(NYSE AMEX: PDC) www.pioneerdrlg.com UBS Global Oil & Gas Conference May 2009
Pioneer Overview Businesses Land driller and production services company Drilling Services - 71 high-quality high quality drilling rigs capable of drilling 6,000-18,000 feet / operations in Lower 48 & Colombia Production Services -…
Balanced Business Mix, Focus on Returns Modern, high-quality drilling and well services fleet provides a competitive advantage in up and down markets Over 80% of drilling rig fleet is new or upgraded since 2001 Newest, most premium…
Strategic Growth Initiatives Disciplined program of acquisitions and new-builds Acquired 39 rigs through 9 strategic acquisitions Built 31 rigs, with the newest 2000-horsepower rig to be delivered later in May 2009. International…
Contribution by Division Revenue (1) EBITDA (2) Production Production Services Services 28% 29% Drilling Drilling Services Services 72% 71% (1) Revenue percentages are based on revenues of 428.2 million and 170.1…
Drilling Services Division 7
Drilling Services Operating Locations MT ND Colombia UT CO KS OK Division Rig Counts East Texas Division 22 Rigs TX LA South Texas Division 17 Rigs North Texas Division 8 Rigs Utah Division 6 Rigs North Dakota Division 7…
Efficient, High-Quality Assets One of the youngest fleets in the industry Over 80% of fleet was either built new or has been upgraded and refurbished within ithi th the llastt six i years 44% of fleet comprised of new-build rigs…
Focused on Growth and Return on Investment Maintained high utilization rate while growing fleet Emphasis on growth at the right price Disciplined program of acquisitions and new-builds Acquired 39 rigs at average of 2.4 million per…
Strong Utilization Through the Cycles One of strongest drilling rig utilization rates in the industry in top 2 over last 8 years Averaged A d 88% utilization tili ti th through h cycles l since i 1Q 2001 Drillers with the…
International Expansion Why Colombia Provides geographic diversification Strong E&P spending expected to continue Stable government encourages foreign investment In 2008, 2008 drilling margins were 20% to 25% above US average…
Challenging Year Ahead Oversupply of natural gas in U.S. putting downward pressure on price expectations for 2009. Lower natural gas price expectations, plus depressed stock prices, tight credit markets and global recession, have…
Production Services Division 14
Advantages of Production Services Transformation of Pioneer from a pure-play U.S. land driller into a multi-national, energy services provider Complementary services -- well services, wireline, fishing and rental tools Less…
Production Services New-build Program New-build orientation 99% off wellll service i equipment i t iis 550 550-600 600 horsepower rigs capable of working at depths of 20,000 feet Custom-designed wireline units and proprietary…
Production Services New-build Program (Cont.) Wireline Units And Fishing & Rental Services Gross Workover Rigsg Equipment and Tools Value Wireline Units Workover Rigs Dollar amounts in millions 80 16 74 74 14 8 14.8 14 8 14.8…
Production Services Locations Geographic footprint that compliments Drilling Services Division Well Services MT ND (74 workover rigs) Wireline Services (61 wireline units) Fishing and Rental UT CO Tools Services KS (15…
Management 19
Experienced Management Team Wm. Stacy Locke - President and Chief Executive Officer Joined Pioneer as President in 1995 Seven years experience in investment banking, six years experience as exploration geologist B A in Geology from…
Experienced Management Team (Cont.) Drilling Services Division Production Services Division Left to Right: Donald Lacombe, Senior Vice Left to Right: Joe Freeman, Vice President of Well President of Drilling Services Division…
Financial Overview 22
Historical Financial Performance Revenue 2004 - 2009 EBITDA(2) 2004 - 2009 12 Mo 12 Mo 600 200 ----------------12 Months ---------------- 500 ----------------12 12 Months ---------------- - 150 400 9 Mo 9 Mo 300 100…
Capitalization Capitalization At Mar 31, 2009 (In Millions) Cash 30.0 Debt: Senior secured credit facility 400 million 257.5 Subordinated notes payable and other 5.8 Total debt 263.3 Total shareholders' equity 414.6 Total…
Reconciliation of EBITDA to Net Income Nine Months Fiscal Yr Qtr Fiscal Year Ended and FY Ended Ended Ended 3/31/04 3/31/05 3/31/06 3/31/07 12/31/07 (1) 12/31/08 03/31/09 ( in Millions) EBITDA 16.6 16 6 41.8 41 8 111.4 111 4…
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