Skip to main content September 2015 Investor Presentation – Pioneer Natural Resources Co. | Shale Experts
Loading...
Pm

September 2015 Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Sep 3, 2015 · 44 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. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 1
    Pioneer Proprietary Investor Presentation September 2015
  2. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance 20 B 2.2 B 11 BBOE Top U.S. Fields By Rig Count1 Current 2015 Planned Proved (Pioneer Operated Count in Green 22 rigs) Enterprise CapEx Reserves + 328* Value 132 225* 228* Net Resource 112 *max rig count in 2014…
  3. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 3
    Outlook Strong balance sheet with cash on hand of 0.7 B at the end of July Additional 500 MM will be received in July 2016 from Eagle Ford Shale midstream sale Strong commodity derivatives positions continue to protect cash flow…
  4. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 4
    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 Sensitivity to Forward…
  5. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 5
    Targeting 15%+ Compound Annual Production Growth for 2016 - 20181 200+ MBOEPD2 205-210 194 197 182 Impacted by severe weather in Q1 and Q2 and FY ethane rejection2 2014 Q1 Q2 Q3E Q4E 2016E 2017E 2018E 48% Oil 51% Oil 51%…
  6. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 6
    Liquidity Position (06/30/15) Net debt (net of cash balance of 219 MM) 2.5 B Excludes EFS Midstream sale proceeds of 530 MM received in July 2015 (remaining 500 MM of proceeds to be received in July 2016) Unsecured credit facility…
  7. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 7
    Realizing Significant Service Cost Reductions and Efficiency Gains 20% - 25% decrease in drilling and completion 2014 capital costs compared to 2014 Well Cost Composition 100% Other Expect capital costs to decline by 30% compared to…
  8. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 8
    Strong Performance from Q2 Northern Spraberry/Wolfcamp Wells Placed on Production 28 horizontal wells placed on production during Q2 Majority were Wolfcamp B and Lower Spraberry Shale wells o Early production results from 16 wells in…
  9. September 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 (28) Updated End July 300 avg. lateral: 7,750 feet2 interval wells drilled since 2013 in northern Cumulative…
  10. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 10
    Northern Spraberry/Wolfcamp: Increasing 2015 Horizontal Drilling Activity Currently operating 12 horizontal rigs Pioneers Northern Spraberry/Wolfcamp Drilling program delivering strong EURs and returns as 2015 Drilling Areas a result…
  11. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 11
    Southern Wolfcamp JV: High-Grading Drilling Activity in 2015 Currently operating 4 horizontal rigs Pioneers Southern Wolfcamp JV Area Drilling program delivering strong EURs and 2015 Drilling Areas returns as a result of cost…
  12. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 12
    Horizontal Drilling Driving Spraberry/Wolfcamp Production Growth Spraberry/Wolfcamp Net Production (MBOEPD)1 Expect to deliver production growth trajectory similar to 2H 2014 in response to increasing horizontal rig count and…
  13. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 13
    Continued Strong Drilling Results in Karnes and DeWitt Counties Eagle Ford Shale drilling activity focused in areas JV Acreage Central Gathering Plant Pipeline Infrastructure with highest EURs - Karnes and DeWitt counties 6 Month…
  14. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 14
    Eagle Ford Shale 2015 Production Outlook Eagle Ford Shale Net Production (MBOEPD)1 33 horizontal wells placed on production in Q2 47 MBOEPD 16 upper targets and 17 lower targets POPd 49 wells through end June 46 47 46 Q2 production…
  15. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 15
    Eagle Ford Shale Condensate Exports Exported 20 MBOPD gross (7 MBOPD net) of Eagle Ford Shale processed condensate during Q2 2015 under term contracts with significantly improved Distillation Unit (Stabilizer) pricing compared to…
  16. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 16
    Impact of the Export Ban on the U.S. Negatively impact U.S. U.S. crude oil production economy: lost jobs, tax Is it good policy will decrease by revenue to lift the 400,000 b/d in 20161 sanctions and allow Iran to Enhance Irans…
  17. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 17
    Geopolitics vs. Price Despite U.S.-Russian geopolitical tension and sanctions over the conflict in Ukraine, Russian oil and gas exports have continued to flow In fact, U.S. imports of Russian crude oil have averaged their highest…
  18. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 18
    Appendix 19
  19. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 19
    Pioneers Areas of Operations Current Total Enterprise Value (B) 20 Q2 2014 Production 51% Oil (MBOEPD) 197 2015E Total Capital Spend, Net (B) 2.2 2015E Cash Flow (B) 1.5 2014 Horizontal Drillbit F&D (/BOE) 15.51 2014 Reserve…
  20. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 20
    Pioneers Production By Commodity By Area Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Spraberry/Wolfcamp Oil (BOPD) 57,893 66,425 76,894 74,538 77,735 NGL (BOEPD) 19,754 21,734 23,956 19,760 22,627 Gas (MCFPD) 83,368 86,412 87,630 104,519…
  21. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 21
    Production Costs (per BOE) Q2 2015 production costs 13.90 13.17 13.61 decreased 11% compared to Q1 Workovers 0.59 0.63 0.65 12.56 2015 Production & 0.62 11.19 Ad Valorem 3.52 2.78 LOE decreased due to cost reduction Taxes 3.35…
  22. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 22
    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…
  23. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 23
    Open Commodity Derivative Positions as of 09/02/15 Oil Q3 2015 Q4 2015 2016 2017 Swaps - WTI (BPD) 82,000 82,000 - - NYMEX WTI Price (/BBL) 71.18 71.18 - - Three Way Collars (BPD)1,2 15,000 15,000 106,281 33,000 NYMEX Call…
  24. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 24
    Open Commodity Derivative Positions as of 09/02/15 Ethane Q3 2015 Q4 2015 2016 2017 Swaps (BPD)1 6,000 6,000 5,000 - Mont Belvieu Swap Price (/BBL) 7.80 7.80 11.61 - Propane Q3 2015 Q4 2015 2016 2017 Swaps (BPD)2 11,000…
  25. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 25
    Open Commodity Derivative Positions as of 09/02/15 Gas Q3 2015 Q4 2015 2016 2017 Swaps (MMBTUPD) 20,000 20,000 70,000 - NYMEX Price (/MMBTU)1 4.31 4.31 4.06 - Three Way Collars (MMBTUPD)1,2 285,000 285,000 180,000 - NYMEX Call…
  26. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 26
    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)…
  27. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 27
    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 Year-end 2014…
  28. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 28
    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…
  29. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 29
    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…
  30. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 30
    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…
  31. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 31
    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.…
  32. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 32
    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…
  33. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 33
    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 350 300 250 28% Vertical…
  34. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 34
    Production Growth Profiles For 3 Largest U.S. Oil Shale Plays 10,000,000 Includes Horizontal Wells Only Eagle Ford 94 Horizontal Rigs (down from 203 rigs at 2014 peak) 1,000,000 Gross Production (BOEPD) Bakken 100,000 67…
  35. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 35
    Spraberry/Wolfcamp Production History Includes Vertical and Horizontal Wells 900,000 850,000 800,000 750,000 700,000 650,000 Spraberry/Wolfcamp production has 600,000 increased 740,000 BOEPD since 2009 Production (BOEPD)…
  36. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 36
    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…
  37. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 37
    Spraberry/Wolfcamp Water Distribution System Long-term plan calls for construction of a field-wide water distribution system to reduce the cost of water for drilling and completion activities and to ensure adequate supplies of…
  38. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 38
    Other Spraberry/Wolfcamp Infrastructure Gas Processing Pioneers 27% interest in Targas West Texas system and 30% interest in the WTG Sale Ranch plant improves contract terms, ensures timely hook-up of new wells Gas Processing Plant…
  39. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 39
    Tank Battery/Salt Water Disposal (SWD) Facilities New larger-scale tank batteries and SWD facilities allow 75% of PXDs 1 Section optimized horizontal field development by utilizing pad acreage allows for drilling and centralized…
  40. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 40
    Southern Wolfcamp JV Benefiting from Centralized Tank Batteries Giddings tank battery/SWD constructed in early 2014 and designed to initially handle 6 wells (two 3-well pads) at a cost of 10 MM Horizontal Tank Battery/SWD Over the…
  41. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 41
    Economics Support Centralized Tank Battery/SWD Design Centralized tank batteries supporting 3-well pad drilling maximize NPV for horizontal development of Pioneers large 800,000 gross acreage position compared to other development…
  42. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 42
    Crude Pipeline Capacity to Gulf Coast Major Permian Crude Pipeline Takeaway Operator Origin Destination Pipeline Capacity (BOD) Plains Permian Cushing Basin 450,000 Cushing Oxy Permian Cushing Centurion 75,000 Sunoco Permian GC West…
  43. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 43
    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…
  44. September 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 44
    Reserves Audit, F&D Costs and Reserve Replacement An audit of proved reserves follows the general principles set forth in the standards pertaining to the estimating and auditing of oil and gas reserve information promulgated by the…

From the store

Browse maps, data & reports in the Shale Experts store