Skip to main content 2Q 2010 EARNINGS – Pioneer Natural Resources Co. Investor Presentation | Shale Experts
Loading...
Pm

2Q 2010 EARNINGS – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Jul 29, 2010 · 46 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. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 1
    Second Quarter 2010 Earnings July 29, 2010
  2. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 2
    Highlights Q2 2010 adjusted income1 of 51 MM, or 0.43 per share Excludes net gain from unusual items of 33 MM after tax, or 0.27 per share Excludes noncash mark-to-market gain of 84 MM after tax, or 0.71 per share Q2 2010 production…
  3. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 3
    Forecasting 15+% Compound Annual Production Growth For 2011 - 2013 Q4 2010 vs. Q4 2009 expected to grow 10+% Includes Eagle Ford Shale JV impact Based on drilling capital of 960 MM Forecasting 15+% compound annual production growth…
  4. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 4
    2010E Cash Flow and Capital Spending1 Currently expect 1.2 B of cash flow for 2010 Includes deepwater GOM refund: 150 MM Sensitivity to Commodity Prices ( MM) 9.00 Excludes upfront cash from JV: 266 MM Drilling capital: 960 MM1…
  5. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 5
    Operating Cash Flow Expected to Double by 2013 Billions1 2.0 Additional Cash Flow From Deepwater GOM Refund 1.6 1.4 1.2 1.0 2010E 2011E 2012E 2013E 1) Based on late-July strip pricing and includes derivative positions as…
  6. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 6
    Significant Spraberry and Eagle Ford Shale Upside Potential1 12/31/09 Proved Reserves: 998 MMBOE2 Additional Net Resource Potential: 2.3 BBOE (80/6 Sensitivity Case) (80/6) Eagle Ford Shale3 Mid-Continent (PXD Post JV) Other:…
  7. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 7
    Investment Highlights Large drilling inventory and resource potential with 75% liquids Successful Eagle Ford Shale JV provides accelerated development with minimal upfront capital requirement Accelerating oil-focused drilling…
  8. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 8
    Spraberry Oil Drilling Ramp-up On Schedule Q2 2010 net production: 32 MBOEPD +4% vs. Q1 2010 112 wells drilled during Q2 2010 2010 drilling program (on schedule) Expect to drill 440 wells during 2010 193 wells drilled through June…
  9. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 9
    Lower Wolfcamp & Strawn Drilling Testing Lower Wolfcamp potential Adds 1 - 2 frac stages at cost of 75 M - 100 M Clearfork 6,000 ft 9 wells tested Lower Wolfcamp Testing indicates incremental early production rates of 25 - 45…
  10. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 10
    Continuing To Focus On Controlling Spraberry Well Costs Expanding frac fleet ownership One frac fleet currently operating Contracted for three additional frac fleets with delivery expected over the next 9 months (1 per quarter)…
  11. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 11
    Increasing to 40 Rigs by 2012 Accelerating Spraberry Development Spraberry Net Production1 (MBOED) 60 - 66 48 - 54 38 - 44 31 32 33 34 +2% vs. +4% vs. Q4 2009 Q1 2010 Q1 Q2 Q3E Q4E 2011E 2012E 2013E 2010 Wells 440…
  12. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 12
    Eagle Ford Shale Operational Update 5 wells currently producing 3 wells completed and awaiting central gathering facility construction; expect to be online during Q4 3 wells awaiting completion; expected to be online during Q4…
  13. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 13
    Significant Eagle Ford Shale Production Ramp-up Eagle Ford Net Production1 (MBOEPD) Midstream YE exit rate RIL JV connections 5 MBOEPD 32 - 41 effective June 1st begin 19 - 24 10 13 3-4 1 2 1-2 Q1 Q2 Q3E Q4E 2011E 2012E…
  14. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 14
    PXDs Eagle Ford Shale: Positive Cash Flow Going Forward 600 Upfront Cash Operating Cash Flow (Upstream & Midstream) Capex (Upstream & Midstream) Cum. Free Cash Flow plus Upfront Cash 300 MM 0 (300) June-Dec 2011 2012…
  15. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 15
    Eagle Ford Shale Provides Excellent BTAX IRRs Even With Low NGL Pricing 100% 85% IRR at NGL Prices 50% of WTI High Condensate Yield 80% 200 BBL / MMCF BTAX IRR 60% IRR at NGL Prices 50% of WTI 60% Low Condensate…
  16. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 16
    Barnett Shale Combo Play Initiating Drilling Current acreage: 43 M net acres 77% net revenue interest Barnett Shale Liquids-Rich Area Locations on 100-acre spacing: 400+ Continuing to grow leasehold position Acquired 70 square miles…
  17. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 17
    Q2 2010 Earnings Summary Millions Per Diluted (After Tax) Share Net income attributable to common stockholders 168 1.41 Unrealized mark-to-market (MTM) derivative gains (134 MM before tax) (84) (0.71) Adjusted income1 excluding MTM…
  18. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 18
    Prices Including Derivatives & VPP Deferred Revenue1 88.16 88.74 87.71 7.84 7.46 VPP Deferred 78.20 8.47 Revenue 70.89 8.24 8.62 41.82 37.54 34.40 33.13 5.30 VPP Deferred 26.78 4.56 Revenue; 4.10 3.43 3.64 .40 Gas…
  19. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 19
    Production Costs (per BOE) Q2 10 vs. Q1 10: Up 0.53/BOE (5%) 11.88 11.43 11.60 11.35 Increase primarily due to: 0.65 10.33 0.63 0.87 0.98 Lower natural gas processing margins on Workovers 0.48 1.92 2.46 third-party gas due to…
  20. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 20
    Q3 2010 Guidance1 Guidance Daily Production (MBOEPD) 113 - 116 Production Costs (/BOE) 11.75 13.75 Exploration & Abandonment ( MM) 35 45 Drilling and Acreage 30 Seismic Activity and Personnel 15 DD&A (/BOE) 14.25 15.50 G&A (…
  21. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 21
    Supplemental Information Supplemental Information Slides Slide Cash Flow Charts for 2011, 2012 & 2013 23 - 25 Liquidity Position 26 2010 Capital Spending 27 Oil and Gas Revenue 28 Historic Production 29 Derivative Position 30 -…
  22. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 22
    2011E Cash Flow from Operations Sensitivity to Commodity Prices ( MM) 9.00 Three-way ceilings at 99/BBL and 8.55/MCF result in upside to 1.8 B 8.00 NYMEX Gas Price (/MCF) 7.00 6.00 5.00 4.00 3.00 55.00 60.00…
  23. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 23
    2012E Cash Flow from Operations Sensitivity to Commodity Prices ( MM) 9.00 8.00 NYMEX Gas Price (/MCF) 7.00 6.00 5.00 4.00 3.00 55.00 60.00 65.00 70.00 75.00 80.00 85.00 90.00 95.00 100.00 NYMEX Oil Price…
  24. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 24
    2013E Cash Flow from Operations Sensitivity to Commodity Prices ( MM) 9.00 8.00 NYMEX Gas Price (/MCF) 7.00 6.00 5.00 4.00 3.00 55.00 60.00 65.00 70.00 75.00 80.00 85.00 90.00 95.00 100.00 NYMEX Oil Price…
  25. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 25
    Liquidity Position (6/30/10)1 Net debt (net of cash balance of 198 MM): 2.3 B Unsecured Senior Credit Facility availability: 1.4 B Net Debt-to-Book Capitalization: 37% Maturities and Balances2 2010 2011 2012 2013 2016 2017 2018…
  26. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 26
    2010 Capital Spending ( Millions)1 328 86 Acreage 200 43 242 Drilling 157 Q1 2010 Q2 2010 1) Excludes asset retirement obligations (ARO), capitalized interest and G&G G&A 27
  27. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 27
    Oil and Gas Revenue Millions 508 461 22 462 VPP Deferred 410 36 22 Revenue 371 37 36 335 373 425 486 440 Q2 Q3 Q4 Q1 Q2 2009 2009 2009 2010 2010 28
  28. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 28
    Production (MBOEPD) Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 1 Spraberry 37 32 30 31 31 32 Raton 32 31 31 30 29 28 Eagle Ford Shale - - - - 1 2 South Texas 15 12 11 10 9 8 Mid-Continent 19 18 18 17 22 21 Alaska 4 3 6 6 6 7 Other U.S.…
  29. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 29
    PXD Open Commodity Derivative Positions as of 7/20/2010 (includes PSE) Oil Q3 2010 Q4 2010 2011 2012 2013 Swaps WTI (BPD) 2,500 2,500 750 3,000 3,000 NYMEX WTI Price (/BBL) 93.34 93.34 77.25 79.32 81.02 Collars - (BPD) - - 2,000 -…
  30. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 30
    PXD Open Commodity Derivative Positions as of 7/20/2010 (includes PSE) Gas Q3 2010 Q4 2010 2011 2012 2013 Swaps - (MMBTUPD) 167,500 167,500 97,500 80,000 67,500 NYMEX Price (/MMBTU)1 6.26 6.26 6.32 5.93 6.11 Collars - (MMBTUPD)…
  31. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 31
    PSE Derivative Position as of 7/20/2010 Oil Q3 2010 Q4 2010 2011 2012 2013 Swaps (BPD) 2,500 2,500 750 3,000 3,000 NYMEX Price (/BBL) 93.34 93.34 77.25 79.32 81.02 Collars (BPD) - - 2,000 - - NYMEX Call Price (/BBL) - - 170.00 - -…
  32. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 32
    Future Amortization of Deferred Gains - Discontinued and Terminated Commodity Hedges1 ( Millions) Oil Gas NGL Total (Cash / Noncash) Total (Cash / Noncash) Total (Cash / Noncash) 1st Qtr 2010 20 [3 / 17] 1 [1 / -] 2 [2 / -] 2nd…
  33. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 33
    Impact of Volumetric Production Payments (VPP) Schedule of Oil VPP Volumes (MMBBLS) Q1 Q2 Q3 Q4 Total 2010 0.6 0.6 0.6 0.7 2.5 2011 0.3 0.3 0.4 0.4 1.4 2012 0.3 0.3 0.3 0.3 1.2 34
  34. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 34
    VPP Expirations By the end of 2012, the entire VPP commitment will expire and provide a 7 MBOEPD increase in production with no capital requirement MBOEPD 10 5 7 4 4 VPP Oil Obligation 2010 2011 2012 2013 35
  35. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 35
    Impact of Volumetric Production Payments (VPP) Amortization of VPP Deferred Revenue & Other Comprehensive Income1 ( Million) Q1 Q2 Q3 Q4 Total Gas / Oil Gas / Oil Gas / Oil Gas / Oil Gas / Oil 2005 11 / - 19 / - 21 / - 20 / - 71 /…
  36. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 36
    Oil Differentials (per BBL) Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 NYMEX calendar month average 59.62 68.30 76.19 78.71 78.04 NYMEX differential excluding VPPs and derivatives U.S. (6.84) (7.11) (4.16) (5.11) (5.51) South Africa1 2.65 2.00…
  37. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 37
    NGL Differentials (per BBL) Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 NYMEX calendar month average 59.62 68.30 76.19 78.71 78.04 NYMEX differential excluding derivatives (34.20) (36.55) (40.03) (37.94) (44.68) Realized prices excluding derivatives…
  38. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 38
    Gas Differentials (per MCF) Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 NYMEX bid week average 3.50 3.39 4.17 5.30 4.09 NYMEX differential excluding VPPs and derivatives U.S. (0.71) (0.44) (0.14) (0.17) (0.25) South Africa1 1.79 2.54 2.10 1.01…
  39. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 39
    Other Costs General & Administrative Costs Interest Costs Millions Millions 48 44 45 45 42 43 41 38 35 7 7 Noncash 33 6 7 6 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 2009 2009 2009 2010 2010 2009 2009 2009 2010 2010 40
  40. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 40
    Exploration & Abandonments Millions Drilling & Acreage Acreage and Other 5 Geological & Geophysical U.S. Resource Plays 8 Tunisia 3 Personnel & Other 11 22 2nd Quarter 2010 Total 27 41
  41. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 41
    Income Taxes Quarter Ended June 30, 2010 ( Millions) U. S. S. Africa Tunisia Total Current taxes 3 1 6 10 Deferred taxes 80 (1) 6 85 Tax provision 83 - 12 95 42
  42. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 42
    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 (loss) and net cash provided by…
  43. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 43
    Supplemental Non-GAAP Financial Measures Adjusted income excluding MTM gains, and adjusted income excluding MTM gains and unusual items, as presented in the Highlights slide and as presented in the Q2 2010 Earnings Summary slide, are…
  44. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 44
    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…
  45. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 45
    VPP Adjusted Production Costs Pioneer presents VPP-Adjusted Production Costs (per BOE) to assist investors in considering the Companys costs in relation to the total BOEs (reported sales volumes plus VPP delivered volumes) in…
  46. 2Q 2010 EARNINGS – Pioneer Natural Resources Co. – slide 46
    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…

From the store

Browse maps, data & reports in the Shale Experts store