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Q1 2016 Earnings – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Apr 26, 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. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 1
    Q1 2016 Earnings April 26, 2016
  2. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 2
    Financial and Operating Highlights Q1 2016 adjusted loss: 104 MM, or 0.64 per diluted share1 Q1 2016 production: 222 MBOEPD (55% oil) Above Pioneers guidance range of 211 MBOEPD to 216 MBOEPD Increase of 7 MBOEPD, or 3%, vs. Q4 2015…
  3. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 3
    2016 Outlook Pioneer plans to maintain 12 horizontal rigs in the northern Spraberry/Wolfcamp based on favorable well returns in this area Currently operating 12 horizontal rigs in the northern Spraberry/Wolfcamp and 2 horizontal rigs…
  4. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 4
    2016 Outlook (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. Q1 2016 Earnings – 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. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 6
    Increasing 2016 Production Growth Forecast from 10%+ to 12%+ Total Net Production (MBOEPD) Increasing guidance to reflect improving Spraberry/Wolfcamp well productivity 229+ MBOEPD 224+ MBOEPD 204 MBOEPD 222 224-229 211 215 194…
  7. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 7
    Northern Spraberry/Wolfcamp Completion Optimization Program Continues to Deliver Strong Performance Wolfcamp B All Completion Optimization Tests Updated Wolfcamp A Updated Since Mid-2015: mid April All Completion Optimization Tests mid…
  8. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 8
    Southern Wolfcamp Completion Optimization Program Continues to Deliver Strong Performance Completion optimization on 22 wells through end-Q1 2016 has resulted in strong well productivity improvements Pioneer is continuing to test…
  9. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 9
    Completion Optimization Timeline Designing completions to allow more rock to be contacted closer to the welbore Initial Frac Design Current Frac Design Testing Underway (2013 - 2014) (Q3 2015 - Today) (Q2 Q4 2016) 1,000 lbs/ft…
  10. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 10
    Successfully Extending Laterals Beyond 10,000 Placed Pioneers two longest Spraberry/Wolfcamp horizontal wells on production during Q1 11,000 perforated lateral feet and 13,000 perforated lateral feet Both wells benefited from…
  11. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 11
    Continuing to Reduce Spraberry/Wolfcamp Drilling and Completion Costs Drilling & Completion Cost per Perforated Lateral Foot1 (Includes all northern Wolfcamp B wells)2 1,300 1,140 1,085 985 905 890 Q4 2014 Q1 2015 Q2…
  12. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 12
    2016 Spraberry/Wolfcamp Drilling Program Currently operating 12 horizontal rigs in the Pioneers Spraberry/Wolfcamp 2016 Drilling Areas northern area Expect to place 230 horizontal wells on Northern production during 2016 Area…
  13. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 13
    Horizontal Drilling Driving Spraberry/Wolfcamp Production Growth Spraberry/Wolfcamp Net Production (MBOEPD)1 Q1 2016 production: 149 MBOEPD (69% oil) Increasing guidance to reflect improving well 167+ MBOEPD Increase of 12 MBOEPD, or…
  14. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 14
    Q1 2016 Earnings Summary Millions Per Diluted (After Tax) Share Net loss attributable to common stockholders (267) (1.65) Noncash mark-to-market (MTM) derivative losses (174 MM before tax) 111 0.69 Adjusted loss excluding noncash MTM…
  15. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 15
    Price Realizations Realized Prices 51.64 43.02 42.46 37.92 28.09 15.00 14.03 12.39 12.16 10.33 2.70 2.37 2.53 2.03 1.79 Q115 Q215 Q315 Q415 Q116 Q115 Q215 Q315 Q415 Q116 Q115 Q215 Q315 Q415 Q116 Oil (/BBL) NGL…
  16. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 16
    Production Costs (per BOE) Q1 2016 compared to Q4 2015: LOE costs declined by 20%, primarily due to: Workovers 12.56 o Lower costs for chemicals, 11.62 Production & 0.62 11.19 11.02 electricity and contract services Ad Valorem…
  17. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 17
    Liquidity Position Net debt as of Q1 2016 (reflects cash on hand, 1.1 B including liquid investments, of 2.5 B) Excludes additional 500 MM to be received in July 2016 from the 2015 sale of the Eagle Ford Shale midstream business…
  18. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 18
    Q2 2016 Guidance Guidance Daily Production (MBOEPD) 224 229 Production Costs (/BOE) 9.00 11.00 Exploration & Abandonment ( MM) 20 30 Drilling and Acreage 5 - 10 Personnel and Seismic 15 - 20 DD&A (/BOE) 17.50 19.50 G&A ( MM)…
  19. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 19
    Supplemental Information Supplemental Information Slides Slide Historic Production 21 2015 Drilling Capital 22 Oil and Gas Revenue 23 Derivative Position 24 - 26 General & Administrative Costs 27 Interest Costs 28…
  20. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 20
    Production By Commodity By Area Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Spraberry/Wolfcamp Oil (BOPD) 74,538 77,735 87,547 92,121 102,016 NGL (BOEPD) 19,760 22,627 26,051 24,701 24,802 Gas (MCFPD) 104,519 110,165 120,681 120,025 132,029…
  21. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 21
    2016 Drilling and Completions Capital1 Millions 1,850 527 Q1 '16 FY '16 22 1) Excludes acquisitions, asset retirement obligations, capitalized interest and geological and geophysical G&A expenditures
  22. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 22
    Oil and Gas Revenue Millions 596 557 517 508 409 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 23
  23. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 23
    Open Commodity Derivative Positions as of 4/20/16 Oil Q2 2016 Q3 2016 Q4 2016 2017 Swaps - WTI (BPD) 60,000 - - - NYMEX WTI Price (/BBL) 53.08 - - - Three Way Collars (BPD)1 43,000 112,000 112,000 73,000 NYMEX Call Price (/BBL)…
  24. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 24
    Open Commodity Derivative Positions as of 4/20/16 Ethane Q2 2016 Q3 2016 Q4 2016 2017 Collars (BPD)1 - - - 2,000 Mont Belvieu Call Price (/BBL) - - - 11.66 Mont Belvieu Put Price (/BBL) - - - 8.40 Propane Q2 2016 Q3 2016 Q4…
  25. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 25
    Open Commodity Derivative Positions as of 4/20/16 Gas Q2 2016 Q3 2016 Q4 2016 2017 2018 Swaps (MMBTUPD) 70,000 70,000 70,000 - - NYMEX Price (/MMBTU)1 4.06 4.06 4.06 - - Three Way Collars (MMBTUPD)1,2 180,000 180,000 180,000…
  26. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 26
    General & Administrative Costs Millions 82 83 81 81 74 15 18 16 15 14 Noncash Q1 Q2 Q3 Q4 Q1 2015 2015 2015 2015 2016 27
  27. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 27
    Interest Costs Millions 55 48 5 Noncash 46 46 46 4 4 5 5 Q1 Q2 Q3 Q4 Q1 2015 2015 2015 2015 2016 28
  28. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 28
    Exploration & Abandonments ( Millions) Drilling, Acreage & Other Abandonments 40 Includes noncash charge for impairment of Alaska unproved royalty acreage of 32 MM Geological & Geophysical Seismic 3 Personnel & Other 16…
  29. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 29
    Income Taxes Attributable to Continuing Operations Quarter Ended March 31, 2016 ( Millions) Current tax benefit Deferred tax benefit 141 Income tax benefit 141 30
  30. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 30
    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 loss and net cash provided by operating…
  31. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 31
    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…
  32. Q1 2016 Earnings – Pioneer Natural Resources Co. – slide 32
    Supplemental Non-GAAP Financial Measures Adjusted loss excluding noncash MTM derivative losses and adjusted loss excluding noncash MTM derivative losses and unusual items, as presented in the Financial and Operating Highlights slide and…

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