus Shale | 9.51 |  |   | 12.17 |  |
| Total weighted-average     | 18.83 |  |   | 16.06 |  |

|                             |
|-----------------------------|
|                             |  |  |  |
| Discontinued Operations     |   | Three Months Ended March 31, 2013 |
| Production                  |   |   |
| Crude oil (MBbls)           |   | 6.9 |  |
| Natural gas (MMcf)          |   | 3,584.1 |  |
| Crude oil equivalent (MBoe) |   | 604.2 |  |

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|                             |
|-----------------------------|
|                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                        | Net Drilling Activity |
|                        |   | Three Months Ended March 31, |
|                        |   | 2014 |   | 2013 |
| Operating Region/Area       |   | Productive |   | In-Process |   | Dry |   | Productive |   | In-Process |   | Dry |
| Development Wells           |   |   |   |   |   |   |   |   |   |   |   |   |
| Wattenberg Field            |   | 11.7 |  |   | 24.5 |  |   | 0.7 |  |   | 7.8 |  |   | 12.2 |  |   | — |  |
| Utica Shale                 |   | 2.0 |  |   | 3.0 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Appalachia-Marcellus Shale  |   | 1.5 |  |   | 0.5 |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Total net development wells |   | 15.2 |  |   | 28.0 |  |   | 0.7 |  |   | 7.8 |  |   | 12.2 |  |   | — |  |
| Exploratory Wells           |   |   |   |   |   |   |   |   |   |   |   |   |
| Utica Shale                 |   | — |  |   | — |  |   | — |  |   | 1.5 |  |   | 1.5 |  |   | — |  |
| Total net exploratory wells |   | — |  |   | — |  |   | — |  |   | 1.5 |  |   | 1.5 |  |   | — |  |
| Total drilling activity     |   | 15.2 |  |   | 28.0 |  |   | 0.7 |  |   | 9.3 |  |   | 13.7 |  |   | — |  |

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|         |                                                                       |
|---------|-----------------------------------------------------------------------|
| • | operating performance and return on capital as compared to our peers; |

|         |                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|
| • | financial performance of our assets and our valuation without regard to financing methods, capital structure or historical cost basis; |

|         |                                                                              |
|---------|------------------------------------------------------------------------------|
| • | our ability to generate sufficient cash to service our debt obligations; and |

|         |                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------|
| • | the viability of acquisition opportunities and capital expenditure projects, including the related rate of return. |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |
|                                                   | Three Months Ended March 31, |
|                                                   | 2014 |   | 2013 |
|                                                   | (in millions) |
| Adjusted cash flows from operations:                   |   |   |   |
| Adjusted cash flows from operations                    | $ | 69.7 |  |   | $ | 52.4 |  |
| Changes in assets and liabilities                      | 10.8 |  |   | (8.1 | ) |
| Net cash from operating activities                     | 80.5 |  |   | $ | 44.3 |  |
|                                                   |   |   |   |
| Adjusted net income (loss):                            |   |   |   |
| Adjusted net income (loss)                             | $ | 9.6 |  |   | $ | (20.4 | ) |
| Loss on commodity derivative instruments               | (27.1 | ) |   | (22.2 | ) |
| Net settlements on commodity derivative instruments    | 8.2 |  |   | (8.5 | ) |
| Tax effect of above adjustments                        | 7.2 |  |   | 11.7 |  |
| Net loss                                               | $ | (2.1 | ) |   | $ | (39.4 | ) |
|                                                   |   |   |   |
| Adjusted EBITDA to net income (loss):                  |   |   |   |
| Adjusted EBITDA                                        | $ | 76.5 |  |   | $ | 61.1 |  |
| Loss on commodity derivative instruments               | (27.1 | ) |   | (22.2 | ) |
| Net settlements on commodity derivative instruments    | 8.2 |  |   | (8.5 | ) |
| Interest expense, net                                  | (12.6 | ) |   | (13.4 | ) |
| Income tax provision                                   | 1.4 |  |   | 21.5 |  |
| Impairment of crude oil and natural gas properties     | (1.0 | ) |   | (46.5 | ) |
| Depreciation, depletion and amortization               | (46.6 | ) |   | (30.2 | ) |
| Accretion of asset retirement obligations              | (0.9 | ) |   | (1.2 | ) |
| Net loss                                               | $ | (2.1 | ) |   | $ | (39.4 | ) |
|                                                   |   |   |   |
| Adjusted EBITDA to net cash from operating activities: |   |   |   |
| Adjusted EBITDA                                        | $ | 76.5 |  |   | $ | 61.1 |  |
| Interest expense, net                                  | (12.6 | ) |   | (13.4 | ) |
| Stock-based compensation                               | 3.8 |  |   | 2.6 |  |
| Amortization of debt discount and issuance costs       | 1.7 |  |   | 1.8 |  |
| Loss on sale of properties and equipment               | 0.7 |  |   | — |  |
| Other                                                  | (0.4 | ) |   | 0.3 |  |
| Changes in assets and liabilities                      | 10.8 |  |   | (8.1 | ) |
| Net cash from operating activities                     | $ | 80.5 |  |   | $ | 44.3 |  |

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|                                   |
|-----------------------------------|
|                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                              |   | Collars |   | Fixed-Price Swaps |   | Basis Protection Swaps |   |   |
| Commodity/ Index/ Maturity Period |   | Quantity (Gas - BBtu (1) Oil - MBbls) |   | Weighted-Average Contract Price |   | Quantity (Gas - BBtu (1) Oil - MBbls) |   | Weighted- Average Contract Price |   | Quantity(BBtu) (1) |   | Weighted- Average Contract Price |   | Fair Value March 31, 2014 (2) (in millions) |
|                              |   | Floors |   | Ceilings |   |   |   |   |   |
| Natural Gas                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2014                              |   | — |  |   | $ | — |  |   | $ | — |  |   | 13,200.0 |  |   | $ | 4.17 |  |   | 4,422.0 |  |   | $ | (0.22 | ) |   | $ | (4.0 | ) |
| 2015                              |   | 5,860.0 |  |   | 4.00 |  |   | 4.48 |  |   | 12,950.0 |  |   | 4.10 |  |   | 1,620.0 |  |   | (0.27 | ) |   | (1.5 | ) |
| 2016                              |   | 4,820.0 |  |   | 4.03 |  |   | 4.48 |  |   | 13,000.0 |  |   | 4.00 |  |   | — |  |   | — |  |   | (1.7 | ) |
| 2017                              |   | 1,630.0 |  |   | 4.25 |  |   | 5.00 |  |   | 625.0 |  |   | 4.22 |  |   | — |  |   | — |  |   | 0.4 |  |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIG                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2014                              |   | — |  |   | — |  |   | — |  |   | 3,726.0 |  |   | 3.99 |  |   | — |  |   | — |  |   | (1.1 | ) |
| 2015                              |   | — |  |   | — |  |   | — |  |   | 2,730.0 |  |   | 4.01 |  |   | — |  |   | — |  |   | 0.1 |  |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Natural Gas                 |   | 12,310.0 |  |   |   |   |   |   | 46,231.0 |  |   |   |   | 6,042.0 |  |   |   |   | (7.8 | ) |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude Oil                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2014                              |   | 702.5 |  |   | 82.43 |  |   | 102.16 |  |   | 2,484.0 |  |   | 90.98 |  |   | — |  |   | — |  |   | (16.6 | ) |
| 2015                              |   | 336.0 |  |   | 81.07 |  |   | 97.76 |  |   | 4,165.0 |  |   | 88.67 |  |   | — |  |   | — |  |   | (5.0 | ) |
|                              |   |   |   |   |   |  |   |   |   |   |   |   |   |   |   |   |
| Total Crude Oil                   |   | 1,038.5 |  |   |   |   |   |   | 6,649.0 |  |   |   |   | — |  |   |   |   | (21.6 | ) |
| Total Natural Gas and Crude Oil   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (29.4 | ) |
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|     |                                                                                |
|-----|--------------------------------------------------------------------------------|
| (1) | A standard unit of measurement for natural gas (one BBtu equals one MMcf). |

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|     |                                                                                                                                                                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Approximately 51.0% of the fair value of our derivative assets and 4.3% of our derivative liabilities were measured using significant unobservable inputs (Level 3). See Note 3, Fair Value Measurements, to the condensed consolidated financial statements included elsewhere in this report. |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |
|                                     | Three Months Ended |   | Year Ended |
|                                     | March 31, 2014 |   | December 31, 2013 |
| Average Index Closing Price:             |   |   |   |
| Crude oil (per Bbl)                      |   |   |   |
| NYMEX                                    | $ | 98.89 |  |   | $ | 96.76 |  |
| Natural gas (per MMBtu)                  |   |   |   |
| CIG                                      | $ | 4.79 |  |   | $ | 3.45 |  |
| NYMEX                                    | 4.94 |  |   | 3.65 |  |
|                                     |   |   |   |
| Average Sales Price Realized:            |   |   |   |
| Excluding net settlements on derivatives |   |   |   |
| Crude oil (per Bbl)                      | $ | 86.02 |  |   | $ | 89.92 |  |
| Natural gas (per Mcf)                    | 4.56 |  |   | 3.29 |  |
| NGLs (per Bbl)                           | 35.18 |  |   | 27.97 |  |

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|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |
| Period                        |   | Total Number of Shares Purchased (1) |   | Average Price Paid per Share |
|                          |   |   |   |   |
| January 1 - 31, 2014          |   | 17,434 |  |   | $ | 49.67 |  |
| February 1 - 28, 2014         |   | 1,637 |  |   | 59.88 |  |
| March 1 - 31, 2014            |   | 2,726 |  |   | 59.44 |  |
| Total first quarter purchases |   | 21,797 |  |   | 51.66 |  |
|                          |   |   |   |   |

|     |                                                                                                                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Purchases primarily represent shares purchased from employees for the payment of their tax liabilities related to the vesting of securities issued pursuant to our stock-based compensation plans. |

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|                       |
|-----------------------|
|                       |  |  |  |  |  |  |  |  |  |  |  |  |
|                  |   |   |   | Incorporated by Reference |   |   |
| Exhibit Number        |    | Exhibit Description |   | Form |    | SEC File Number |    | Exhibit |   | Filing Date |    | Filed Herewith |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| 31.1                  |   | Certification by Chief Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) of the Exchange Act Rules, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |   |   |   |   |   |   |   |   |   | X |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| 31.2                  |   | Certification by Chief Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) of the Exchange Act Rules, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |   |   |   |   |   |   |   |   |   | X |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| 32.1*                 |   | Certifications by Chief Executive Officer and Chief Financial Officer pursuant to Title 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002. |   |   |   |   |   |   |   |   |   | X |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| 101.INS               |   | XBRL Instance Document |   |   |   |   |   |   |   |   |   | X |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| 101.SCH               |   | XBRL Taxonomy Extension Schema Document |   |   |   |   |   |   |   |   |   | X |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| 101.CAL               |   | XBRL Taxonomy Extension Calculation Linkbase Document |   |   |   |   |   |   |   |   |   | X |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| 101.DEF               |   | XBRL Taxonomy Extension Definition Linkbase Document |   |   |   |   |   |   |   |   |   | X |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| 101.LAB               |   | XBRL Taxonomy Extension Label Linkbase Document |   |   |   |   |   |   |   |   |   | X |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| 101.PRE               |   | XBRL Taxonomy Extension Presentation Linkbase Document |   |   |   |   |   |   |   |   |   | X |
|                  |   |   |   |   |   |   |   |   |   |   |   |   |
| * Furnished herewith. |

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|                          |
|--------------------------|
|                          |  |
|                     | PDC Energy, Inc. |
|                     | (Registrant) |
|                     |   |
|                     |   |
|                     |   |
|                     |   |
| Date:   May 6, 2014 | /s/ James M. Trimble |
|                     | James M. Trimble |
|                     | Chief Executive Officer and President |
|                     | (principal executive officer) |
|                     |   |
|                     | /s/ Gysle R. Shellum |
|                     | Gysle R. Shellum |
|                     | Chief Financial Officer |
|                     | (principal financial officer) |
|                     |   |
|                     | /s/ R. Scott Meyers |
|                     | R. Scott Meyers |
|                     | Chief Accounting Officer |
|                     | (principal accounting officer) |