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May 2017 Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · May 19, 2017 · 51 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. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 1
    Investor Presentation MAY 2017
  2. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 2
    PIONEER AT A GLANCE 30 B 2.8 B 15% - 18% Active Drilling Areas Current 2017 Planned Forecasted Enterprise Capex1 2017 Value 2.4 B Permian Production Growth Raton West Panhandle Gas Spraberry/Wolfcamp Dallas Headquarters…
  3. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 3
    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…
  4. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 4
    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…
  5. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 5
    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…
  6. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 6
    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…
  7. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 7
    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…
  8. May 2017 Investor Presentation – 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. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 9
    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…
  10. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 10
    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…
  11. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 11
    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…
  12. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 12
    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…
  13. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 13
    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…
  14. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 14
    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…
  15. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 15
    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…
  16. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 16
    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…
  17. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 17
    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…
  18. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 18
    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…
  19. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 19
    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…
  20. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 20
    APPENDIX 21
  21. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 21
    PIONEERS AREAS OF OPERATIONS Current Total Enterprise Value (B) 30 Q1 2017 Production 59% Oil (MBOEPD) 249 2016 Drillbit F&D (/BOE) 9.59 2016 Proved Developed F&D (/BOE) 9.11 2016 Reserve Replacement (%) 232% YE 2016 Proved…
  22. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 22
    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…
  23. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 23
    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 2017 spending expected to be 115 MM; includes 70 MM for gathering system compression and new connections and 45 MM…
  24. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 24
    CRUDE PIPELINE CAPACITY TO GULF COAST Major Permian Crude Pipeline Takeaway Operator Origin Destination Pipeline Capacity (BOPD) Plains Permian Cushing Basin 450,000 Cushing Oxy Permian Cushing Centurion 75,000 Sunoco Permian GC…
  25. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 25
    SPRABERRY/WOLFCAMP MIDSTREAM INFRASTRUCTURE Gas Processing Pipeline NGL Takeaway Targa System to Mont Belvieu PXD has 27% interest Chaparral & West Texas Pipelines Current capacity: 855 MMCFD1 Martin County / PXD production…
  26. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 26
    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)…
  27. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 27
    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…
  28. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 28
    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…
  29. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 29
    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…
  30. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 30
    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…
  31. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 31
    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…
  32. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 32
    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…
  33. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 33
    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…
  34. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 34
    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…
  35. May 2017 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. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 36
    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 1.8 160 Permian Basin Tight 1.6 Oil Production 140 Daily Oil…
  37. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 37
    PERMIAN BASIN ONLY GROWING OIL SHALE PLAY Permian Basin is the only growing major U.S. oil shale since downturn began 2.5 Nov. 2014 Permian OPEC Decision Basin 2.0 Million Barrels Oil Per Day 1.5 Eagle Ford 1.0 Bakken…
  38. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 38
    PERMIAN HORIZONTAL RIG COUNT 400 Peak: 349 350 April 17: 291 300 +150% vs bottom 250 200 150 100 Bottom: 116 50 0 Feb-11Aug-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17…
  39. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 39
    DRILLING RIG ADDITIONS DIRECTED TO PERMIAN Basin Rig Count Permian Basin 180 Delaware 160 Midland 140 120 100 Eagle Ford 80 Cana 60 Woodford 40 Williston 20 0 Source: Baker Hughes rig count data as of 4/28/2017 40
  40. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 40
    PERMIAN BASIN: INCREASING RIG COUNT MARKET SHARE % U.S. Horizontal Oil Rigs By Basin 100% Williston 90% 80% 70% Permian Basin 50% 60% 15% 50% Other 40% 30% 20% Eagle Ford 10% Woodford 0% Feb/11 Feb/12 Feb/13 Feb/14…
  41. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 41
    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…
  42. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 42
    WELL PRODUCTIVITY AND COSTS CONTINUE TO IMPROVE 50% Permian Well Well Productivity1 Productivity1 Well Productivity Drivers 40% Increased water volumes Change in 30% Increased sand volumes Reduced cluster spacing 20%…
  43. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 43
    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 2 MMBOPD 2…
  44. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 44
    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…
  45. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 45
    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…
  46. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 46
    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…
  47. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 47
    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…
  48. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 48
    MIDLAND BASIN PERFORMANCE: PXD - LEADER OF REPEATABLE SUCCESS 220 200 Pioneer Highlights Pioneers: 180 Core acreage position 160 Contiguous leasehold that allows for longer 140 laterals Well Count Scale of operations…
  49. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 49
    IMPACT OF HORIZONTAL TECHNOLOGY IN THE MIDLAND BASIN 1,300,000 Midland Basin Spraberry/Wolfcamp Production 1,200,000 1,100,000 1,000,000 Spraberry/Wolfcamp production has 900,000 increased 1,000,000 BOEPD since 2009…
  50. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 50
    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…
  51. May 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 51
    RESERVES AUDIT, F&D COSTS AND RESERVE REPLACEMENT An audit of proved reserves follows the general principles set forth in the standards pertaining to the estimating and auditing of oil and gas reserve information promulgated by the…

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