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4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Feb 8, 2017 · 38 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. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 1
    Q4 2016 EARNINGS and 2017 Capital Program FEBRUARY 8, 2017
  2. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 2
    FINANCIAL AND OPERATING HIGHLIGHTS Q4 2016 adjusted income: 85 MM, or 0.49 per diluted share1 Q4 2016 production: 242 MBOEPD (59% oil) Top end of Pioneers guidance range of 237 MBOEPD to 242 MBOEPD Increase of 3 MBOEPD vs. Q3 2016…
  3. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 3
    FINANCIAL AND OPERATING HIGHLIGHTS (CONT.) Protected cash flow and margins through attractive oil and gas derivative positions during 2016; provided incremental cash receipts of 680 million Strong year-end balance sheet with 3 B of…
  4. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 4
    2017 PLAN AND CAPITAL PROGRAM Plan to operate 18 horizontal rigs in the Spraberry/Wolfcamp during 2017 14 rigs in the northern area (13 rigs currently operating with an additional rig to be added in March) 4 rigs in the southern…
  5. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 5
    2017 PLAN AND CAPITAL PROGRAM (CONT.) 2017 capital program of 2.8 B Includes 2.5 B for drilling and completions and 275 MM for vertical integration Assumes 5% cost inflation offset by efficiency gains; vertical integration expected…
  6. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 6
    2017 CAPITAL PROGRAM 1 AND CASH FLOW 2017 capital program of 2.8 B Drilling and Completion Capital: 2.5 B 2017 Cash Flow Sensitivity to Forward Commodity Prices ( MM) 2.4 B Spraberry/Wolfcamp2 (95% of total) 5.00 o 1.9 B for…
  7. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 7
    DRILLING AND COMPLETION CAPITAL SPENDING RECONCILIATION (2017 VS. 2016) 3,000 65 35 2,500 2,500 70 95 137 224 Capital ( MM) 2,000 1,874 1,500 1,000 500 0 2016 Drilling Two Southern Incremental Permian Gas…
  8. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 8
    PIONEERS 10-YEAR VISION Targeting to grow production to 1 MMBOEPD in 2026 Reflects organic compound annual production growth of 15%+ drilling high-return wells Growth driven by world-class Spraberry/Wolfcamp asset Vertical…
  9. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 9
    PRODUCTION GROWTH FORECAST 1 MMBOEPD Total Net Production (MBOEPD) 269 - 276 234 242 243-248 239 233 222 204 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2026E 1 52% Oil 70% Oil 20161 2017E1 57% Oil 62% Oil 1) Assumes ethane…
  10. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 10
    V E R SION 3 .0 COMP LE T IONS C ONT INUING TO OUT P E R FOR M V E R SION 2 .0 COMP LE T IONS IN SP R A BE R RY/WOLFC AMP Version 3.0 wells pay out incremental capital cost of 0.5 MM to 1.0 MM in less than 1 year Northern and…
  11. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 11
    LOW E R SP R A BE R RY SHA LE W E LLS C ONT INUE TO DE LIV E R STR ONG P E R FOR MA NC E Lower Spraberry Shale Updated End Cumulative Production (MBOE)1 350 January Version 2.0 44 wells since mid-2015 300 10 wells in Q4 (8,600…
  12. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 12
    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 all wells) Q4 average well cost by interval: WC B 8.5 MM 9,500 1,089 1,088 WC A…
  13. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 13
    2017 SPRABERRY/WOLFCAMP DRILLING PROGRAM Expect to place 260 horizontal wells on Pioneers Spraberry/Wolfcamp Acreage Position and 2017 Drilling Areas production during 2017 (244 net POPs) Horizontal drilling program continuing to…
  14. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 14
    G A S P R O C E S S I N G A N D V E RT I C A L I N T E G R AT I O N S U P P O RT E X E C U T I O N Gas Processing Pioneers Water Distribution System 2017 spending expected to be 115 MM; includes 70 MM for gathering system…
  15. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 15
    SPRABERRY/WOLFCAMP PRODUCTION FORECAST Spraberry/Wolfcamp Net Production (MBOEPD)1 Q4 production: 188 MBOEPD (69% oil) 222 229 66 wells placed on production in Q4 2016 as expected (64 wells in northern area and 2 wells 171 in the…
  16. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 16
    PLANNING LIMITED 2017 EAGLE FORD SHALE DRILLING PROGRAM Plan to complete 20 wells in the Eagle Ford Shale Includes 9 DUCs that were drilled in late 2015/early 2016 and 11 Pioneers Eagle Ford Shale new wells that will be drilled and…
  17. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 17
    Q4 2016 EARNINGS SUMMARY Millions Per Diluted (After Tax) Share Net loss attributable to common stockholders (44) (0.26) Noncash mark-to-market (MTM) derivative losses (222 MM before tax) 142 0.83 Adjusted income excluding noncash…
  18. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 18
    PRICE REALIZATIONS Realized Prices 46.13 41.43 41.44 37.92 28.09 16.76 14.21 12.16 12.46 10.33 2.59 2.43 2.03 1.79 1.67 Q415 Q116 Q216 Q316 Q416 Q415 Q116 Q216 Q316 Q416 Q415 Q116 Q216 Q316 Q416 Oil (/BBL) NGL…
  19. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 19
    PRODUCTION COSTS (PER BOE) Q4 2016 compared to Q3 2016: LOE increase is primarily due to: 11.02 o Repair costs for mechanical issues at Workovers the Fain gas plant in the West 0.60 Production & 9.17 Ad Valorem 1.67 Panhandle…
  20. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 20
    LIQUIDITY POSITION Net debt at the end of Q4 2016 (reflects cash on hand, including liquid 0.2 B investments, of 3.0 B) Unsecured credit facility availability 1.5 B Net debt-to-book capitalization at the end of Q4 2% Maturities…
  21. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 21
    Q1 2017 GUIDANCE Guidance Daily Production (MBOEPD) 243 248 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) 15.50 17.50 G&A ( MM) 80…
  22. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 22
    SUPPLEMENTAL INFORMATION Supplemental Information Slides Slide Proved Reserves 24 Historic Production 25 Cash Margins by Asset 26 Completion Optimization Program 27 2016 Drilling Capital 28 Oil and Gas Revenue 29 Derivative…
  23. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 23
    PIONEERS YEAR-END 2016 PROVED RESERVES 1 Added 205 MMBOE from the drillbit, or 232% of full-year production, at a drillbit F&D cost of 9.59 per BOE2 Reflects successful Spraberry/Wolfcamp horizontal drilling program Year-end 2016…
  24. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 24
    PRODUCTION BY COMMODITY BY AREA Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Spraberry/Wolfcamp Oil (BOPD) 92,121 102,016 117,388 120,663 130,236 NGL (BOEPD) 24,701 24,802 27,829 34,631 31,637 Gas (MCFPD) 120,025 132,029 131,847 144,249…
  25. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 25
    CASH MARGINS BY ASSET Q4 2016 Cash Margin by Asset ( per BOE) Permian Permian Other Total Horizontals Verticals Eagle Ford Assets Company Realized price (ex-hedges) 37.70 35.01 26.31 19.44 33.84 Production costs 1 (1.96)…
  26. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 26
    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 Initial Larger Design Current Frac Design (2013 - 2014) (Mid…
  27. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 27
    2016 DRILLING AND COMPLETIONS CAPITAL 1 Millions 1,874 527 501 421 425 Q1 '16 Q2 '16 Q3 '16 Q4 '16 FY '16 1) Excludes acquisitions, asset retirement obligations, capitalized interest and geological and geophysical G&A…
  28. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 28
    OIL AND GAS REVENUE Millions 753 613 643 508 409 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 29
  29. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 29
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 2/3/17 Oil Q1 2017 Q2 2017 Q3 2017 Q4 2017 2018 Collars (BPD) 6,000 6,000 6,000 6,000 - NYMEX Short Call Price (/BBL) 70.40 70.40 70.40 70.40 - NYMEX Put Price (/BBL) 50.00 50.00 50.00 50.00…
  30. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 30
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 2/3/17 Ethane Q1 2017 Q2 2017 Q3 2017 Q4 2017 2018 Collars (BPD)1 3,000 3,000 3,000 3,000 - Mont Belvieu Call Price (/BBL) 11.83 11.83 11.83 11.83 - Mont Belvieu Put Price (/BBL) 8.68 8.68…
  31. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 31
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 2/3/17 Gas Q1 2017 Q2 2017 Q3 2017 Q4 2017 2018 Three Way Collars (MMBTUPD)1,2 190,000 190,000 190,000 190,000 62,300 NYMEX Call Price (/MMBTU) 3.51 3.51 3.51 3.51 3.56 NYMEX Put Price…
  32. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 32
    GENERAL AND ADMINISTRATIVE COSTS Millions 89 81 80 82 74 15 Noncash 15 17 16 14 Q4 Q1 Q2 Q3 Q4 2015 2016 2016 2016 2016 33
  33. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 33
    INTEREST COSTS Millions 55 56 5 5 50 48 46 2 4 1 Noncash Q4 Q1 Q2 Q3 Q4 2015 2016 2016 2016 2016 34
  34. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 34
    EXPLORATION & ABANDONMENTS ( Millions) Drilling, Acreage & Other Abandonments 1 Geological & Geophysical Seismic 3 Personnel & Other 19 4th Quarter Total 23 35
  35. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 35
    INCOME TAXES ATTRIBUTABLE TO CONTINUING OPERATIONS Quarter Ended December 31, 2016 ( Millions) Current tax benefit1 2 Deferred tax benefit2 39 Income tax benefit 41 1) Includes a 2 MM current tax benefit associated with…
  36. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 36
    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…
  37. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 37
    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…
  38. 4Q 2016 Earnings and 2017 Capital Program – Pioneer Natural Resources Co. – slide 38
    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…

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