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Q1 2017 Earnings – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · May 4, 2017 · 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. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 1
    Q1 2017 Earnings MAY 4,2017
  2. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 2
    FINANCIAL AND OPERATING HIGHLIGHTS Q1 2017 adjusted income: 42 MM, or 0.25 per diluted share1 Q1 2017 production: 249 MBOEPD (59% oil) Above top end of Pioneers guidance range of 243 MBOEPD to 248 MBOEPD Increase of 7 MBOEPD, or 3%,…
  3. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 3
    FINANCIAL AND OPERATING HIGHLIGHTS (CONT.) High-graded Permian acreage position by closing the sales of 5,600 net acres in Upton and Andrews counties for 63 MM in Q1 and 20,500 net acres in northeastern Martin County for 266 MM in…
  4. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 4
    2017 UPDATE Operating 18 horizontal rigs in the Spraberry/Wolfcamp in 2017 14 rigs in the northern area 4 rigs in the southern Wolfcamp JV area, with activity focused in the northern portion of the JV area (60% WI) Version 3.0…
  5. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 5
    2017 UPDATE (CONT.) Reducing the forecasted 2017 oil content from 62% of total production to 60% due to: the loss of 1,500 BOEPD (80% oil) from the Martin County acreage sale 1,000 BPD of light condensate (oil) production in the West…
  6. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 6
    2017 CAPITAL PROGRAM 1 AND CASH FLOW 2017 capital program remains at 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…
  7. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 7
    PRODUCTION GROWTH FORECAST Total Net Production (MBOEPD) 1 MMBOEPD 269 - 276 254 - 259 249 234 204 59% Oil 2015 2016 Q1 Q2 Q3 Q4 2026E 2 52% Oil 57% Oil 70% Oil 2017E2 60% Oil1 1) FY 2017 oil percentage being…
  8. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 8
    HISTORY OF TECHNOLOGY LEADERSHIP Examples of existing technologies: 3-D seismic attribute volumes Geosteering Oil, gas and water chemistry 3-D seismic attribute volumes Microseismic Multiple mobile applications Sliding sleeve…
  9. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 9
    INNOVATION WILL BE A KEY CONTRIBUTOR TO ACHIEVING PIONEERS 10 -YEAR VISION New technology initiatives are focused on 4-D fracture propagation modeling improving productivity Machine learning and artificial intelligence Predictive…
  10. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 10
    V E R SIO N 3 .0 C OMP LE T IO N S OUT P E R FOR MING V E R SION 2 .0 C OM P LE T IONS IN SP R A B E R RY /WO LFC AMP Northern and Southern JV Areas - Wolfcamp B Updated Northern Area - Wolfcamp A Updated 400 End April End April 400…
  11. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 11
    JO MILL PERFORMANCE ENCOURAGING Jo Mill wells since Q4 2014 Updated End April 250 Cumulative Production (MBOE)1 TX Ten Y 19H; 4,900 lateral 2017 POPs Sale Ranch 28E 5H; 200 6,900 lateral POPs since Q4 2014 Most recent POP…
  12. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 12
    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…
  13. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 13
    MEETING LONG-TERM WATER REQUIREMENTS Water Handling Facilities Near Midland Pioneers demand for water to support its fracture stimulation operations in the Permian Basin has more than doubled from 150 MBPD in 2014 to 350 MBPD in…
  14. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 14
    PIONEERS WATER DISTRIBUTION SYSTEM 300 MM spent through 2016 for partial completion Pioneers Water Distribution System of 100-mile mainline, Odessa effluent water tie-in (120 MBPD), subsystems/frac ponds and water well sources near…
  15. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 15
    SPRABERRY/WOLFCAMP PRODUCTION FORECAST Spraberry/Wolfcamp Net Production (MBOEPD)1 Q1 production: 201 MBOEPD 222 229 (+13 MBOEPD, or 7%, vs. Q4 2016) Q1 oil production was in line with expectations while gas and NGL production was…
  16. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 16
    LIMITED 2017 EAGLE FORD SHALE DRILLING PROGRAM UNDERWAY Operating 2 horizontal rigs and commenced completions of DUCs in the Eagle Ford Shale in April Pioneers Eagle Ford Shale Includes 11 new wells that will be drilled and…
  17. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 17
    Q1 2017 EARNINGS SUMMARY Millions Per Diluted (After Tax) Share Net loss attributable to common stockholders (42) (0.25) Noncash mark-to-market (MTM) derivative gains (141 MM before tax) (90) (0.53) Adjusted loss excluding noncash MTM…
  18. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 18
    PRICE REALIZATIONS Realized Prices 49.05 46.13 41.43 41.44 28.09 19.33 16.76 14.21 12.46 10.33 2.59 2.79 2.43 1.79 1.67 Q116 Q216 Q316 Q416 Q1'17 Q116 Q216 Q316 Q416 Q1'17 Q116 Q216 Q316 Q416 Q1'17 Oil (/BBL)…
  19. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 19
    PRODUCTION COSTS (PER BOE) 9.17 Q1 2017 compared to Q4 2016: Workovers 8.36 8.20 8.42 0.28 7.85 Production costs (excluding taxes) Production & 0.59 Ad Valorem 1.46 0.25 0.46 Taxes 0.37 declined to 6.31 per BOE in Q1 2017 1.70…
  20. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 20
    LIQUIDITY POSITION Net debt at the end of Q1 2017 (reflects cash on hand, including liquid 0.4 B investments, of 2.4 B) Reflects repayment of March debt maturity of 485 MM from cash on hand Unsecured credit facility availability…
  21. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 21
    Q2 2017 GUIDANCE Guidance Daily Production (MBOEPD) 254 259 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) 15.00 17.00 G&A ( MM) 80…
  22. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 22
    SUPPLEMENTAL INFORMATION Supplemental Information Slides Slide Historic Production 24 Cash Margins by Asset 25 2017 Drilling Capital 26 Oil and Gas Revenue 27 Derivative Positions 28 - 30 General & Administrative Costs 31 Interest…
  23. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 23
    PRODUCTION BY COMMODITY BY AREA Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Spraberry/Wolfcamp Oil (BOPD) 102,016 117,388 120,663 130,236 134,522 NGL (BOEPD) 24,802 27,829 34,631 31,637 36,5291 Gas (MCFPD) 132,029 131,847 144,249 154,836…
  24. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 24
    CASH MARGINS BY ASSET Q1 2017 Cash Margin by Asset ( per BOE) Permian Permian Other Total Horizontals Verticals Eagle Ford Assets Company Realized price (ex-hedges) 39.25 37.18 28.79 22.13 36.14 Production costs 1 (2.33)…
  25. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 25
    2017 DRILLING AND COMPLETIONS CAPITAL 1 Millions 2,500 524 Q1 '17 FY '17 1) Excludes acquisitions, asset retirement obligations, capitalized interest and geological and geophysical G&A expenditures 26
  26. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 26
    OIL AND GAS REVENUE Millions 809 753 613 643 409 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 27
  27. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 27
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 5/1/17 Oil Q2 2017 Q3 2017 Q4 2017 2018 Collars (BPD) 6,000 6,000 6,000 - NYMEX Short Call Price (/BBL) 70.40 70.40 70.40 - NYMEX Put Price (/BBL) 50.00 50.00 50.00 - Three Way Collars…
  28. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 28
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 5/1/17 Ethane Q2 2017 Q3 2017 Q4 2017 2018 Collars (BPD)1 3,000 3,000 3,000 - Mont Belvieu Call Price (/BBL) 11.83 11.83 11.83 - Mont Belvieu Put Price (/BBL) 8.68 8.68 8.68 - Frac Spread…
  29. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 29
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 5/1/17 Gas Q2 2017 Q3 2017 Q4 2017 2018 Three Way Collars (MMBTUPD)1,2 270,000 290,000 300,000 62,329 NYMEX Call Price (/MMBTU) 3.56 3.57 3.60 3.56 NYMEX Put Price (/MMBTU) 2.95 2.95 2.96…
  30. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 30
    GENERAL AND ADMINISTRATIVE COSTS Millions 89 82 84 80 74 15 16 15 Noncash 17 14 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 31
  31. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 31
    INTEREST COSTS Millions 55 56 5 5 50 2 46 46 1 1 Noncash Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2016 2017 32
  32. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 32
    EXPLORATION & ABANDONMENTS ( Millions) Drilling, Acreage & Other Abandonments 10 Geological & Geophysical Seismic 6 Personnel & Other 17 1st Quarter Total 33 33
  33. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 33
    INCOME TAXES ATTRIBUTABLE TO CONTINUING OPERATIONS Quarter Ended March 31, 2017 ( Millions) Current tax benefit Deferred tax benefit 31 Income tax benefit 31 34
  34. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 34
    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…
  35. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 35
    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…
  36. Q1 2017 Earnings – Pioneer Natural Resources Co. – slide 36
    SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES Adjusted loss excluding noncash MTM derivative gains and adjusted income excluding noncash MTM derivative gains and unusual items, as presented in the Financial and Operating Highlights slide and…

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