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INVESTOR PRESENTATION – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Oct 4, 2011 · 42 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 October 2011
  2. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 2
    Investment Highlights 20,000 20 000 li liquids-rich id i h d drilling illi locations l ti iin low-risk l i k resource plays l 2011 drilling program focused in the Spraberry and Eagle Ford Shale Funded from cash flow and…
  3. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 3
    Targeting 18+% Compound Annual Production Growth For 2011 2014 FForecasting ti annuall production d ti growth th off 15 15+% % ffrom 2010 tto 2011 and d 20+% from 2011 to 2012 Targeting compound annual production growth of 18+%…
  4. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 4
    2011 Capital Budget by Asset1,2 2011 Capital Budget 2.1 B Alaska Barnett 100 MM Other 210 MM 100 MM Eagle Ford Shale 120 MM Vertical Integration & Facilities 0.3 B Spraberry 1 3 B 1.3 1) Capital spending excludes…
  5. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 5
    2011 Operating Cash Flow Sensitivity to Commodity Prices ( MM) 9.00 8 00 8.00 NYMEX Gas Prrice (/MCF) 7.00 6.00 5.00 4.00 3.00 60 00 60.00 70 00 70.00 80 00 80.00 90 00 90.00 100 00 100.00 110 00 110.00 120…
  6. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 6
    Substantial Operating Cash Flow Growth1 ll Billions 3.1 2.6 2 0 2.0 1.4 - 1.5 0.92 2010 2011E 2012E 2013E 2014E 1) Based on early October strip pricing for remainder of 2011 and 100/bbl and 5/mcf thereafter; includes…
  7. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 7
    Liquidity Position (06/30/11)1 Net debt (net of cash balance of 352 MM): 2.2 B Unsecured Senior Credit Facility availability: 1.2 B Net Debt-to-Book Capitalization: 31% Maturities and Balances2 2011 2012 2013 2016 2017 2018 2020…
  8. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 8
    PXD Largest Spraberry Acreage Holder, Driller and Producer 20,000+ Future Drilling Locations PERMIAN BASIN 24 MM acres PXD Acreage (900,000 Acres; 75% HBP) Spraberry Field Spraberry Field Gross Production by Operator 47…
  9. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 9
    Deeper Drilling in Spraberry Increasing EURs 6,0000 ft Clearr praberry forkk Current Spraberry 40-acre type curve EUR including Lower Wolfcamp: 140 MBOE Upper Zones Below Lower Wolfcamp U Sp Wells Single-Zone…
  10. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 10
    20-Acre And Waterflood Update 20-Acre Drilling (13,000 (13 000 locations) Drilled 24 wells since 2010; all on production Capturing pay from Lower Wolfcamp, Strawn and shale/silt intervals Early results indicate production…
  11. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 11
    Spraberry Horizontal R&D Program Planning Pl i tot continue ti 1-rig 1 i h horizontal i t l R&D program to t ttestt multiple formations in the Spraberry field Expect to drill additional 4-5 wells in Wolfcamp Shale Jo Mill zones…
  12. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 12
    Vertical Integration and Attractive Service Contracts Contribute To Strong Spraberry Returns Vertical Integration (Company-owned services) Rigs, frac fleets, pulling units and other well services Sand supply in place through…
  13. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 13
    Spraberry Bringing Wells On Production As Expected 2011 Spraberry S b Wells W ll Put P t On O Production P d ti P Per Q Quarter t 300 Adding 7th frac fleet in Q43 Increased frac fleets from 4 to 6 in May2 146 wells put on…
  14. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 14
    Continuing to Accelerate Spraberry Development Spraberry Net Production1 (MBOEPD) 77 84 Adding incremental oil transportation capacity in Q3 68 74 Oil transport truck shortfall reduced production by 2 MBOEPD 54 59 45 47 40…
  15. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 15
    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 180 rigs currently running in the play Oil Window PXD Acreage…
  16. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 16
    Eagle Ford Shale Operational Update Running 12 rigs Current gross well cost: 7 MM - 8 MM Before tax IRRs1: 100+% for rich condensate and 75% for lean condensate (excludes carry benefit) Average lateral length 5,500 feet New and…
  17. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 17
    Eagle Ford Shale Bringing Wells On Production As Expected 2011 Eagle Ford Shale Wells Put On Production Per Quarter Adding 3rd frac fleet2 40 6th and 7th CGPs online 8th CGP online Initiated 2 frac fleets in April1 18 wells put…
  18. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 18
    Ramping Up Eagle Ford Shale Development Eagle Ford Net Production (MBOEPD) 54 60 40 45 26 30 14 17 8 5 2 2010 Q1 Q2 Q3E Q4E 2012E 2013E 2014E 2011E (12 - 15 MBOEPD Avg.) Avg ) Rigs 7 YE 12 currently 14 16 19 19
  19. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 19
    Barnett Shale Combo C t acreage: 72 Current 72 M nett acres 600 drilling locations 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…
  20. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 20
    Ramping Up Barnett Shale Combo Development Barnett Shale Net Production1 (MBOEPD) 26 31 18 22 Initiated first Company-owned frac fleet 9 12 46 3 2 3 2010 Q1 Q2 Q3E Q4E 2012E 2013E 2014E 2011E (4 - 5 MBOEPD Avg.) Rigs…
  21. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 21
    Pioneers Vertical Integration Improves Returns and Enhances Execution Spraberry Eagle Ford Shale Barnett Shale Combo 4 frac fleets 1 frac fleet 1 frac fleet (adding 5th fleet Q4) (adding 2nd fleet Q4) 1 coiled tubing unit 14…
  22. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 22
    Vertical Integration Significantly Reduces Well Costs Spraberry Eagle Ford Shale Barnett Shale Combo Frac Fleets Current 4 1 1 Byy Year-End 2011 5 2 1 Fracs/Fleet/Year 115 55 60 Savings Per Frac1 0.35 MM 1.70 MM 0.75 MM Annual…
  23. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 23
    Why Invest In PXD Significant Upside Potential From: Oil exposure with large drilling inventory Aggressive A i SSpraberry b &E Eagle l FFordd Shale Sh l drilling d illi program 18+% compound annual production growth for 2011…
  24. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 24
    Appendix 25
  25. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 25
    Pioneer Operations North Slope Total Enterprise Value (B) 12 2011 Capital Budget (B) 2.1 YE 2010 Proved Reserves (BBOE) 1 YE 2010 Proved + Resource (BBOE) 3 1H 2011 Production 48% Liquids/52% Gas (MBOEPD) 115 Raton Hugoton…
  26. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 26
    Production (MBOEPD)1 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Spraberry 32 35 38 40 41 Raton 28 28 28 27 27 Eagle Ford Shale 2 1 2 5 8 South Texas 8 9 9 8 8 2 2 Mid-Continent 21 21 20 18 21 Barnett 3 2 2 2 3 Alaska 7 7 6 5 5 Other U.S. 1 1…
  27. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 27
    Production (MBOEPD)1 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Spraberry Oil (BOPD) 15,917 17,257 20,589 23,512 22,950 NGL (BOEPD) 10,133 10,857 10,341 9,735 10,714 Gas (MCFD) 38,421 39,127 40,162 39,981 43,085 Total (BOEPD) 32,454 34,635…
  28. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 28
    Production Costs (per BOE)1 13.27 13.31 12.82 12.17 0.78 1.08 10.94 0.99 0 99 Q2 11 vs Q1 11 11 vs. 11 Comparison Workovers 0.67 0.73 3.32 Q2 natural gas processing benefited Production & 3.27 3.32 Ad Valorem Taxes 2.59 from…
  29. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 29
    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…
  30. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 30
    PXD Cash Costs Competitive vs. Peers For 2010 2010 Cash Costs ( / BOE)1 22.77 3 21 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 8.39 2 3 4 PXD VPP-Adjusted CS Gas-Focused CS…
  31. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 31
    2010 Reserves1 and F&D Year-end d 2010 proved d 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…
  32. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 32
    PXD Open Commodity Derivative Positions as of 8/2/2011 (includes PSE) Oil Q3 2011 Q4 2011 2012 2013 2014 2015 Swaps WTI (BPD) 750 750 3,000 3,000 - - NYMEX WTI Price (/BBL) 77.25 77.25 79.32 81.02 - - Collars - ((BPD)) 2,000 ,…
  33. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 33
    PXD Open Commodity Derivative Positions as of 8/2/2011 (includes PSE) Gas Q3 2011 Q4 2011 2012 2013 2014 2015 Swaps - (MMBTUPD) 117,500 117,500 105,000 67,500 50,000 - NYMEX Price (/MMBTU)1 6.13 6.13 5.82 6.11 6.05 - Collars -…
  34. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 34
    PSE Derivative Position as of 8/2/2011 Oil Q3 2011 Q4 2011 2012 2013 2014 Swaps (BPD) 750 750 3,000 3,000 - NYMEX Price (/BBL) 77.25 77.25 79.32 81.02 - Collars ((BPD)) 2,000 , 2,000 , - - - NYMEX Call Price (/BBL) 170.00 170.00 -…
  35. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 35
    Three-Way Collars (75 by 90 by 135 example) Unhedged realization Hedged realization 160.00 NYMEX Price 150.00 Potential 140 00 140.00 Opportunity Loss Realized Price 130.00 Reaalized Price (/BBL) Short put at 75/BBL Long…
  36. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 36
    Future Amortization of Deferred Gains - Discontinued Commodity Hedges1 ( Millions) Oil Gas NGL Total (Cash / Noncash) Total (Cash / Noncash) Total (Cash / Noncash) 3rd Qtr 2011 9 [9 / -] - - 4th Qtr 2011 9 [9 / -] - - 1)…
  37. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 37
    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…
  38. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 38
    140 MBOE Spraberry 40-Acre Type Curve 90 Deeper drilling in Spraberry increasing EURs 80 OEPD) 70 uction Perr Well (BO 60 50 140 MBOE Spraberry/Dean/Full Wolfcamp 40 (70% oil, 20% NGLs, 10% gas) oss Produ 30…
  39. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 39
    Eagle Ford Shale Resource Breakdown Lean Condensate Rich Condensate Dry Gas 45% of Acreage 35% of Acreage 20% of Acreage 20% of Acreage (60 BBL/MMSCF) (200 BBL/MMSCF) 20% 20% 30% Condensate NGL* NGL* 50% 100% Condensate Gas…
  40. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 40
    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…
  41. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 41
    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 42
  42. INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 42
    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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