NASDAQ:PETD
 PETROLEUM
DEVELOPMENTCORPORATION
 EnerCom,
Inc.
 The Oil
& Services Conference VIII
 February 18,
2010





See
Slide 2 regarding Forward Looking Statements
 2
 The
following information contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Actof 1995. These forward-looking
statements are based on Management’s current expectations and beliefs, as well
as a numberof assumptions concerning future events.
 These
statements are based on certain assumptions and analyses made by Management in
light of its experience and itsperception of historical trends, current
conditions and expected future developments as well as other factors it believes
areappropriate in the circumstances.However,
whether actual results and developments will conform with
Management’sexpectations and predictions is subject to a number of risks and
uncertainties, general economic, market or businessconditions; the
opportunities (or lack thereof) that may be presented to and pursued by
Petroleum Development Corporation;actions by competitors; changes in laws or
regulations; and other factors, many of which are beyond the control of
PetroleumDevelopment Corporation.
 You are
cautioned not to put undue reliance on such forward-looking statements because
actual results may vary materiallyfrom those expressed or implied, as more
fully discussed in our safe harbor statements found in our SEC filings,
including,without limitation, the discussion under the heading “Risk
Factors” in the Company’s 2008 annual report on Form 10-K and insubsequent
Form 10-Qs. All
forward-looking statements are based on information available to Management on
this dateand Petroleum Development Corporation assumes no obligation to, and
expressly disclaims any obligation to, updateor revise any forward looking
statements, whether as a result of new information, future events or
otherwise.
 The SEC
permits oil and gas companies to disclose in their filings with the SEC only
proved reserves, which are reserveestimates that geological and engineering
data demonstrate with reasonable certainty to be recoverable in future years
fromknown reservoirs under existing economic and operating conditions. The
Company uses in this presentation the terms“probable” and “possible”
reserves, which SEC guidelines prohibit in filings of U.S. registrants. Probable
reserves are unprovedreserves that are more likely than not to be
recoverable. Possible reserves are unproved reserves that are less likely to
berecoverable than probable reserves. Estimates of probable and possible
reserves which may potentially be recoverable throughadditional drilling or
recovery techniques are by nature more uncertain than estimates of proved
reserves and accordingly aresubject to substantially greater risk of not
actually being realized by the Company. In addition, the Company’s reserves
andproduction forecasts and expectations for future periods are dependent
upon many assumptions, including estimates ofproduction decline rates from
existing wells and the undertaking and outcome of future drilling activity,
which may be affectedby significant commodity price declines or drilling
cost increases.
 This
material also contains certain non-GAAP financial measures as defined under the
Securities and Exchange Commissionrules.
 Disclaimer





See
Slide 2 regarding Forward Looking Statements
 Richard
W. McCullough
 Chairman and Chief
Executive Officer
 3





See
Slide 2 regarding Forward Looking Statements
 Reasons
to Invest in PDC
 •  Long term track
record of operational excellence
 •  Long life reserves
with reserve life index of appx 20 yrs
 •  Diversified
operating basins with low risk predictable growth (over 2,200projects
in inventory)
 •  Emerging opportunity
in the Marcellus Shale
 •  Strong balance sheet
with capital available for value added acquisitions,joint
ventures, exploration and partnership repurchases
 •  Trade at discount to
peers on operational & financial metrics
 •  Strong hedge
positions that protect cashflow
 •  Company
transitioning from a Partnership company to a more traditionalE&P
company
 4





See
Slide 2 regarding Forward Looking Statements
 (1) JV
with Lime Rock in the Marcellus
 (2)
EBITDAX and Cash Flow estimates as per analyst consensus
 •  Petroleum
Development Corporation is anindependent
oil and natural gas companywith
operations primarily in the RockyMountain
region, Appalachian Basin andMichigan
Basin
 •  PDC was founded in
1969 in Bridgeport, WVand is
now headquartered in Denver, CO
 Corporate
Summary
 Enterprise
Value
 Capitalization
 Corporate
Profile
 Share
      Price (2/12/10)
              $21.20Diluted
      Share Outstanding (MM)
              19.2Market
      Capitalization ($MM)
              $408Total Debt
      @ 9/30/09
              307Minority
      Interest (1)@ 9/30/09
              45Less: Cash
      @ 9/30/09
              (22)Enterprise
      Value @ 9/30/09
              $73852-Week
      High ($/share)
              $23.0652-Week
      Low ($/share)
              $9.39 Pro
      Forma9/30/2009Capitalization:
      ($MM)Cash
              $22Debt:Credit
      Facility: $305MM Borrowing Base
              10612% Senior
      Notes due 2018
              201Total
      Debt
              307Common
      Equity
              500Minority
      Interest (1)
              45Total
      Capitalization
              $852Debt
      Ratios:Debt/EBITDAX
      (LTM) (2)
              2.0xSenior
      Debt/EBITDAX (LTM) (2)
              1.3xEBITDAX/
      Interest Net (LTM) (2)
              4.3xDebt/Book
      Cap
              41% 5





See
Slide 2 regarding Forward Looking Statements
 Core
Operating Regions
 See
Slide 2 regarding Forward Looking Statements
 2009
Proved Reserves:641Bcfe
 2009
Production:37.8Bcfe
 Rocky
Mountains
 2009
Proved Reserves:15
Bcfe
 2009
Production:1.4
Bcfe
 Michigan
Basin
 2009
Proved Reserves:61Bcfe
 2009
Production:4.1Bcfe
 Appalachian
Basin*
 2009
Proved Reserves
 717
Bcfe
 Appalachian
Basin (9%)*
 2009
Production
 43.3
Bcfe
 MichiganBasin
(3%)
 Appalachian
Basin (9%)
 RockyMountains
(87%)
 *Appalachian
Basin includes 100% of PDC Mountaineer, LLC Reserves
 6





See
Slide 2 regarding Forward Looking Statements
 2009
SEC Year-End reserve reporting changes :
 -  5 year rule
related to PUD bookings
 Year-End
2009 Reserve Summary
 See
Slide 2 regarding Forward Looking Statements
 PDC
      Price
              Snapshot
              Snapshot
              12
      month Avg12/31/08
              12/31/09
              12/31/09Natural
      Gas (per Mcf)
              $4.98
              $5.51
              $3.17Oil
      (per Bbl)
              $37.85
              $72.91
              $54.64 7
 Using
flat 12/31/09 pricing, (2008 SEC pricingmethodology) PDC proved reserves
would be 811 Bcfe
 Proved
Reserves (YE 2008)
 753
   Revisions and
Pricing Adjustment
 (100)
   PUD
reductions, tail loss
 Adds /
Extensions
 91
   New
regulation - 1 offset rule
 Drops /
Scheduling Adjustments
 (46)
   5
year PUD rule
 Revisions, LOE
Improvements, Operations
 62
   LOE
cost improvements, operational improvements
 Production
 (43)
   Proved
Reserves (YE 2009)





See
Slide 2 regarding Forward Looking Statements
 8
 2009
Summary
 Production
 (Bcfe)
 ($MM)
 Capital
Spending
 • Reduced capital
spending by 56% in response to poor natural gas price conditions (56%)
 • Increase
production by 12% and reduced L.O.E $/Mcfe by just under 30%.
 • Reduced L.O.E
$/Mcfe should be sustainable beyond 2009 and will improve incremental capital
investmentreturns.





See
Slide 2 regarding Forward Looking Statements
 2009
Summary - Credit Ratios
 Total
Debt / EBITDAX(1)(TTM)
 Total
Debt / Capital Base
 (%)
 (1)
EBITDAX: Earnings before Interest, Taxes, Depreciation, Depletion and
Amortization and Exploration Expense.
 EBITDAX
(1)/ Interest, net
(TTM)
 2009
 2010
 2011
 2012
 2013
 2014
 2015
 2016
 2017
 2018
 •  ~$50MM equity raise,
and ~$160MM PDC and Lime Rock Partners joint venture to developMarcellus
Shale and Shallow Devonian assets, reflected the company’s ability to
accessalternative
capital markets, and improve liquidity, leverage and coverage
measures
 * Liquidity excludes
impact of $18.7MM L.C.
 9
 (*)
 $305
 $203





See
Slide 2 regarding Forward Looking Statements
 2009
Summary - Oil and Gas Hedges
 (1)  Based
on 12/31/09 PDP curve (i.e., may represent 50% or less of actual production for
the future year)
 (2)  Based
on forward pricing curves as of 12/31/2009
 (3)  Blended
price for forecasted production at hedged and at forward prices
 2010
              2011
              2012
              2013Weighted
      Average Hedge Price (Mcfe) (1)With
      Floors
              $7.84
              $6.87
              $6.39
              $6.39With
      Ceilings
              $8.76
              $7.76
              $7.97
              $8.21% of
      Forecasted Production(1)
              73%
              74%
              66%
              65%Weighted
      Avg Forward Price(2)
              $6.70
              $7.20
              $7.36
              $7.51Weighted
      Avg Price of ForecastedProduction(3)
              $7.54
              $6.96
              $6.72
              $6.78 Continued focus on
hedging enabled the Company to protect its cash flow, capitalprograms,
and organic drilling economics from commodity price fluctuations
 •  Realized gains of
$108MM
 •  Substantial hedge
positions through 2013 via swaps (2010-2011) and collars (2012-2013) at solid
historicalcommodity
price levels should continue to provide on-going protection
 •  Price sensitivity of
2010’s budget has been significantly mitigated.Variation
of $1.00/Mcfe for natural gasand
$10.00/bbl for oil results in less than a 5% variation in cash flow for
operations
 10





See
Slide 2 regarding Forward Looking Statements
 2009
STRATEGIC POSITIONING
 •  Enhanced A&D
team through the hiring of new Senior Vice Presidentof
Business Development and the hiring of senior engineering supportpersonnel.
 •  Initiate three-year
plan to buyback Partnerships.
 •  Developed an
intrinsic valuation model which will be utilized to evaluatecapital
deployment (organic drilling, acquisitions, etc.) decisions.
 •  PDC 2009
achievements positively positions the Company to execute itsoperating
strategy and pursue strategic initiatives in 2010:
 –  A&D team
development
 –  Improvement in
liquidity, leverage ,and coverage measures
 –  Hedging price
protection
 –  Cost reductions
which improve capital drilling returns
 –  Development of an
intrinsic valuation model
 11





See
Slide 2 regarding Forward Looking Statements
 2010
CAPEX BUDGET
 2009E
              2010E
              %
      ChangeNet
      Development Capital(MM$)
              79
              127
              61%Exploration,
      Land, G&G(MM$)
              15
              6
              -60%Leasehold
      and Partnership Puts
              9
              9
              3%Miscellaneous
      Capital(MM$)
              8
              8
              -3%Total
      Net Capital(MM$)
              $110
              $150
              36% 12





See
Slide 2 regarding Forward Looking Statements
 13
 Marcellus
 • 16
Verticals
 • 10
Horizontals
 Shallow
Devonian
 • 50
Recompletes
 • 29
Workovers
 NECO
 • 25
New Drills
 • 50
Workovers
 Wattenberg
 • 180
New Drills
 -138
Operated New Drills
 -42
Non-Op New Drills
 • 12
Refracs/Recompletes
 Piceance
 • 21
New Drills
 -11
Mesa
 -10Valley
 See
Slide 2 regarding Forward Looking Statements
 PDC
has over 2,200 identifiedprojects in Inventory





See
Slide 2 regarding Forward Looking Statements
 Operations
Forecast2009 vs. 2010
 2009E
              2010E
              %
      ChangeTotal
      Net Production (Bcfe) (1)
              43.3
              35.7
              -18%Gross
      Exit Rate (MMcfe/d)
              187
              185
              -1%Net
      Exit Rate (MMcfe/d)
              107
              106
              -1%Net
      Development Capital (MM$)
              $79
              $127
              61%Gross
      Number of DrillingProjects
              100
              257
              157%Gross
      Number of OtherProjects
              38
              62
              63% 14
 (1) 12% production
decrease excluding impact of JV.





See
Slide 2 regarding Forward Looking Statements
 15
 Net
Production
 35.7
 43.3
 •  Production decline
vs. 2009 primarily due to:
 –  Decision to limit
drilling in late 2008/2009(price
/ economy) and to preserveliquidity
 –  Formation of
Mountaineer JV Partnership(2.3
Bcfe)
 •  PDC has over 2,200
Identified projects inInventory
to organically grow production andcash
flow for foreseeable future.
 •  2010 Drilling and
workover program initiallyset for
300+ organic projects
 •  PDC has a project
Inventory of over 7 years
 •  PDC positioned for
additional growth thruacquisitions,
Joint ventures, Exploration andPartnership
Buy backs
 2010
Production Guidance





See
Slide 2 regarding Forward Looking Statements
 IncreasingValue
in 2010 and Beyond
 •  Additional Organic
Drilling - Possibly beginning 2nd half
2010
 -Ramp up
in Piceance and Wattenberg
 -Focus
on enhancing Piceance economics
 •  Marcellus JV -
drilling 26 horizontal and vertical wells in 2010
 -  Large operator in
WVA achieved reserves of 3.6 Bcfe perhorizontal
well near PDC acreage
 -  Over 150 Marcellus
permits issued in WVA countiessurrounding
PDC position
 •  Partnership
Purchases - Three Year Plan
 -  Non-operated
interests in certain existing PDC operatedWattenberg
and Piceance Assets
 •  Acquisitions - Asset
and Small Corporate
 -Anticipate
substantial A&D deal flow in 2010
 •  Exploration -
Moderate Risk Resource Plays
 -Niobrara
Wattenberg; Mancos Shale Piceance; Bakken; Others
 16





See
Slide 2 regarding Forward Looking Statements
 Partnership
Purchases:Three year plan
 •  Limited Partners’
non-operated interest is typically at 60-80%of
certain PDC operated wells (Rockies principally)
 •  28 Limited
Partnerships have net reserves of approximately125
Bcfe owned by the Limited Partners
 •  28 Limited
Partnerships have net production of approximately25
MMcfe/d owned by the Limited Partners
 •  PDC strategy to
purchase Limited Partners’ interest over nextthree
years
 –  Production and
reserve adds in existing operated core acreage
 –  9 SEC compliant
partnerships represent over 60% of net reserves and over75% of
total cash flows owned by the Limited Partners
 –  Elimination of
Limited Partnerships through repurchases would finalize PDC’stransition
to a traditionally capitalized E&P company
 17





See
Slide 2 regarding Forward Looking Statements
 •  Strong Focus on
creating Shareholder value
 •  Great core assets
with improved drilling economics
 •  Marcellus Shale JV
with Lime Rock provides potential catalystfor
strong production and cash flow growth
 •  Evaluating potential
acquisition, joint venture, and explorationopportunities
that could provide value-added growth
 •  Strong balance sheet
with liquidity of $257 million
 •  Experienced and
highly effective management team
 •  PDC is undervalued
and poised for growth
 PDC
in Summary
 18





See
Slide 2 regarding Forward Looking Statements
 Appendix
 19





See
Slide 2 regarding Forward Looking Statements
 Piceance
Basin at
December 31, 2009
 •  Gross
operated wells288
 •  Undeveloped
acreage 5,300
 •  Undeveloped,
gross, 10 acre locations433
 •  362
total net PDC
 •  Number
of net remaining locations
 -PUD251
 -Probable97
 -Possible 14
 20





See
Slide 2 regarding Forward Looking Statements
 Wattenberg
Field at
December 31, 2009
 
 •  Gross
Operated wells1,410
 •  Undeveloped
acreage19,400
 •  Undeveloped,
gross, locations1,533
 •  831
total net PDC
 -PUD373
 -Probable316
 -Possible142
 21





See
Slide 2 regarding Forward Looking Statements
 PDC
Undeveloped NorthernWattenberg Acreage Area
 EOG
Niobrara Horizontal Well plus
39Drilling Permits Approved & Pending
 PDC
Undeveloped Acreage inNorthern Wattenberg Area. Approximately
24,000 Acres.
 PDC
NECO Area: NiobraraBiogenic Gas Production
 PawneeNationalGrasslands
 Pawnee
NationalGrasslands
 Base
Map SourceUSGS
 22





See
Slide 2 regarding Forward Looking Statements
 Marcellus
JV
 •  Formed JV with Lime
Rock in October 2009 valuing assetsat
$158.5 million (Lime Rock will fund first $68.5 million).
 •  Organization in
place and fully operational for futuredevelopment
of Devonian and Marcellus assets.
 •  Marcellus
assets:
 –  Focus has been on
solidifying current acreage position andevaluating
vertical well program results
 –  Acreage position has
grown to over 55,000 net acres
 –  Seven vertical wells
were drilled in West Virginia; oneadditional
delineation well is being drilled in Pennsylvania
 –  First horizontal
test to be commenced in February 2010
 –  A total of three
horizontal tests are planned for the first halfof
2010
 –  Midstream strategy
is being addressed and finalized
 23





See
Slide 2 regarding Forward Looking Statements
 Appalachian
Operating Presence
 Ø  44
Employees - Indiana, PA
 –  Production
 –  Drilling/Completion
 –  Trucking/Pipeline/Construction
 Ø  133
Employees - Bridgeport, WV
 –  Production
 –  Drilling/Completion
 –  Pipeline - DOT
Compliance
 –  Gas
Marketing
 –  Accounting
 –  Administration
 Ø  13
Senior Technical Team Employees -Bridgeport,
WV
 –  Engineering
 –  Geology
 –  Completions
 –  Pipeline
 –  Production
 PDC’s
Appalachian presence consists of shallowDevonian sands and the deeper
Marcellus shale.
 Marcellus
Economic Fairway
 24
 39,900
ACRES WV
 15,100
ACRES PA





See
Slide 2 regarding Forward Looking Statements
 Acreage
Inventory
 Area
              Lease
      GrossAcres
              PDC
      Net Acres
              Net
      DevelopedAcres
              Net
      UndevelopedAcres
              StateGrand
      Valley
              8,000
              8,000
              2,700
              5,300
              ColoradoWattenberg
              72,200
              64,900
              45,500
              19,400
              ColoradoNECO
              127,100
              105,100
              19,600
              85,500
              Colorado/KansasMichigan
              26,800
              23,300
              14,800
              8,500
              MichiganNew
      York
              18,700
              15,900
              0
              15,900
              New
      YorkNorth
      Dakota
              66,800
              30,200
              4,600
              25,600
              North
      DakotaAppalachian
      Basin
              120,900
              117,600
              106,800
              10,800
              WV
      / PAWyoming
              19,500
              19,300
              100
              19,200
              WyomingTexas
      Barnett
              8,900
              6,000
              400
              5,600
              TexasTotal
              468,900
              390,300
              194,500
              195,800PDC
      TOTAL NET
              390,300 25





NASDAQ:PETD
 PETROLEUM
DEVELOPMENTCORPORATION
 EnerCom,
Inc.
 The Oil
& Services Conference VIII
 February 18,
2010