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Q1 2010 Earnings Call – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · May 5, 2010 · 43 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. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 1
    First Q Quarter 2010 Earnings g May 5, 2010
  2. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 2
    Highlights Q1 2010 adjusted income1 of 58 MM, MM or 0.48 0 48 per share Excludes income from unusual items totaling 23 MM after tax, or 0.20 per share Excludes noncash mark-to-market gain of 164 MM after tax, or 1.40 per share Q1…
  3. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 3
    Returned to Quarterly Production Growth in Q1 2010 Q4 2010 vs. Q4 2009 expected t d to t grow 10+% 10 % Q1 2010 benefited from 5 MBOEPD VPP that expired at the end of 2009 Excludes production from Eagle Ford Shale ramp up Assumes…
  4. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 4
    2010E Cash Flow and Capital Expenditures1 Currently expect 1.0 B of operating cash flow for 2010 Sensitivity to Commodity Prices ( MM) Capital spending currently 900 900 MM 9 00 9.00 Includes 440 Spraberry wells, 2-rig 8.00…
  5. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 5
    2011E Cash Flow from Operations Sensitivity to Commodity Prices ( MM) 9.00 Three-way ceilings at 99/BBL and 8.55/MCF result in upside to 1.8 B 8.00 e (/MCF) 7.00 NYMEX Gas Price 6.00 5.00 N 4.00 3.00 55.00…
  6. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 6
    Significant Spraberry and Eagle Ford Shale Upside Potential1 12/31/09 P Proved dRReserves: 998 MMBOE2 Additi Additional l Net N t Resource R P Potential: t ti l 2 2.9 9 BBOE (80/6 Sensitivity Case) (80/6) Eagle Ford Shale…
  7. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 7
    Why Invest in PXD Large drilling inventory and resource potential with 75% liquids Accelerating oil-focused drilling activity in the Spraberry field Substantial Eagle Ford Shale resource potential; expect to ramp-up rig count later in…
  8. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 8
    Spraberry Oil Drilling Ahead of Schedule Q1 2010 net production: 31 MBOEPD +2% vs. Q4 2009 81 wells drilled during Q1 2010 2010 drilling program (ahead of schedule) Expect to drill 440 wells during 2010 Currently running 19 rigs and…
  9. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 9
    Increasing to 40 Rigs by 2012 Accelerating Spraberry Development Spraberry Net Production1 (MBOED) 60 - 66 48 - 54 38 - 44 31 32 33 34 +2% vs. Q4 2009 Q Q1 Q2E Q3E Q4E 2011E 2012E 2013E 2010 Wells 440 700 1,000…
  10. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 10
    Drilling Results Leader in Eagle Ford Shale Pl Leading Play di IPs: P Handy 1 19.9 MMCFEPD (75% Liquids) Crawley 1 17.0 MMCFPD (Dry Gas) Riedesel 1 15.7 MMCFEPD ((55% Liquids)) Drilling Chesnutt 1 15.6 MMCFEPD (45% Liquids)…
  11. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 11
    Aggressive Plan to Capture Significant Eagle Ford Shale Upside PXDs Eagle Ford Shale: 11+ TCFE gross resource potential Horizontal drilling program underway Currently drilling wells in Karnes and Dewitt Counties and one well…
  12. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 12
    Alaska - Oooguruk Q1 2010 drilling results Oooguruk 70% WI (Operator) Drilled 2 highly productive Kuparuk wells with combined IPs of 7,500 BOPD gross; will convert one to an injector within the next few Alpine months to maintain…
  13. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 13
    Moraine Enhances Oooguruk Value Initial Development Island Drill Site Area Moraine R Recent t Moraine M i W Well ll PXD Acreage Moraine Area K Kuparuk k Potential Moraine Onshore Drill Site Nuiqsut q 14
  14. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 14
    Q1 2010 Earnings Summary Millions Per Diluted (After Tax) Share Net income attributable to common stockholders 245 2.08 Unrealized mark-to-market (MTM) derivative gains (267 MM before tax) (164) (1.40) Adjusted income1 excluding MTM…
  15. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 15
    Prices Including Derivatives & VPP Deferred Revenue1 88.16 88.74 VPP Deferred 78.20 8.47 7.84 Revenue 70.89 8.24 8.62 53.10 8.28 41 82 41.82 37.54 33.13 5.30 26.78 4.35 4.56 VPP 22.93 .32 3.43 3.64 .40 Deferred 35…
  16. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 16
    Production Costs (per BOE)1 Q1 10 vs. Q1 09: Down 0.90/BOE (7%) 12.25 Workovers 0.61 11.43 11.60 11 60 11 35 11.35 Reduced LOE driven by cost control efforts Production & 10.33 0.63 0.87 0.98 Water hauling and disposal Ad Valorem…
  17. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 17
    Competitive Cash Costs vs. Peers For 2009 Source: Credit Suisse 2009 Cash Costs ( / BOE)1 20.29 2.68 Interest 17.10 17.22 3.74 3.89 G&A 4.36 .36 3.03 3.84 13.72 Prod Costs 10.33 0.33 9 02 9.02 2 3 PXD…
  18. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 18
    Q2 2010 Guidance1 Guidance Daily Production (MBOEPD) 113 - 118 Production Costs (/BOE) 11.50 13.50 Exploration & Abandonment ( MM) 25 35 Drilling and Acreage 20 Seismic Activity and Personnel 15 DD&A (/BOE) 14.25 15.50 G&A (…
  19. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 19
    Supplemental Information S Supplemental l t l IInformation f ti Slid Slides Slid Slide Liquidity Position 21 2010 Capital Spending 22 Oil and d Gas G R Revenue 23 Historic Production 24 Tunisia 25 S South h Af Africa i…
  20. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 20
    Liquidity Position (3/31/10)1 Net debt: 2.5 B Unsecured senior credit facility availability: 1.3 B Debt-to-Book Capitalization: 40% Maturities and Balances2 2010 2011 2012 2013 2016 2017 2018 2020 2028 480 MM4 455 MM 485 MM 450…
  21. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 21
    2010 Capital Spending ( Millions)1 157 Q1 2010 1) Excludes lease extensions, acquisitions, asset retirement obligations (ARO), capitalized interest and G&G G&A 22
  22. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 22
    Oil and Gas Revenue1 Millions 508 461 22 VPP Deferred Revenue 410 36 368 371 37 35 36 333 335 373 425 486 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2009 2010 1) Q1 09 restated for discontinued operations 23
  23. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 23
    Production (MBOEPD) Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 1 1 Spraberry 29 37 32 30 31 31 Raton 33 32 31 31 30 29 South Texas 14 15 12 11 10 10 Mid-Continent Mid Continent 19 19 18 18 17 22 Alaska 3 4 3 6 6 6 Other U.S. 6 6 6 5 4…
  24. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 24
    Returning to Tunisia Oil Drilling Resumed operated drilling in April Drilling 3 prospects identified from new seismic i i reprocessing i TUNISIA1 Plan to participate in 3 non-operated wells Tunisia Liftings1 El Hamra…
  25. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 25
    South Africa Operations Cape Town Mossel Bay Q1 2010 net production: 38 MMCFEPD 380km GTL Plant +308% 308% vs. Q4 2009 ATLANTIC OCEAN Major maintenance shutdown at Mossel Bay F-A Platform gas-to-liquids g q p plant…
  26. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 26
    PXD Open Commodity Derivative Positions as of 4/30/2010 (includes PSE) Oil Q2 2010 Q3 2010 Q4 2010 2011 2012 2013 Swaps WTI (BPD) 2,500 2,500 2,500 750 3,000 3,000 NYMEX WTI Price (/BBL) 93.34 93.34 93.34 77.25 79.32 81.02 Collars -…
  27. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 27
    PXD Open Commodity Derivative Positions as of 4/30/2010 (includes PSE) Gas Q2 2010 Q3 2010 Q4 2010 2011 2012 2013 Swaps - (MMBTUPD) 167,500 167,500 167,500 97,500 7,500 17,500 NYMEX Price (/MMBTU)1 6.26 6.26 6.26 6.32 6.12 6.43…
  28. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 28
    PSE Derivative Position as of 4/30/2010 Oil Q2 2010 Q2 2010 Q4 2010 2011 2012 2013 Swaps (BPD) 2,500 2,500 2,500 750 3,000 3,000 NYMEX Price (/BBL) 93.34 93.34 93.34 77.25 79.32 81.02 Collars (BPD) - - - 2,000 - - NYMEX Call Price…
  29. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 29
    Future Amortization of Deferred Gains - Discontinued and Terminated Commodity Hedges1 ( Millions) Oil Gas NGL Total (Cash / Noncash) Total (Cash / Noncash) Total (Cash / Noncash) 1st Qtr 2010 20 [3 / 17] 1 [1 / -] 2 [2 / -] 2nd…
  30. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 30
    Impact of Volumetric Production Payments (VPP) Schedule of Oil VPP Volumes (MMBBLS) Q1 Q2 Q3 Q4 Total 20 0 2010 06 0.6 06 0.6 06 0.6 0 0.7 2 2.5 2011 0.3 0.3 0.4 0.4 1.4 2012 0.3 0.3 0.3 0.3 1.2 31
  31. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 31
    VPP Expirations By the end of 2012, the entire VPP commitment will expire and provide a 7 MBOEPD increase in production with no capital requirement MBOEPD 10 5 7 4 4 VPP Oil Obligation 2010 2011 2012 2013 32
  32. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 32
    Impact of Volumetric Production Payments (VPP) Amortization of VPP Deferred Revenue & Other Comprehensive Income1 ( Million) Q1 Q2 Q3 Q4 Total Gas / Oil Gas / Oil Gas / Oil Gas / Oil Gas / Oil 2005 11 / - 19 / - 21 / - 20 / - 71 /…
  33. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 33
    Oil Differentials (per BBL)1 Q1 09 09 Q2 09 09 Q3 09 09 Q4 09 09 Q1 10 10 NYMEX calendar month average 43.08 59.62 68.30 76.19 78.71 NYMEX differential excluding VPPs and derivatives U.S. ((8.29)) ((6.84)) ((7.11)) ((4.16))…
  34. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 34
    NGL Differentials (per BBL)1 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 NYMEX calendar month average 43.08 59.62 68.30 76.19 78.71 NYMEX differential excluding derivatives (21.30) (34.20) (36.55) (40.03) (37.94) Realized prices excluding…
  35. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 35
    Gas Differentials (per MCF)1 Q1 09 09 Q2 09 09 Q3 09 09 Q4 09 09 Q1 10 10 NYMEX bid week average 4.89 3.50 3.39 4.17 5.30 NYMEX differential excluding VPPs and derivatives U.S. ((1.35)) ((0.71)) ((0.44)) ((0.14)) ((0.17))…
  36. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 36
    Other Costs General & Administrative Costs Interest Costs Millions Millions 48 44 45 43 41 41 38 35 35 7 Noncash 33 6 6 7 6 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2009 2009 2009 2010 2009 2009 2009 2009 2010 37
  37. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 37
    Exploration & Abandonments Millions Drilling & Acreage Acreage and Other (primarily Texas) 4 4 Geological & Geophysical Resource Plays 6 Personnel & Other 11 17 1st Quarter 2010 Total 21 38
  38. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 38
    Income Taxes Quarter Ended March 31, 2010 ( Millions) U. S. S. Africa Tunisia Total Current taxes 2 - - 2 Deferred taxes 141 1 16 158 Tax provision 143 1 16 160 39
  39. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 39
    Supplemental Non-GAAP Financial Measures EBITDAX and discretionary cash flow ((DCF) DCF ) are disclosed by Pioneer, and reconciled to the generally accepted accounting principle (GAAP) measures of net income (loss) and net cash…
  40. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 40
    Supplemental Non-GAAP Financial Measures Adjusted income excluding MTM gains and unusual items, as presented in the Highlights slide and as presented in the Q1 Financial Summary slide, are presented and reconciled to Pioneers net income…
  41. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 41
    Supplemental Earnings Per Share Information The e Company Co pa y uses tthe e 2-class class method et od oof calculating calculat g basic bas c and a d diluted d luted earnings ea gs per pe share. s a e. Under U de the t e…
  42. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 42
    VPP Adjusted Production Costs 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…
  43. Q1 2010 Earnings Call – Pioneer Natural Resources Co. – slide 43
    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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