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Investor Presentation April 2016 – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Apr 18, 2016 · 32 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. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 1
    Investor Presentation April 2016
  2. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance 25 B 2.0 B 10%+ Active Drilling Areas Current 2016 Planned Forecasted Enterprise Capex 2016 Value Production 1.8 B Permian Growth Raton West Panhandle Gas 215 28% Spraberry/Wolfcamp Dallas Headquarters…
  3. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 3
    2016 Plan In response to the outlook for continuing weak oil prices, Pioneer is reducing its horizontal drilling activity by 50% (from 24 rigs at YE 2015 to 12 rigs by mid- 2016), while still growing 2016 production by 10%+ and…
  4. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 4
    2016 Plan (cont.) Strong commodity derivatives position helps protect the Companys cash flow Oil derivative coverage of 85% for 2016 and 50% for 2017 Gas derivative coverage of 70% for 2016 and 25% for 2017 Strong investment grade…
  5. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 5
    2016E Capital Spending and Cash Flow1 Capital program of 2.0 B Drilling and Completions Capital: 1.85 B 1,710 MM northern Spraberry/Wolfcamp (90% of total) o 1,440 MM for horizontal drilling program o 160 MM for tank batteries/SWDs…
  6. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 6
    Forecasting 2016 Production Growth of 10%+ Total Net Production (MBOEPD)1 224+ 204 MBOEPD MBOEPD 211 215 194 197 182 2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 48% Oil 2015 2016E2 52% Oil 56% Oil Expect continued production growth…
  7. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 7
    Liquidity Position Net debt as of Q4 2015 (reflects cash balance of 1.4 B) 2.3 B Excludes 1.6 B of proceeds from 2016 equity offering, including overallotment, and additional 500 MM to be received in July 2016 from the 2015 sale of…
  8. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 8
    Northern Spraberry/Wolfcamp Horizontal Well Performance Continues to Improve 22 Wolfcamp B interval wells placed on production during Q4 Early production results are on average displaying Pioneers strongest horizontal well performance…
  9. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 9
    Northern Spraberry/Wolfcamp Horizontal Well Performance Continues to Improve (cont.) 11 Lower Spraberry Shale wells placed on production during Q4 Early production results are on average tracking close to a 1 MMBOE EUR type curve…
  10. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 10
    Improving Performance from Q4 Southern Wolfcamp Joint Venture Area Wells Placed 9 horizontal wells on production during Q4 in southern Wolfcamp joint venture area Early production results from 8 Wolfcamp B interval wells are on average…
  11. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 11
    Improving Spraberry/Wolfcamp Capital Efficiency Drilling & Completion Average Cumulative Cost per Perforated Lateral Foot1 Production Per Well (MBOE) (Includes all northern Wolfcamp B wells)2 (Includes all northern Wolfcamp B wells)2…
  12. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 12
    2016 Spraberry/Wolfcamp Drilling Program Reducing horizontal rig count from 18 rigs at year-end 2015 to 12 rigs by mid-2016 Pioneers Spraberry/Wolfcamp 2016 Drilling Areas Northern area 14 rigs to 12 rigs Northern Southern Wolfcamp…
  13. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 13
    Minimizing Spraberry/Wolfcamp Infrastructure Spending in 2016 Tank Battery/Saltwater Disposal (SWD) Facilities Expect to spend 170 MM in 2016 for new facilities and expansions o Cost per well hook-up expected to decline from 900 M in…
  14. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 14
    Horizontal Drilling Driving Spraberry/Wolfcamp Production Growth Spraberry/Wolfcamp Net Production (MBOEPD)1 2015 production: 125 MBOEPD (66% oil) 162+ MBOEPD Placed 197 wells on production in 2015 (111 wells in northern area and…
  15. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 15
    PXD Investment Highlights U.S. asset base Largest Spraberry/Wolfcamp acreage position (800,000 gross acres) High oil exposure from substantial resource potential in Spraberry/Wolfcamp -20,000 drilling locations Strong derivatives…
  16. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 16
    Pioneers Areas of Operations Current Total Enterprise Value (B) 25 Q4 2015 Production 53% Oil (MBOEPD) 215 2015 Drillbit F&D (/BOE) 10.18 2015 Reserve Replacement (%) 273% YE 2015 Proved Reserves (BBOE) 0.6 Raton West…
  17. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 17
    Production Costs (per BOE) 13.61 Q4 2015 compared to Q3 2015: Workovers 12.56 0.65 LOE costs declined by 5%, primarily 0.62 11.62 Production & 11.19 11.02 due to the Companys cost reduction Ad Valorem 2.78 0.64 Taxes 2.24 0.63…
  18. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 18
    Pioneers Year-End 2015 Proved Reserves1 Added 210 MMBOE from the drillbit, or 273% of full-year production, at a drillbit F&D cost of 10.18 per BOE2 Primarily reflects successful Spraberry/Wolfcamp horizontal drilling program…
  19. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 19
    Production By Commodity By Area Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Spraberry/Wolfcamp Oil (BOPD) 76,894 74,538 77,735 87,547 92,121 NGL (BOEPD) 23,956 19,760 22,627 26,051 24,701 Gas (MCFPD) 87,630 104,519 110,165 120,681 120,025…
  20. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 20
    Open Commodity Derivative Positions as of 3/31/16 Oil Q1 2016 Q2 2016 Q3 2016 Q4 2016 2017 Swaps - WTI (BPD) 43,516 60,000 - - - NYMEX WTI Price (/BBL) 56.68 53.08 - - - Three Way Collars (BPD)1 54,484 43,000 112,000 112,000…
  21. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 21
    Open Commodity Derivative Positions as of 3/31/16 Propane Q1 2016 Q2 2016 Q3 2016 Q4 2016 2017 Swaps (BPD)1 7,500 7,500 7,500 7,500 - Mont Belvieu and Conway Swap Prices (/BBL) 21.57 21.57 21.57 21.57 - % Total NGL Production 20%…
  22. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 22
    Open Commodity Derivative Positions as of 3/31/16 Gas Q1 2016 Q2 2016 Q3 2016 Q4 2016 2017 Swaps (MMBTUPD) 70,000 70,000 70,000 70,000 - NYMEX Price (/MMBTU)1 4.06 4.06 4.06 4.06 - Three Way Collars (MMBTUPD)1,2 180,000 180,000…
  23. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 23
    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)…
  24. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 24
    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…
  25. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 25
    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…
  26. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 26
    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…
  27. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 27
    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…
  28. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 28
    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.…
  29. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 29
    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…
  30. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 30
    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…
  31. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 31
    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…
  32. Investor Presentation April 2016 – Pioneer Natural Resources Co. – slide 32
    Spraberry/Wolfcamp Midstream Infrastructure Gas Processing Pipeline NGL Takeaway Targa System to Mont Belvieu PXD has 27% interest Chaparral & West Texas Pipelines Current capacity: 655 MMCFD1 Sale Ranch PXD production throughput…

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