Hart Energy 2013 DUG Conference Evolution of the Eagle Ford September 19, 2013
Pioneer At A Glance Total Enterprise Value (B) 27 2013 Drilling Capex (B) 2.8 Q2 2013 Production (MBOEPD) 176 2012 Reserves (BBOE) 1.1 2012 Reserves + Resource (BBOE) 9.0 Liquids-rich resource-focused strategy, with Top U.S. Fields…
PXD: Industry Leader in Eagle Ford Shale Geologic Data Drilling Efficiency Completion Optimization Operational Optimization First Mover Midstream Build Out Production Growth 4
Pioneers Early History in the Eagle Ford Shale Expanded position to 300,000 gross acres to exploit the Edwards Trend in 2005 Became interested in Eagle Ford Shale from flares while drilling Edwards Recompleted several vertical wells in…
Late 2008/2009 Industry Activity (135 wells) Early PXD Hz tests HKs Proven play area 15 miles 200,000 acres 6
Industry Added 500 New Wells in 2010 Prove-up northern sweet-spot Dewitt eagle ford Karnes Extended trend McMullen to North Proven play area Play extended into expands to Maverick Basin 900,000 acres 7
Added 2350 New Wells in 2011/12 Developed eagle ford Testing acres Million acres 7 million acres Dewitt 2012 snapshot Karnes McMullen 8
Well Performance Regional (EUR) 7 Million acres under Well Count eagle ford appraisal via drilling activity Dewitt Karnes Performance EUR/Well Poorest Modest Moderate McMullen Average Good Strong Individual…
Well Performance Regional (Oil CUM) 18 Months Cum. Production Oil & Condensate Only Zoom in, Liquids Rich Trend eagle ford Dewitt Karnes McMullen IHS Data, 18 cumulative production Oil + Condensate (No NGL) 10
Well Performance Liquids Rich Trend Source: IHS Data 18 Months Cum. Production Oil & Condensate Only eagle ford DeWitt Karnes McMullen Bee Live Oak 11
Pioneers Eagle Ford Shale Acreage Concentrated in Best EUR Areas Oil Window PXD Acreage Area 12
Eagle Ford Shale Main Operators Pioneers wells are some of the most productive in the play Pioneer 1,200 1,000 800 BOEPD/Well 600 Deeper 400 200 Shallower - Jun-08 Mar-09 Jan-10 Nov-10 Sep-11 Jul-12 May-13…
Exploration and Appraisal Phase (Defining The Sweet Spots) Seismic Attributes & Microseismic Depositional Model Depth, Pressure Thickness Maturity/Liquid Yield Eagle Ford Exploration Key Performance Drivers Fracability Well…
Development Phase (Resource Recoverable/Well Spacing) Geomechanical Seismic Volumes Stress Data Natural Fractures Detection Frac Pro Modeling Microseismic SRV Predicted Stimulated Rock Volume (SRV) 15
PXD: Drilling Results Improving1 Average drilling cost per foot has decreased 17% and average drilling feet per day has increased 15% over the last two years 300 150 0 800 400 0 2011 Q2 2012 Q2 2013 Q2 1) Non-pilot…
PXD: Well Spud to POP Time Decreasing1 Spud to put-on-production (POP) time has 200 decreased 60% over the last two years 159 150 Days eagle ford 100 96 61 50 0 Q2 2011 Q2 2012 Q2 2013 1) Reflects single well pads…
Pad Drilling Increasing in 2013 80% 75% eagle ford 25% 20% Single Well Multi-Well Pads Single Well Multi-Well Pads 1H 2012 2013 18
PXD: Midstream Build Out Almost Complete 11 Central Gathering Points on line to date Gas and condensate gathering and separation Gas treatment and condensate stabilization Build out executed ahead of drilling plan Infrastructure…
Area 71 Central Gathering Point 20
Quick Facts Eagle Ford Operations Upstream Gross Acreage 230,000 Rigs Running 10 Frac Fleets 2 Wells drilled 322 Wells fracd 307 Gross Daily Production 103,000 BOEPD (63% Liquids) Employees Based in South Texas 450 Midstream…
Pioneers Edwards Trend and Eagle Ford Shale Production Growth1 120 Pioneer grew gross Eagle Ford Shale production from 0 MBOEPD to 100 MBOEPD in 3 years 100 PRODUCTION (MBOEPD) 80 60 40 20 Edwards Trend…
Eagle Ford Joint Venture Highlights Agreed to sell 45% of PXDs interest in 212 M net acres in the Eagle Ford Shale to Reliance Industries Ltd. (RIL) for 1.15 B 266 MM in cash to be received upfront 879 MM in drilling carry; RIL to…
Eagle Ford Joint Venture Development Plan Gross Wells Drilled Planned (established at JV close) Actual 140 71 in 1H 120 129 70 113 26 22 June - Dec 2011 2012 2013 2010 Planned Rigs 7 10 14 14 Actual Rigs 7 12 10 10 24
Significant Eagle Ford Shale Production Ramp-up Eagle Ford Net Production1 (MBOEPD) Planned (established at JV close) Actual Midstream 32 41 RIL JV Connections YE Exit Rate Implemented Begin 5 MBOEPD 37.6 in 1H June 1st 19…
The Eagle Ford Today Over 5,550 wells drilled in the Eagle Ford to date; 200 rigs running San Antonio Corpus Christi Laredo 26
Top 6 Operators Combined Production Top 6 operators account for 700 MBOED gross production 1,400,000 1,200,000 Gross Production (Wellhead BOEPD) 1,000,000 800,000 600,000 400,000 Top 6 Operators 200,000 -…
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