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CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Mar 5, 2012 · 12 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. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 1
    Carmeuse Industrial Sands Acquisition March 5, 2012
  2. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 2
    Transaction Summary PXD acquiring Carmeuse Industrial Sands (CIS) for 297 MM, before normal closing adjustments Key asset is Brady, TX mine, where Hickory frac sand is produced (Brady Brown) Strategic opportunity to secure…
  3. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 3
    Background PXDs annual demand for proppant to support its fracture stimulation operations is forecasted to increase from 1.2 MM tons in 2012 to 1.6 MM tons in 2015 Reflects continuing drilling ramp up in the Spraberry vertical,…
  4. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 4
    Brady Mine Provides Significant Logistical Advantage PXDs alternative Sand Supply Sources: 1,200 miles away Permian Spraberry Vertical Barnett Shale Combo Horizontal Wolfcamp Shale 225 miles away 190 miles away Brady…
  5. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 5
    Continued Tight Proppant Supply Total Proppant Supply & Demand (in million tons) 35 Total proppant supply will continue to be tight, especially brown sand 30 25 MM Tons 20 15 Limited brown sand 10 supply growth…
  6. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 6
    PXD Proppant Requirements 70% to 80% Brown Sand Projected Proppant Requirements (M Tons) 1,600 1,530 1,480 1,160 Eagle Ford Shale Ceramic 1,140 1,140 1,140 Eagle Ford Shale White Sand Horizontal Wolfcamp White Brown Sand…
  7. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 7
    2013 PXD Proppant Sources Pre-Acquisition White Sand 60% of PXDs (170 M tons) forecasted 2013 brown sand requirements Ceramics (170 M tons) CIS Sourced Brown Sand (705 M tons) 1) Requirement reflects conversion from white…
  8. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 8
    Acquisition Economics Annual Savings vs. Total Annual PXD Alternative to CIS Acquisition Volume Alternative Savings (M tons) (/ton) (MM) Replacing current brown sand supply at 8401 40 34 market price Substituting 2013 incremental…
  9. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 9
    Secures 30+ Years of Proved Reserves Annual Sales Resource (MM tons) Capacity Proved Resource Proved Resource Location (M tons) Reserves 1 Potential2 R/P R/P Brady, TX 1,000 36 33 36 69 Wisconsin 1,000 23 - 23 23 (Possible Start-up…
  10. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 10
    Appendix 11
  11. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 11
    Carmeuse Industrial Sands (CIS) Operations Wisconsin (Potential Site of Future White Sand Mine) Millwood (Marcellus Quality Colorado Springs White Sand Mine) Bakersfield (Brady Oilfield and (Outlet for Coarse Industrial Sand…
  12. CARMEUSE INDUSTRIAL SANDS ACQUISITION – Pioneer Natural Resources Co. – slide 12
    Cautionary Note Regarding Estimates of Resources Inaccuracies in estimates of mineral reserves and resource deposits could result in lower than expected supplies and sales and higher than expected costs. The proved reserve estimates…

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