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November 2015 Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Nov 5, 2015 · 35 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. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 1
    Pioneer Proprietary Investor Presentation November 2015
  2. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance 24 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* 225* Value Net Resource 112 103 *max rig count in 2014 1.7 B…
  3. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 3
    Outlook Strong balance sheet with cash on hand of 0.6 B at the end of Q3 2015 Strong commodity derivative positions continue to protect cash flow Derivative coverage for forecasted oil production of 90% for 2015, 85% for 2016 and 20%…
  4. November 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. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 5
    Targeting 15%+ Compound Annual Production Growth for 2016 - 20181 Strong growth in 2016-2018 reflects: Increasing well productivity Capital efficiency improvements 202 203 MBOEPD2 Strong well returns Increasing horizontal rig…
  6. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 6
    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…
  7. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 7
    Realizing Significant Service Cost Reductions and Efficiency Gains 25% decrease in drilling and completion capital 2014 costs compared to 2014 Well Cost Composition 100% Expect capital costs to decline by 30% compared to Other…
  8. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 8
    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…
  9. November 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 (30) Updated End Oct 300 avg. lateral: 7,800 feet2 interval wells drilled since 2013 in northern Cumulative…
  10. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 10
    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…
  11. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 11
    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…
  12. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 12
    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…
  13. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 13
    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…
  14. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 14
    Horizontal Drilling Driving Spraberry/Wolfcamp Production Growth Spraberry/Wolfcamp Net Production (MBOEPD)1 52 horizontal wells placed on production 124-125 MBOEPD in Q3 33 in northern acreage and 19 in southern 134 Wolfcamp JV…
  15. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 15
    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…
  16. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 16
    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…
  17. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 17
    Appendix 18
  18. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 18
    Pioneers Areas of Operations Current Total Enterprise Value (B) 24 Q3 2014 Production 52% Oil (MBOEPD) 211 2015E Total Capital Spend, Net (B) 2.2 2015E Cash Flow (B) 1.5 2014 Horizontal Drillbit F&D (/BOE) 15.51 2014 Reserve…
  19. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 19
    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…
  20. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 20
    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…
  21. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 21
    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…
  22. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 22
    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…
  23. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 23
    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…
  24. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 24
    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 -…
  25. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 25
    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)…
  26. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 26
    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 Proved…
  27. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 27
    U.S. Shale Oil Forecast Sensitivity to Oil Price U.S. Shale Crude and Condensate Production (MMB/D) 12.0 11.5 110-120 11.0 10.5 100-110 10.0 9.5 9.0 90-100 8.5 8.0 80-90 7.5 7.0 6.5 70-80 6.0 5.5 60-70 5.0 4.5 50-60 4.0…
  28. November 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. November 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. November 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. November 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. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 32
    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…
  33. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 33
    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…
  34. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 34
    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…
  35. November 2015 Investor Presentation – Pioneer Natural Resources Co. – slide 35
    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 Edward plant Sale Ranch PXD…

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