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INVESTOR PRESENTATION – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Sep 5, 2012 · 49 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 September 2012
  2. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 2
    Investment Highlights U.S. asset base Oil exposure from proved reserves + estimated net resource potential of 7 BBOE 2012 drilling program focused in four liquids and resource rich plays in Texas Spraberry Vertical Horizontal…
  3. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 3
    2012 Production Growth Target1 MBOEPD 150 - 155 Increased 2012 production growth 148 153 target from 23% - 27% to 25% - 29% FY Guidance Strong drilling and well 147 151 performance outweighs continuing third-party NGL…
  4. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 4
    2012E Capital Spending and Cash Flow1 B Capital program includes: Drilling capital 2.4 Vertical integration 0.5 Sensitivity to Commodity Prices ( MM) Includes 100 MM for field facilities 6.00 accelerated into 2012 5.00 2.9…
  5. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 5
    Significant Proved Reserves and Resource Potential1 Proved Reserves + Estimated Net Resource Potential of 7 BBOE and 35,000 Drilling Locations 12/31/11 Proved Reserves: 1.1 BBOE2 Additional Net Resource Potential: 6.7 BBOE Spraberry…
  6. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 6
    Wolfcamp Shale JV Opportunity Offering 33% to 50% of Pioneers working interest in 200,000 acres in southern portion of Midland Basin (8% to 12% of total acreage position) Large, contiguous acreage position located in Upton, Reagan,…
  7. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 7
    Horizontal Wolfcamp Shale Results Exceeding Expectations Gross cumulative production of 2 Giddings wells First two wells in XBC Giddings Estate in northern Upton county from B interval: Stimulated lateral lengths: 5,300 107 MBOE in…
  8. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 8
    Horizontal Wolfcamp Well Performance Above 575 MBOE Type Curve Actual production from horizontal Wolfcamp wells Wells unloading fracture stimulation fluid Average daily oil production from all 7 horizontal Wolfcamp wells…
  9. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 9
    Horizontal Wolfcamp Well Performance Above 575 MBOE Type Curve Horizontal Wolfcamp production normalized to 7,000 lateral Wells unloading fracture stimulation fluid Average daily oil production from all 7 horizontal Wolfcamp…
  10. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 10
    Horizontal Wolfcamp Shale Drilling Activity Currently focused on holding 50,000 acres in southern part of play during 2012 and 2013 Expect to drill 90 wells by YE 2013 to hold acreage 4 rigs running; increasing to 7 rigs late Q4 10…
  11. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 11
    Spraberry Vertical Deeper Drilling Driving Production Outperformance 6,000 ft Upper Clear- Spraberry fork Deeper drilling increased from 50% to 65% of 2012 vertical drilling program Commingled Potential Spraberry…
  12. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 12
    Continuing to Successfully Grow Spraberry Production Spraberry Net Production1 (MBOEPD) 63 - 67 Q2 production negatively impacted by 61 65 MBOEPD 4,800 BOEPD due to unplanned third- FY Guidance party fractionation capacity…
  13. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 13
    Eagle Ford Shale Operational Update Drilled 34 wells in Q2 2012; 37 wells placed on production Running 12 rigs Current gross well cost: 7 MM - 8 MM 2012 drilling program: 125 wells Continues to focus on liquids-rich drilling with…
  14. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 14
    Successfully Growing Eagle Ford Shale Production Eagle Ford Shale Net Production1 (MBOEPD) 25 29 MBOEPD FY Guidance 24 23 12 2011 Q1 Q2 2H E 2012 1) Reflects Pioneers 35% share of total gross production 15
  15. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 15
    Barnett Shale Combo Operational Update Drilled 12 wells in Q2; 10 wells placed on production Reducing rig count from 2 rigs to 1 rig in August in response to low gas and NGL prices Target gross well cost for 5,000 lateral: 3.3 MM…
  16. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 16
    Successfully Growing Barnett Shale Combo Production Barnett Shale Net Production (MBOEPD) 7 9 MBOEPD FY Guidance 7 6 4 2011 Q1 Q2 2H E 2012 17
  17. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 17
    Alaska - Oooguruk Q2 production of 5 MBOPD Up 1 MBOPD vs. Q1; primarily related to PXD Acreage Initial Development first successful mechanically diverted Area frac on Nuiqsut well 1-rig development program continues Island Drill…
  18. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 18
    Pioneers Vertical Integration Improves Returns and Enhances Execution Spraberry Barnett Shale Combo Eagle Ford Shale 5 vertical frac fleets (20,000 HP each) 1 frac fleet 2 frac fleets 2 horizontal frac fleets (35,000 HP each) 1 coiled…
  19. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 19
    Why Invest In PXD Significant Upside Potential From: Oil exposure from proved reserves + estimated resource potential of 7 BBOE and 35,000 drilling locations Aggressive Spraberry & Eagle Ford Shale drilling program Extensive…
  20. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 20
    Appendix 21
  21. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 21
    Pioneer Operations North Slope Raton Hugoton Barnett Shale Combo West Panhandle Spraberry Vertical Horizontal Wolfcamp Shale Eagle Ford Shale Operating Areas 22
  22. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 22
    2012 Drilling Capital1 Millions 2H Drilling Program 27 30 Spraberry vertical rigs 4 horizontal Wolfcamp Shale rigs drilling development wells (7 rigs late in Q4) 12 Eagle Ford Shale rigs 1 Barnett Shale Combo rig 1 Alaska rig…
  23. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 23
    Spraberry 20-Acre Vertical Well Update 20-Acre Drilling (13,500 locations) Drilled 39 wells to date Most wells drilled to the Lower Wolfcamp with a few drilled to the Strawn Results to date indicate production near type curve…
  24. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 24
    Spraberry Waterflood Continuing to Perform 600 Water injection 7,000-acre project in Spraberry begins 12 injectors and 110 producers Injecting 4,100 BWPD 6 - 7 MM capital cost 500 LOE savings from water handling 400 BOPD…
  25. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 25
    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)…
  26. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 26
    Southern Horizontal Wolfcamp Players Laredo PXD Apache Apache PXD EOG Devon El Paso COP El Paso BHP Approach Horizontal Wells Horizontal Permits
  27. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 27
    Wolfcamp Comparison to Other Plays Major Oil Shale Play Characteristics 1 2 5 Eagle Ford Barnett Shale 3 4 Attribute Units Wolfcamp A & B Niobrara Bakken (Oil Window) (Combo Play) Age Permian Cretaceous Mississippian Cretaceous…
  28. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 28
    Permian Oil Production Transport Options Permian Basin Crude Takeaway Current Operator Destination Name Capacity Time Frame Plains Cushing Basin 450,000 Sunoco Nederland West Texas Gulf 400,000 Kinder Morgan El Paso Wink 100,000…
  29. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 29
    Growing Midstream Infrastructure to Support Production Growth Gas Processing Pipeline NGL Takeaway Midkiff / Benedum to Mont Belvieu Current capacity: 260 MMCFD1 Chaparral & West Texas PXD production makes up 40% Pipelines of…
  30. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 30
    Eagle Ford Shale: A Burgeoning Liquids-Rich Shale Play Gross resource potential of play: 25 BBOE (150 TCFE)1 Estimated gross production of 3.5 MMBOEPD by 20202 270 rigs currently running in the play Oil Window PXD Acreage…
  31. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 31
    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…
  32. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 32
    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…
  33. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 33
    CIS Acquisition 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…
  34. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 34
    Strong 2011 Reserve Additions1 Added 148 MMBOE from the drillbit, or 313% of full- year production, at F&D cost of 13.83 per BOE Reflects significant drilling campaigns in Spraberry, Eagle Ford Shale and Barnett Shale Combo plays…
  35. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 35
    Production (MBOEPD)1 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 3 Spraberry 41 47 53 62 64 Raton 27 27 26 26 25 Eagle Ford Shale 8 14 20 23 24 South Texas 8 8 7 7 6 2 Mid-Continent 21 19 19 18 18 Barnett 3 4 6 6 7 Alaska 5 4 4 4 5…
  36. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 36
    PXD Production By Commodity By Area1 1) All periods presented have been restated to exclude discontinued operations 37
  37. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 37
    Liquidity Position (6/30/12)1 Net debt (net of cash balance of 318 MM): 3.0 B Unsecured Credit Facility availability: 1.1 B Net Debt-to-Book Capitalization: 34% Maturities and Balances2 2011 2012 2013 2016 2017 2018 2020 2022…
  38. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 38
    Production Costs (per BOE)1 14.70 13.81 13.79 13.79 Workovers 13.27 0.96 7% increase in Q2 compared to Q1 1.03 0.77 0.68 0.69 primarily attributable to: Production & 3.25 Ad Valorem Taxes 3.38 3.18 3.43 Increased workover…
  39. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 39
    VPP Adjusted Production Costs1 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…
  40. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 40
    PXD Cash Costs vs. Peers For 2011 2011 Cash Costs ( / BOE)1 21.57 22.98 3.76 Interest 4.02 15.54 3.90 G&A 4.27 3.25 3.21 15.33 Prod Costs 13.28 9.08 2 3 PXD VPP-Adjusted ISI Gas-Focused ISI Oil-Focused 1) Includes…
  41. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 41
    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…
  42. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 42
    PXD Open Commodity Derivative Positions as of 7/30/2012 (includes PSE) Oil Q3 2012 Q4 2012 2013 2014 2015 Swaps WTI (BPD) 8,304 11,000 3,000 - - NYMEX WTI Price (/BBL) 88.12 89.34 81.02 - - Collars - (BPD) 2,000 2,000 - - - NYMEX…
  43. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 43
    PXD Open Commodity Derivative Positions as of 7/30/2012 (includes PSE) Gas Q3 2012 Q4 2012 2013 2014 2015 Swaps - (MMBTUPD) 275,000 275,000 112,500 - - NYMEX Price (/MMBTU)1 4.97 4.97 5.62 - - Collars - (MMBTUPD) 65,000 65,000…
  44. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 44
    PSE Derivative Position as of 7/30/2012 Oil Q3 2012 Q4 2012 2013 2014 2015 Swaps (BPD) 3,000 3,000 3,000 - - NYMEX Price (/BBL) 79.32 79.32 81.02 - - Three-Way Collars (BPD)1 1,500 1,500 1,750 5,000 - NYMEX Call Price (/BBL) 109.00…
  45. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 45
    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 Long put at 90/BBL Realized Price (/BBL) Short put at…
  46. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 46
    VPP Expirations At the end of 2012, the VPP commitment will expire and provide 3.5 MBOPD increase in production MBOPD 3.5 VPP Oil Obligation 2012 2013 Schedule of Oil VPP Volumes (MMBBLS) Q1 Q2 Q3 Q4 Total 2012 0.3 0.3 0.3…
  47. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 47
    Oil/Gas Ratio Trending Up Since 2006 Oil/Gas ratio has increased from 5:1 in 2006 to 30:1 recently Oil Price Oil/Gas Ratio Gas Price 48
  48. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 48
    Cautionary Note Regarding Estimates of Sand 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 estimates of proved…
  49. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 49
    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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