|         |                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Natural gas, NGL and crude oil sales, sales from natural gas marketing, and well operations, pipeline and other income have been adjusted downward to reflect the decrease in revenue related to to the Divestiture. Natural gas, NGL and crude oil sales have been adjusted upward to reflect the increase in revenue related to the Acquisition; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Production costs, cost of natural gas marketing, exploration expense, impairment of natural gas and crude oil properties, depreciation, depletion and amortization and accretion of asset retirement obligations have been adjusted downward to reflect the costs and expenses associated with the Divestiture. Production costs, depreciation, depletion and amortization and accretion of asset retirement obligations have been adjusted upward to reflect the costs and expenses associated with the Acquisition; |

|         |                                                                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Interest expense has been adjusted upward to reflect the interest, at an assumed annual rate of 4.1%, incurred related to incremental debt of approximately $129.1 million borrowed under the Company's revolving credit facility to partially fund the estimated closing price of the Acquisition; and |

|         |                                                                             |
|---------|-----------------------------------------------------------------------------|
| • | Income taxes are reflected using the Company's long-term deferred tax rate. |

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|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| PDC ENERGY, INC.                                                      |
| Pro Forma Condensed Consolidated Statement of Operations              |
| (unaudited; in thousands, except per share data)                      |
|                                                                  |   |   |   |   |   |   |   |
|                                                                  | Year Ended December, 31 |
|                                                                  | 2012 |
|                                                                  | As Reported |   | Pro Forma Adjustments - Divestiture |   | Pro Forma Adjustments - Acquisition (1) |   | Pro Forma |
| Revenues:                                                             |   |   |   |   |   |   |   |
| Natural gas, NGL and crude oil sales                                  | $ | 270,327 |  |   | $ | (33,343 | ) |   | $ | 14,355 |  | (a) | $ | 251,339 |  |
| Sales from natural gas marketing                                      | 47,079 |  |   | (1,708 | ) |   | — |  |   | 45,371 |  |
| Commodity price risk management gain, net                             | 32,339 |  |   | — |  |   | — |  |   | 32,339 |  |
| Well operations, pipeline income and other                            | 6,388 |  |   | (1,861 | ) |   | — |  |   | 4,527 |  |
| Total revenues                                                        | 356,133 |  |   | (36,912 | ) |   | 14,355 |  |   | 333,576 |  |
|                                                                  |   |   |   |   |   |   |   |
| Costs, expenses and other:                                            |   |   |   |   |   |   |   |
| Production costs                                                      | 75,485 |  |   | (20,989 | ) |   | 2,531 |  | (b) | 57,027 |  |
| Cost of natural gas marketing                                         | 46,552 |  |   | (1,529 | ) |   | — |  |   | 45,023 |  |
| Exploration expense                                                   | 22,605 |  |   | (2,254 | ) |   | — |  |   | 20,351 |  |
| Impairment of natural gas and crude oil properties                    | 168,149 |  |   | (162,254 | ) |   | — |  |   | 5,895 |  |
| General and administrative expense                                    | 58,815 |  |   | — |  |   | — |  |   | 58,815 |  |
| Depreciation, depletion and amortization                              | 146,879 |  |   | (48,101 | ) |   | 455 |  | (c) | 99,233 |  |
| Accretion of asset retirement obligations                             | 4,060 |  |   | (373 | ) |   | 242 |  | (d) | 3,929 |  |
| Gain on sale of properties and equipment                              | (4,353 | ) |   | — |  |   | — |  |   | (4,353 | ) |
| Total costs, expenses and other                                       | 518,192 |  |   | (235,500 | ) |   | 3,228 |  |   | 285,920 |  |
| Income (loss) from operations                                         | (162,059 | ) |   | 198,588 |  |   | 11,127 |  |   | 47,656 |  |
| Loss on extinguishment of debt                                        | (23,283 | ) |   | — |  |   | — |  |   | (23,283 | ) |
| Interest expense                                                      | (48,287 | ) |   | — |  |   | (2,645 | ) | (e) | (50,932 | ) |
| Interest income                                                       | 8 |  |   | — |  |   | — |  |   | 8 |  |
| Income (loss) from continuing operations before income taxes          | (233,621 | ) |   | 198,588 |  |   | 8,482 |  |   | (26,551 | ) |
| Provision for income taxes                                            | 88,835 |  |   | (75,871 | ) |   | (3,241 | ) | (f) | 9,723 |  |
| Income (loss) from continuing operations attributable to shareholders | $ | (144,786 | ) |   | $ | 122,717 |  |   | $ | 5,241 |  |   | $ | (16,828 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Earnings per share from continuing operations:                        |   |   |   |   |   |   |   |
| Basic                                                                 | $ | (5.23 | ) |   |   |   |   |   | $ | (0.61 | ) |
| Diluted                                                               | $ | (5.23 | ) |   |   |   |   |   | $ | (0.61 | ) |
|                                                                  |   |   |   |   |   |   |   |
| Weighted-average common shares outstanding:                           |   |   |   |   |   |   |   |
| Basic                                                                 | 27,677 |  |   |   |   |   |   | 27,677 |  |
| Diluted                                                               | 27,677 |  |   |   |   |   |   | 27,677 |  |

----

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |
| Assets:                                                    |   |   |
| Natural gas and crude oil properties - proved and unproved |   | $ | 335,318 |  |
|                                                       |   |   |
| Liabilities:                                               |   |   |
| Liabilities assumed                                        |   | (30,675 | ) |
| Net assets acquired                                        |   | $ | 304,643 |  |
|                                                       |   |   |

----

|    |                                                                                                                                                  |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------|
| a. | record natural gas, NGL and crude oil sales of $14.4 million related to the Acquisition for the period from January 1 through June 29, 2012; |

|    |                                                                                                                             |
|----|-----------------------------------------------------------------------------------------------------------------------------|
| b. | record production costs of $2.5 million related to the Acquisition for the period from January 1 through June 29, 2012; |

|    |                                                                                                                                                                                                           |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| c. | record incremental depreciation, depletion and amortization expense of $0.5 million, using the unit-of-production method, for the period from January 1 through June 29, 2012 related to the Acquisition; |

|    |                                                                                                                                                              |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| d. | record accretion of asset retirement obligations expense of $0.2 million for the period from January 1 through June 29, 2012 related to the Acquisition; |

|    |                                                                                                                                                                                                                                                                                                                                      |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| e. | record interest expense for the period from January 1 through June 29, 2012 of $2.6 million related to incremental debt of approximately $129.1 million borrowed under the Company's revolving credit facility to partially fund the estimated closing price of the Acquisition . The assumed annual interest rate was 4.1%; and |

|    |                                                                                                                                                                            |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| f. | record the estimated income tax provision of $3.2 million related to the incremental income related to on the Acquisition using an effective income tax rate of 38.2%. |