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INVESTOR PRESENTATION – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Dec 6, 2011 · 44 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 December 2011
  2. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 2
    Investment Highlights 2011 drilling program focused in the liquids-rich vertical Spraberry, Eagle Ford Shale and Barnett Shale Combo plays Production growth on track 22,000 drilling locations in these 3 plays Extensive horizontal…
  3. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 3
    Pioneer is a Leader in the Two Most Active U.S. Plays 225 U.S. Rig Activity1 200 196 Pioneer Growth Areas 162 122 80 71 65 55 53 49 44 37 35 23 20 1) Source: ISI Group, Inc. 4
  4. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 4
    Targeting 18+% Compound Annual Production Growth For 2011 2014 MBOEPD 125 MBOEPD1 (up 15% vs. 2010) 136 - 141 128 119 S. Africa 109 111 U.S. 44% 52% 60% Liquids Liquids Liquids 2 2 2010 Q1 Q2 Q3 Q4E 2012E 2013E…
  5. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 5
    PXD Open Commodity Derivative Positions as of 11/1/2011 (includes PSE) Oil Q4 2011 2012 2013 2014 2015 Swaps WTI (BPD) 750 3,000 3,000 - - NYMEX WTI Price (/BBL) 77.25 79.32 81.02 - - Collars - (BPD) 2,000 2,000 - - - NYMEX Call…
  6. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 6
    PXD Open Commodity Derivative Positions as of 11/1/2011 (includes PSE) Gas Q4 2011 2012 2013 2014 2015 Swaps - (MMBTUPD) 117,500 105,000 67,500 50,000 - NYMEX Price (/MMBTU)1 6.13 5.82 6.11 6.05 - Collars - (MMBTUPD) - 65,000…
  7. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 7
    Liquidity Position (09/30/11 Pro Forma)1 Net debt (net of cash balance of 695 MM): 1.9 B Unsecured Senior Credit Facility availability: 1.2 B Net Debt-to-Book Capitalization: 25% Maturities and Balances2 2011 2012 2013 2016 2017…
  8. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 8
    Equity Offering Summary PXD believes it is the largest holder of prospective acreage in the horizontal Wolfcamp Shale play in West Texas with 400 M acres under lease (75% HBP) Initial focus will be on 200 M acres in the southern…
  9. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 9
    Industry Increasing Horizontal Wolfcamp Shale Activity Average Drilling Rigs 21 rigs currently Average Lateral Length (Feet) (All Companies) (EOG, Approach, El Paso, Pioneer) 7,400 13 6,500 11 5,900 10 4,700 3,600 5 1 Q3…
  10. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 10
    PXDs Successful Horizontal Wolfcamp Shale Well XBC Giddings Estate 2041H Jo Mill First horizontal Wolfcamp Shale well in Upton County Lower Peak 7-day average natural flow rate of 732 BOEPD1 Spraberry Shale (591 BOPD + 86 BNGLPD +…
  11. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 11
    PXDs Acreage Has Significant Horizontal Wolfcamp Shale Potential PXD and industry well results coupled with PXD geologic PXD Giddings Estate 2041H: 854 BOEPD IP interpretation suggest significant (1,200 BOEPD estimated unrestricted)…
  12. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 12
    PXDs Horizontal Wolfcamp Shale Drilling Metrics & Plan Drilling Metrics Total vertical well depth: 9,000 ft 10,000 ft Well design: 7,000+ ft lateral, 30+ stages Wells / rig / year: 8 EUR per well: 350 500 MBOE1 Planned spacing: 140…
  13. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 13
    PXD Largest Spraberry Acreage Holder, Driller and Producer Spraberry Field Gross Production by Operator 20,000 Vertical Drilling Locations 47 (MBOED)1 (Central and Northern Parts of Field) 26 19 15 8 8 5 5 4 4 PXD Acreage…
  14. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 14
    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)…
  15. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 15
    Deeper Vertical Drilling in Spraberry Increasing EURs (Intervals Below Wolfcamp) 6,000 ft Upper Clear- Spraberry fork Current Spraberry 40-acre type curve EUR including Lower Wolfcamp: 140 MBOE Q3 Deeper Drilling Results Q3…
  16. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 16
    Early Results of Spraberry Waterflood Encouraging 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…
  17. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 17
    Spraberry 20-Acre Vertical Well Update 20-Acre Drilling (13,000 locations) Drilled 11 wells during 2011; 6 on production Capturing pay from Lower Wolfcamp, Strawn and shale/silt intervals Results to date indicate production…
  18. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 18
    Continuing to Successfully Grow Spraberry Production Spraberry Net Production1 (MBOEPD) 77 84 68 74 54 59 51 53 47 40 41 34 2010 Q1 Q2 Q3 Q4E 2012E 2013E 2014E 2011E Excludes potential contributions from deeper (expect…
  19. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 19
    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 200 rigs currently running in the play Oil Window PXD Acreage…
  20. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 20
    Eagle Ford Shale Operational Update Running 12 rigs Current gross well cost: 7 MM - 8 MM Before tax IRRs1: 80% for rich condensate and 60% for lean condensate (excludes carry benefit) Average lateral length 5,500 feet with 13-stage…
  21. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 21
    Strong Eagle Ford Shale Well Performance Continues in Q31 Dewitt County BOPD BNGLPD MMCFPD Schorlemer 1H 938 619 4.7 Boldt 1H 901 617 4.7 Schroeder 1H 957 643 4.9 Kleine 1H 639 653 5.7 Straube 1H 1,020 675 5.1 Matejek 1H 1,554…
  22. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 22
    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…
  23. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 23
    Successfully Growing Eagle Ford Shale Production Eagle Ford Net Production1 (MBOEPD) 54 60 40 45 26 30 20 23 14 8 5 2 2010 Q1 Q2 Q3 Q4E 2012E 2013E 2014E 2011E (expect to be within 12 - 15 MBOEPD FY guidance) 1)…
  24. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 24
    Strong Barnett Shale Combo Well Performance Continues in Q31,2 Current acreage: 76 M net acres 700 drilling locations BOPD BNGLPD MMCFPD Running 2 rigs Steadham A1H 261 122 0.8 Gross well cost: 3 MM Gross EUR: 320 MBOE BOPD BNGLPD…
  25. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 25
    Successfully Growing Barnett Shale Combo Production Barnett Shale Net Production1 (MBOEPD) 26 31 18 22 9 12 57 4 3 2 3 2010 Q1 Q2 Q3 Q4E 2012E 2013E 2014E 2011E (expect to be within 4 - 5 MBOEPD FY guidance) 1) 2010…
  26. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 26
    Pioneers Vertical Integration Improves Returns and Enhances Execution Spraberry Eagle Ford Shale Barnett Shale Combo 5 frac fleets 1 frac fleet 1 frac fleet 15 drilling rigs (adding 2nd fleet Q4) 1 coiled tubing unit Other service…
  27. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 27
    Vertical Integration Significantly Reduces Well Costs Spraberry Eagle Ford Shale Barnett Shale Combo Frac Fleets Current 5 1 1 By Year-End 2011 (225,000 HP) 5 2 1 % of Total Wells Fraced 70% 65% 100% Fracs/Fleet/Year 115 55 60…
  28. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 28
    Why Invest In PXD Significant Upside Potential From: Oil exposure with large drilling inventory Aggressive Spraberry & Eagle Ford Shale drilling program Extensive horizontal Wolfcamp Shale potential 18+% compound annual production…
  29. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 29
    Appendix 30
  30. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 30
    Pioneer Operations North Slope Total Enterprise Value (B) 13 2011 Capital Budget (B) 2.1 YE 2010 Proved Reserves (BBOE) 1 YE 2010 Proved + Resource (BBOE) 3 Q3 2011 Production 52% Liquids/48% Gas (MBOEPD) 128 Raton Hugoton…
  31. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 31
    Alaska - Oooguruk PXD Acreage Initial 1-rig drilling program continues Development Area targeting Kuparuk and Nuiqsut Island Drill Site intervals Ivishak Area Second rig to test Torok zone and a Ivishak Drill Site deeper…
  32. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 32
    2012 Operational Flexibility in Lower Commodity Price Environment 2011 Capital Budget: 2.1 Billion1,2 Barnett Alaska 210 MM 100 MM Other 100 MM Eagle Ford Shale 120 MM Vertical Integration & Facilities Funded from operating cash…
  33. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 33
    Production (MBOEPD)1 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Spraberry 35 38 40 41 47 Raton 28 28 27 27 27 Eagle Ford Shale 1 2 5 8 14 South Texas 9 9 8 8 8 2 2 Mid-Continent 21 20 18 21 19 Barnett 2 2 2 3 4 Alaska 7 6 5 5 4 Other U.S. 1…
  34. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 34
    Production (MBOEPD)1 1) All periods presented have been restated to exclude discontinued operations 35
  35. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 35
    Production Costs (per BOE)1 13.27 13.31 12.82 13.47 0.78 0.75 Workovers 1.08 10.94 0.99 Q3 11 vs. Q2 11 Comparison Production & 0.73 3.32 3.28 Higher LOE primarily due to 3.27 3.32 Ad Valorem Taxes increased labor rates and Third…
  36. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 36
    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…
  37. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 37
    PXD Cash Costs Competitive vs. Peers For 2010 2010 Cash Costs ( / BOE)1 22.77 3.21 Interest 18.60 18.00 4.70 G&A 4.12 4.33 3.72 5.28 14.86 Prod Costs 10.76 8.39 2 3 4 PXD VPP-Adjusted CS Gas-Focused CS Oil-Focused…
  38. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 38
    2010 Reserves1 and F&D Year-end 2010 proved reserves of 1,011 MMBOE2 SEC Year-end 10 Proved Reserves (MMBOE) Spraberry 549 Raton 209 Mid-Continent 106 South Texas 44 Alaska 25 Eagle Ford 24 Barnett Shale 21 Tunisia 24 Other…
  39. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 39
    PSE Derivative Position as of 11/1/2011 Oil Q4 2011 2012 2013 2014 Swaps (BPD) 750 3,000 3,000 - NYMEX Price (/BBL) 77.25 79.32 81.02 - Collars (BPD) 2,000 - - - NYMEX Call Price (/BBL) 170.00 - - - NYMEX Put Price (/BBL) 115.00 - -…
  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
    Future Amortization of Deferred Gains - Discontinued Commodity Hedges1 ( Millions) Oil Gas NGL Total (Cash / Noncash) Total (Cash / Noncash) Total (Cash / Noncash) 4th Qtr 2011 9 [9 / -] - - 1) Deferred gains will increase oil…
  42. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 42
    VPP Expirations By the end of 2012, the entire VPP commitment will expire and provide a 4 MBOEPD increase in production with no capital requirement MBOEPD 4 4 VPP Oil Obligation 2011 2012 2013 Schedule of Oil VPP Volumes…
  43. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 43
    Oil/Gas Ratio Trending Up Since 2006 Oil/Gas ratio has increased from 5:1 in 2006 to 20:1 recently Oil Price Oil/Gas Ratio Gas Price 44
  44. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 44
    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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