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INVESTOR PRESENTATION – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Apr 6, 2015 · 40 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
    Pioneer Proprietary Investor Presentation April 2015
  2. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance 24 B 1.85 B 11 BBOE Top U.S. Fields By Rig Count2 Current 2015 Planned Proved (Pioneer Operated Count in Green 16 rigs) Enterprise CapEx Reserves + Value Net Resource Potential *max rig count in 2014 Gas…
  3. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 3
    2015E Capital Spending and Cash Flow1 Capital program of 1.85 B Drilling Capital: 1.6 B 1,050 MM northern Spraberry/Wolfcamp (65% of total) o 735 MM for horizontal drilling program Sensitivity to Commodity Prices ( MM) o 20 MM for…
  4. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 4
    Forecasting 2015 Production Growth Range of 10%+1 200+ MBOEPD2 182 MBOEPD Prepared to add rigs if margins improve 201 186 176 166 155 Impacted by severe weather in Q1 and FY ethane rejection2 2013 Q1 Q2 Q3 Q4 Q1 Q2…
  5. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 5
    Liquidity Position (12/31/14) Net debt (net of cash balance of 1,025 MM): 1.6 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 16% Net debt-to-operating cash…
  6. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 6
    Pioneers Strong Financial Flexibility Strong Commodity Derivatives Positions Protect Cash Flow Derivative coverage for forecasted oil production of 90% for 2015, with most volumes protected by swaps at 71 per barrel o Also have…
  7. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 7
    Northern Wolfcamp Horizontal Production Data: Q4 vs. Historical Wells Wolfcamp A Wolfcamp B Historical wells (33) Historical wells (12) avg. lateral: 7,700 feet avg. lateral: 6,950 feet 80 Q4 wells (11) 80 Cumulative…
  8. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 8
    Recent Middle Spraberry Shale and Jo Mill Shale Horizontal Results 2,000 Middle Spraberry Shale: 3-well average in Midland, Martin and Upton Counties Updated End December Jo Mill Shale: 3-well average in Midland, Martin and Upton…
  9. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 9
    Northern Spraberry/Wolfcamp: High-Grading Drilling Activity in 2015 Reduced horizontal rig count to 6 rigs by the end Pioneers Northern Spraberry/Wolfcamp of February 2015 Drilling Areas High-grading drilling activity to areas and…
  10. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 10
    Southern Wolfcamp JV: High-Grading Drilling Activity in 2015 Reduced horizontal rig count to 4 rigs by the end of February Pioneers Southern Wolfcamp JV Area 2015 Drilling Areas High-grading drilling activity to areas and intervals…
  11. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 11
    Continuing to Grow Spraberry/Wolfcamp Production Spraberry/Wolfcamp Net Production (MBOEPD)1 119+ MBOEPD2,3 99 MBOEPD Prepared to add rigs if margins improve 115 103 92 86 54 79 37 22 9 18 66 Horizontal 2 45…
  12. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 12
    Field Infrastructure Tank Batteries & Gas Processing Tank Batteries / Saltwater Disposal DL Hutt Tank Battery Slowing pace of construction of new large-scale tank batteries and saltwater disposal facilities in response to the slowdown…
  13. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 13
    Slowing Down Water Project Construction Plans originally called for the initial phase of Pioneers field-wide water transport system to commence in 2015 Feeder line from Midland As a result of the slowdown in Pioneers drilling…
  14. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 14
    Eagle Ford Shale JV: High-Grading Drilling Activity in 2015 Reduced horizontal rig count to 6 rigs by the JV Acreage end of February Central Gathering Point Pipeline Infrastructure High-grading drilling activity to areas with the 6…
  15. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 15
    Continuing to Grow Eagle Ford Shale Production Eagle Ford Shale Net Production (MBOEPD)1 50+ MBOEPD2 46 MBOEPD Prepared to add rigs if margins improve 47 49 47 43 38 28 12 Impacted by ethane rejection2 2011 2012…
  16. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 16
    Eagle Ford Shale Condensate Exports US Department of Commerce confirmed that condensate processed through a distillation unit Distillation Unit (stabilizer) at PXDs Eagle Ford Shale central (Stabilizer) gathering plants is a…
  17. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 17
    Benefits of Lifting the U.S. Oil Export Ban Removing the ban creates a larger market for U.S. produced shale oil, resulting in: More crude oil production in the U.S. Increased crude oil exports from the U.S. Lower net crude oil…
  18. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 18
    Optimizing Returns in a Lower Oil Price Environment Cost Reductions Aggressively soliciting cost reductions from suppliers and service companies, including: Materials (e.g. casing and tubing, drilling mud, chemicals and guar) Freight…
  19. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 19
    PXD Investment Highlights U.S. asset base High oil exposure from proved reserves + estimated net recoverable resource potential of 11 BBOE 20,000 horizontal drilling locations Drilling program focused in core Texas assets…
  20. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 20
    Appendix 21
  21. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 21
    Pioneers Areas of Operations Current Total Enterprise Value (B) 24 Q4 2014 Production 50% Oil (MBOEPD) 201 2015E Total Capital Spend, Net (B) 1.85 2015E Cash Flow (B) 1.70 2014 Horizontal Drillbit F&D (/BOE) 15.51 2014 Reserve…
  22. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 22
    Pioneers Year-End 2014 Proved Reserves1 Added 177 MMBOE from the drillbit, or 239% of full- year production, at a drillbit F&D cost of 19.65 per BOE2 Reflects significant drilling campaigns in horizontal Spraberry/Wolfcamp Shale and…
  23. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 23
    Production Costs (per BOE)1 14.30 Q4 2014 production costs 13.90 13.39 13.17 13.61 increased slightly compared to Workovers 0.76 0.59 0.55 0.63 0.65 Q3 2014 Production & 3.68 3.52 LOE increased primarily due to Ad Valorem 3.11…
  24. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 24
    Pioneers Production By Commodity By Area Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Spraberry/Wolfcamp Oil (BOPD) 52,957 58,307 57,893 66,425 76,894 NGL (BOEPD) 16,251 16,693 19,754 21,734 23,956 Gas (MCFD) 65,863 66,770 83,368 86,412 87,630…
  25. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 25
    Derivative Philosophy Continue to use derivatives to mitigate commodity price exposure in order to ensure funding for development programs and to maintain strong financial position Target 50% on rolling 3 year basis Continue to use a…
  26. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 26
    Open Commodity Derivative Positions as of 2/6/2015 Oil Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 Swaps WTI (BPD) 82,000 82,000 82,000 82,000 - NYMEX WTI Price (/BBL) 71.18 71.18 71.18 71.18 - Three Way Collars (BPD)1,2 10,000 15,000…
  27. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 27
    Open Commodity Derivative Positions as of 2/6/2015 Ethane Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 Swaps (BPD)1 3,278 5,000 5,000 5,000 4,000 Mont Belvieu Swap Price (/BBL) 7.83 7.83 7.83 7.83 12.29 Propane Q1 2015 Q2 2015 Q3 2015…
  28. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 28
    Open Commodity Derivative Positions as of 2/6/2015 Gas Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 Swaps - (MMBTUPD) 20,000 20,000 20,000 20,000 70,000 NYMEX Price (/MMBTU)1 4.31 4.31 4.31 4.31 4.06 Three Way Collars (MMBTUPD)1,2…
  29. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 29
    Three-Way Collars (50 by 70 by 80 Example) 100 NYMEX Oil Three-Way Collar Realization Short-Put at Long-Put at Short-Call at 90 50/BBL 70/BBL 80/BBL Potential Opportunity Realize NYMEX Price Loss 80 Realized Price (/BBL)…
  30. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 30
    Geologic Provinces of the Permian Basin PEDERNAL UPLIFT & ROOSEVELT POSITIVE OZONA PLATFORM Basin DEVILS Basement RIVER Uplift UPLIFT Shelf Thrust Belt Permian Basin is composed of multiple uplifts and basins that…
  31. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 31
    Wolfcamp Depositional Model Midland Basin Platform Platform Carbonate Land Carbonate Shelf Edge Carbonate Pelagic Sediments Clastic Detrital Slope Sediments & Reef Talus Fluvial - Deltaic Silt Cloud in Suspension Midland…
  32. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 32
    Regional Cross Section D-D 13 horizontal play intervals identified (so far) Successful Horizontal Wells in the Play 10 intervals have been tested successfully Future Horizontal Play 3 additional intervals remain to be tested North…
  33. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 33
    Midland Basin: Stacked Play Potential Midland Basin Delta log R (excess electrical resistance) Clear Fork Red intervals indicate hydrocarbons Petrophysical analysis indicates significantly more oil in place U. Spraberry M.…
  34. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 34
    Midland Basin Horizontal Resource Potential 75 BBOE Recoverable Resource Potential Spraberry Wolfcamp D Shales 13 BBOE 14 BBOE Wolfcamp C 2 BBOE Wolfcamp A Wolfcamp B 19 BBOE 27 BBOE 75 BBOE recoverable resource…
  35. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 35
    Spraberry/Wolfcamp Rig Count Counties: Andrews, Borden, Crockett, Dawson, Ector, Gaines, Glasscock, Howard, Irion, Martin, Midland, Mitchell, Reagan, Schleicher, Scurry, Sterling, Tom Green and Upton 38% Vertical Rigs (dropped 120…
  36. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 36
    Production Growth Profiles For 3 Largest U.S. Oil Shale Plays Includes Horizontal Wells Only Eagle Ford 152 Horizontal Rigs (down from max of 203 rigs in 2014) Bakken 111 Horizontal Rigs (down from max of 179 rigs in 2014)…
  37. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 37
    Spraberry/Wolfcamp Production History Includes Vertical and Horizontal Wells Spraberry/Wolfcamp production has increased 630,000 BOEPD since 2009 From 2009 to 2012, production growth primarily attributable to increased…
  38. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 38
    Drilling Results Confirming Pioneers Midland Basin Sweet Spot PXD Wolfcamp B Prospectivity Map (Early 2013) 2014 ITG Research Report Wolfcamp (All Zones) Test Rates Higher Tier 1 Tier 2 Pioneer Land Pioneer Wolfcamp B wells…
  39. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 39
    Crude Pipeline Capacity to Gulf Coast Permian Basin Crude Takeaway Capacity Cushing Operator Origin Destination Name Capacity Time Frame Plains Permian Cushing Basin 450,000 Oxy Permian Cushing Centurion 75,000 Sunoco Permian GC…
  40. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 40
    Spraberry/Wolfcamp Midstream Infrastructure Gas Processing Pipeline NGL Takeaway Targa System to Mont Belvieu PXD has 27% interest Chaparral & West Texas Current capacity: 655 MMCFD1 Pipelines o Includes new Edward plant Sale Ranch…

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