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December 2016 Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Dec 1, 2016 · 44 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. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 1
    Investor Presentation DECEMBER 2016
  2. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 2
    PIONEER AT A GLANCE 30 B 2.1 B 14%+ Active Drilling Area Current 2016 Planned Forecasted Enterprise Capex1 2016 Value 1.9 B Permian Production Growth Raton West Panhandle Gas Spraberry/Wolfcamp Dallas Headquarters 239…
  3. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 3
    OUTLOOK Pioneer has increased its horizontal rig count from 12 rigs to 17 rigs in the northern Spraberry/Wolfcamp during 2H 2016 2016 capital program remains at 2.1 B Although the additional 5 rigs are not expected to add…
  4. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 4
    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)…
  5. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 5
    PRODUCTION GROWTH FORECAST Total Net Production (MBOEPD) 233+ MBOEPD 237 - 242 239 233 222 204 55% Oil 58% Oil 56% Oil 2015 Q1 Q2 Q3 Q4 2017E 1,2 2020E 1,2 52% Oil 62% Oil 65% Oil 2016E1,2 57% Oil 1) Includes 1,400…
  6. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 6
    STRONG FINANCIAL 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%…
  7. December 2016 Investor Presentation – 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. December 2016 Investor Presentation – 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. December 2016 Investor Presentation – 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. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 10
    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 -…
  11. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 11
    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…
  12. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 12
    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…
  13. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 13
    2016 SPRABERRY/WOLFCAMP DRILLING PROGRAM Increased horizontal rig count from 12 rigs to Pioneers Spraberry/Wolfcamp Acreage Position 17 rigs in the northern area during Q3/Q4 and 2016 Drilling Areas Expect to place 230 horizontal…
  14. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 14
    SPRABERRY/WOLFCAMP PRODUCTION FORECAST Spraberry/Wolfcamp Net Production (MBOEPD)1 170+ MBOEPD 185 - 190 179 167 149 129 115 125 93 66 Horizontal Vertical 2015 Q1 Q2 Q3 Q4 2017E 2 2016E2 46 wells placed on production…
  15. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 15
    PXD INVESTMENT HIGHLIGHTS U.S. asset base Largest Spraberry/Wolfcamp acreage position (800,000 gross acres) with a low average royalty and low acreage cost basis High oil exposure from substantial resource potential in the…
  16. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 16
    APPENDIX
  17. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 17
    PIONEERS AREAS OF OPERATIONS Current Total Enterprise Value (B) 30 Q3 2016 Production 56% Oil (MBOEPD) 239 2015 Drillbit F&D (/BOE) 10.18 2015 Reserve Replacement (%) 273% YE 2015 Proved Reserves (BBOE) 0.6 Raton West…
  18. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 18
    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…
  19. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 19
    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…
  20. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 20
    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)…
  21. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 21
    SP R A BE RY/WOLFCAMP INFR A ST R UC T UR E SP E NDING IN 2 0 1 6 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…
  22. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 22
    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 Continue to use a variety of derivative…
  23. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 23
    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…
  24. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 24
    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…
  25. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 25
    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…
  26. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 26
    THREE-WAY COLLARS (40 BY 50 BY 65 EXAMPLE) NYMEX Oil Three-Way Collar Realization 80 Short-Put at Long-Put at Short-Call at 75 40/BBL 50/BBL 65/BBL 70 Potential Opportunity Loss Realized Price (/BBL) 65 Realize NYMEX plus…
  27. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 27
    PIONEERS YEAR-END 2015 PROVED RESERVES 1 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…
  28. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 28
    U.S. SHALE PRODUCTION FORECAST AT VARIOUS PRICE SCENARIOS U.S. shale industry needs 55 to 60 oil to keep production flat Average Brent U.S. Shale Oil and Condensate Production (MMBbl/d) (2014/Bbl) 12 110-120 10 100-110…
  29. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 29
    PERMIAN BASIN REGIONAL OVERVIEW Outline of Central Basin Uplift Outline of Tatum Central Basin Platform Basin Grisham Fault Big Lake Fault Ozona Uplift Top Woodford structure (from Geomap) Kerr Devils River…
  30. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 30
    PERMIAN BASIN HORIZONTALS ARE A GAME CHANGER The Permian Basin has produced 35 BBOE in the past 90 years with an estimated 150 BBOE recoverable resource remaining 1.6 160 Permian Basin Tight 1.4 Oil Production 140 Daily Oil…
  31. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 31
    PERMIAN BASIN ONLY GROWING OIL SHALE PLAY SINCE 2015 Permian Basin is the only growing major U.S. oil shale since downturn began 30% Permian Basin % Change in Daily Production Since 2015 20% 10% - (10%) (20%) (30%)…
  32. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 32
    PERMIAN BASIN: INCREASING RIG COUNT MARKET SHARE % U.S. Horizontal Oil Rigs By Basin 100% 90% Williston 80% 70% Permian Basin 50% 60% 15% 50% Other 40% 30% 20% Eagle Ford 10% Woodford 0% Feb/11 Feb/12 Feb/13…
  33. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 33
    PERMIAN BASIN HORIZONTAL ECONOMICS AMONG THE BEST IN THE WORLD Average breakeven oil price (/barrel) Recent transactions for Permian Basin acreage: Delaware Basin 49M per acre Midland Basin 58M per acre PXD Midland HZ…
  34. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 34
    TOP 20 MOST ACTIVE PERMIAN OPERATORS Midland Basin Horizontal Rig Count Permian Basin Horizontal Rig Count Outline of Outline of 17 Central Basin Uplift Outline of 17 Central Basin Uplift Outline of Tatum Central Basin Platform…
  35. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 35
    PERMIAN RESOURCE PERSPECTIVE Total Recoverable Resource (BBOE)1 0 20 40 60 80 100 120 140 160 Ghawar, Saudi Arabia Permian Basin, USA Produced To Date Midland Basin Delaware Basin Burgan, Kuwait Safaniyah, Saudi Arabia Eagle…
  36. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 36
    PERMIAN BASIN POISED FOR LONG -TERM GROWTH The Permian Basin will drive long-term U.S. oil production growth 6 2025 Permian Basin Oil Growth Forecast 5 MMBOPD (2016 - 2025) Daily Oil Production (MMBOPD) 5 4 3 Today…
  37. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 37
    WOLFCAMP DEPOSITIONAL MODEL MIDLAND BASIN Platform Carbonate Land Platform Shelf Edge Carbonate Pelagic Sediments Carbonate Clastic Detrital Slope Sediments & Reef Talus Fluvial - Deltaic Silt Cloud in Suspension Midland…
  38. December 2016 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 D…
  39. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 39
    MIDLAND BASIN: STACKED PLAY POTENTIAL Midland Basin Clear Fork Delta log R (excess electrical resistance) Red intervals indicate hydrocarbons U. Spraberry M. Spraberry Petrophysical analysis indicates significantly more oil in…
  40. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 40
    IMPACT OF HORIZONTAL TECHNOLOGY IN THE MIDLAND BASIN Midland Basin Spraberry/Wolfcamp Production 1,200,000 1,100,000 1,000,000 900,000 Spraberry/Wolfcamp production has 800,000 increased 900,000 BOEPD since 2009…
  41. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 41
    MIDLAND BASIN HORIZONTAL RESOURCE POTENTIAL 75 BBOE Recoverable Resource Potential Spraberry Wolfcamp D Shales Wolfcamp C 13 BBOE 14 BBOE 2 BBOE Wolfcamp A Wolfcamp B 19 BBOE 27 BBOE 75 BBOE recoverable resource…
  42. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 42
    DR ILLING R E SULTS CONFIR MING P IONE E R S MIDLA ND BA SIN SW E E T SP OT 2014 RSEG Research Report PXD Wolfcamp B Prospectivity Map (Early 2013) Wolfcamp (All Zones) Test Rates Higher Tier 1 Tier 2 Pioneer Land Pioneer…
  43. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 43
    CRUDE PIPELINE CAPACITY TO GULF COAST Major Permian Crude Pipeline Takeaway Operator Origin Destination Pipeline Capacity (BOPD) Plains Permian Cushing Basin 450,000 Oxy Permian Cushing Centurion 75,000 Cushing Sunoco Permian GC West…
  44. December 2016 Investor Presentation – Pioneer Natural Resources Co. – slide 44
    SPRABERRY/WOLFCAMP MIDSTREAM INFRASTRUCTURE Gas Processing Pipeline NGL Takeaway to Mont Belvieu Targa System Chaparral & West Texas PXD has 27% interest Pipelines Current capacity: 855 MMCFD1 Martin County / PXD production…

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