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Q3 2015 Earnings Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Nov 2, 2015 · 34 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. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 1
    Pioneer Proprietary Q3 2015 Earnings November 3, 2015
  2. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 2
    Financial and Operating Highlights Q3 2015 adjusted loss: 1 MM, or 0.01 per diluted share1 Q3 2015 production of 211 MBOEPD (52% oil) +7% vs. Q2; above top end of Q3 guidance range of 205 MBOEPD 210 MBOEPD Driven by strong…
  3. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 3
    Financial and Operating Highlights (cont.) 33 horizontal wells placed on production during Q3 2015 in the northern Spraberry/Wolfcamp Early production results from 30 wells producing from the Wolfcamp B (28) and Wolfcamp A (2)…
  4. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 4
    Outlook Strong commodity derivative positions continue to protect cash flow Derivative coverage for forecasted oil production of 90% for 2015, 85% for 2016 and 20% for 2017 Derivative coverage for forecasted gas production of 85% for…
  5. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 5
    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…
  6. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 6
    Targeting 15%+ Compound Annual Production Growth for 2016 - 20181 Strong growth in 2016-2018 reflects: Increasing well productivity 202 - 203 Capital efficiency improvements 200+ MBOEPD2 Strong well returns Increasing horizontal rig…
  7. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 7
    Strong Performance from Q3 Northern Spraberry/Wolfcamp Wells Placed on Production 33 horizontal wells placed on production during Q3 Majority were Wolfcamp B and Wolfcamp A wells o Early production results from these wells are on…
  8. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 8
    Northern Wolfcamp Horizontal Production Data1 Wolfcamp A Average production from all Wolfcamp A and B Wolfcamp A wells (30) Updated End Oct 300 avg. lateral: 7,800 feet2 interval wells drilled since 2013 in northern Cumulative…
  9. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 9
    PXDs Acreage Position Offers Long Lateral Capital Efficiency Drilled Lateral Length Pioneers Spraberry/Wolfcamp acreage position allows for decades 5,000 7,500 10,000 of drilling more capital efficient wells with laterals ranging…
  10. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 10
    Spraberry/Wolfcamp: Horizontal Well Drilling Time Decreasing Wolfcamp B Drilling Days Includes all Northern and JV area Wolfcamp B wells (rig release to rig release) Best wells to date: Northern area 17 days 43 days JV area 13…
  11. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 11
    Northern Spraberry/Wolfcamp: 2015 Drilling Program Currently operating 14 horizontal rigs Pioneers Northern Spraberry/Wolfcamp Added 8 rigs since July 1 (including 2 in late October) 2015 Drilling Areas Drilling program delivering…
  12. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 12
    Southern Wolfcamp JV: 2015 Drilling Program Currently operating 4 horizontal rigs Drilling program delivering strong EURs and Pioneers Southern Wolfcamp JV Area 2015 Drilling Areas returns as a result of cost reduction efforts, 2015…
  13. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 13
    Horizontal Drilling Driving Spraberry/Wolfcamp Production Growth Spraberry/Wolfcamp Net Production (MBOEPD)1 52 horizontal wells placed on production Increasing guidance range 124-125 in Q3 due to strong YTD 121-123 MBOEPD 33 in…
  14. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 14
    Spraberry/Wolfcamp Infrastructure Development Tank Battery/Saltwater Disposal (SWD) Facilities Expect to spend 175 MM in 2015 and 200 MM in 2016 for new facilities and expansions o Cost per well hook-up declining Gas Processing Plant…
  15. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 15
    Eagle Ford Shale 2015 Production Outlook Eagle Ford Shale Net Production (MBOEPD)1 36 horizontal wells placed on production in Q3 21 upper targets and 15 lower targets 45 MBOEPD 85 wells POPd through September; 100 wells targeted for…
  16. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 16
    Q3 2015 Earnings Summary Millions Per Diluted (After Tax) Share Net income attributable to common stockholders 646 4.27 Noncash mark-to-market (MTM) derivative gains (335 MM before tax) (214) (1.42) Adjusted income excluding noncash MTM…
  17. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 17
    Price Realizations Realized Prices 90.82 66.64 51.64 43.02 42.46 28.44 3.79 3.60 18.50 15.00 14.03 2.70 2.37 2.53 12.39 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15…
  18. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 18
    Production Costs (per BOE) 13.17 13.61 Q3 2015 compared to Q2 2015: Workovers 12.56 0.63 0.65 LOE essentially flat 0.62 11.19 11.62 Production & Ad Valorem 2.78 0.64 Third-party transportation costs Taxes 3.35 2.24 0.63 1.87…
  19. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 19
    Liquidity Position (09/30/15) Net debt (net of cash balance of 581 MM) 2.1 B Additional 500 MM to be received in July 2016 from sale of Eagle Ford Shale midstream business Unsecured credit facility availability 1.5 B Net…
  20. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 20
    Q4 2015 Guidance Guidance Daily Production (MBOEPD) 206 211 Production Costs (/BOE) 11.00 13.00 Exploration & Abandonment ( MM) 25 35 Drilling and Acreage 5 - 10 Personnel and Seismic 20 - 25 DD&A (/BOE) 18.50 20.50 G&A (…
  21. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 21
    Supplemental Information Supplemental Information Slides Slide 2015 Drilling Capital 23 Historic Production 24 Oil and Gas Revenue 25 Derivative Position 26 - 28 General & Administrative Costs 29 Interest Costs 30…
  22. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 22
    2015 Drilling Capital1 Millions 1,950 489 493 550 416 Q1 '15 Q2 '15 Q3 '15 Q4 '15E FY '15E 23 1) Excludes acquisitions, asset retirement obligations, capitalized interest and geological and geophysical G&A expenditures
  23. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 23
    Pioneers Production By Commodity By Area Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Spraberry/Wolfcamp Oil (BOPD) 66,425 76,894 74,538 77,735 87,547 NGL (BOEPD) 21,734 23,956 19,760 22,627 26,051 Gas (MCFPD) 86,412 87,630 104,519 110,165…
  24. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 24
    Oil and Gas Revenue Millions 967 804 596 557 517 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 25
  25. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 25
    Open Commodity Derivative Positions as of 10/30/15 Oil Q4 2015 2016 2017 Swaps - WTI (BPD) 82,000 4,475 - NYMEX WTI Price (/BBL) 71.18 59.00 - Three Way Collars (BPD)1,2 15,000 101,806 34,000 NYMEX Call Price (/BBL) 97.69 75.93…
  26. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 26
    Open Commodity Derivative Positions as of 10/30/15 Ethane Q4 2015 2016 2017 Swaps (BPD)1 6,000 5,000 - Mont Belvieu Swap Price (/BBL) 7.80 11.61 - Propane Q4 2015 2016 2017 Swaps (BPD)2 11,000 7,500 - Mont Belvieu and…
  27. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 27
    Open Commodity Derivative Positions as of 10/30/15 Gas Q4 2015 2016 2017 Swaps (MMBTUPD) 20,000 70,000 - NYMEX Price (/MMBTU)1 4.31 4.06 - Three Way Collars (MMBTUPD)1,2 285,000 180,000 - NYMEX Call Price (/MMBTU) 5.07 4.01 -…
  28. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 28
    General & Administrative Costs Millions 89 81 82 83 81 15 16 15 18 16 Noncash Q3 Q4 Q1 Q2 Q3 2014 2014 2015 2015 2015 29
  29. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 29
    Interest Costs Millions 46 46 46 46 46 4 4 5 4 5 Noncash Q3 Q4 Q1 Q2 Q3 2014 2014 2015 2015 2015 30
  30. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 30
    Exploration & Abandonments ( Millions) Drilling, Acreage & Other Abandonments 7 Geological & Geophysical Seismic 3 Personnel & Other 15 3rd Quarter Total 25 31
  31. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 31
    Income Taxes Attributable to Continuing Operations Quarter Ended September 30, 2015 ( Millions) Current tax provision 48 Deferred tax provision 307 Income tax provision 355 32
  32. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 32
    Supplemental Non-GAAP Financial Measures EBITDAX and discretionary cash flow (DCF) are disclosed by Pioneer, and reconciled to the generally accepted accounting principle (GAAP) measures of net income and net cash provided by operating…
  33. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 33
    Supplemental Earnings Per Share Information The Company uses the two-class method of calculating basic and diluted earnings per share. Under the two-class method of calculating earnings per share, GAAP provides that share- and unit-based…
  34. Q3 2015 Earnings Presentation – Pioneer Natural Resources Co. – slide 34
    Supplemental Non-GAAP Financial Measures Adjusted income excluding noncash MTM derivative gains and adjusted loss excluding noncash MTM derivative gains and unusual items, as presented in the Financial and Operating Highlights slide and…

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