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HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Mar 19, 2013 · 39 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. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 1
    Howard Weil Energy Conference March 19, 2013
  2. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 2
    Investment Highlights U.S. asset base High oil exposure from proved reserves + estimated net resource potential of 9 BBOE Drilling program focused in three liquids and resource rich core assets in Texas Spraberry Vertical…
  3. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 3
    Targeting 13% - 18% Compound Annual Production Growth for 2013 - 2015 High end of 2013-2015 growth range assumes 100 oil / 3.75 gas; low end assumes 85 oil / 3.25 gas MBOEPD Excludes annualized 4+ MBOEPD conveyed to Sinochem post…
  4. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 4
    2013E Capital Spending and Cash Flow1 Capital program of 3.0 B includes: Drilling Capital: 2.75 B 1,225 MM northern Wolfcamp/Spraberry area 400 MM for horizontal program 625 MM for vertical program 200 MM for infrastructure &…
  5. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 5
    Significant Proved Reserves and Resource Potential1 Proved Reserves + Estimated Net Resource Potential of 9 BBOE and 40,000 Drilling Locations 12/31/12 Proved Reserves: 1.1 BBOE2 Additional Net Resource Potential: 8 BBOE Vertical…
  6. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 6
    Horizontal Wolfcamp Shale Well Results Continue to Improve Giddings horizontal Wolfcamp Shale B interval wells drilled late 2011/early 2012 tracking 650 MBOE type curve First northern acreage well in Midland County and first 10,000…
  7. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 7
    Horizontal Jo Mill Wells Outperforming 650 MBOE Type Curve 2,000 Initial 2 horizontal Jo Mill wells drilled in Q4 2012 (average production normalized to 5,000 lateral) 1,000 BOEPD 650 MBOE Type Curve 100 Days 8
  8. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 8
    Wolfcamp B Interval Prospectivity Map Tier 1 Tier 2 Pioneer Land Pioneer Wolfcamp B wells Tier 1 is highest prospectivity Wolfcamp B depth contour acreage, as determined by several geologic properties, including: First Martin County…
  9. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 9
    Southern Wolfcamp Joint Interest Area Drilling Program Currently running 7 rigs; expect to increase to 10 rigs in 2014 and 13 rigs in 2015 Equates to 86 wells in 2013, 120 wells in 2014 and 165 wells in 2015 2013 drilling program…
  10. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 10
    Pioneers Highly Prospective Northern Wolfcamp/Spraberry Acreage 1 rig currently focused on delineating northern acreage (600,000 gross acres) Drilled first two horizontal Wolfcamp Shale wells in Midland County Currently drilling…
  11. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 11
    Northern Wolfcamp/Spraberry Acreage 2013 Drilling Plan M. Spraberry L. Spraberry Wolfcamp Wolfcamp Wolfcamp Shale Jo Mill Shale D B A U. Spraberry 15 to 20 wells M. Spraberry Shale L. Spraberry Jo Mill L. Spraberry Shale…
  12. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 12
    Northern Wolfcamp/Spraberry Acreage Initiating 1 B Appraisal Program 2013 Appraisal Areas 2013 drilling program expected to cost 400 MM Program expected to: Appraise prospective acreage and confirm additional resource potential…
  13. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 13
    Spraberry Vertical Drilling Program 6,000 ft Deeper drilling accounted for 65% of 2012 vertical drilling program; expected to Upper Clear- Spraberry fork increase to 90% in 2013 Vertical rig count reduced during 2012 from 40…
  14. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 14
    Continuing to Successfully Grow Wolfcamp/Spraberry Production Wolfcamp/Spraberry Net Production1 (MBOEPD) Top end of original FY guidance range (63 MBOEPD 67 MBOEPD) Q4 production flat compared to Q3 due to: 1,700 BOEPD negative…
  15. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 15
    Eagle Ford Shale Operational Update Drilled 30 wells in Q4 2012; 37 wells placed on production 2013 drilling program Expect to drill 130 wells Drilling essentially all liquids-rich wells 80% pad drilling, up from 45% in 2012; saves…
  16. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 16
    Eagle Ford Shale Continues to Set New Production Records Eagle Ford Shale Net Production1 (MBOEPD) Top end of original FY guidance range (25 MBOEPD 29 MBOEPD) 38 - 42 28 MBOEPD 35 29 23 24 12 2 2011 Q1 Q2 Q3 Q4…
  17. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 17
    Continuing to Grow Barnett Shale Combo Production Barnett Shale Net Production (MBOEPD) Drilled 8 wells in Q4; 8 wells placed on production 9 - 12 Expect to increase rig count from 1 rig to 2 7 MBOEPD rigs in Q2 2013 to hold…
  18. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 18
    Alaska Q4 net production: 4 MBOPD Nuiqsut Area 1-rig development program continues 3 wells to be fracd Island from the Oooguruk island drill site from island drill site Development Area targeting Nuiqsut and Torok intervals…
  19. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 19
    Why Invest In PXD Significant Upside Potential From: High oil exposure from proved reserves + estimated resource potential of 9 BBOE and 40,000 drilling locations Aggressive Spraberry & Eagle Ford Shale drilling program Extensive…
  20. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 20
    Appendix 21
  21. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 21
    Pioneer Large Independent U.S. E&P Company Total Enterprise Value (B) 19 North Slope 2012 Operating Cash Flow (B) 1.8 2012 Drilling Expenditures (B) 2.8 2012 Drillbit F&D (/BOE) 17.72 2012 Production 60% Liquids (MBOEPD) 156 2012…
  22. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 22
    Strong 2012 Reserve Additions1 Added 161 MMBOE from the drillbit, or 264% of full-year production, at a drillbit F&D cost of 17.72 per BOE Reflects significant drilling campaigns in horizontal Wolfcamp Shale, Spraberry vertical, Eagle…
  23. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 23
    Liquidity Position (12/31/12)1 Net debt (net of cash balance of 229 MM): 3.4 B Unsecured credit facility availability: 1.0 B Net debt-to-book capitalization: 37% Maturities and Balances2 2012 2013 2016 2017 2018 2020 2022 2028…
  24. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 24
    Derivative Philosophy Continue to use derivatives to mitigate commodity price exposure in order to insure funding for development programs and to maintain strong financial position Target 50% on rolling 3 year basis Continue to use a…
  25. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 25
    PXD Open Commodity Derivative Positions as of 2/8/2013 (includes PSE) Oil Q1 2013 Q2 2013 Q3 2013 Q4 2013 2014 2015 Swaps WTI (BPD) 3,000 3,000 3,000 3,000 - - NYMEX WTI Price (/BBL) 81.02 81.02 81.02 81.02 - - Three Way Collars…
  26. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 26
    PXD Open Commodity Derivative Positions as of 2/8/2013 (includes PSE) Gas Q1 2013 Q2 2013 Q3 2013 Q4 2013 2014 2015 Swaps - (MMBTUPD) 162,500 162,500 162,500 162,500 105,000 - NYMEX Price (/MMBTU)1 5.13 5.13 5.13 5.13 4.03 - Collars…
  27. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 27
    PSE Derivative Position as of 2/8/2013 Oil Q1 2013 Q2 2013 Q3 2013 Q4 2013 2014 2015 Swaps (BPD) 3,000 3,000 3,000 3,000 - - NYMEX Price (/BBL) 81.02 81.02 81.02 81.02 - - Three-Way Collars (BPD)1 1,750 1,750 1,750 1,750 5,000 -…
  28. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 28
    Three-Way Collars (75 by 90 by 135 example) Unhedged realization Hedged realization 160.00 NYMEX Price 150.00 Potential 140.00 Opportunity Loss Realized Price 130.00 Realized Price (/BBL) Short put at 75/BBL Long put at…
  29. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 29
    140 MBOE Spraberry 40-Acre Vertical Well Type Curve 90 Deeper drilling in Spraberry increasing EURs 80 Gross Production Per Well (BOEPD) 70 60 50 140 MBOE Spraberry/Dean/Full Wolfcamp 40 (70% oil, 20% NGLs, 10% gas)…
  30. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 30
    Permian Oil Production Transport Options Permian Basin Crude Takeaway Current Operator Destination Name Capacity Time Frame Plains Cushing Basin 450,000 Sunoco Nederland West Texas Gulf 400,000 Kinder Morgan El Paso Wink 100,000…
  31. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 31
    Growing Midstream Infrastructure to Support Production Growth Gas Processing Pipeline NGL Takeaway Midkiff / Benedum to Mont Belvieu Current capacity: 260 MMCFD1 Chaparral & West Texas PXD production makes up 40% Pipelines of…
  32. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 32
    Eagle Ford Shale Resource Breakdown Lean Condensate Rich Condensate Dry Gas 45% of Acreage 35% of Acreage 20% of Acreage (60 BBL/MMSCF) (200 BBL/MMSCF) 20% 20% 30% Condensate NGL* NGL* 50% 100% Condensate Gas 50% 30% Gas…
  33. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 33
    PXDs Vertical Integration Reduces Costs and Enhances Execution Spraberry Barnett Shale Combo Eagle Ford Shale 5 vertical frac fleets (20,000 HP each) 1 frac fleet 2 frac fleets 2 horizontal frac fleets (35,000 HP each) (30,000 HP)…
  34. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 34
    Production (MBOEPD)1 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 2 3 4 Spraberry 53 62 64 69 69 Eagle Ford Shale 20 23 24 29 35 Raton 26 26 25 25 24 South Texas 7 7 6 6 6 Mid-Continent 19 18 18 18 17 Barnett 6 6 7 7 9 Alaska 4 4 5 5 4…
  35. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 35
    PXD Production By Commodity By Area1 1) All periods presented have been restated to exclude discontinued operations 36
  36. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 36
    Production Costs (per BOE)1 15.61 14.21 0.75 14.62 Q4 production cost decrease vs. 13.52 13.30 0.96 0.98 Q3 primarily due to the following 0.68 3.38 Workovers 0.69 LOE items: Production & 3.14 3.25 Ad Valorem Taxes 3.18 3.43…
  37. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 37
    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…
  38. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 38
    Oil/Gas Price Ratio Trending Up Since 2006 Oil/Gas price ratio has increased from 5:1 in 2006 to 30:1 recently Oil Price Oil/Gas Ratio Gas Price 39
  39. HOWARD WEIL ENERGY CONFERENCE – Pioneer Natural Resources Co. – slide 39
    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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