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INVESTOR PRESENTATION – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · May 14, 2013 · 60 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 1
    Investor Presentation May 2013
  2. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance Total Enterprise Value (B) 20 Top U.S. Fields By Rig Count1 2013 Drilling Capex (B) 2.8 (Pioneer Operated Count in Green 36 rigs) Q1 2013 Production (MBOEPD) 171 264 2012 Reserves (BBOE) 1.1 226 2012 Reserves +…
  3. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 3
    Targeting 13% - 18% Compound Annual Production Growth for 2013 - 2015 High end of 2013-2015 growth range assumes 100 oil / 4.25 gas; low end assumes 85 oil / 3.25 gas Excludes annualized 4+ MBOEPD MBOEPD conveyed to Sinochem post…
  4. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 4
    2013E Capital Spending and Cash Flow1 Capital program of 3.0 B includes: Drilling Capital: 2.75 B 1,225 MM northern Spraberry/Wolfcamp area 400 MM for horizontal program Sensitivity to Commodity Prices ( MM) 6.00 625 MM for vertical…
  5. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 5
    Pioneers Significant Proved Reserves and Resource Potential1 Proved Reserves + Estimated Net Resource Potential of 9 BBOE and 40,000 Drilling Locations 12/31/12 Proved Reserves: 1.1 BBOE2 Additional Net Resource Potential: 8 BBOE…
  6. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 6
    Wolfcamp B Interval Prospectivity Map Tier 1 Tier 2 Pioneer Land Tier 1 is highest prospectivity acreage, as determined by several Pioneer Wolfcamp B wells geologic properties, including: Wolfcamp B depth contour Original oil in place…
  7. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 7
    50 BBOE Recoverable Resource Potential in Midland Basin Wolfcamp and Jo Mill Shales 50 BBOE Recoverable Resource Potential by Industry Midland Basin Wolfcamp and Jo Mill Shales Jo Mill Wolfcamp D 7 BBOE 8 BBOE Wolfcamp A 13…
  8. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 8
    Largest Oil Fields Worldwide Reserves1 (BBOE) Total Recoverable Resource 00 20 10 40 20 60 30 80 100 40 120 50 140 60 160 Ghawar, Ghawar, Saudi Saudi Arabia Arabia Spraberry/Wolfcamp, Spraberry/Wolfcamp, USA USA Burgan,…
  9. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 9
    Largest U.S. Oil Fields Estimated Recoverable Resource1 (BBOE) 0 5 10 15 20 25 30 35 40 45 50 Spraberry/Wolfcamp Eagle Ford Shale Prudhoe Bay, AK Bakken Shale Delaware Basin East Texas Basin Midway-Sunset, CA Wilmington, CA…
  10. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 10
    Spraberry/Wolfcamp Production History 500,000 20,000 Includes Vertical and Horizontal Wells 450,000 18,000 400,000 16,000 350,000 14,000 Producing Well Count Production (BOEPD) 300,000 12,000 250,000 10,000…
  11. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 11
    Production Growth Profiles For 3 Largest U.S. Oil Shale Plays 10,000,000 Includes Horizontal Wells Only 1,000,000 Eagle Ford 218 Horizontal Rigs Bakken Gross Production (BOEPD) 100,000 176 Horizontal Rigs…
  12. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 12
    1 Spraberry/Wolfcamp Horizontal Drilling Production Growth Profile 2.75 Spraberry/Wolfcamp Production 70% to 75% Oil 2.50 Gross Daily Production (MMBOED) 2.25 2.00 1.75 1.50 Other Operators2 (200 Independent Operators)…
  13. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 13
    Southern Wolfcamp Joint Interest Area - Q1 2013 Horizontal Drilling Results Placed 9 new Wolfcamp B wells on production during Q1 with average peak 24-hour IP rate of 911 BOEPD; 82% oil1 University 10-1 4H: 1,203 BOEPD University…
  14. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 14
    Southern Wolfcamp Joint Interest Area Drilling Program Currently running 7 rigs; expect to increase to 10 rigs in 2014 and 13 rigs in 2015 Equates to 86 wells in 2013, 120 wells in 2014 and 165 wells in 2015 2013 drilling program…
  15. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 15
    Northern Spraberry/Wolfcamp Acreage Pioneers 2013 Drilling Plan Wolfcamp Wolfcamp Wolfcamp M. Spraberry L. Spraberry D B A Shale Jo Mill Shale U. Spraberry 15 to 20 wells M. Spraberry Shale Jo Mill Shale Jo Mill Silt L.…
  16. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 16
    Pioneers Q2 Northern Spraberry/Wolfcamp Drilling Plan Initial rig drilled first two horizontal Wolfcamp Shale wells in Midland County 25 miles north of highly successful Giddings horizontal Pioneers northern Wolfcamp Shale wells…
  17. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 17
    Pioneers Horizontal Wolfcamp Shale and Jo Mill Well Results Exceeding Expectations DL Hutt C 1H (Midland County) First northern acreage horizontal, 7,380 lateral 24-hr IP natural flow rate of 1,693 BOEPD; 75% oil Peak 30-day…
  18. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 18
    Northern Spraberry/Wolfcamp Acreage Progressing 1 B Appraisal Program 2013/2014 Appraisal Areas 2013 drilling program expected to cost 400 MM Appraise prospective acreage and confirm additional resource potential across 6 stacked…
  19. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 19
    Spraberry Vertical Drilling Program 6,000 ft Upper Clear- Spraberry fork Deeper drilling expected to account for 90% of 2013 vertical drilling program 2013 drilling program includes 15 vertical rigs that are forecast to drill…
  20. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 20
    Continuing to Successfully Grow Spraberry/Wolfcamp Production Spraberry/Wolfcamp Net Production1 (MBOEPD) 75 80 MBOEPD Q1 production benefited by 2,000 BOEPD from FY Guidance reduction in vertical frac bank of 55 wells 75 Q1…
  21. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 21
    Eagle Ford Shale Continues to Set New Production Records Eagle Ford Shale Net Production1 (MBOEPD) 38 42 MBOEPD Drilled 37 wells in Q1; 35 wells placed on FY Guidance production Expect to drill 130 wells in 2013 Drilling…
  22. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 22
    Continuing to Grow Barnett Shale Combo Production Barnett Shale Net Production (MBOEPD) 9 12 MBOEPD Drilled 8 wells in Q1; 4 wells placed on FY Guidance production Increased rig count from 1 rig to 2 rigs in April to hold…
  23. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 23
    Alaska Q1 net production: 4 MBOPD Nuiqsut Area 3 wells fracd from 1-rig development program continues from island drill site in 2013 Island the Oooguruk island drill site targeting Development Area Nuiqsut and Torok intervals PXD…
  24. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 24
    PXD Investment Highlights U.S. asset base High oil exposure from proved reserves + estimated net resource potential of 9 BBOE Drilling program focused in three liquids and resource rich core assets in Texas Spraberry Vertical…
  25. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 25
    Appendix 26
  26. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 26
    Pioneer Large Independent U.S. E&P Company Total Enterprise Value (B) 20 North Slope 2012 Operating Cash Flow (B) 1.8 2012 Drilling Expenditures (B) 2.8 2012 Drillbit F&D (/BOE) 17.72 Q1 2013 Production 63% Liquids (MBOEPD) 171 2012…
  27. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 27
    Strong 2012 Reserve Additions1 Added 161 MMBOE from the drillbit, or 264% of full-year production, at a drillbit F&D cost of 17.72 per BOE Reflects significant drilling campaigns in horizontal Wolfcamp Shale, Spraberry vertical, Eagle…
  28. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 28
    Production Costs (per BOE)1 15.61 14.21 0.75 14.62 14.52 13.30 0.96 0.98 0.81 Q1 2013 production cost Workovers 0.69 3.38 3.14 essentially flat compared to 3.53 Production & Ad Valorem Taxes 3.43 3.25 1.28 Q4 2012 1.40…
  29. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 29
    Liquidity Position (03/31/13)1 Net debt (net of cash balance of 430 MM): 2.4 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 26% Maturities and Balances2 2013 2016 2017 2018 2020 2022 2028 219…
  30. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 30
    Production (MBOEPD)1 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 2 3 4 5 Spraberry 62 64 69 69 75 Eagle Ford Shale 23 24 29 35 37 Raton 26 25 25 24 23 Mid-Continent 18 18 18 17 17 Barnett 6 7 7 9 9 South Texas 7 6 6 6 5 Alaska 4 5 5 4…
  31. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 31
    Production By Commodity By Area1 1) All periods presented have been restated to exclude discontinued operations 32
  32. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 32
    Derivative Philosophy Continue to use derivatives to mitigate commodity price exposure in order to insure funding for development programs and to maintain strong financial position Target 50% on rolling 3 year basis Continue to use a…
  33. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 33
    Open Commodity Derivative Positions as of 4/30/2013 (includes PSE) Oil Q2 2013 Q3 2013 Q4 2013 2014 2015 Swaps WTI (BPD) 3,000 3,000 3,000 - - NYMEX WTI Price (/BBL) 81.02 81.02 81.02 - - Three Way Collars (BPD)1 68,750 72,750…
  34. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 34
    Open Commodity Derivative Positions as of 4/30/2013 (includes PSE) Natural Gasoline Q2 2013 Q3 2013 Q4 2013 2014 2015 Three Way Collars (BPD)1,2 1,064 1,064 1,064 1,000 - Mont Belvieu Call Price (/BBL) 105.28 105.28 105.28 109.50…
  35. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 35
    Open Commodity Derivative Positions as of 4/30/2013 (includes PSE) Gas Q2 2013 Q3 2013 Q4 2013 2014 2015 2016 Swaps - (MMBTUPD) 172,500 172,500 165,870 175,000 20,000 - NYMEX Price (/MMBTU)1 5.05 5.05 5.10 4.02 4.31 - Collars -…
  36. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 36
    PSE Derivative Position as of 4/30/2013 Oil Q2 2013 Q3 2013 Q4 2013 2014 2015 Swaps (BPD) 3,000 3,000 3,000 - - NYMEX Price (/BBL) 81.02 81.02 81.02 - - Three-Way Collars (BPD)1 1,750 1,750 1,750 5,000 - NYMEX Call Price (/BBL)…
  37. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 37
    Three-Way Collars (75 by 90 by 135 example) Unhedged realization Hedged realization 160.00 NYMEX Price 150.00 Potential 140.00 Opportunity Loss Realized Price 130.00 Realized Price (/BBL) Short put at 75/BBL Long put at…
  38. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 38
    Wolfcamp Depositional Model Midland Basin Platform Carbonate Land Platform Carbonate Shelf Edge Carbonate Pelagic Sediments Clastic Detrital Slope Sediments & Reef Talus Fluvial - Deltaic Silt Cloud in Suspension Midland Carbonate…
  39. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 39
    Deposition of Midland Basin Platform Carbonate Midland CBP Basin Land Marathon Thrust Belt Land West East Central Basin Platform Midland Basin Midland Basin Eastern Shelf (WTGS Cross Section 1984) 40
  40. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 40
    Progression of Spraberry/Wolfcamp Field Development1 1940s Discovery 1950s Early Development 1960s Field extension 1970s Dramatic expansion 1943 Trace oil found from Major oil company Continued development by Continued development by…
  41. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 41
    History of Spraberry/Wolfcamp Completions 1950 - 70s 1980 - 90s 2000 - 09 2010 2011-12 2013+ 6,000 ft Upper Clear- Spraberry fork Jo Mill Spraberry 5,000 7,000 Lower Horizontal Spraberry Shales Dean 5,000 7,000…
  42. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 42
    Spraberry/Wolfcamp Rig Count Counties: Andrews, Borden, Crockett, Dawson, Ector, Gaines, Glasscock, Howard, Irion, Martin, Midland, Mitchell, Reagan, Schleicher, Scurry, Sterling, Tom Green and Upton 350 96% Vertical Rigs 77%…
  43. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 43
    Wolfcamp Comparison to Other Major U.S. Oil Shale Plays Major U.S. Oil Shale Play Characteristics 2 1 Eagle Ford 3 Attribute Units Wolfcamp Shale Bakken (Oil Window) Age Permian Cretaceous Devonian/Mississippian Basin Midland…
  44. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 44
    Rigs Vertical vs. Horizontal Vertical Rig Horizontal Rig 45
  45. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 45
    Vertical Drilling Sand Supply for Fracs 46
  46. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 46
    Horizontal Drilling Sand Supply for Fracs Portable Sand Silos For Horizontal Wells 47
  47. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 47
    Vertical Drilling Water Supply for Fracs from Frac Tanks Frac Tanks 48
  48. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 48
    Horizontal Drilling Water Supply for Fracs from Frac Ponds One frac pond can support multiple well sites 49
  49. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 49
    Vertical Drilling Tank Battery, Separators and Pumping Unit 50
  50. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 50
    Horizontal Drilling Tank Battery, Separators and Compression DL Hutt Horizontal Tank Battery and Separators DL Hutt Separators and Compressor Station for gas lift 51
  51. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 51
    Water Disposal Vertical vs. Horizontal Wells Trucks haul produced water from vertical wells to disposal site Produced water piped from horizontal wells to central disposal facility 52
  52. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 52
    Permian Basin Man Camp Trucks haul produced water from vertical wells to disposal site Produced water piped from horizontal wells to central disposal facility 53
  53. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 53
    140 MBOE Spraberry 40-Acre Vertical Well Type Curve 90 Deeper drilling in Spraberry increasing EURs 80 Gross Production Per Well (BOEPD) 70 60 50 140 MBOE Spraberry/Dean/Full Wolfcamp 40 (70% oil, 20% NGLs, 10% gas)…
  54. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 54
    Permian Oil Production Takeaway Options Permian Oil Production vs Takeaway (MBOEPD) 3,000 2,500 2,000 1,500 1,000 500 Permian Basin Crude Takeaway Capacity Name Capacity Time Frame Basin 450,000 0 West Texas Gulf…
  55. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 55
    Growing Midstream Infrastructure to Support Production Growth Gas Processing Pipeline NGL Takeaway Midkiff / Benedum / Driver to Mont Belvieu Current capacity: 460 MMCFD1 Chaparral & West Texas PXD production makes up 40%…
  56. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 56
    Spraberry/Wolfcamp is a Game Changer Spraberry/Wolfcamp production has the potential to reach 2.5 million BOEPD with 70% - 75% oil over the next 20 years Combined with production growth from the Eagle Ford, Bakken and the remainder…
  57. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 57
    Eagle Ford Shale Resource Breakdown Lean Condensate Rich Condensate Dry Gas 45% of Acreage 35% of Acreage 20% of Acreage (60 BBL/MMSCF) (200 BBL/MMSCF) 20% 20% 30% Condensate NGL* NGL* 50% 100% Condensate Gas 50% 30% Gas…
  58. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 58
    PXDs Vertical Integration Reduces Costs and Enhances Execution Spraberry Barnett Shale Combo Eagle Ford Shale 3 vertical frac fleets (20,000 HP each) 1 frac fleet 2 frac fleets 3 horizontal frac fleets (35,000 HP each) (30,000 HP)…
  59. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 59
    Oil/Gas Price Ratio Trending Up Since 2006 160 60x Oil/Gas price ratio has increased from 5:1 in 2006 to 20:1 recently Commodity Prices (Oil - /BBl, Gas - /MMBtu) 140 50x 120 40x 100 Oil / Gas Ratio Oil Price 80…
  60. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 60
    Certain Reserve Information Cautionary Note to U.S. Investors --The U.S. Securities and Exchange Commission (the SEC) prohibits oil and gas companies, in their filings with the SEC, from disclosing estimates of oil or gas resources other…

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