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INVESTOR PRESENTATION – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Oct 17, 2013 · 68 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 October 2013
  2. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance Total Enterprise Value (B) 27 Top U.S. Fields By Rig Count1 2013 Drilling Capex (B) 2.8 (Pioneer Operated Count in Green 39 rigs) 255 Q2 2013 Production (MBOEPD) 176 232 2012 Reserves (BBOE) 1.1 184 164 2012…
  3. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 3
    2013E Capital Spending and Cash Flow1 Capital program remains at 3.0 B Drilling Capital: 2.75 B 1,225 MM northern Spraberry/Wolfcamp area Sensitivity to Commodity Prices ( MM) 6.00 o 400 MM for horizontal program NYMEX Gas…
  4. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 4
    Pioneer Focusing Capex in Highest Margin Assets 2013E 2013E Cash Margins (/BOE ex-hedges)1,2 % Liquids Assumes 98.00/BBL WTI Crude and 3.70/MCF Gas Production PXD…
  5. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 5
    Narrowed 2013 Production Growth Range from 12% - 16% to 14% - 16% 177 - 181 175 181 MBOEPD 2H production impacted by FY Guidance timing of POPs from pad drilling Q3 impacted by production conveyed to Sinochem 171 176 156…
  6. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 6
    Liquidity Position (06/30/13) Net debt (net of cash balance of 696 MM): 2.1 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 22% Maturities and Balances1,2 2016 2017 2018 2020 2022 2028 455 MM 485…
  7. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 7
    Pioneers Significant Proved Reserves and Recoverable Resource Potential1 Proved Reserves + Estimated Net Recoverable Resource Potential of 9 BBOE and 40,000 Drilling Locations 12/31/12 Proved Reserves: 1.1 BBOE2 Additional Net…
  8. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 8
    Major U.S. Shale Play Comparisons Midland Basin How big is the resource Clear Fork Red intervals indicate hydrocarbons Petrophysical analysis indicates significantly more U. Spraberry oil in place in the Wolfcamp and Spraberry Shale…
  9. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 9
    Wolfcamp B Interval Prospectivity Map UL III 4 1-H (FANG) Tier 1 Tier 2 Pioneer Land Tier 1 is highest prospectivity 24-hr IP: 613 BOEPD 7-day avg. rate: 585 BOEPD 85% oil acreage, as determined by several 4,050 lateral length…
  10. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 10
    Pioneers Northern Horizontal Wolfcamp Shale Wells Delivering Strong Results DL Hutt C 1H Wolfcamp B (Midland County); 7,380 lateral 24-hr IP: 1,693 BOEPD Peak 30-day average rate: 1,402 BOEPD Cumulative production: 140 MBOE in 180…
  11. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 11
    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…
  12. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 12
    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,…
  13. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 13
    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…
  14. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 14
    Spraberry/Wolfcamp Production History 550,000 22,000 Includes Vertical and Horizontal Wells 500,000 20,000 450,000 18,000 400,000 16,000 350,000 14,000 Producing Well Count Production (BOEPD) 300,000 12,000…
  15. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 15
    Production Growth Profiles For 3 Largest U.S. Oil Shale Plays 10,000,000 Includes Horizontal Wells Only 1,000,000 Eagle Ford 197 Horizontal Rigs Bakken Gross Production (BOEPD) 100,000 162 Horizontal Rigs…
  16. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 16
    1 Spraberry/Wolfcamp Horizontal Drilling Production Growth Profile 2.75 Assumes Pioneers rig count increases from 12 rigs currently to 50 rigs in 2018 and thereafter 2.50 Gross Daily Production (MMBOED) 2.25 2.00 1.75…
  17. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 17
    TPHs Industry Permian Basin Production Growth Forecast TPHs Permian (Delaware + Midland) Production Forecast: 4.8 MMBOEPD by 2025 Source: IR Presentations, Drillinginfo, RigData, TPH Research; 2-stream 18
  18. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 18
    Stock Relative Performance YTD Immense Permian Resource Driving Stock Outperformance Source: TPH Research 19
  19. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 19
    Northern Spraberry/Wolfcamp Acreage Pioneers 2013 Drilling Plan Wolfcamp Wolfcamp Wolfcamp M. Spraberry L. Spraberry D B A Shale Jo Mill Shale U. Spraberry 10 to 15 wells M. Spraberry Shale Jo Mill Shale Jo Mill Silt L.…
  20. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 20
    Notable Industry Spraberry/Wolfcamp Horizontal Drilling Activity PXD - Mabee K 1H (WC B) 24-hr IP: 1,572 BOEPD U. Spraberry 6,671 lateral length FANG - UL III 4 1-H (WC B) M. Spraberry 24-hr IP: 613 BOEPD Shale 4,050 lateral…
  21. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 21
    Pioneers Current Northern Spraberry/Wolfcamp Activity Added 4 horizontal rigs during Q2 Andrews County 5-rig program currently consists of: Drilling Area 3 rigs focused on Wolfcamp Shales in Midland, Pioneers Northern…
  22. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 22
    2nd Half 2013 Northern Spraberry/Wolfcamp Horizontal Appraisal Program Expect to drill 20 new wells during 2H Includes initial Wolfcamp D, Jo Mill, Lower Spraberry and Middle Spraberry wells Drilling on 2-well pads; both wells…
  23. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 23
    Southern Wolfcamp Joint Venture Area Drilling Program 22 new Wolfcamp B interval wells placed on production during Q2 meeting expectations 24-hour IP rates up to 1,000 BOEPD; 88% oil content Pumped slickwater fracs on 18 wells in Q2;…
  24. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 24
    Continuing to Successfully Grow Spraberry/Wolfcamp Production Spraberry/Wolfcamp Net Production1 (MBOEPD) Q2 production negatively impacted by 1,400 BOEPD 77 80 75 80 MBOEPD due to unexpected ethane rejection FY Guidance Ethane…
  25. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 25
    Eagle Ford Shale Continues to Set New Production Records Eagle Ford Shale Net Production1 (MBOEPD) Expect to drill 130 wells in 2013 Drilling essentially all liquids-rich wells 38 42 MBOEPD FY 80% pad drilling, up from 45% in 2012…
  26. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 26
    PXD Investment Highlights U.S. asset base High oil exposure from proved reserves + estimated net resource potential of 9 BBOE Drilling program focused in liquids and resource rich core assets in Texas Horizontal Spraberry/Wolfcamp…
  27. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 27
    Appendix 28
  28. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 28
    Pioneer Large Independent U.S. E&P Company Total Enterprise Value (B) 27 North Slope 2012 Operating Cash Flow (B) 1.8 2012 Drilling Expenditures (B) 2.8 2012 Drillbit F&D (/BOE) 17.72 Q2 2013 Production 62% Liquids (MBOEPD) 176 2012…
  29. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 29
    Experienced Senior Management Team Years at Pioneer / Years of Experience Predecessor Companies Scott Sheffield Chairman and Chief Executive Officer 38 33 Tim Dove President and Chief Operating Officer 31 18 Rich Dealy Executive…
  30. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 30
    Strong Stock Price Performance Demonstrates Successful Strategy Shift Restructuring Onshore U.S. Onshore U.S. Liquids Focus Economic Downturn Portfolio Focus Pioneer raised 8 billion of capital during the Companys transformation…
  31. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 31
    Production Costs (per BOE)1 15.61 14.21 0.75 14.62 14.52 14.56 0.96 0.98 0.81 1.34 Q2 2013 production cost Workovers 3.38 3.14 essentially flat compared to Q1 3.53 Production & Ad Valorem Taxes 3.25 1.28 3.36 2013 1.40…
  32. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 32
    Production (MBOEPD)1 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 2 3 4 5 6 Spraberry 64 69 69 75 80 Eagle Ford Shale 24 29 35 37 38 Raton 25 25 24 23 23 Mid-Continent 18 18 17 17 16 Barnett 7 7 9 9 9 South Texas 6 6 6 5 5 Alaska 5 5 4 4…
  33. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 33
    Production By Commodity By Area1 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Spraberry/Wolfcamp Oil (BOPD) 43,310 45,239 46,540 52,694 52,595 NGL (BOEPD) 10,768 14,138 11,262 12,864 13,919 Gas (MCFD) 57,827 57,095 64,607 58,653 83,021 Total…
  34. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 34
    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…
  35. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 35
    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…
  36. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 36
    Open Commodity Derivative Positions as of 7/30/2013 (includes PSE) Oil Q3 2013 Q4 2013 2014 2015 2016 Swaps WTI (BPD) 7,476 9,750 10,000 - - NYMEX WTI Price (/BBL) 93.60 95.57 93.87 - - Three Way Collars (BPD)1 68,274 69,000…
  37. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 37
    Open Commodity Derivative Positions as of 7/30/2013 (includes PSE) Natural Gasoline Q3 2013 Q4 2013 2014 2015 2016 Three Way Collars (BPD)1,2 1,064 1,064 1,000 - - Mont Belvieu Call Price (/BBL) 105.28 105.28 109.50 - - Mont…
  38. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 38
    Open Commodity Derivative Positions as of 7/30/2013 (includes PSE) Gas Q3 2013 Q4 2013 2014 2015 2016 Swaps - (MMBTUPD) 172,500 165,870 175,000 20,000 - NYMEX Price (/MMBTU)1 5.05 5.10 4.02 4.31 - Collars - (MMBTUPD) 152,500 152,500…
  39. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 39
    PSE Derivative Position as of 7/30/2013 Oil Q3 2013 Q4 2013 2014 2015 Swaps (BPD) 4,160 4,750 - - NYMEX Price (/BBL) 86.17 87.83 - - Three-Way Collars (BPD)1 590 - 5,000 - NYMEX Call Price (/BBL) 116.00 - 105.74 - NYMEX Put Price…
  40. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 40
    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…
  41. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 41
    Geologic Provinces of the Permian Basin Spraberry/ Wolfcamp Shale Midland Ozona Platform KS OK NM TX 20 Miles Permian Basin is composed of multiple uplifts and basins that formed during the Pennsylvanian and…
  42. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 42
    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…
  43. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 43
    Deposition of the 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) 44
  44. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 44
    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…
  45. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 45
    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…
  46. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 46
    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 69%…
  47. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 47
    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…
  48. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 48
    Northern Spraberry/Wolfcamp Horizontal Drilling Success Continued During Q2 Placed first Wolfcamp B interval well on production in Martin County (Mabee K 1H) Mabee K 1H (B well) 24-hr IP: 1,572 BOEPD Strong well performance confirms…
  49. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 49
    Rigs Vertical vs. Horizontal Vertical Rig Horizontal Rig 50
  50. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 50
    Vertical Drilling Sand Supply for Fracs 51
  51. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 51
    Horizontal Drilling Sand Supply for Fracs Portable Sand Silos For Horizontal Wells 52
  52. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 52
    Vertical Drilling Water Supply for Fracs from Frac Tanks Frac Tanks 53
  53. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 53
    Horizontal Drilling Water Supply for Fracs from Frac Ponds One frac pond can support multiple well sites 54
  54. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 54
    Vertical Drilling Tank Battery, Separators and Pumping Unit 55
  55. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 55
    Horizontal Drilling Tank Battery, Separators and Compression DL Hutt Horizontal Tank Battery and Separators DL Hutt Separators and Compressor Station for gas lift 56
  56. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 56
    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 57
  57. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 57
    Pioneers Midland Basin Man Camp Trucks haul produced water from vertical wells to disposal site Produced water piped from horizontal wells to central disposal facility 58
  58. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 58
    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)…
  59. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 59
    Permian Oil Production Takeaway Increasing Cushing Permian Oil Production vs. Takeaway (MBOEPD) 2,500 2,000 Permian Basin Wink 1,500 Houston 1,000 Corpus Permian Basin Crude Takeaway Capacity 500 Name Capacity…
  60. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 60
    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%…
  61. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 61
    Spraberry/Wolfcamp is a Game Changer Spraberry/Wolfcamp production from horizontal drilling 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,…
  62. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 62
    Pioneers Eagle Ford Shale Acreage Oil Window PXD Acreage Area 63
  63. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 63
    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…
  64. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 64
    Pioneers Edwards Trend and Eagle Ford Shale Production Growth1 120 Pioneer grew gross Eagle Ford Shale production from 0 MBOEPD to 100 MBOEPD in 3 years 100 PRODUCTION (MBOEPD) 80 60 40 20 Edwards Trend…
  65. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 65
    Barnett Shale Combo Barnett Shale Net Production (MBOEPD) Drilled 15 wells in Q2; 12 wells placed on 9 12 MBOEPD production FY Guidance Increased rig count from 1 rig to 2 rigs in April to hold high-graded acreage 30% of 76,000…
  66. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 66
    Alaska Q2 net production: 4 MBOPD Nuiqsut Area 1-rig development program continues from 3 wells fracd from Island island drill site in 2013 the Oooguruk island drill site Development Area Following first successful mechanically…
  67. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 67
    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)…
  68. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 68
    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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