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HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Oct 11, 2011 · 21 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. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 1
    Hart Energys DUG Conference First Two Years in the Eagle Ford Shale: Challenges and Accomplishments October 11, 2011
  2. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 2
    Who is Pioneer Enterprise Value: 12 B 2011 Capital Budget: 2.1 B 2010 Proved Reserves: 1 BBOE Proved Reserves + Resource: 3 BBOE Operations primarily onshore U.S. Drilling focused in 3 low-risk resource plays with 20,000 liquids-…
  3. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 3
    Pioneers Liquids-Rich Growth Areas Barnett Shale Combo Spraberry Liquids & Gas Oil & Gas 80,000 Gross Acres 900,000 Gross Acres 200+ MMBOE Resource 549 MMBOE Proved 600+ Drilling Locations 1,150+ MMBOE Resource 2 Rigs at Mid-Year;…
  4. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 4
    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…
  5. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 5
    How Did Pioneer Enter the Eagle Ford Shale Band of dry gas below the Eagle Ford Shale extending 250 miles across SE Texas Infill drilling started in 1991; horizontal drilling Edwards started in 1999 Limestone Expanded acreage through…
  6. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 6
    Challenges (Late 2009 Present) Challenges Financing large capital commitment Securing liquids and gas gathering, takeaway and processing capacity Enhancing technological expertise Ramping drilling rigs & production Optimizing…
  7. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 7
    Reliance Joint Venture Supported Funding Requirements Sold 45% of PXDs interest in 212 M net acres in the Eagle Ford Shale to Reliance Industries Ltd. (RIL) for 1.15 B Effective June 1, 2010 266 MM in cash received upfront 879 MM…
  8. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 8
    Eagle Ford Shale Joint Venture Midstream Requirements PXD/RIL Joint Venture 3rd Party Eagle Ford Midstream Shale Central Gas Upstream Gathering Processing NGL Plants Fractionation Gather gas and condensate NGLs separated…
  9. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 9
    Midstream Development Plan 2010 2011 2012 2013+ Total CGPs 3 5 3 2 13 Pipelines (Miles) 70 221 267 176 734 13 Central Gathering Plants (CGPs) 7 completed; 1 additional in Q4 2011 Expansions and upgrades continue after 2011 Gathering…
  10. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 10
    Drill Site, POD and CGP (Area 71) Drill Site POD CGP 11
  11. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 11
    Securing Third-Party Takeaway and Processing Capacity Contracted gas and NGL transportation, processing and fractionation for the joint ventures forecasted production volumes Utilizing multiple parties over 5-year to 10-year…
  12. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 12
    Enhancing Technological Expertise Microseismic Surface Core Analysis A Downhole A Logging 3-D Seismic Geologic & Pilot hole logs Open hole horizontal logs Coherency Curvature Reservoir Production logging Model Radio…
  13. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 13
    Eagle Ford Shale Bringing Wells On Production As Expected 2011 Eagle Ford Shale Wells Put On Production Per Quarter 70 wells drilled and 42 wells on production end-Q2 2011 Before tax IRRs1: 100+% for rich condensate 75% for lean…
  14. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 14
    Ramping Up Eagle Ford Shale Development Eagle Ford Net Production (MBOEPD) 54 60 40 45 Gross production 26 30 of 23 MBOEPD 14 17 8 5 2 2010 Q1 Q2 Q3E Q4E 2012E 2013E 2014E 2011E (12 - 15 MBOEPD Avg.) 2 in Early Rigs…
  15. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 15
    Optimizing Drilling and Frac Design Drilling 450 Increased average lateral length to 400 404 5,500 feet 350 363 362 355 340 334 324 300 317 316 313 298 298 Reducing drilling costs per foot…
  16. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 16
    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…
  17. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 17
    Vertical Integration Significantly Reduces Well Costs Spraberry Eagle Ford Shale Barnett Shale Combo Frac Fleets Current 4 1 1 By 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…
  18. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 18
    PXDs Major Impact on South Texas Employment 285 field employees 46 operations 55 mid-stream 184 pumping services (+40 new hires by year end) 400+ contractors Also, 94 technical employees in Dallas headquarters Engineering,…
  19. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 19
    Challenges & Accomplishments (Late 2009 Present) Challenges Accomplishments Financing large capital commitment Reliance joint venture First mover mid-stream build out Securing liquids and gas gathering, Long-term third-party…
  20. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 20
    PXD Eagle Ford Shale Highlights Large acreage position, vast majority in the condensate window Strong well economics Technology leader with full 3-D seismic coverage and interpretation Successful joint venture reflects the value…
  21. HART ENERGYS DUG CONFERENCE – Pioneer Natural Resources Co. – slide 21
    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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