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Q2 2016 Earnings – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Jul 28, 2016 · 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. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 1
    Q2 2016 Earnings July 28, 2016
  2. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 2
    Financial and Operating Highlights Q2 2016 adjusted loss: 37 MM, or 0.22 per diluted share1 Q2 2016 production: 233 MBOEPD (58% oil) Above Pioneers guidance range of 224 MBOEPD to 229 MBOEPD Increase of 11 MBOEPD, or 5%, vs. Q1 2016…
  3. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 3
    Outlook Pioneer plans to increase its horizontal rig count from 12 rigs to 17 rigs in the northern Spraberry/Wolfcamp during 2H 2016 Expect to add the first rig in September followed by 2 rigs in October and 2 rigs in November 3 of…
  4. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 4
    2016E Capital Spending1 and Cash Flow Capital program increased from 2.0 B to 2.1 B during Q2 Drilling and Completions Capital: 1.95 B 1,810 MM northern Spraberry/Wolfcamp (90% of total) o 1,540 MM for horizontal drilling program…
  5. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 5
    Production Growth Forecast Total Net Production (MBOEPD) Increasing guidance to reflect improving Spraberry/Wolfcamp 231+ MBOEPD well productivity 229+ MBOEPD 233 232-237 222 204 55% Oil 58% Oil 2015 Q1 Q2 Q3 Q4 2017E1…
  6. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 6
    Midland Basin Acreage Acquisition Overview Acquiring 28,000 net acres in the Midland Basin Acquired Acreage from Devon for 435 MM; closing expected in Q3 Substantially all of the acreage being acquired is core and Sale Ranch a…
  7. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 7
    Sale Ranch Well Performance Continues to Improve Pioneer has placed 41 horizontal Wolfcamp B interval wells on production in the Sale Ranch area since mid-2014 with lateral lengths 7,000 Well performance has improved significantly as a…
  8. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 8
    Spraberry/Wolfcamp Completion Optimization Program Continues to Deliver Strong Performance Northern Area - Wolfcamp B Version 2.0 Updated 250 All 87 wells since mid-2015 Mid-July (8,200 average lateral length) Cumulative Production…
  9. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 9
    Spraberry/Wolfcamp Completion Optimization Program Continues to Deliver Strong Performance (cont.) Northern Area - Wolfcamp A Updated Version 2.0 Mid-July 250 All 15 wells since mid-2015 Version 3.0 Cumulative Production (MBOE)1…
  10. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 10
    Spraberry/Wolfcamp Completion Optimization Program Continues to Deliver Strong Performance (cont.) Lower Spraberry Shale Updated Mid-July 250 Version 2.0 Cumulative Production (MBOE)1 All 24 wells since mid-2015 200 (9,100…
  11. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 11
    Continuing to Reduce Spraberry/Wolfcamp Drilling and Completion Costs Drilling & Completion Cost per Perforated Lateral Foot1 (Reflects only northern Wolfcamp B wells) Q2 average well cost by interval: 1,300 WC B 7.2 MM 8,500 WC A…
  12. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 12
    2016 Spraberry/Wolfcamp Drilling Program Currently operating 12 horizontal rigs in the northern area; expect to add 5 rigs in 2H Pioneers Spraberry/Wolfcamp 2016 Drilling Areas Expect to place 230 horizontal wells on Northern…
  13. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 13
    Spraberry/Wolfcamp Production Forecast Spraberry/Wolfcamp Net Production (MBOEPD)1 Increasing guidance to reflect improving Spraberry/Wolfcamp 168+ MBOEPD well productivity 167+ MBOEPD 167 149 115 125 93 66 Horizontal…
  14. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 14
    Q2 2016 Earnings Summary Millions Per Diluted (After Tax) Share Net loss attributable to common stockholders (268) (1.63) Noncash mark-to-market (MTM) derivative losses (361 MM before tax) 231 1.41 Adjusted loss excluding noncash MTM…
  15. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 15
    Price Realizations Realized Prices 51.64 42.46 41.43 37.92 28.09 14.03 14.21 12.39 12.16 10.33 2.37 2.53 2.03 1.79 1.67 Q215 Q315 Q415 Q116 Q216 Q215 Q315 Q415 Q116 Q216 Q215 Q315 Q415 Q116 Q216 Oil (/BBL) NGL…
  16. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 16
    Production Costs (per BOE) Q2 2016 compared to Q1 2016: Lower LOE related to: 11.62 o Reduced maintenance costs due Workovers 11.19 11.02 0.64 to centralization of activities 0.63 0.60 Production & 9.17 Ad Valorem 1.87 o Reduced…
  17. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 17
    Cash Margins By Asset Q2 2016 Cash Margin by Asset ( per BOE) Permian Permian Total Horizontals Verticals Eagle Ford Other Assets Company Realized price (ex-hedges) 34.34 29.73 22.67 14.02 28.95 Production costs1 (2.25) (12.35)…
  18. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 18
    Liquidity Position Net debt at the end of Q2 2016 (reflects cash on hand, 0.3 B including liquid investments, of 3.3 B) Unsecured credit facility availability 1.5 B Net debt-to-book capitalization at the end of Q2 3% Repaid…
  19. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 19
    Q3 2016 Guidance Guidance Daily Production (MBOEPD) 232 237 Production Costs (/BOE) 8.25 10.25 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)…
  20. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 20
    Supplemental Information Supplemental Information Slides Slide Historic Production 22 Completion Optimization Program 23 2016 Drilling Capital 24 Oil and Gas Revenue 25 Derivative Positions 26 - 28 General & Administrative…
  21. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 21
    Production By Commodity By Area Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Spraberry/Wolfcamp Oil (BOPD) 77,735 87,547 92,121 102,016 117,388 NGL (BOEPD) 22,627 26,051 24,701 24,802 27,829 Gas (MCFPD) 110,165 120,681 120,025 132,029 131,847…
  22. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 22
    Completion Optimization Program Designing completions to allow more rock to be contacted closer to the wellbore Version 1.0 Version 2.0 Version 3.0 Initial Frac Design Current Frac Design Testing Underway (2013 - 2014) (Q3 2015 -…
  23. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 23
    2016 Drilling and Completions Capital1 Millions 1,950 527 421 Q1 '16 Q2 '16 FY '16 24 1) Excludes acquisitions, asset retirement obligations, capitalized interest and geological and geophysical G&A expenditures
  24. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 24
    Oil and Gas Revenue Millions 596 613 557 508 409 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 25
  25. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 25
    Open Commodity Derivative Positions as of 7/25/16 Oil Q3 2016 Q4 2016 2017 Collars (BPD) - - 6,000 NYMEX Short Call Price (/BBL) - - 70.40 NYMEX Put Price (/BBL) - - 50.00 Three Way Collars (BPD)1 112,000 112,000 75,000 NYMEX…
  26. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 26
    Open Commodity Derivative Positions as of 7/25/16 Ethane Q3 2016 Q4 2016 2017 Collars (BPD)1 - - 3,000 Mont Belvieu Call Price (/BBL) - - 11.83 Mont Belvieu Put Price (/BBL) - - 8.68 Propane Q3 2016 Q4 2016 2017 Swaps (BPD)2…
  27. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 27
    Open Commodity Derivative Positions as of 7/25/16 Gas Q3 2016 Q4 2016 2017 2018 Swaps (MMBTUPD) 70,000 70,000 - - NYMEX Price (/MMBTU)1 4.06 4.06 - - Three Way Collars (MMBTUPD)1,2 180,000 180,000 130,000 50,000 NYMEX Call…
  28. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 28
    General & Administrative Costs Millions 83 81 81 80 74 18 16 15 17 Noncash 14 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2016 2016 29
  29. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 29
    Interest Costs Millions 55 56 5 5 Noncash 46 46 48 4 4 5 Q2 Q3 Q4 Q1 Q2 2015 2015 2015 2016 2016 30
  30. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 30
    Exploration & Abandonments ( Millions) Drilling, Acreage & Other Abandonments 1 Geological & Geophysical Seismic - Personnel & Other 17 2nd Quarter Total 18 31
  31. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 31
    Income Taxes Attributable to Continuing Operations Quarter Ended June 30, 2016 ( Millions) Current tax benefit Deferred tax benefit 143 Income tax benefit 143 32
  32. Q2 2016 Earnings – 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 loss and net cash provided by operating…
  33. Q2 2016 Earnings – 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. Q2 2016 Earnings – Pioneer Natural Resources Co. – slide 34
    Supplemental Non-GAAP Financial Measures Adjusted loss excluding noncash MTM derivative losses, as presented in the Financial and Operating Highlights slide and in the Q2 2016 Earnings Summary slide, is presented and reconciled to…

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