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MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · May 7, 2015 · 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. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 1
    Pioneer Proprietary Investor Presentation May 2015
  2. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance 25 B 1.85 B 11 BBOE Top U.S. Fields By Rig Count2 Current 2015 Planned Proved (Pioneer Operated Count in Green 16 rigs) Enterprise CapEx Reserves + Value Net Resource *max rig count in 2014 Potential Gas…
  3. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 3
    Updated 2015 Outlook Strong commodity derivatives positions protect cash flow Derivative coverage for forecasted oil production of 90% for 2015 o Most volumes protected by swaps at 71 per barrel; resulted in 20 per barrel uplift in Q1…
  4. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 4
    2015E Capital Spending and Cash Flow1 Capital program of 1.85 B (excludes potential rig adds in 2H) Drilling Capital: 1.6 B 1,050 MM northern Spraberry/Wolfcamp (65% of total) o 735 MM for horizontal drilling program Sensitivity to…
  5. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 5
    Forecasting 2015 Production Growth Range of 10%+1 200+ MBOEPD2 198-203 194 182 155 137 Prepared to add 2 rigs per month if oil price outlook remains positive and EFS Midstream is sold Impacted by severe weather in Q1…
  6. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 6
    Liquidity Position (03/31/15) Net debt (net of cash balance of 383 MM): 2.3 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 21% Maturities and Balances1 2016 2017 2018 2020 2022 2028 455 MM…
  7. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 7
    Optimizing Returns in a Lower Oil Price Environment Drilling and Completion Cost Reductions 2014 Currently realizing 15% reduction compared to 2014 in Well Cost Composition response to cost reduction initiatives; most significant…
  8. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 8
    Optimizing Returns in a Lower Oil Price Environment (Cont.) Drilling and Completion Efficiencies Continuing completion optimization testing in the Spraberry/Wolfcamp: Stage length and clusters per stage Fluid volumes and chemistry…
  9. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 9
    Northern Wolfcamp Horizontal Production Data1 Wolfcamp A Average production from all Wolfcamp A and B Wolfcamp A wells (25) avg. lateral: 8,600 feet interval wells drilled since early 2013 in northern 280 Spraberry/Wolfcamp tracking…
  10. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 10
    Northern Spraberry/Wolfcamp: High-Grading Drilling Activity in 2015 Reduced horizontal rig count to 6 rigs by the end Pioneers Northern Spraberry/Wolfcamp of February 2015 Drilling Areas High-grading drilling activity to areas and…
  11. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 11
    Southern Wolfcamp JV: High-Grading Drilling Activity in 2015 Reduced horizontal rig count to 4 rigs by the end of February Pioneers Southern Wolfcamp JV Area 2015 Drilling Areas High-grading drilling activity to areas and intervals…
  12. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 12
    Forecasting 2015 Production Growth of 20%+ in Spraberry/Wolfcamp Spraberry/Wolfcamp Net Production (MBOEPD)1 119+ MBOEPD 46 horizontal wells placed on production in Q1 Prepared to add 2 rigs per month 15 in northern acreage and 31…
  13. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 13
    Spraberry/Wolfcamp Infrastructure Development 2015 capital program includes 410 MM for Spraberry/Wolfcamp infrastructure Drilling capital oTank batteries/saltwater disposal facilities to support high-graded drilling program: 215 MM…
  14. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 14
    Eagle Ford Shale JV: High-Grading Drilling Activity in 2015 Reduced horizontal rig count to 6 rigs by the JV Acreage Central Gathering Plant end of February Pipeline Infrastructure 6 Month Cum Peak BOE High-grading drilling…
  15. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 15
    Forecasting 2015 Production Growth of 9%+ in Eagle Ford Shale Eagle Ford Shale Net Production (MBOEPD)1 16 horizontal wells placed on production in 50+ MBOEPD Q1 9 Upper targets and 7 Lower targets 46 47 Q1 production: 47 MBOEPD…
  16. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 16
    Eagle Ford Shale Condensate Exports Exported 20 MBOPD gross (7 MBOPD net) of Eagle Ford Shale processed condensate Distillation Unit during Q1 2015 with significantly improved (Stabilizer) pricing compared to domestic condensate…
  17. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 17
    Benefits of Lifting the U.S. Oil Export Ban Removing the ban creates a larger market for U.S. produced shale oil, resulting in: More crude oil production in the U.S. Increased crude oil exports from the U.S. Lower net crude oil…
  18. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 18
    Appendix 19
  19. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 19
    Pioneers Areas of Operations Current Total Enterprise Value (B) 25 Q1 2014 Production 51% Oil (MBOEPD) 194 2015E Total Capital Spend, Net (B) 1.85 2015E Cash Flow (B) 1.60 2014 Horizontal Drillbit F&D (/BOE) 15.51 2014 Reserve…
  20. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 20
    Updated Spraberry/Wolfcamp Horizontal POP Forecast Updated Spraberry/Wolfcamp 89 Horizontal POP Count Forecast Pioneer Pumping Services will have spare capacity to complete additional wells if rigs are added in 2H 66 65 50…
  21. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 21
    Pioneers Year-End 2014 Proved Reserves1 Added 177 MMBOE from the drillbit, or 239% of full- year production, at a drillbit F&D cost of 19.65 per BOE2 Reflects significant drilling campaigns in horizontal Spraberry/Wolfcamp Shale and…
  22. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 22
    Production Costs (per BOE)1 14.30 Q1 2015 production costs 13.90 13.17 13.61 decreased 8% compared to Q4 Workovers 0.76 0.59 0.63 0.65 12.56 2014 Production & 0.62 Ad Valorem 3.68 3.52 2.78 LOE decreased due to cost reduction…
  23. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 23
    Pioneers Production By Commodity By Area Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Spraberry/Wolfcamp Oil (BOPD) 58,307 57,893 66,425 76,894 74,538 NGL (BOEPD) 16,693 19,754 21,734 23,956 19,760 Gas (MCFPD) 66,770 83,368 86,412 87,630…
  24. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 24
    Derivative Philosophy Continue to use derivatives to mitigate commodity price exposure in order to ensure funding for development programs and to maintain strong financial position Target 50% on rolling 3 year basis Continue to use a…
  25. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 25
    Open Commodity Derivative Positions as of 05/04/15 Oil Q2 2015 Q3 2015 Q4 2015 2016 Swaps WTI (BPD) 82,000 82,000 82,000 - NYMEX WTI Price (/BBL) 71.18 71.18 71.18 - Three Way Collars (BPD)1,2 15,000 15,000 15,000 83,000 NYMEX…
  26. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 26
    Open Commodity Derivative Positions as of 05/04/15 Ethane Q2 2015 Q3 2015 Q4 2015 2016 Swaps (BPD)1 6,000 6,000 6,000 4,000 Mont Belvieu Swap Price (/BBL) 7.80 7.80 7.80 12.29 Propane Q2 2015 Q3 2015 Q4 2015 2016 Swaps (BPD)2…
  27. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 27
    Open Commodity Derivative Positions as of 05/04/15 Gas Q2 2015 Q3 2015 Q4 2015 2016 Swaps - (MMBTUPD) 20,000 20,000 20,000 70,000 NYMEX Price (/MMBTU)1 4.31 4.31 4.31 4.06 Three Way Collars (MMBTUPD)1,2 285,000 285,000 285,000…
  28. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 28
    Three-Way Collars (50 by 70 by 80 Example) 100 NYMEX Oil Three-Way Collar Realization Short-Put at Long-Put at Short-Call at 90 50/BBL 70/BBL 80/BBL Potential Opportunity Realize NYMEX Price Loss 80 Realized Price (/BBL)…
  29. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 29
    Geologic Provinces of the Permian Basin PEDERNAL UPLIFT & ROOSEVELT POSITIVE OZONA PLATFORM Basin DEVILS Basement RIVER Uplift UPLIFT Shelf Thrust Belt Permian Basin is composed of multiple uplifts and basins that…
  30. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 30
    Wolfcamp Depositional Model Midland Basin Platform Platform Carbonate Land Carbonate Shelf Edge Carbonate Pelagic Sediments Clastic Detrital Slope Sediments & Reef Talus Fluvial - Deltaic Silt Cloud in Suspension Midland…
  31. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 31
    Regional Cross Section D-D 13 horizontal play intervals identified (so far) Successful Horizontal Wells in the Play 10 intervals have been tested successfully Future Horizontal Play 3 additional intervals remain to be tested North…
  32. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 32
    Midland Basin: Stacked Play Potential Midland Basin Delta log R (excess electrical resistance) Clear Fork Red intervals indicate hydrocarbons Petrophysical analysis indicates significantly more oil in place U. Spraberry M.…
  33. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 33
    Midland Basin Horizontal Resource Potential 75 BBOE Recoverable Resource Potential Spraberry Wolfcamp D Shales 13 BBOE 14 BBOE Wolfcamp C 2 BBOE Wolfcamp A Wolfcamp B 19 BBOE 27 BBOE 75 BBOE recoverable resource…
  34. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 34
    Spraberry/Wolfcamp Rig Count Counties: Andrews, Borden, Crockett, Dawson, Ector, Gaines, Glasscock, Howard, Irion, Martin, Midland, Mitchell, Reagan, Schleicher, Scurry, Sterling, Tom Green and Upton 33% Vertical Rigs (dropped 150…
  35. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 35
    Production Growth Profiles For 3 Largest U.S. Oil Shale Plays Includes Horizontal Wells Only Eagle Ford 107 Horizontal Rigs (down from max of 203 rigs in 2014) Bakken 80 Horizontal Rigs (down from max of 179 rigs in 2014)…
  36. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 36
    Spraberry/Wolfcamp Production History Includes Vertical and Horizontal Wells Spraberry/Wolfcamp production has increased 630,000 BOEPD since 2009 From 2009 to 2012, production growth primarily attributable to increased…
  37. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 37
    Drilling Results Confirming Pioneers Midland Basin Sweet Spot PXD Wolfcamp B Prospectivity Map (Early 2013) 2014 ITG Research Report Wolfcamp (All Zones) Test Rates Higher Tier 1 Tier 2 Pioneer Land Pioneer Wolfcamp B wells…
  38. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 38
    Crude Pipeline Capacity to Gulf Coast Permian Basin Crude Takeaway Capacity Cushing Operator Origin Destination Name Capacity Time Frame Plains Permian Cushing Basin 450,000 Oxy Permian Cushing Centurion 75,000 Sunoco Permian GC…
  39. MAY 2015 INVESTOR PRESENTATION – Pioneer Natural Resources Co. – slide 39
    Spraberry/Wolfcamp Midstream Infrastructure Gas Processing Pipeline NGL Takeaway Targa System to Mont Belvieu PXD has 27% interest Chaparral & West Texas Current capacity: 655 MMCFD1 Pipelines o Includes new Edward plant Sale Ranch…

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