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IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Apr 12, 2011 · 39 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. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 1
    IPAA Oil & Gas Investment Symposium April 12, 2011
  2. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 2
    Investment Highlights 20,000 liquids-rich drilling locations in low-risk resource plays Successfully accelerating drilling in the Spraberry and Eagle Ford Shale Redeployment of proceeds from Tunisia sale allows further…
  3. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 3
    Targeting 18+% Compound Annual Production Growth For 2011 2013 Forecasting annual production growth of 15% to 19% for 2010 - 20111 Targeting compound annual production growth of 18+% for 2011 - 2013 Liquids production increases from…
  4. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 4
    2011E Capital Spending and Cash Flow1,2 Capital program includes: Drilling capital: 1.6 B 1.1 B Spraberry Sensitivity to Commodity Prices ( MM) 9.00 110 MM Eagle Ford Shale (net of carry) 8.00 170 MM Barnett Shale Combo 115 MM…
  5. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 5
    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 70.00 75.00 80.00 85.00 90.00 95.00 100.00 105.00 110.00 115.00 120.00 NYMEX Oil…
  6. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 6
    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 70.00 75.00 80.00 85.00 90.00 95.00 100.00 105.00 110.00 115.00 120.00 NYMEX Oil…
  7. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 7
    Substantial Operating Cash Flow Growth1 Billions 2.6 2.1 1.5 0.92 2010 2011E 2012E 2013E 1) Based on early April strip pricing and includes derivative positions as of March 24, 2011 2) Excludes cash flow totaling 0.4 B…
  8. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 8
    History of Spraberry Trend Completions 1950 - 70s 1980 - 90s 2000s 2008 - 09 2010+ 6,000 ft Average Upper Clear Spraberry Spraberry fork Cased Depth of Wellbore Fracture Stimulation Stages Lower Dean Wolfcamp…
  9. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 9
    Continuing to Add Incremental Production from Lower Wolfcamp Drilling1 90 30+% increase in cumulative production during first nine months 80 Gross Production Per Well (BOEPD) 70 Added incremental production in 2010 from deeper…
  10. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 10
    New Spraberry 40-Acre Type Curve Deeper drilling to Lower Wolfcamp expected to add 30 MBOE to Spraberry well EURs Gross Production Per Well (BOEPD) 140 MBOE Spraberry/Dean/Full Wolfcamp (70% oil, 20% NGLs, 10% gas) 110…
  11. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 11
    Spraberry Project Updates 20-Acre Drilling (13,000 locations) Drilled 45 wells in 2008-2010; plan to drill 20 wells in 2011 Capturing pay from lower Wolfcamp, Strawn and shale/silt non-traditional intervals EUR expected to be at least…
  12. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 12
    Utilizing Vertical Integration to Control Spraberry Well Costs Operating 14 Company-owned drilling rigs Expanding frac fleet ownership 3 company-owned fleets currently operating Ordered 2 additional company-owned fleets, with…
  13. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 13
    Continuing to Accelerate Spraberry Development Spraberry Net Production1 (MBOEPD) 66 - 70 52 - 56 42 46 34 2010 2011E 2012E 2013E Rigs 30 year end 30 35 mid year 40+ 40+ 1) Includes expiration of VPP commitments (3…
  14. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 14
    Eagle Ford Shale Operational Update Running 8 rigs Reducing drilling time and enhancing completion techniques Current gross well cost: 7 MM - 8 MM 48 wells drilled to date 22 wells on production; 6 wells completed awaiting hookup;…
  15. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 15
    Eagle Ford Shale Provides Excellent BTAX IRRs 150% 110% IRR at NGL Prices 50% of WTI 125% High Condensate Yield 200 BBL / MMCF 100% BTAX IRR 70% IRR at NGL Prices 50% of WTI 75% Low Condensate Yield 60 BBL / MMCF…
  16. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 16
    Accelerating Eagle Ford Shale Development Eagle Ford Net Production (MBOEPD) 40 45 26 30 12 15 2 2010 2011E 2012E 2013E Rigs 7 year end 8 12 by mid year 14 16 17
  17. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 17
    Barnett Shale Combo Play Current acreage: 70 M net acres 600 drilling locations; 77% NRI Barnett Shale Liquids-Rich Area (42% gas, 42% NGLs, 16% oil) Continuing to grow leasehold position Acquired 160 square miles of 3-D Combo Play…
  18. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 18
    Why Invest In PXD Significant Upside Potential From: Oil exposure with large drilling inventory Aggressive Spraberry & Eagle Ford Shale drilling program 18+% compound annual production growth for 2011 2013 30+% compound annual…
  19. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 19
    Appendix 20
  20. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 20
    Pioneer Operations North Slope Raton Hugoton West Panhandle Barnett Spraberry Eagle Ford Shale Operating Areas South Africa 21
  21. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 21
    Production (MBOEPD)1 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Spraberry 31 31 32 35 38 Raton 30 29 28 28 28 Eagle Ford Shale - 1 2 1 2 South Texas 10 9 8 9 9 Mid-Continent 17 22 21 21 20 Alaska 6 6 7 7 6 Other U.S. 4 5 4 3 3 Total U.S. 98…
  22. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 22
    PXD Production By Commodity By Area1 1) All periods presented have been restated to exclude discontinued operations 23
  23. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 23
    Strong 2010 Reserve Additions1 Year-end 2010 proved reserves of 1,011 MMBOE Added 163 MMBOE, or 363% of full-year production, from successful drilling, improved performance, acquisitions and price revisions SEC Year-end 10 Included…
  24. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 24
    Strong 2010 F&D Performance Drillbit F&D of 9.96/BOE excluding price revisions Below targeted drillbit F&D cost of 10 - 15/BOE All-in F&D of 7.30/BOE including price revisions Reserve mix 97% U.S. 56% liquids / 44% gas 57% PD…
  25. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 25
    PXD Open Commodity Derivative Positions as of 3/24/2011 (includes PSE) Oil Q1 2011 Q2 2011 Q3 2011 Q4 2011 2012 2013 2014 Swaps WTI (BPD) 750 750 750 750 3,000 3,000 - NYMEX WTI Price (/BBL) 77.25 77.25 77.25 77.25 79.32 81.02 -…
  26. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 26
    PXD Open Commodity Derivative Positions as of 3/24/2011 (includes PSE) Gas 2Q1 011 Q2 2011 Q3 2011 Q4 2011 2012 2013 2014 Swaps - (MMBTUPD) 117,500 117,500 117,500 117,500 105,000 67,500 50,000 NYMEX Price (/MMBTU)1 6.13 6.13 6.13…
  27. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 27
    PSE Derivative Position as of 3/24/2011 Oil Q1 2011 Q2 2011 Q3 2011 Q4 2011 2012 2013 2014 Swaps (BPD) 750 750 750 750 3,000 3,000 - NYMEX Price (/BBL) 77.25 77.25 77.25 77.25 79.32 81.02 - Collars (BPD) 2,000 2,000 2,000 2,000 - -…
  28. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 28
    Three-Way Collars (75 by 90 by 135 example) NYMEX Price Potential Opportunity Loss Realized Price Short put at 75/BBL Long put at 90/BBL Short call at 135/BBL Realize NYMEX price Realize 90/BBL Realize NYMEX price Realize…
  29. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 29
    Future Amortization of Deferred Gains - Discontinued Commodity Hedges1 ( Millions) Oil Gas NGL Total (Cash / Noncash) Total (Cash / Noncash) Total (Cash / Noncash) 1st Qtr 2011 9 [9 / -] - - 2nd Qtr 2011 9 [9 / -] - - 3rd Qtr…
  30. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 30
    Production Costs (per BOE)1 13.27 12.17 11.74 11.54 1.08 10.94 Q4 vs. Q3 Comparison 0.67 Workovers 0.93 1.01 Q4 2010 LOE includes 10 MM Alaska 3.27 0.73 Production & 2.05 2.59 processing fee recovery for 2010 Ad Valorem Taxes…
  31. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 31
    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…
  32. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 32
    VPP Expirations By the end of 2012, the remaining 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…
  33. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 33
    PXD Largest Spraberry Acreage Holder and Producer 20,000+ Drilling Locations PERMIAN BASIN 24 MM acres PXD Acreage (900,000 Acres; 75% HBP) 150 miles All Others (800,000 Acres) Spraberry Field Gross Production by…
  34. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 34
    Eagle Ford Shale: A Burgeoning Liquids-Rich Shale Play Map source: PXD Gross resource potential of play: 150 TCF1 125 rigs currently running in the play Oil Window PXD Acreage Area 1) Source: Tudor, Pickering, Holt & Co.…
  35. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 35
    80% of Pioneers Acreage in Condensate Window NW Handy Pioneer Well Pioneer Well Riedesel Chesnutt Pioneer Well SE 6 miles Condensate Window 13,000 ft 13,200 ft Austin Chalk 13,400 ft Sligo Margin Yield 13,600 ft 285 BBL/MM Top…
  36. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 36
    Eagle Ford Shale Production Breakdown 20% 20% 30% Condensate NGL1 NGL1 50% 100% Condensate Gas 50% 30% Gas Gas 1) NGLs are 50% ethane, 25% propane, 15% butanes and 10% heavier liquids 37
  37. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 37
    Alaska - Oooguruk 1-rig drilling program will continue Initial Development Island Drill Site Area in 2011 Key element of program is further Initial Torok Well testing of Torok zone in Moraine play in Q1 PXD Acreage…
  38. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 38
    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 39
  39. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Pioneer Natural Resources Co. – slide 39
    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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