Petroleum Development Corp. announced consolidated unaudited earnings results for the third quarter and nine months ended September 30, 2009. Net cash provided by operating activities was $39,312,000 compared to $36,062,000 for the same period a year ago. Adjusted cash flow from operations was $37,300,000 or $2.20 diluted per share compared to $59,108,000 or $3.98 diluted per share for the same period a year ago. Adjusted net loss was $2,793,000 or $0.16 diluted per share compared to adjusted net income of $20,753,000 or $1.40 diluted per share for the same period a year ago. EBITDA was $2,213,000 or $0.13 diluted per share compared to $231,440,000 or $15.60 diluted per share for the same period a year ago. Total revenues were $45,200,000 compared to $325,572,000 for the same period a year ago. Loss from operations was $30,064,000 compared to income from operations of $201,655,000 for the same period a year ago. Loss from continuing operations before income taxes was $39,077,000 compared to income from continuing operations before income taxes of $193,989,000 for the same period a year ago. Loss from continuing operations was $24,476,000 compared to income from continuing operations of $126,155,000 for the same period a year ago. Net loss was $24,476,000 or $1.44 diluted per share compared to net income of $126,896,000 or $8.55 diluted per share for the same period a year ago. The net loss for the third quarter 2009 was due to a $35.0 million net decrease in the non-cash mark to market value of the Company's derivative contracts. The third quarter 2009 adjusted net loss was impacted by lower commodity prices compared to the same quarter in 2008, higher general and administrative expenses, and higher DD&A expense which were partially offset by lower lifting cost and production taxes, and strong realized derivative gains. For the nine months, net cash provided by operating activities was $99,971,000 compared to $103,792,000 for the same period a year ago. Adjusted cash flow from operations was $114,706,000 or $7.39 diluted per share compared to $158,703,000 or $10.68 diluted per share for the same period a year ago. Adjusted net loss was $2,302,000 or $0.15 diluted per share compared to adjusted net income of $46,621,000 or $3.14 diluted per share for the same period a year ago. EBITDA was $24,838,000 or $1.60 diluted per share compared to $200,005,000 or $13.46 diluted per share for the same period a year ago. Total revenues were $167,441,000 compared to $406,752,000 for the same period a year ago. Loss from operations was $75,820,000 compared to income from operations of $121,024,000 for the same period a year ago. Loss from continuing operations before income taxes was $102,604,000 compared to income from continuing operations before income taxes of $102,378,000 for the same period a year ago. Loss from continuing operations was $63,371,000 compared to income from continuing operations of $67,731,000 for the same period a year ago. Net loss was $63,258,000 or $4.07 diluted per share compared to net income of $72,256,000 or $4.86 diluted per share for the same period a year ago.

On October 29, 2009, Petroleum Development Corp. and LR-Mountaineer Holdings, L.P., a limited partnership managed and advised by Lime Rock Partners, a provider of growth capital to energy companies worldwide, formed PDC Mountaineer, LLC, a joint venture principally focused in the Marcellus Shale region. Pursuant to a contribution agreement entered into in connection with the formation of the joint venture, the Company contributed properties and assets valued at approximately $158.5 million, consisting principally of 115,000 net acres in the Appalachian Basin, including producing properties and approximately 55,000 acres considered to be prospective in the Marcellus formation, and related gathering assets and equipment. Investor made an initial contribution of $55 million to the joint venture, $45 million of which was withdrawn by the Company as a return of capital. The Company has the right to withdraw up to an additional $11.5 million as a return of capital by December 31, 2010. Investor has agreed to fund 100% of the joint venture's next $58.5 million of expenditures related to the joint venture no later than December 31, 2011.

On October 29, 2009, Petroleum Development Corp. entered into the Seventh Amendment to the Credit Agreement dated as of November 4, 2005 among the Company, certain subsidiaries of the Company, the lenders party thereto and JPMorgan Chase Bank, N.A. ('JPMorgan'), as administrative agent (the 'Credit Agreement'). Pursuant to the Seventh Amendment, the Credit Agreement was amended to, among other things, permit the contribution by the Company of its oil and gas properties in Pennsylvania and West Virginia, including in the Marcellus Shale play, to the newly-formed joint venture (described above), facilitate other aspects of the joint venture and permit the Company to make additional investments in the joint venture so long as certain conditions are satisfied. During the period in which Investor is responsible for 100% of the joint venture's funding, such additional investments are limited to $40 million. The Seventh Amendment also provides for a reduction in the Company's borrowing base under the Credit Agreement from $350 million to $305 million upon completion of the contribution of the Company's oil and gas properties in Pennsylvania and West Virginia to the joint venture. The Company's borrowing base is scheduled to be redetermined in mid-November, and the Company expects that the lenders party to its Credit Agreement will reaffirm the borrowing base at $305 million.