NASDAQ:PETD
 Petroleum Development Corporation
 2009 Second Quarter Teleconference
 August 10, 2009
 Richard W. McCullough, Chairman & CEO
 Gysle R. Shellum, Chief Financial Officer
 Barton R. Brookman, SVP Exploration & Production





See Slide 2 regarding Forward Looking Statements
 2
 The following information contains forward-looking statements within the meaning of the Private Securities LitigationReform Act of 1995. These forward-looking statements are based on Management’s current expectations andbeliefs, as well as a number of assumptions concerning future events.
 These statements are based on certain assumptions and analyses made by Management in light of its experienceand its perception of historical trends, current conditions and expected future developments as well as other factors itbelieves are appropriate in the circumstances.However,
whether actual results and developments will conform withManagement’s expectations and predictions is subject to a number of risks and uncertainties, general economic,market or business conditions; the opportunities (or lack thereof) that may be presented to and pursued by PetroleumDevelopment Corporation; actions by competitors; changes in laws or regulations; and other factors, many of whichare beyond the control of Petroleum Development Corporation.
 You are cautioned not to put undue reliance on such forward-looking statements because actual results may varymaterially from those expressed or implied, as more fully discussed in our safe harbor statements found in our SECfilings, including, without limitation, the discussion under
the heading “Risk Factors” in the Company’s 2008 annualreport on Form 10-K and in subsequent Form 10-Qs. All forward-looking statements are based on informationavailable to Management on this date and Petroleum Development Corporation assumes no obligation to, andexpressly disclaims any obligation to, update or revise any forward looking statements, whether as a result of newinformation, future events or otherwise.
 The SEC permits oil and gas companies to disclose in their filings with the SEC only proved reserves, which arereserve estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable infuture years from known reservoirs under existing economic
and operating conditions. The Company uses in thispresentation the terms “probable” and “possible” reserves, which SEC guidelines prohibit in filings of U.S. registrants.Probable reserves are unproved reserves that are more likely than not to be recoverable. Possible reserves areunproved reserves that are less likely to be recoverable than probable reserves. Estimates of probable and possiblereserves which may potentially be recoverable through additional drilling
or recovery techniques are by nature moreuncertain than estimates of proved reserves and accordingly are subject to substantially greater risk of not actuallybeing realized by the Company. In addition, the Company’s reserves and production forecasts and expectations forfuture periods are dependent upon many assumptions, including estimates of production decline rates from existingwells and the undertaking and outcome of future drilling activity, which may be affected by significant
commodityprice declines or drilling cost increases.
 This material also contains certain non-GAAP financial measures as defined under the Securities and ExchangeCommission rules.
 Disclaimer





See Slide 2 regarding Forward Looking Statements
 3
 Rick McCullough
 Chairman & Chief Executive Officer





See Slide 2 regarding Forward Looking Statements
 Q2 2009 Corporate Update
 4
 •  Completed Denver Headquarters Relocation
 o  Moved eight employees
 o  Consolidated senior executive team
 o  Consolidated all CFO functions except Accounting
(remains in Bridgeport)
 o  Accounting accelerated recent SEC filings (2008
10-K and 2009 10-Q’s)
 •  Partnership Compliance Progress
 o  PDC’s accounting department has undertaken
a major initiative to bringexisting drilling partnerships into SEC filing compliance and expects tobring several more into compliance in 2009
 o  SEC recently approved filings on four drilling
partnerships, for the threeyear period 2005 - 2007
 o  Equivalent to filing 36 Form 10-Q’s and
12 Form 10-K’s
 •  Completed Strategic Assessment Initiative





See Slide 2 regarding Forward Looking Statements
 Q2 2009 Strategic Update
 5
 •  July 16, 2009 Denver Analyst Day Theme
 o  Scale and cost control
 o  Alternative capital sources - Marcellus JV
 o  Financial focus - hedging
 o  Diversify and increase projects - A&D
 •  Announcements
 o  Dewey Gerdom, VP - Eastern Operations (Marcellus)
 o  Lance Lauck, SVP - Business Development
 o  Hired an advisor to accelerate Marcellus JV





See Slide 2 regarding Forward Looking Statements
 2Based on forward curve as of 6/30/09.
 3Based on 6/30/09 PDP.
 Strong Hedge Position
 Weighted average natural gas prices
 Percentage of forecasted PDP production3
 2010
 6
 2009





See Slide 2 regarding Forward Looking Statements
 Quarterly Realized Hedge Price
 7





See Slide 2 regarding Forward Looking Statements
 Q2 2009 Highlights
 8
 •  Operations
 –  Production in line with forecast, up 27% over
Q2 2008
 –  Continued focus on cost control and CAPEX spending
 •  Drilled primarily in Wattenberg where our CAPEX
costs havebeen reduced to $0.5 million range per well, resulting in anIRR of ~33%
 –  In the six months ended June 30, 2009
 •  27% reduction in unit lifting costs vs. 2008
 •  33% reduction in production and well operations
costs vs. 2008
 –  24 gross wells drilled in Q2 2009
 –  Continuing with Marcellus development





See Slide 2 regarding Forward Looking Statements
 Q2 2009 Highlights
 •  Financial
 –  Adjusted cash flow was $37.7 million and adjusted
net losswas($3.7) million
 –  Strong hedging position preserved realized prices
of$5.87/Mcfe (hedged price of $7.51/Mcfe)
 –  G&A expense included $3.9 million of non-recurring
items
 –  DD&A rates increased largely due to 2008
year-end reserverevisions
 –  Available liquidity was $154 million at 6/30/09





See Slide 2 regarding Forward Looking Statements
 Note: The revolver due in 2012 has a borrowing base size of $350 million.
 Relative Balance Sheet Strength
 q PDC’s leverage and coverage measurescompare favorably to its peer group
 q PDC’s leverage and coverage measurescompare favorably to “BB” credits.
 q PDC is a ‘B’ credit due to its smaller sizeand scale
 q Maturity schedule reflects:
 q Mitigation of liquidity risk
 q Diversification of funding sources
 Debt/Book Capitalization
 Debt/Proved Reserves
 Maturity Profile
 Debt/LTM EBITDA
 10
 Revolver
 Senior Notes
 In $millions
 Source: EnerCom, June 2009
 PDC Peer Group: BBG, BRY, COG, GDP, KWK, PLLL, PVA, ROSE, WLL
 10
 $0.56
 $0.89





See Slide 2 regarding Forward Looking Statements
 Summary
 11
 •  Another good quarter of Cash Flow per Share,Adjusted Net Income and
Operating Costs
 •  July 16, 2009 Analyst Day Message RegardingStrategy
 –  Introduced and provided status updates onfour
initiatives
 –  Plan to share more news in the near future
 •  PDC Team is focused on operational enhancementsand
plans to capitalize on market recovery





See Slide 2 regarding Forward Looking Statements
 12
 Bart Brookman
 Senior V.P. Exploration & Production





See Slide 2 regarding Forward Looking Statements
 13
 Core Operating RegionsQ2 2009 Production Summary
 See Slide 2 regarding Forward Looking Statements
 Rocky Mountains
 2008 Production: 1.6 Bcfe
 1st Q 2009 Production0.3 Bcfe
 2nd Q 2009 Production0.4 Bcfe
 Michigan  Basin
 2008 Production: 3.9 Bcfe
 1st Q 2009 Production1.0 Bcfe
 2nd Q 2009 Production1.0 Bcfe
 Appalachian Basin
 2008 Production: 33.2 Bcfe
 1st Q 2009 Production9.9 Bcfe
 2nd Q 2009 Production9.8 Bcfe
 Q2 2009 Production
 11.2 Bcfe
 •  27% increase over 2nd
Quarter 2008
 •  123 MMcfe average dailyproduction
rate during Q2 2009





See Slide 2 regarding Forward Looking Statements
 14
 •  Estimated 2009 production of43.4 Bcfe
 •  Actual production slightly aboveforecast
 •  Strong production optimizationefforts underway





See Slide 2 regarding Forward Looking Statements
 15
 2009 Drilling Activity
 •  Plan 105 gross wells in 2009
 •  ~88% of 2009 wells drilled areplanned for the Wattenbergbasin
 •  Currently drilling 6th verticalMarcellus well





See Slide 2 regarding Forward Looking Statements
 16
 2009 CAPEX
 ActualSix Months EndedJune 30, 2009
EstimatedSix Months EndedDecember 31, 2009
EstimatedTotal2009Net Development Capital(MM$)
$53
$24
$77Exploration, Land, G&G(MM$)
6
9
15Acquisitions(MM$)
2
2
4Miscellaneous Capital(MM$)
6
6
12Total Net Capital(MM$)
$67
$41
$108





See Slide 2 regarding Forward Looking Statements
 17
 Q4 2008Average Costs
EstimatedCurrent Costsat July 1, 2009
$ Improvement
% ImprovementPiceance
$2,700
$2,030
$670
25%Wattenberg
$765
$550
$215
28%NECO
$250
$188
$62
25%East
$413
$310
$103
25% CAPEX Improvements (per well cost, $ in thousands)





See Slide 2 regarding Forward Looking Statements
 Lease Operating Expenses
 18
 2009 Operating Cost Improvements(per Mcfe)Twelve MonthsEnded
December 31, 2008
Three Months EndedJune 30, 2009
Six Months EndedJune 30, 2009
Year-to-Date% Variance2008 vs. Six MonthsEnded June 30, 2009Direct Well Expenses
$0.84
$0.41
$0.55
-34%Indirect Well Expenses
$0.23
$0.23
$0.23
0%Lifting Cost ($ per Mcfe)
$1.07
$0.64(1)
$0.78
-27%Production Taxes
$0.48
$0.25
$0.21
-56%Well Operations Segment
$0.15
$0.15
$0.15
0%Overhead and Other
Production Expenses
$0.32
$0.21
$0.21
-34%Oil & Gas Production and
Well Operations Costs
$2.02
$1.25
$1.36
-34% (1) The Q2 2009 average lifting cost includes a benefit for the reimbursement of costs incurred in Q1 2009.





See Slide 2 regarding Forward Looking Statements
 Q2 2009 Operating Highlights
 •  Marcellus Update
 –  5,000 acres added to Cambria and Indiana Counties,
PA
 –  Expect to complete fifth, sixth and seventh
WV verticalwells by September 2009; an additional two PA verticalwells are planned in late 2009
 –  Ten square mile seismic shoot underway in WV
 –  Expect to drill first horizontal well in Q1
2010
 •  Operating one rig in the Wattenberg
 •  Continued capital cost and LOE reductions
 •  Production in-line with forecast
 19





See Slide 2 regarding Forward Looking Statements
 20
 Gysle Shellum
 Chief Financial Officer





See Slide 2 regarding Forward Looking Statements
 21
 Q2 2009 Highlights
 •  27.4% production increase Q2 2009 over Q2 2008
 •  Realized hedging gains of $24.3 MM for Q2 2009
 •  Key financial metrics (comparison to First
Quarter 2009) :
 –  Average realized prices
(including realized gains/losses onderivatives) per Mcfe were $5.87 in Q2 2009, a 17%decrease from $7.08 per Mcfe in Q1 2009
 –  Average Lifting Costs per
Mcfe decreased 31% to $0.64 inQ2 2009 from $0.93 in Q1 2009(1)
  (1)  The Q2 2009 average lifting cost includes a benefit for the reimbursement of costs incurred in Q1 2009.
 (2)  See appendix for reconciliation to GAAP.





See Slide 2 regarding Forward Looking Statements
 22
 Summary Financial Results ($ in millions, except for per share data)
 Three Months Ended
June 30,
Six Months Ended
June 30,2009
2008
2009
2008O&G Revenues
$41.6
$94.5
$81.3
$166.2O&G Production & Well Operating Costs
$14.0
$21.3
$30.4
$39.5O&G Operating Margins(1)
$27.6
$73.2
$50.9
$126.7Net Income (Loss)
($33.1)
($40.7)
($38.8)
($54.6)Earnings (Loss) per Diluted Share
($2.23)
($2.76)
($2.62)
($3.71)Adjusted Net Income (Loss)(2)
($3.7)
$15.3
($.4)
$25.7Adjusted Cash Flow from Operations(2)
$37.7
$59.2
$77.4
$99.6Adjusted Cash Flow from Operations(per share)(2)
$2.54
$4.02
$5.23
$6.76DD&A
$33.8
$22.1
$68.2
$43.2G&A
$14.8
$9.2
$26.9
$19.1 (1)  O&G operating margins is defined as O&G sales less O&G production and well operations costs.
 (2)  See appendix for reconciliation to GAAP.





See Slide 2 regarding Forward Looking Statements
 23
 •  $350 million revolver maturesMay 22, 2012
 •  Maturity schedule reflects:
 –  Mitigation of liquidity risk
 –  Diversification of fundingsources
 •  As of June 30, 2009:
 –  $218 MM drawn balance
 –  $22 MM cash balance
 –  $154 MM available liquidity
 •  November 2009 borrowingbase redetermination
 Debt Maturity Schedule (as of June 30, 2009)
 2009
 2010
 2011
 2012
 2013
 2014
 2015
 2016
 2017
 2018
 $218
 $200.5
 $350





See Slide 2 regarding Forward Looking Statements
 Energy Market Exposure
 Percentage of Mcfe Sold by Market(for Three Months Ended June 30, 2009)





See Slide 2 regarding Forward Looking Statements
 Oil and Gas Hedgesin Place as of August 4, 2009
 2009
2010
2011Weighted Average Hedge Price(Mcfe)(1)With Floors
$8.24
$8.31
$7.92With Ceilings
$11.08
$9.71
$9.30% of Forecasted Production(2)
69%
66%
26%Weighted Avg Forward Price(3)
$4.86
$6.39
$7.13Weighted Avg Price ofForecasted Production(4)
$7.19
$7.66
$7.34Weighted Avg Price ofForecasted Production
Assuming 15% increase in Production
$6.89
$7.50
$7.31 (1)  Excludes basis swaps from 4/2010 through 12/2013
 (2)  Based on 6/30/09 PDP
 (3)  Based on forward curves as of 6/30/2009
 (4)  Represents a blended price for forecasted PDP production at hedged prices and at forward
prices
 25





See Slide 2 regarding Forward Looking Statements
 26
 Adjusted Cash Flowfrom Operations
 •  Adjusted cash flow from operations is defined as cash flowfrom
operations before working capital changes
 Note: See appendix for reconciliation to GAAP.
 Q1
 Q2
 Q3
 Q4
 $200.1
 FullYear





See Slide 2 regarding Forward Looking Statements
 27
 Adjusted EBITDA
 •  Adjusted EBITDA is defined asNet
Income + Gain on Sale ofLeasehold + UnrealizedDerivative Gain/Loss + Interest +Income Taxes + Depreciation,Depletion and Amortization +Other
 •  30% higher average gas salesprice
(including realized gain(loss) on derivatives) in 2008versus 2007
 •  2007 includes a gain on sale ofleaseholds
of $33MM
 $192.5
 Q3
 Q4
 Q2
 Q1
 Q2
 Q1
 Note: See appendix for reconciliation to GAAP.
 FullYear





See Slide 2 regarding Forward Looking Statements
 28
 Average Unit Costs Relatedto Oil and Gas Drilling (per Mcfe)
 Three Months Ended
June 30,
Six Months Ended
June 30,2009
2008
2009
2008Average lifting costs
$0.64(1)
$1.13
$0.79
$1.13DD&A(O&G Properties Only)
$2.84
$2.33
$2.87
$2.32 (1) The Q2 2009 average lifting cost includes a benefit for the reimbursement of costs incurred in Q1 2009.





See Slide 2 regarding Forward Looking Statements
 29
 A P P E N D I X
 2009 Financial Results





See Slide 2 regarding Forward Looking Statements
 30
 Adjusted EBITDA Reconciliation ($ in millions)
 Three Months EndedJune 30,
Six Months EndedJune 30,2009
2008
2009
2008Net loss
($33.1)
($40.7)
($38.8)
($54.6)Gain on sale of leasehold
-
-
.01
-Unrealized derivative loss(1)
47.6
86.3
60.8
125.7Interest, net
9.4
6.3
17.8
11.0Income taxes (benefit)
(20.5)
(23.8)
(24.6)
(33.2)DD&A
33.8
22.1
68.2
43.2Other
-
4.2
2.6
4.2Adjusted EBITDA
$37.2
$54.4
$86.0
$96.2 (1)  Includes natural gas marketing activities.





See Slide 2 regarding Forward Looking Statements
 31
 Adjusted Cash Flow Reconciliation ($ in millions)
 Three Months EndedJune 30,
Six Months EndedJune 30,2009
2008
2009
2008Net Cash provided byOperating Activities
$24.8
$18.9
$60.7
$67.7Changes in Assets & LiabilitiesRelated to Operations
12.9
40.3
16.7
31.9Adjusted Cash Flow fromOperations
$37.7
$59.2
$77.4
$99.6





See Slide 2 regarding Forward Looking Statements
 32
 Adjusted Net Income Reconciliation  ($ in millions)
 Three Months EndedJune 30,
Six Months Ended
June 30,2009
2008
2009
2008Net income loss
($33.1)
($40.7)
($38.8)
($54.6)Unrealized derivative loss(1)
47.6
86.3
60.8
125.7Tax effect
(18.1)
(34.5)
(24.2)
(49.5)Other
-
4.2
2.6
4.2Adjusted net income (loss)
($3.7)
$15.3
$0.4
$25.7 (1)  Includes natural gas marketing activities.





NASDAQ:PETD
 Petroleum Development Corporation
 2009 Second Quarter Teleconference
 August 10, 2009