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Q4 2012 Earnings Call – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Feb 14, 2013 · 45 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. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 1
    Fourth Quarter 2012 Earnings February 14, 2013
  2. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 2
    Financial and Operating Highlights Q4 2012 adjusted income1 of 107 MM, or 0.83 per adjusted share1 Q4 2012 production: 165 MBOEPD (including Barnett Shale production)2 Q4 2012 production: 156 MBOEPD excluding Barnett Shale production2,…
  3. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 3
    Drilling Highlights First PXD horizontal Wolfcamp Shale well (B interval) in Midland County highly successful; demonstrates prospectivity of Pioneers northern Wolfcamp/Spraberry acreage position (600,000 gross acres) 24-hour IP rate…
  4. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 4
    2013E Capital Spending and Cash Flow1 Capital program of 3.0 B includes: Drilling Capital: 2.75 B 1,225 MM northern Wolfcamp/Spraberry area 400 MM for horizontal program 625 MM for vertical program 200 MM for infrastructure &…
  5. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 5
    Targeting 13% - 18% Compound Annual Production Growth for 2013 - 2015 High end of 2013-2015 growth range assumes 100 oil / 3.75 gas; low end assumes 85 oil / 3.25 gas MBOEPD Excludes annualized 4+ MBOEPD conveyed to Sinochem post…
  6. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 6
    Horizontal Wolfcamp Shale Well Results Continue to Improve Giddings horizontal Wolfcamp Shale B interval wells drilled late 2011/early 2012 tracking 650 MBOE type curve First northern acreage well in Midland County and first 10,000…
  7. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 7
    Horizontal Jo Mill Wells Outperforming 650 MBOE Type Curve 2,000 Initial 2 horizontal Jo Mill wells drilled in Q4 2012 (average production normalized to 5,000 lateral) 1,000 BOEPD 650 MBOE Type Curve 100 Days 8
  8. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 8
    Wolfcamp B Interval Prospectivity Map Tier 1 Tier 2 Pioneer Land Pioneer Wolfcamp B wells Tier 1 is highest prospectivity Wolfcamp B depth contour acreage, as determined by several geologic properties, including: First Martin County…
  9. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 9
    Significant Proved Reserves and Resource Potential1 Proved Reserves + Estimated Net Resource Potential of 9 BBOE and 40,000 Drilling Locations 12/31/12 Proved Reserves: 1.1 BBOE2 Additional Net Resource Potential: 8 BBOE Vertical…
  10. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 10
    Southern Wolfcamp Joint Interest Area Drilling Program Currently running 7 rigs; expect to increase to 10 rigs in 2014 and 13 rigs in 2015 Equates to 86 wells in 2013, 120 wells in 2014 and 165 wells in 2015 2013 drilling program…
  11. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 11
    Pioneers Highly Prospective Northern Wolfcamp/Spraberry Acreage 1 rig currently focused on delineating northern acreage (600,000 gross acres) Drilled first two horizontal Wolfcamp Shale wells in Midland County Currently drilling…
  12. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 12
    Northern Wolfcamp/Spraberry Acreage 2013 Drilling Plan M. Spraberry L. Spraberry Wolfcamp Wolfcamp Wolfcamp Shale Jo Mill Shale D B A U. Spraberry 15 to 20 wells M. Spraberry Shale L. Spraberry Jo Mill L. Spraberry Shale…
  13. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 13
    Northern Wolfcamp/Spraberry Acreage Initiating 1 B Appraisal Program 2013 Appraisal Areas 2013 drilling program expected to cost 400 MM Program expected to: Appraise prospective acreage and confirm additional resource potential…
  14. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 14
    Spraberry Vertical Drilling Program 6,000 ft Deeper drilling accounted for 65% of 2012 vertical drilling program; expected to Upper Clear- Spraberry fork increase to 90% in 2013 Vertical rig count reduced during 2012 from 40…
  15. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 15
    Continuing to Successfully Grow Wolfcamp/Spraberry Production Wolfcamp/Spraberry Net Production1 (MBOEPD) Top end of original FY guidance range (63 MBOEPD 67 MBOEPD) Q4 production flat compared to Q3 due to: 1,700 BOEPD negative…
  16. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 16
    Eagle Ford Shale Operational Update Drilled 30 wells in Q4 2012; 37 wells placed on production 2013 drilling program Expect to drill 130 wells Drilling essentially all liquids-rich wells 80% pad drilling, up from 45% in 2012; saves…
  17. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 17
    Eagle Ford Shale Continues to Set New Production Records Eagle Ford Shale Net Production1 (MBOEPD) Top end of original FY guidance range (25 MBOEPD 29 MBOEPD) 38 - 42 28 MBOEPD 35 29 23 24 12 2 2011 Q1 Q2 Q3 Q4…
  18. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 18
    Continuing to Grow Barnett Shale Combo Production Barnett Shale Net Production (MBOEPD) Drilled 8 wells in Q4; 8 wells placed on production 9 - 12 Expect to increase rig count from 1 rig to 2 7 MBOEPD rigs in Q2 2013 to hold…
  19. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 19
    Alaska Q4 net production: 4 MBOPD Nuiqsut Area 1-rig development program continues 3 wells to be fracd Island from the Oooguruk island drill site from island drill site Development Area targeting Nuiqsut and Torok intervals…
  20. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 20
    Q4 2012 Earnings Summary Millions (After Tax) Per Share Net income attributable to common stockholders 29 0.22 Unrealized mark-to-market (MTM) derivative gains (22 MM before tax) (14) (0.11) Adjusted income excluding unrealized MTM…
  21. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 21
    Price Realizations1 Realized Prices (excludes VPPs and derivatives) 99.15 91.51 86.87 88.09 83.89 45.70 41.81 32.62 30.96 30.69 3.37 3.20 2.51 2.62 2.00 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q4…
  22. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 22
    Production Costs (per BOE)1 15.61 14.21 0.75 14.62 Q4 production cost decrease vs. 13.52 13.30 0.96 0.98 Q3 primarily due to the following 0.68 3.38 Workovers 0.69 LOE items: Production & 3.14 3.25 Ad Valorem Taxes 3.18 3.43…
  23. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 23
    Q1 2013 Guidance1 Guidance Daily Production (MBOEPD) 165 170 Production Costs (/BOE) 14.00 16.00 Exploration & Abandonment ( MM) 25 35 Drilling and Acreage 15 Personnel and Seismic 20 DD&A (/BOE) 13.50 15.50 G&A ( MM) 60 65…
  24. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 24
    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…
  25. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 25
    2012 Drilling Capital1 Millions 2,728 741 678 670 639 Q1 2012 Q2 2012 Q3 2012 Q4 2012 FY 2012 1) Excludes acquisitions, asset retirement obligations, capitalized interest and G&G G&A 27
  26. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 26
    Liquidity Position (12/31/12)1 Net debt (net of cash balance of 229 MM): 3.4 B Unsecured credit facility availability: 1.0 B Net debt-to-book capitalization: 37% Maturities and Balances2 2012 2013 2016 2017 2018 2020 2022 2028…
  27. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 27
    Production (MBOEPD)1 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 2 3 4 Spraberry 53 62 64 69 69 Eagle Ford Shale 20 23 24 29 35 Raton 26 26 25 25 24 South Texas 7 7 6 6 6 Mid-Continent 19 18 18 18 17 Barnett 6 6 7 7 9 Alaska 4 4 5 5 4…
  28. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 28
    PXD Production By Commodity By Area1 1) All periods presented have been restated to exclude discontinued operations 30
  29. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 29
    Oil and Gas Revenue1 Millions 719 716 735 VPP Deferred 9 10 10 665 642 Revenue 11 10 710 706 725 654 632 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 1) All periods presented have been restated to exclude discontinued operations…
  30. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 30
    PXD Open Commodity Derivative Positions as of 2/8/2013 (includes PSE) Oil Q1 2013 Q2 2013 Q3 2013 Q4 2013 2014 2015 Swaps WTI (BPD) 3,000 3,000 3,000 3,000 - - NYMEX WTI Price (/BBL) 81.02 81.02 81.02 81.02 - - Three Way Collars…
  31. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 31
    PXD Open Commodity Derivative Positions as of 2/8/2013 (includes PSE) Gas Q1 2013 Q2 2013 Q3 2013 Q4 2013 2014 2015 Swaps - (MMBTUPD) 162,500 162,500 162,500 162,500 105,000 - NYMEX Price (/MMBTU)1 5.13 5.13 5.13 5.13 4.03 - Collars…
  32. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 32
    PSE Derivative Position as of 2/8/2013 Oil Q1 2013 Q2 2013 Q3 2013 Q4 2013 2014 2015 Swaps (BPD) 3,000 3,000 3,000 3,000 - - NYMEX Price (/BBL) 81.02 81.02 81.02 81.02 - - Three-Way Collars (BPD)1 1,750 1,750 1,750 1,750 5,000 -…
  33. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 33
    Oil Differentials (per BBL)1 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 NYMEX calendar month average 94.06 102.93 93.49 92.22 88.18 NYMEX differential (2.55) (3.78) (6.62) (4.13) (4.29) Realized prices excluding VPPs and derivatives 91.51…
  34. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 34
    NGL Differentials (per BBL)1 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 NYMEX oil calendar month average 94.06 102.93 93.49 92.22 88.18 NYMEX differential (48.36) (61.12) (60.87) (61.26) (57.49) Realized prices excluding derivatives 45.70 41.81…
  35. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 35
    Gas Differentials (per MCF)1 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 NYMEX bid week average 3.55 2.72 2.21 2.80 3.41 NYMEX differential (0.18) (0.21) (0.21) (0.18) (0.21) Realized prices excluding derivatives 3.37 2.51 2.00 2.62 3.20…
  36. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 36
    General & Administrative Costs1 Includes performance-based compensation awards for 2012 Millions 68 63 63 12 Noncash 55 55 12 12 10 13 Q4 Q1 Q2 Q3 Q4 2011 2012 2012 2012 2012 1) All periods presented have been restated to…
  37. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 37
    Interest Costs1 Millions 54 54 49 46 47 9 9 Noncash 8 8 10 Q4 Q1 Q2 Q3 Q4 2011 2012 2012 2012 2012 1) All periods presented have been restated to exclude discontinued operations 39
  38. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 38
    Exploration & Abandonments Millions Drilling & Acreage Barnett Shale 72 Acreage & Other 1 73 Geological & Geophysical Seismic 2 Personnel & Other 14 16 4th Quarter 2012 Total 89 40
  39. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 39
    Income Taxes Attributable to Continuing Operations Quarter Ended December 31, 2012 ( Millions) Current tax benefit - Deferred tax provision (9) (9) 41
  40. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 40
    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…
  41. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 41
    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…
  42. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 42
    Supplemental Non-GAAP Financial Measures Adjusted income excluding unrealized MTM derivative gains and adjusted income excluding unrealized MTM derivative gains and unusual items, as presented in the Q4 2012 Earnings Summary slide, is…
  43. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 43
    Supplemental Non-GAAP Financial Measures Selected Q4 2012 results excluding Barnett Shale activity and excluding unrealized MTM derivative gains and unusual items, as presented in the Q4 2012 Earnings Summary Slide, are presented and…
  44. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 44
    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…
  45. Q4 2012 Earnings Call – Pioneer Natural Resources Co. – slide 45
    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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