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June 2015 Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Jun 1, 2015 · 41 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. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 1
    Pioneer Proprietary Investor Presentation June 2015
  2. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance 25 B 2.2 B 11 BBOE Top U.S. Fields By Rig Count1 Current 2015 Planned Proved (Pioneer Operated Count in Green 16 rigs) Enterprise CapEx Reserves + Value Net Resource *max rig count in 2014 Potential Gas 194…
  3. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 3
    Eagle Ford Shale Midstream Sale Pioneer (50.1% share) and Reliance (49.9% share) announced sale of their Eagle Ford Shale Midstream business to Enterprise for 2.15 B Pioneer and Reliance also benefit by 200 MM gross (NPV 10%) from…
  4. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 4
    Strong Financial Flexibility and High-Return Wells Support Rig Ramp Strong balance sheet at end Q1 with 383 MM of cash on hand and net debt-to-book capitalization of 21% Sale of EFS Midstream further strengthens the balance sheet by…
  5. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 5
    Strong Financial Flexibility and High-Return Wells Support Rig Ramp (Cont.) Adding two horizontal rigs per month on average in the northern Spraberry/Wolfcamp beginning in July through December as long as the oil price outlook remains…
  6. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 6
    2015E Capital Spending and Cash Flow1 Capital program of 2.2 B (includes rig adds in 2H) Drilling Capital: 1.95 B 1,400 MM northern Spraberry/Wolfcamp (65% of total) o 1,035 MM for horizontal drilling program o 20 MM for vertical…
  7. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 7
    Targeting 15%+ Compound Annual Production Growth for 2016 - 2018 200+ MBOEPD2 Plan to add 18 horizontal rigs in northern Spraberry/Wolfcamp between July and end-Q1 2016 (2 rigs per month); also plan to add 2 rigs in Eagle Ford…
  8. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 8
    Liquidity Position (03/31/15) Net debt (net of cash balance of 383 MM1): 2.3 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 21% Maturities and Balances2 2016 2017 2018 2020 2022 2028 455 MM…
  9. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 9
    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…
  10. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 10
    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…
  11. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 11
    Northern Wolfcamp Horizontal Production Data1 Wolfcamp A Average production from all Wolfcamp A and B Wolfcamp A wells (25) avg. lateral: 7,800 feet interval wells drilled since 2013 through Q1 2015 in 280 280 Spraberry/Wolfcamp…
  12. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 12
    Northern Spraberry/Wolfcamp: High-Grading Drilling Activity in 2015 Currently operating 6 horizontal rigs; expect to Pioneers Northern Spraberry/Wolfcamp add 2 horizontal rigs per month beginning in July 2015 Drilling Areas through Q1…
  13. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 13
    Southern Wolfcamp JV: High-Grading Drilling Activity in 2015 Currently operating 4 horizontal rigs Pioneers Southern Wolfcamp JV Area Drilling activity focused in areas and 2015 Drilling Areas intervals with the highest EURs,…
  14. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 14
    Forecasting 2015 Production Growth of 20%+ in Spraberry/Wolfcamp Spraberry/Wolfcamp Net Production (MBOEPD)1 46 horizontal wells placed on production in 119+ MBOEPD Q1 15 in northern acreage and 31 in southern Wolfcamp JV area…
  15. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 15
    Spraberry/Wolfcamp Infrastructure Development 2015 capital program includes 460 MM for Spraberry/Wolfcamp infrastructure Drilling capital o Tank batteries/saltwater disposal facilities to support 2015 drilling program, including…
  16. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 16
    Eagle Ford Shale JV: High-Grading Drilling Activity in 2015 Currently operating 6 horizontal rigs JV Acreage Central Gathering Plant Drilling activity focused in areas with the Pipeline Infrastructure 6 Month Cum Peak BOE highest…
  17. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 17
    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…
  18. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 18
    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…
  19. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 19
    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…
  20. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 20
    Appendix 21
  21. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 21
    Pioneers Areas of Operations Current Total Enterprise Value (B) 25 Q1 2014 Production 51% Oil (MBOEPD) 194 2015E Total Capital Spend, Net (B) 2.2 2015E Cash Flow (B) 1.60 2014 Horizontal Drillbit F&D (/BOE) 15.51 2014 Reserve…
  22. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 22
    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 from rigs additions in 2H 66 65 50…
  23. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 23
    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…
  24. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 24
    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…
  25. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 25
    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…
  26. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 26
    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…
  27. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 27
    Open Commodity Derivative Positions as of 05/26/15 Oil Q2 2015 Q3 2015 Q4 2015 2016 2017 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 93,000…
  28. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 28
    Open Commodity Derivative Positions as of 05/26/15 Ethane Q2 2015 Q3 2015 Q4 2015 2016 2017 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…
  29. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 29
    Open Commodity Derivative Positions as of 05/26/15 Gas Q2 2015 Q3 2015 Q4 2015 2016 2017 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…
  30. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 30
    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)…
  31. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 31
    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…
  32. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 32
    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…
  33. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 33
    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…
  34. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 34
    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.…
  35. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 35
    Midland Basin Horizontal Resource Potential 75 BBOE Recoverable Resource Potential Spraberry Wolfcamp D Shales Wolfcamp C 13 BBOE 14 BBOE 2 BBOE Wolfcamp A Wolfcamp B 19 BBOE 27 BBOE 75 BBOE recoverable resource…
  36. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 36
    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 35% Vertical Rigs (dropped 150…
  37. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 37
    Production Growth Profiles For 3 Largest U.S. Oil Shale Plays Includes Horizontal Wells Only Eagle Ford 104 Horizontal Rigs (down from max of 203 rigs in 2014) Bakken 78 Horizontal Rigs (down from max of 179 rigs in 2014)…
  38. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 38
    Spraberry/Wolfcamp Production History Includes Vertical and Horizontal Wells Spraberry/Wolfcamp production has increased 650,000 BOEPD since 2009 From 2009 to 2012, production growth primarily attributable to increased…
  39. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 39
    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…
  40. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 40
    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…
  41. June 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 41
    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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