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Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Apr 30, 2014 · 46 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 – Pioneer Natural Resources Co. – slide 1
    Investor Presentation April 2014
  2. Investor Presentation – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance Total Enterprise Value (B) 30 Top U.S. Fields By Rig Count1 2014 Drilling Capex (B) 3.0 289 (Pioneer Operated Count in Green 43 rigs) 2013 Production (MBOEPD) 161 224 2013 Reserves (BBOE) 0.8 198 184 2013…
  3. Investor Presentation – Pioneer Natural Resources Co. – slide 3
    Share Price Performance of Permian Basin Operators since 20091 Since 2009, the combined enterprise value for Permian-weighted companies listed has increased from 20 billion to 55 billion 1,200% 1,000% 800% 600%…
  4. Investor Presentation – Pioneer Natural Resources Co. – slide 4
    2014E Capital Spending and Cash Flow1 Capital program of 3.3 B Drilling Capital: 3.0 B 2,165 MM northern Spraberry/Wolfcamp area o 1,225 MM for horizontal drilling program Sensitivity to Commodity Prices ( MM) 6.00 o 440 MM for…
  5. Investor Presentation – Pioneer Natural Resources Co. – slide 5
    Targeting 16% - 21% Compound Annual Production Growth for 2014 - 2016 MBOEPD 161 MBOEPD1 (+12% vs. 2012) Severe weather curtailed Q4 production by 6 MBOEPD 184 - 192 159 163 159 164 62% 62% 64% 65% 75% Liquids Liquids…
  6. Investor Presentation – Pioneer Natural Resources Co. – slide 6
    Pioneers Significant Proved Reserves and Recoverable Resource Potential1 Proved Reserves + Estimated Net Recoverable Resource Potential of 11 BBOE 22,000 Horizontal Drilling Locations 12/31/13 Proved Reserves: 845 MMBOE2 Additional…
  7. Investor Presentation – Pioneer Natural Resources Co. – slide 7
    Midland Basin Horizontal Resource Potential Continues to Grow 75 BBOE Recoverable Resource Potential (Up from 50 BBOE in 2013) Spraberry Wolfcamp D Shales 13 BBOE 14 BBOE Wolfcamp C 2 BBOE Wolfcamp A Wolfcamp B 19 BBOE 27…
  8. Investor Presentation – Pioneer Natural Resources Co. – slide 8
    Liquidity Position (12/31/13) Net debt (net of cash balance of 393 MM): 2.3 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 25% Maturities and Balances1 2016 2017 2018 2020 2022 2028 455 MM 485…
  9. Investor Presentation – Pioneer Natural Resources Co. – slide 9
    2013 Northern Spraberry/Wolfcamp Horizontal Drilling Appraisal Program 2013 drilling program focused on appraising 6 horizontal shale targets with substantial oil-in-place Wolfcamp Wolfcamp Wolfcamp M. Spraberry L. Spraberry D B A…
  10. Investor Presentation – Pioneer Natural Resources Co. – slide 10
    Recapping Pioneers 2013 Northern Spraberry/Wolfcamp Program Increased horizontal rig count from 1 rig to 5 rigs mid-2013 Placed 21 horizontal wells on production Pioneers Northern during 2013 Spraberry/Wolfcamp Acreage Avg. 24-hr…
  11. Investor Presentation – Pioneer Natural Resources Co. – slide 11
    Pioneers First 6 Northern Horizontal Wolfcamp B and Wolfcamp A Shale Wells1 E.T. O'Daniel 1H Wolfcamp B (Midland County); 9,229 lateral Cumulative production: 157 MBOE (75% oil) Updated as of 3/20 Scharbauer Ranch 202H Wolfcamp B…
  12. Investor Presentation – Pioneer Natural Resources Co. – slide 12
    Pioneers First 4 Northern Horizontal Wolfcamp D Shale Wells1 University 7-43 10H Wolfcamp D (Andrews County); 7,382 lateral Cumulative production: 64 MBOE (69% oil) Updated as of 3/20 E.T. ODaniel 2H Wolfcamp D (Midland County);…
  13. Investor Presentation – Pioneer Natural Resources Co. – slide 13
    Pioneers Northern Horizontal Lower Spraberry Shale Wells1 Flanagan 14 Lloyd A 21H (Glasscock County) 7,212 lateral; Cumulative production: 60 MBOE (85% oil) Updated as of 3/20 Hutt C 21H (Midland County) 6,662 lateral; Cumulative…
  14. Investor Presentation – Pioneer Natural Resources Co. – slide 14
    Pioneers Original Two Horizontal Giddings Wells (Average)1 Updated as of 3/20 1,000 Giddings 2041H & Giddings 2073H Wolfcamp B wells (Upton County) 5,300 laterals; Average cumulative production per well: 208 MBOE (70% oil) 500…
  15. Investor Presentation – Pioneer Natural Resources Co. – slide 15
    Northern Horizontal Well Economics1,2 BTAX IRR 100+% 45% - 100% 100+% 45% - 95% Lower Spraberry Wolfcamp D Martin County Midland County Shale Wolfcamp B & Wolfcamp B Midland County Wolfcamp A EUR (MBOE) 575 800 650 - 800 800…
  16. Investor Presentation – Pioneer Natural Resources Co. – slide 16
    Northern Spraberry/Wolfcamp: Focused on Growing Production in 2014 Transitioning from a horizontal appraisal program to a horizontal development program during 2014 Increased horizontal rig count from 5 rigs at YE 2013 to 16 rigs…
  17. Investor Presentation – Pioneer Natural Resources Co. – slide 17
    Southern Wolfcamp JV: Focused on Growing Production in 2014 2014 drilling plan calls for spudding 115 horizontal wells compared to 100 horizontal wells in 2013 Average lateral length will be increased by 13% from 8,300 feet in 2013…
  18. Investor Presentation – Pioneer Natural Resources Co. – slide 18
    Spraberry/Wolfcamp Production Outlook Spraberry/Wolfcamp Net Production1 (MBOEPD) Q4 production curtailed by 5 MBOEPD due to 95 100 MBOEPD severe winter weather Despite severe winter weather, horizontal Spraberry/Wolfcamp Shale…
  19. Investor Presentation – Pioneer Natural Resources Co. – slide 19
    Eagle Ford Shale Downspacing and Staggered Tests Continue Initially downspaced from 1,000 to 500 between wells across liquids- rich acreage position Added 300 locations Further downspacing and staggered laterals testing underway:…
  20. Investor Presentation – Pioneer Natural Resources Co. – slide 20
    Upper Eagle Ford Shale Test Update Results from initial test continue to be encouraging; production in line with Upper Eagle Ford Test offset Lower Eagle Ford Shale wells 25% of acreage prospective Planning to drill 45 Upper Eagle…
  21. Investor Presentation – Pioneer Natural Resources Co. – slide 21
    Eagle Ford Shale Completion Optimization Over the past 2 years, PXD has improved its Eagle Ford Shale completion design by: Reducing cluster spacing Increasing the pounds of proppant (white sand) pumped per foot Increasing the barrels…
  22. Investor Presentation – Pioneer Natural Resources Co. – slide 22
    Eagle Ford Shale Production Outlook Eagle Ford Shale Net Production1 (MBOEPD) Record Eagle Ford Shale net production of 40 MBOEPD 45 49 MBOEPD in Q4 38 MBOEPD Placed 41 wells on production in Q4; predominately weighted towards…
  23. Investor Presentation – Pioneer Natural Resources Co. – slide 23
    PXD Investment Highlights U.S. asset base High oil exposure from proved reserves + estimated net resource potential of 11 BBOE Drilling program focused in liquids and resource rich core assets in Texas Horizontal…
  24. Investor Presentation – Pioneer Natural Resources Co. – slide 24
    Appendix 25
  25. Investor Presentation – Pioneer Natural Resources Co. – slide 25
    Pioneer Large Independent U.S. E&P Company Total Enterprise Value (B) 30 2013 Operating Cash Flow (B) 2.1 2013 Drilling Expenditures (B) 2.8 2013 Drillbit F&D (/BOE) 19.70 2013 Production 63% Liquids (MBOEPD) 161 2012 Reserve…
  26. Investor Presentation – Pioneer Natural Resources Co. – slide 26
    Production Costs (per BOE)1 Q4 2013 production costs 14.04 14.08 14.17 Workovers 13.77 decreased compared to Q3 0.69 13.36 0.88 0.87 0.99 0.52 2013 Production & Ad Valorem LOE increased primarily due to Taxes 3.24 3.52 3.61…
  27. Investor Presentation – Pioneer Natural Resources Co. – slide 27
    Pioneers YE 2013 Proved Reserves1 Added 141 MMBOE from the drillbit, or 211% of full- year production, at a drillbit F&D cost of 19.70 per BOE2 Reflects significant drilling campaigns in horizontal Spraberry/Wolfcamp Shale and Eagle…
  28. Investor Presentation – Pioneer Natural Resources Co. – slide 28
    Production (MBOEPD) Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 1 2 Spraberry/Wolfcamp 69 75 80 79 80 Eagle Ford Shale 35 37 38 35 40 Raton 24 23 23 22 22 Mid-Continent 17 17 16 17 16 South Texas 6 5 5 6 5 Other 1 1 1 1 1 Total Cont.…
  29. Investor Presentation – Pioneer Natural Resources Co. – slide 29
    PXD Production By Commodity By Area Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Spraberry/Wolfcamp Oil (BOPD) 46,540 52,694 52,595 51,903 52,957 NGL (BOEPD) 11,262 12,864 13,919 16,200 16,251 Gas (M CFD) 64,607 58,653 83,021 62,939 65,863…
  30. Investor Presentation – Pioneer Natural Resources Co. – slide 30
    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…
  31. Investor Presentation – Pioneer Natural Resources Co. – slide 31
    Open Commodity Derivative Positions as of 2/6/2014 Oil Q1 2014 Q2 2014 Q3 2014 Q4 2014 2015 2016 Swaps WTI (BPD) 10,000 10,000 10,000 10,000 - - NYMEX WTI Price (/BBL) 93.87 93.87 93.87 93.87 - - Three Way Collars (BPD)1 69,000…
  32. Investor Presentation – Pioneer Natural Resources Co. – slide 32
    Open Commodity Derivative Positions as of 2/6/2014 Natural Gasoline Q1 2014 Q2 2014 Q3 2014 Q4 2014 2015 Three Way Collars (BPD)1,2 1,000 1,000 1,000 1,000 - Mont Belvieu Call Price (/BBL) 109.50 109.50 109.50 109.50 - Mont…
  33. Investor Presentation – Pioneer Natural Resources Co. – slide 33
    Open Commodity Derivative Positions as of 2/6/2014 Gas Q1 2014 Q2 2014 Q3 2014 Q4 2014 2015 2016 Swaps - (MMBTUPD) 195,000 195,000 195,000 195,000 20,000 - NYMEX Price (/MMBTU)1 4.04 4.04 4.04 4.04 4.31 - Three Way Collars…
  34. Investor Presentation – Pioneer Natural Resources Co. – slide 34
    Three-Way Collars (75 by 90 by 135 Example) Unhedged realization Hedged realization 160.00 NYMEX Price 150.00 Potential 140.00 Opportunity Loss Realized Price 130.00 Realized Price (/BBL) Short put at 75/BBL Long put at…
  35. Investor Presentation – Pioneer Natural Resources Co. – slide 35
    Pioneer Focusing Capex in Highest Margin Assets 2013E Cash Margins (/BOE ex-hedges)1,2 2013E % Liquids Assumes 98.00/BBL WTI Crude and 3.70/MCF Gas Production PXD…
  36. Investor Presentation – Pioneer Natural Resources Co. – slide 36
    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…
  37. Investor Presentation – Pioneer Natural Resources Co. – slide 37
    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…
  38. Investor Presentation – Pioneer Natural Resources Co. – slide 38
    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…
  39. Investor Presentation – Pioneer Natural Resources Co. – slide 39
    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.…
  40. Investor Presentation – Pioneer Natural Resources Co. – slide 40
    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 61% Vertical Rigs 96%…
  41. Investor Presentation – Pioneer Natural Resources Co. – slide 41
    Production Growth Profiles For 3 Largest U.S. Oil Shale Plays 10,000,000 Includes Horizontal Wells Only Eagle Ford 198 Horizontal Rigs (down from 218 rigs in early 2013) 1,000,000 Gross Production (BOEPD) Bakken 168…
  42. Investor Presentation – Pioneer Natural Resources Co. – slide 42
    Spraberry/Wolfcamp Production History 600,000 Includes Vertical and Horizontal Wells 550,000 500,000 450,000 Spraberry/Wolfcamp production has 400,000 increased 400,000 BOEPD since 2009 Production (BOEPD) 350,000…
  43. Investor Presentation – Pioneer Natural Resources Co. – slide 43
    Crude Pipeline Capacity to Gulf Coast Permian Basin Crude Takeaway Capacity Operator Origin Destination Name Capacity Time Frame Cushing Plains Permian Cushing Basin 450,000 Oxy Permian Cushing Centurion 75,000 Sunoco Permian GC…
  44. Investor Presentation – Pioneer Natural Resources Co. – slide 44
    Growing Midstream Infrastructure to Support Production Growth Gas Processing Pipeline NGL Takeaway Midkiff / Benedum / Driver to Mont Belvieu Current capacity: 460 MMCFD1 Chaparral & West Texas PXD production makes up 40% Pipelines…
  45. Investor Presentation – Pioneer Natural Resources Co. – slide 45
    PXDs Vertical Integration Reduces Costs and Enhances Execution Spraberry/Wolfcamp1 Eagle Ford Shale 8 horizontal frac fleets (250,000 HP total) 2 frac fleets (100,000 HP total) 2 coiled tubing units 2 coiled tubing units Well…
  46. Investor Presentation – Pioneer Natural Resources Co. – slide 46
    Certain Reserve Information Cautionary Note to U.S. Investors --The SEC prohibits oil and gas companies, in their filings with the SEC, from disclosing estimates of oil or gas resources other than reserves, as that term is defined by the…

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