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Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Nov 5, 2013 · 44 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. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 1
    Third Quarter 2013 Earnings November 5, 2013
  2. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 2
    Financial and Operating Highlights Q3 2013 adjusted income1 of 176 MM, or 1.26 per diluted share1 Q3 2013 production: 173 MBOEPD (174 MBOEPD excluding ethane rejection) Q3 production slightly below guidance range primarily as a result…
  3. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 3
    Financial and Operating Highlights (cont.) Northern Spraberry/Wolfcamp horizontal drilling (cont.) Third Wolfcamp B interval well in Midland County (DL Hutt C 3H) highly successful o 24-hour peak IP rate of 2,227 BOEPD (highest…
  4. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 4
    Financial and Operating Highlights (cont.) Southern Wolfcamp joint venture commenced downspacing in Giddings area Average 24-hour peak IP rate of 1,016 BOEPD for 12 Upper and Lower Wolfcamp B interval wells being tested Successful…
  5. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 5
    2013E Capital Spending and Cash Flow1 Capital program remains at 3.0 B Drilling Capital: 2.75 B Sensitivity to Commodity Prices ( MM) 1,225 MM northern Wolfcamp/Spraberry area o 400 MM for horizontal program 5.00 NYMEX Gas Price…
  6. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 6
    Forecasting 2013 Production Growth at 14%1 172 - 173 Q4 benefits from higher horizontal POP count in Eagle Ford Shale and 172 177 MBOEPD Spraberry/Wolfcamp Q3 impacted by production FY Guidance (94 vs. 46 in Q3) (Reflects Alaska as…
  7. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 7
    Horizontal Pad Drilling Impact for 2H 2013 Production (MBOEPD) (Reflects Alaska as Discontinued Operations) 11 - 16 179 - 184 Current production: 179 MBOEPD 172 (3) (3) 2 168 167 93 46 90 Spraberry/Wolfcamp…
  8. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 8
    Pioneers Northern Horizontal Wolfcamp D Shale Wells E.T. ODaniel 2H Wolfcamp D (Midland County); 9,112 lateral 24-hour peak IP rate of 3,156 BOEPD (69% oil) DL Hutt C 4H Wolfcamp D (Midland County); 6,962 lateral . 24-hour peak IP…
  9. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 9
    Pioneers Wolfcamp D Wells Extend Play 50 Miles West U. Spraberry APA Barracuda 45-4H M. Spraberry 24-hr IP: 695 BOEPD Shale 30-day IP: 511 BOEPD 4,560 lateral length Jo Mill Shale Jo Mill Silt PXD Scharbauer Ranch 201H APA…
  10. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 10
    Pioneers Northern Horizontal Wolfcamp B and Wolfcamp A Shale Wells1 DL Hutt C 3H Wolfcamp B (Midland County); 7,142 lateral 24-hour peak IP rate of 2,227 BOEPD; Peak 30-day avg. rate of 1,087 BOEPD (75% oil) Scharbauer Ranch 202H…
  11. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 11
    Northern Horizontal Wolfcamp Before Tax Well Economics1,2 BTAX IRR 150% 125% 60% 650 MBOE 800 MBOE 1,000 MBOE Payout 1.7 0.9 0.8 Years3 1) Pricing: 95 oil / 4 gas 2) Assumes horizontal well with a 7,000 lateral length…
  12. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 12
    Significant Q3 Accomplishments Best horizontal Wolfcamp Shale D interval IP in Midland Basin Best IP of all intervals in Midland Basin Best horizontal Wolfcamp Shale B interval IP in Midland Basin Extended productivity of the…
  13. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 13
    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 wells M. Spraberry Shale Jo Mill Shale Jo Mill Silt L.…
  14. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 14
    Pioneers Northern Spraberry/Wolfcamp Activity 13 horizontal wells on production with 3 of these currently flowing back Pioneers Northern Includes 8 Wolfcamp Shale wells and 5 Spraberry Spraberry/Wolfcamp Acreage Shale wells in…
  15. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 15
    Southern Wolfcamp Joint Venture Area Drilling Program 16 new Wolfcamp interval wells placed on production during Q3 24-hour peak IP rates up to 1,241 BOEPD Currently running 8 rigs Expect to spud 100 wells in 2013 2H drilling…
  16. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 16
    Downspacing Test Underway in Southern JV Area Joint Venture Area Began testing downspacing from 720 (116-acre spacing) to (Wolfcamp and deeper intervals) 480 (77-acre spacing) in the Giddings area Tested 12 wells on 3-well pads using…
  17. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 17
    Increasing 2013 Spraberry/Wolfcamp Shale Production Growth Range Spraberry/Wolfcamp Net Production1 (MBOEPD) 80 - 81 Q3 production impacted by: Increasing 77 80 MBOEPD guidance range FY Guidance Production conveyance to Sinochem of…
  18. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 18
    Eagle Ford Shale Downspacing Results (500 Well Spacing Tests) Downspacing from 1,000 (120-acre spacing) to 500 (60-acre spacing) between wells across liquids-rich acreage position (90 miles) Added 300 locations in liquids-rich areas…
  19. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 19
    Further Downspacing Tests Underway (Down to 300') Early results from initial 300' well spacing test encouraging 300 testing underway in liquids-rich areas where 500 well spacing was successful Potential to add 300 - 400 incremental…
  20. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 20
    Reducing 2013 Eagle Ford Shale Production Growth Range Eagle Ford Shale Net Production1 (MBOEPD) 37 - 38 Expect to drill 130 liquids-rich wells in 2013 Reducing guidance range 38 42 MBOEPD 80% pad drilling, up from 45% in 2012 FY…
  21. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 21
    Q3 2013 Earnings Summary Millions Per Diluted (After Tax) Share Net income attributable to common stockholders 91 0.65 Unrealized mark-to-market (MTM) derivative losses (137 MM before tax) 85 0.60 Adjusted income excluding unrealized…
  22. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 22
    Price Realizations Realized Prices (excludes VPPs and derivatives) 101.83 90.82 88.09 88.57 83.89 30.96 30.69 30.36 30.17 28.19 3.74 3.32 3.20 3.14 2.62 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q3…
  23. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 23
    Production Costs (per BOE) 15.61 14.62 14.56 14.81 Workovers 0.75 14.52 0.99 Production & 0.98 0.81 1.34 Q3 2013 production costs Ad Valorem Taxes 3.38 3.14 3.40 increased slightly compared to 3.53 Third Party 1.28 3.36 Q2…
  24. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 24
    Liquidity Position (09/30/13) Net debt (net of cash balance of 744 MM): 2.1 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 21% Maturities and Balances1,2 2016 2017 2018 2020 2022 2028 455 MM 485…
  25. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 25
    Q4 2013 Guidance1 Guidance Daily Production (MBOEPD) 179 184 Production Costs (/BOE) 14.00 16.00 Exploration & Abandonment ( MM) 25 35 Drilling and Acreage 15 Personnel and Seismic 20 DD&A (/BOE) 15.50 17.50 G&A ( MM) 70 75…
  26. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 26
    2013 Drilling Capital1 Millions 2,750 767 717 658 608 Q1 2013 Q2 2013 Q3 2013 Q4 2013 E FY 2013 E 1) Includes land capital and excludes asset retirement obligations, capitalized interest and G&G G&A 28
  27. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 27
    Production (MBOEPD) Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 1 Spraberry 69 69 75 80 79 Eagle Ford Shale 29 35 37 38 35 Raton 25 24 23 23 22 Mid-Continent 18 17 17 16 17 Barnett 7 9 9 9 8 South Texas 6 6 5 5 6 Alaska 5 4 4 4 5…
  28. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 28
    PXD Production By Commodity By Area Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Spraberry/Wolfcamp Oil (BOPD) 45,239 46,540 52,694 52,595 51,904 NGL (BOEPD) 14,138 11,262 12,864 13,919 16,199 Gas (MCFD) 57,095 64,607 58,653 83,021 62,892…
  29. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 29
    Oil and Gas Revenue Millions 909 845 788 735 716 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 31
  30. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 30
    Open Commodity Derivative Positions as of 10/31/2013 (includes PSE) Oil Q4 2013 2014 2015 2016 Swaps WTI (BPD) 9,750 10,000 - - NYMEX WTI Price (/BBL) 95.57 93.87 - - Three Way Collars (BPD)1 69,000 69,000 85,000 25,000 NYMEX…
  31. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 31
    Open Commodity Derivative Positions as of 10/31/2013 (includes PSE) Natural Gasoline Q4 2013 2014 2015 2016 Three Way Collars (BPD)1,2 1,064 1,000 - - Mont Belvieu Call Price (/BBL) 105.28 109.50 - - Mont Belvieu Put Price (/BBL)…
  32. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 32
    Open Commodity Derivative Positions as of 10/31/2013 (includes PSE) Gas Q4 2013 2014 2015 2016 Swaps - (MMBTUPD) 165,870 175,000 20,000 - NYMEX Price (/MMBTU)1 5.10 4.02 4.31 - Collars - (MMBTUPD) 152,500 - - - NYMEX Call Price…
  33. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 33
    PSE Derivative Position as of 10/31/2013 Oil Q4 2013 2014 2015 Swaps (BPD) 4,750 - - NYMEX Price (/BBL) 87.83 - - Three-Way Collars (BPD)1 - 5,000 - NYMEX Call Price (/BBL) - 105.74 - NYMEX Put Price (/BBL) - 100.00 - NYMEX Short…
  34. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 34
    Oil Differentials (per BBL) Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 NYMEX calendar month average 92.22 88.18 94.37 94.22 105.82 NYMEX differential (4.13) (4.29) (5.80) (3.40) (3.99) Realized prices excluding VPPs 88.09 83.89 88.57 90.82…
  35. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 35
    NGL Differentials (per BBL) Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 NYMEX oil calendar month average 92.22 88.18 94.37 94.22 105.82 NYMEX differential (61.26) (57.49) (64.01) (66.03) (75.65) Realized prices 30.96 30.69 30.36 28.19 30.17…
  36. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 36
    Gas Differentials (per MCF) Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 NYMEX bid week average 2.80 3.41 3.34 4.10 3.58 NYMEX differential (0.18) (0.21) (0.20) (0.36) (0.26) Realized prices 2.62 3.20 3.14 3.74 3.32 Derivatives not included in…
  37. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 37
    General & Administrative Costs Millions 74 68 67 63 64 14 Noncash 12 13 12 13 Q3 Q4 Q1 Q2 Q3 2012 2012 2013 2013 2013 39
  38. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 38
    Interest Costs Millions 54 54 51 9 9 5 45 43 4 Noncash 4 Q3 Q4 Q1 Q2 Q3 2012 2012 2013 2013 2013 40
  39. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 39
    Exploration & Abandonments Millions Drilling & Acreage: Drilling & Acreage 81 Geological & Geophysical: Seismic 7 Personnel & Other 17 3rd Quarter 2013 Total 32 1) Primarily attributable to abandonment of unproved dry gas…
  40. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 40
    Income Taxes Attributable to Continuing Operations Quarter Ended September 30, 2013 ( Millions) Current tax benefit (8) Deferred tax provision 66 58 42
  41. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 41
    Supplemental Non-GAAP Financial Measures EBITDAX and discretionary cash flow (DCF) are disclosed by Pioneer, and reconciled to the generally accepted accounting principle (GAAP) measures of net income and net cash provided by operating…
  42. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 42
    Supplemental Earnings Per Share Information The Company uses the two-class method of calculating basic and diluted earnings per share. Under the two-class method of calculating earnings per share, GAAP provides that share- and unit-based…
  43. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 43
    Supplemental Non-GAAP Financial Measures Adjusted income excluding unrealized MTM derivative losses and adjusted income excluding unrealized MTM derivative losses and unusual items, as presented in the Financial and Operating Highlights…
  44. Q3 2013 EARNINGS CALL – Pioneer Natural Resources Co. – slide 44
    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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