|         |                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The sales price totaling $180.2 million, net of $4.2 million of capital expenses incurred subsequent to December 31, 2011, have been reflected as a repayment of the corporate credit facility outstanding balance of $209.0 million. |

|         |                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------|
| • | The adjustment to properties and equipment, net, reflects a reduction of the book value of the Permian Basin assets. |

|         |                                                                                                                      |
|---------|----------------------------------------------------------------------------------------------------------------------|
| • | The net gain on the transactions, which has not been tax effected, is reflected as adjustments to retained earnings. |

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|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |  |
| PETROLEUM DEVELOPMENT CORPORATION                              |
| (dba PDC Energy)                                               |
| Pro Forma Condensed Consolidated Statements of Operations (1)  |
| (unaudited; in thousands, except per share data)               |
|                                                           |   |   |   |   |
|                                                           |   | Year Ended December, 31 |
|                                                           |   | 2011 |   | 2010 |
|                                                           |   | As Reported |   | As Reported |
| Revenues:                                                      |   |   |   |   |
| Natural gas, NGL and crude oil sales                           |   | $ | 276,605 |  |   | $ | 205,029 |  |
| Sales from natural gas marketing                               |   | 66,419 |  |   | 69,071 |  |
| Commodity price risk management gain, net                      |   | 46,090 |  |   | 59,891 |  |
| Well operations, pipeline income and other                     |   | 6,846 |  |   | 9,030 |  |
| Total revenues                                                 |   | 395,960 |  |   | 343,021 |  |
|                                                           |   |   |   |   |
| Costs, expenses and other:                                     |   |   |   |   |
| Production costs                                               |   | 69,085 |  |   | 64,872 |  |
| Cost of natural gas marketing                                  |   | 65,465 |  |   | 68,015 |  |
| Exploration expense                                            |   | 6,253 |  |   | 13,675 |  |
| Impairment of natural gas and crude oil properties             |   | 25,159 |  |   | 6,481 |  |
| General and administrative expense                             |   | 61,454 |  |   | 42,188 |  |
| Depreciation, depletion and amortization                       |   | 128,907 |  |   | 108,095 |  |
| Gain on sale of properties and equipment                       |   | (196 | ) |   | (174 | ) |
| Total costs, expenses and other                                |   | 356,127 |  |   | 303,152 |  |
|                                                           |   |   |   |   |
| Income from operations                                         |   | 39,833 |  |   | 39,869 |  |
| Interest income                                                |   | 47 |  |   | 71 |  |
| Interest expense                                               |   | (36,985 | ) |   | (33,250 | ) |
|                                                           |   |   |   |   |
| Income from continuing operations before income taxes          |   | 2,895 |  |   | 6,690 |  |
| Provision for income taxes                                     |   | (183 | ) |   | 652 |  |
| Income from continuing operations                              |   | 3,078 |  |   | 6,038 |  |
| Less: net loss attributable to noncontrolling interests        |   | — |  |   | (280 | ) |
| Income from continuing operations attributable to shareholders |   | $ | 3,078 |  |   | $ | 6,318 |  |
|                                                           |   |   |   |   |
| Earnings per share - income from continuing operations:        |   |   |   |   |
| Basic                                                          |   | $ | 0.13 |  |   | $ | 0.33 |  |
| Diluted                                                        |   | $ | 0.13 |  |   | $ | 0.32 |  |
| Weighted average common shares outstanding:                    |   |   |   |   |
| Basic                                                          |   | 23,521 |  |   | 19,674 |  |
| Diluted                                                        |   | 23,871 |  |   | 19,821 |  |

----

|                                                                    |
|--------------------------------------------------------------------|
|                                                                    |  |  |  |  |  |  |  |  |  |  |  |
| PETROLEUM DEVELOPMENT CORPORATION                                  |
| (dba PDC Energy)                                                   |
| Pro Forma Condensed Consolidated Balance Sheet                     |
| (unaudited; in thousands, except share and per share data)         |
|                                                               |   |   |   |   |   |
|                                                               | December 31, 2011 |
|                                                               | As Reported |   | Pro Forma Adjustments - Divestiture |   | Pro Forma |
| Assets                                                             |   |   |   |   |   |
| Current assets:                                                    |   |   |   |   |   |
| Cash and cash equivalents                                          | $ | 8,238 |  |   | $ | — |  |   | $ | 8,238 |  |
| Other current assets                                               | 164,812 |  |   | (1,774 | ) |   | 163,038 |  |
| Total current assets                                               | 173,050 |  |   | (1,774 | ) |   | 171,276 |  |
| Properties and equipment, net                                      | 1,301,716 |  |   | — |  |   | 1,301,716 |  |
| Assets held for sale                                               | 148,249 |  |   | (148,249 | ) |   | — |  |
| Other assets                                                       | 74,990 |  |   | — |  |   | 74,990 |  |
| Total Assets                                                       | $ | 1,698,005 |  |   | $ | (150,023 | ) |   | $ | 1,547,982 |  |
|                                                               |   |   |   |   |   |
| Liabilities and Equity                                             |   |   |   |   |   |
| Liabilities                                                        |   |   |   |   |   |
| Current liabilities                                                | $ | 195,046 |  |   | $ | — |  |   | $ | 195,046 |  |
| Long-term debt                                                     | 532,157 |  |   | (180,228 | ) |   | 351,929 |  |
| Deferred income taxes                                              | 207,573 |  |   | — |  |   | 207,573 |  |
| Asset retirement obligations                                       | 46,316 |  |   | (2,022 | ) |   | 44,294 |  |
| Other liabilities                                                  | 52,801 |  |   | — |  |   | 52,801 |  |
| Total liabilities                                                  | 1,033,893 |  |   | (182,250 | ) |   | 851,643 |  |
|                                                               |   |   |   |   |   |
| Commitments and contingent liabilities                             |   |   |   |   |   |
|                                                               |   |   |   |   |   |
| Equity                                                             |   |   |   |   |   |
| Shareholders' equity:                                              |   |   |   |   |   |
| Preferred shares, par value $0.01 per share; authorized 50,000,000 |   |   |   |   |   |
| shares; issued: none                                               | — |  |   | — |  |   | — |  |
| Common shares, par value $0.01 per share; authorized 100,000,000   |   |   |   |   |   |
| shares; issued: 23,634,958                                         | 236 |  |   | — |  |   | 236 |  |
| Additional paid-in capital                                         | 217,707 |  |   | — |  |   | 217,707 |  |
| Retained earnings                                                  | 446,280 |  |   | 32,227 |  |   | 478,507 |  |
| Treasury shares, at cost: 2,938                                    | (111 | ) |   | — |  |   | (111 | ) |
| Total shareholders' equity                                         | 664,112 |  |   | 32,227 |  |   | 696,339 |  |
| Total Liabilities and Equity                                       | $ | 1,698,005 |  |   | $ | (150,023 | ) |   | $ | 1,547,982 |  |
|                                                               |   |   |   |   |   |