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CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Feb 6, 2013 · 48 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. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 1
    Credit Suisse Energy Conference February 6, 2013
  2. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 2
    Investment Highlights U.S. asset base High oil exposure from proved reserves + estimated net resource potential of 7 BBOE Drilling program focused in liquids and resource rich Texas core assets Horizontal Wolfcamp Shale Joint…
  3. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 3
    1.7 B Horizontal Wolfcamp Shale Transaction with Sinochem Sold 40% of Pioneers interest for Wolfcamp and deeper horizons in 207,000 net acres (10% of Pioneers total Spraberry acreage position) 20,500 per acre 0.5 B upfront cash and…
  4. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 4
    Horizontal Wolfcamp Shale Results Meeting Expectations in Joint Interest Area 39 horizontal Wolfcamp wells drilled in Pioneers southern 207,000 net acres (joint interest area) through Q4 2012 22 wells on production, of which 5 were…
  5. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 5
    Horizontal Wolfcamp Upper B Well Performance Through Q31 Average daily production from Wolfcamp Upper B Wells unloading fracture stimulation fluid wells at or above 575 MBOE type curve Giddings 2041H: 135 MBOE 12-month cumulative…
  6. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 6
    PXD Has Multiple Horizontal Target Intervals Lower Upper Jo Mill D C B B A U. Spraberry Drilled 2 successful 2,500 lateral horizontal Jo Mill wells with 24-hour M. Spraberry IP rates of 601 BOEPD and 404 Shale BOEPD (80% oil) L.…
  7. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 7
    Horizontal Wolfcamp Shale Drilling Program Currently running 7 rigs in the southern Wolfcamp Shale joint interest area; 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…
  8. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 8
    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…
  9. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 9
    Spraberry Vertical Deeper Drilling Continues to Drive Strong Performance 6,000 ft Upper Clear- Spraberry fork Deeper drilling accounted for 65% of 2012 vertical drilling program Commingled Potential Spraberry Average…
  10. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 10
    Continuing to Successfully Grow Spraberry Production Top end of Spraberry Net Production1 guidance range 66 67 (MBOEPD) 63 67 MBOEPD FY Guidance Remaining NGL inventory of 90 Mbls from Q2 Mont Belvieu 3rd party fractionator…
  11. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 11
    Eagle Ford Shale Operational Update Drilled 38 wells in Q3 2012; 35 wells placed on production 2012 drilling program 125 wells Focused on liquids-rich drilling with only 10% of the wells designated to hold strategic dry gas acreage…
  12. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 12
    Drilling Efficiency Improving Average drilling cost per foot has decreased 18% and average drilling feet per day has increased 28% from Q2 2011 to Q3 2012 300 150 0 800 400 0 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3…
  13. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 13
    Pad Drilling Expected To Increase in 2013 Expected to reduce drilling and completion costs by 600 M to 700 M per well 80% 70% 30% 20% Single Well Multi-Well Pads Single Well Multi-Well Pads 9 Months 2012 2013 14
  14. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 14
    Eagle Ford Shale Continues to Set New Production Records Eagle Ford Shale Net Production1 (MBOEPD) 27 28 25 29 MBOEPD FY Guidance 32 - 35 Strong well performance continues 29 to drive production growth and 24 achieve record…
  15. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 15
    Alaska Q3 net production: 4.5 MBOPD Nuiqsut Area 1-rig development program continues 3 wells to be fracd from island drill site Island Development from the Oooguruk island drill site Area targeting Nuiqsut and Torok intervals…
  16. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 16
    Strong Production Growth in 20121 MBOEPD 154 - 158 153 140 143 117 Strong drilling and well 101 performance in Spraberry vertical, horizontal Wolfcamp Shale and Eagle Ford Shale driving production growth 47% 52% 58% 59%…
  17. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 17
    Why Invest In PXD Significant Upside Potential From: High oil exposure from proved reserves + estimated resource potential of 7 BBOE and 35,000 drilling locations Aggressive Spraberry & Eagle Ford Shale drilling program Extensive…
  18. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 18
    Appendix 19
  19. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 19
    Pioneer Operations North Slope Raton Hugoton Barnett Shale Combo West Panhandle Spraberry Vertical Horizontal Wolfcamp Shale Eagle Ford Shale Operating Areas 20
  20. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 20
    2012E Capital Spending and Cash Flow1 B Capital program components: Drilling capital 2.5 Vertical integration 0.5 Sensitivity to Commodity Prices ( MM) Includes 100 MM for field facilities accelerated into 2012 3.0 NYMEX Gas…
  21. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 21
    Liquidity Position (9/30/12)1 Net debt (net of cash balance of 334 MM): 3.2 B Unsecured Credit Facility availability: 0.9 B Net Debt-to-Book Capitalization: 36% Maturities and Balances2 2012 2013 2016 20175 2018 2020 2022 2028…
  22. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 22
    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…
  23. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 23
    PXD Open Commodity Derivative Positions as of 1/28/2013 (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 - - Collars - (BPD) - -…
  24. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 24
    PXD Open Commodity Derivative Positions as of 1/28/2013 (includes PSE) Gas Q3 2012 Q3 2012 Q3 2012 Q4 2013 2014 2015 Swaps - (MMBTUPD) 275,000 275,000 275,000 162,500 105,000 - NYMEX Price (/MMBTU)1 4.97 4.97 4.97 5.13 4.03 -…
  25. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 25
    PSE Derivative Position as of 1/28/2013 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 -…
  26. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 26
    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…
  27. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 27
    PXDs Vertical Integration Reduces Costs 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) (30,000 HP)…
  28. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 28
    Geologic Provinces of the Permian Basin PEDERNAL UPLIFT & ROOSEVELT POSITIVE Spraberry Trend OZONA PLATFORM Basin DEVILS Basement RIVER Uplift UPLIFT Shelf Thrust Belt Permian Basin is composed of multiple…
  29. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 29
    Wolfcamp Facies & Depositional Model Platform Carbonate Land Platform Carbonate Shelf Edge Carbonate Pelagic Sediments Clastic Detrital Slope Sediments & Reef Talus Fluvial - Deltaic Silt Cloud in Suspension Carbonate Debris…
  30. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 30
    Wolfcamp Comparison to Other Plays Major Oil Shale Play Characteristics 2 3 1 Eagle Ford Barnett Shale 4 5 Attribute Units Wolfcamp Shale Niobrara Bakken (Oil Window) (Combo Play) Age Permian Cretaceous Mississippian Cretaceous…
  31. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 31
    PXD Has Multiple Horizontal Wolfcamp Shale Target Intervals PXD has an extensive Midland Basin geologic database: U. Spraberry M. Spraberry Over 70,000 logs of which 9,000 are digital, Shale allow for excellent structural…
  32. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 32
    Southern Horizontal Wolfcamp Players Laredo PXD Apache Apache PXD EOG Devon El Paso COP El Paso BHP Approach Horizontal Wells Horizontal Permits
  33. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 33
    Horizontal Wolfcamp 960-Acre Development Block Up to 55 wells per 960-acre section (20-acre field rules) 960 41 vertical wells in Spraberry-Wolfcamp acres Up to 14 horizontal Wolfcamp wellbores 7 horizontal wells in Wolfcamp A 7…
  34. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 34
    Spraberry 20-Acre Vertical Well Update 20-Acre Drilling (13,500 locations) Drilled 39 wells through Q3 2012 Most wells drilled to the Lower Wolfcamp with a few drilled to the Strawn Results to date indicate production near type…
  35. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 35
    Spraberry Waterflood Continuing to Perform Original project: 7,000 acres in Spraberry Water injection 12 injectors and 110 producers in original begins project area Response now being observed outside original 700 project area; now…
  36. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 36
    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)…
  37. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 37
    Pioneers Permian Resource Potential Continues To Grow1 Drilling deeper vertical wells, capturing non-traditional shale/silt intervals and drilling horizontally into the Wolfcamp Shale has increased Pioneers Permian resource potential…
  38. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 38
    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…
  39. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 39
    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…
  40. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 40
    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…
  41. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 41
    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…
  42. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 42
    Production (MBOEPD)1 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 2 3 Spraberry 47 53 62 64 69 Eagle Ford Shale 14 20 22 24 29 Raton 27 26 26 25 25 South Texas 8 7 7 6 6 Mid-Continent 19 19 18 18 18 Alaska 4 4 4 5 5 Other 1 2 1 1 1…
  43. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 43
    PXD Production By Commodity By Area1 1) All periods presented have been restated to exclude discontinued operations 44
  44. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 44
    Production Costs (per BOE)1 16.03 0.76 14.49 13.66 13.64 13.51 0.92 Q3 production cost increase vs. Q2 Workovers 0.79 0.69 0.68 3.48 primarily due to the following LOE 3.35 items: Production & 3.22 3.43 3.51 1.82 Ad Valorem…
  45. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 45
    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…
  46. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 46
    VPP Expirations VPP commitment expired at the end of 2012 Provided 3.5 MBOPD increase in production on 1/1/2013 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. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 47
    Oil/Gas Price Ratio Trending Up Since 2006 Oil/Gas price ratio has increased from 5:1 in 2006 to 30:1 recently Oil Price Oil/Gas Ratio Gas Price 48
  48. CREDIT SUISSE ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 48
    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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