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Q3 2016 Earnings – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Nov 2, 2016 · 36 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. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 1
    Q3 2016 EARNINGS NOVEMBER 2, 2016
  2. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 2
    FINANCIAL AND OPERATING HIGHLIGHTS Q3 2016 adjusted income: 22 MM, or 0.13 per diluted share1 Q3 2016 production: 239 MBOEPD (56% oil) Above Pioneers guidance range of 232 MBOEPD to 237 MBOEPD Increase of 6 MBOEPD, or 3%, vs. Q2…
  3. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 3
    FINANCIAL AND OPERATING HIGHLIGHTS (CONT.) Reduced production cost per BOE by 6% since Q2 2016 and 32% since Q3 2015 Enhanced Martin County acreage position by closing purchase of 28,000 net acres from Devon for 429 MM Sold…
  4. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 4
    OUTLOOK Pioneer is increasing its horizontal rig count from 12 rigs to 17 rigs in the northern Spraberry/Wolfcamp during 2H 2016 3 rigs added as planned during September and October; additional 2 rigs expected in November 2016…
  5. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 5
    2016 CAPITAL SPENDING 1 AND CASH FLOW 2016 capital program remains at 2.1 B Drilling and Completions Capital: 1.95 B 2016 Cash Flow Sensitivity to 1,810 MM northern Spraberry/Wolfcamp Forward Commodity Prices ( MM) (90% of total)…
  6. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 6
    PRODUCTION GROWTH FORECAST Total Net Production (MBOEPD) Increasing guidance to reflect improving Spraberry/Wolfcamp 233+ MBOEPD well productivity 231+ MBOEPD 237 - 242 239 233 222 204 55% Oil 58% Oil 56% Oil 2015 Q1…
  7. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 7
    SP R A BE R RY/WOLFCAMP C OMP LE T ION OP T IMIZ AT ION P R OGRAM CONT INUE S TO DE LIV E R ST R ONG P E R FOR MA NC E Northern Area Wolfcamp B Version 2.0 Updated All 91 wells since mid-2015 Late 300 (MBOE)1 Version 3.0 - 29…
  8. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 8
    SP R A BE R RY/WOLFCAMP C OMP LE T ION OP T IMIZ AT ION P R OGRAM CONT INUE S TO DE LIV E R ST R ONG P E R FOR MA NC E (C ONT. ) Northern Area Wolfcamp A Version 2.0 Updated Late 300 All 12 wells since mid-2015 (MBOE)1…
  9. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 9
    SP R A BE R RY/WOLFCAMP C OMP LE T ION OP T IMIZ AT ION P R OGRAM CONT INUE S TO DE LIV E R ST R ONG P E R FOR MA NC E (C ONT. ) Lower Spraberry Shale Updated Late 300 (MBOE)1 October Version 2.0 Production All 33 wells…
  10. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 10
    CONT INUING TO R E DUC E SP R A BE R RY/WOLFCAMP DR ILLING A ND C OMP LE TION COST S Drilling & Completion Cost per Perforated Lateral Foot1 (Reflects only northern Wolfcamp B wells) 1,300 Q3 average well cost by interval: WC B 8.0…
  11. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 11
    PIONEERS SPRABERRY/WOLFCAMP WELL PRODUCTIVITY SIGNIFICANTLY EXCEEDING PEERS 1 Pioneer: Drilling Most Productive Wells in the Midland Basin 150 Average Pioneer Highlights Pioneers: 125 Core acreage position Contiguous…
  12. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 12
    2016 SPRABERRY/WOLFCAMP DRILLING PROGRAM Increased horizontal rig count from 12 rigs to Pioneers Spraberry/Wolfcamp Acreage Position 15 rigs in the northern area during and 2016 Drilling Areas September/October Expect to add 2…
  13. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 13
    SPRABERRY/WOLFCAMP PRODUCTION FORECAST Spraberry/Wolfcamp Net Production (MBOEPD)1 Increasing guidance to 170+ MBOEPD reflect improving 168+ MBOEPD Spraberry/Wolfcamp well productivity 185 - 190 179 167 149 129 115 125 93…
  14. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 14
    Q3 2016 EARNINGS SUMMARY Millions Per Diluted (After Tax) Share Net income attributable to common stockholders 22 0.13 Noncash mark-to-market (MTM) derivative losses (93 MM before tax) 59 0.35 Adjusted income excluding noncash MTM…
  15. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 15
    PRICE REALIZATIONS Realized Prices 42.46 41.43 41.44 37.92 28.09 14.21 12.46 12.39 12.16 10.33 2.53 2.43 2.03 1.79 1.67 Q315 Q415 Q116 Q216 Q316 Q315 Q415 Q116 Q216 Q316 Q315 Q415 Q116 Q216 Q316 Oil (/BBL) NGL…
  16. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 16
    PRODUCTION COSTS (PER BOE) 11.62 Q3 2016 compared to Q2 2016: Workovers 11.02 0.64 Lower LOE related to: Production & 0.60 Ad Valorem 1.87 9.17 Taxes 1.67 o Reduced repair and 0.28 8.36 7.85 maintenance costs due to 2.30 1.46…
  17. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 17
    CASH MARGINS BY ASSET Q3 2016 Cash Margin by Asset ( per BOE) Permian Permian Other Total Horizontals Verticals Eagle Ford Assets Company Realized price (ex-hedges) 33.20 30.24 22.78 16.35 29.24 Production costs 1 (2.15)…
  18. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 18
    LIQUIDITY POSITION Net debt at the end of Q3 2016 (reflects cash on hand, including liquid 0.3 B investments, of 2.9 B) Unsecured credit facility availability 1.5 B Net debt-to-book capitalization at the end of Q3 3% Maturities…
  19. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 19
    Q4 2016 GUIDANCE Guidance Daily Production (MBOEPD) 237 242 Production Costs (/BOE) 7.75 9.75 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) 78…
  20. Q3 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 2016 Other Capital 25 Oil and Gas Revenue 26 Derivative Positions 27 - 29 General &…
  21. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 21
    PRODUCTION BY COMMODITY BY AREA Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Spraberry/Wolfcamp Oil (BOPD) 87,547 92,121 102,016 117,388 120,663 NGL (BOEPD) 26,051 24,701 24,802 27,829 34,631 Gas (MCFPD) 120,681 120,025 132,029 131,847 144,249…
  22. Q3 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. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 23
    2016 DRILLING AND COMPLETIONS CAPITAL 1 Millions 1,950 527 577 421 425 Q1 '16 Q2 '16 Q3 '16 Q4 '16E FY '16 1) Excludes acquisitions, asset retirement obligations, capitalized interest and geological and geophysical G&A…
  24. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 24
    2016 OTHER CAPITAL 1 Millions 150 50 37 35 28 Q1 '16 Q2 '16 Q3 '16 Q4 '16E FY '16 1) Includes vertical integration (pressure pumping and well services equipment, water distribution system and sand mine), systems upgrades…
  25. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 25
    OIL AND GAS REVENUE Millions 613 643 557 508 409 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 26
  26. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 26
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 10/28/16 Oil Q4 2016 2017 2018 Collars (BPD) - 6,000 - NYMEX Short Call Price (/BBL) - 70.40 - NYMEX Put Price (/BBL) - 50.00 - Three Way Collars (BPD)1 112,000 121,022 20,000 NYMEX Call…
  27. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 27
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 10/28/16 Ethane Q4 2016 2017 2018 Collars (BPD)1 - 3,000 - Mont Belvieu Call Price (/BBL) - 11.83 - Mont Belvieu Put Price (/BBL) - 8.68 - Propane Swaps (BPD)2 6,000 - - Mont Belvieu…
  28. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 28
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 10/28/16 Gas Q4 2016 2017 2018 Swaps (MMBTUPD) 70,000 - - NYMEX Price (/MMBTU)1 4.06 - - Three Way Collars (MMBTUPD)1,2 180,000 180,000 50,000 NYMEX Call Price (/MMBTU) 4.01 3.49 3.40 NYMEX…
  29. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 29
    GENERAL AND ADMINISTRATIVE COSTS Millions 81 81 80 82 74 16 15 17 16 Noncash 14 Q3 Q4 Q1 Q2 Q3 2015 2015 2016 2016 2016 30
  30. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 30
    INTEREST COSTS Millions 55 56 5 5 50 46 48 2 Noncash 4 5 Q3 Q4 Q1 Q2 Q3 2015 2015 2016 2016 2016 31
  31. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 31
    EXPLORATION & ABANDONMENTS ( Millions) Drilling, Acreage & Other Abandonments 1 Geological & Geophysical Seismic 1 Personnel & Other 17 3rd Quarter Total 19 32
  32. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 32
    INCOME TAXES ATTRIBUTABLE TO CONTINUING OPERATIONS Quarter Ended September 30, 2016 ( Millions) Current tax benefit1 22 Deferred tax benefit2 56 Income tax benefit 78 1) Includes a 20 MM current tax benefit associated…
  33. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 33
    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 income and net cash provided by operating…
  34. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 34
    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…
  35. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 35
    SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES Adjusted income excluding noncash MTM derivative losses and adjusted income excluding noncash MTM derivative losses and unusual items, as presented in the Financial and Operating Highlights slide…
  36. Q3 2016 Earnings – Pioneer Natural Resources Co. – slide 36
    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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