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June 2017 Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Jun 15, 2017 · 50 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. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 1
    Investor Presentation JUNE 2017
  2. June 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. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 3
    2017 UPDATE Operating 18 horizontal rigs in the Spraberry/Wolfcamp in 2017 14 rigs in northern area and 4 rigs in southern Wolfcamp JV area (60% WI) Utilizing Version 3.0 completions o Planning to test larger completions during…
  4. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 4
    2017 UPDATE (CONT.) 2017 capital program remains at 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 to…
  5. June 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. June 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 1 52% Oil 57% Oil 70% Oil 2017E1 60% Oil 1) Assumes ethane rejection…
  7. June 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. June 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. June 2017 Investor Presentation – 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. June 2017 Investor Presentation – 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. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 11
    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…
  12. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 12
    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…
  13. June 2017 Investor Presentation – 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. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 14
    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…
  15. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 15
    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…
  16. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 16
    SPRABERRY/WOLFCAMP PRODUCTION FORECAST Spraberry/Wolfcamp Net Production (MBOEPD)1 Q1 production: 201 MBOEPD 222 229 (+13 MBOEPD, or 7%, vs. Q4 2016) 38 wells placed on production in Q1 2017 201 (37 wells in northern area and 1…
  17. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 17
    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…
  18. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 18
    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…
  19. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 19
    APPENDIX 20
  20. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 20
    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…
  21. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 21
    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…
  22. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 22
    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…
  23. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 23
    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…
  24. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 24
    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…
  25. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 25
    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)…
  26. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 26
    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…
  27. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 27
    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…
  28. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 28
    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…
  29. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 29
    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…
  30. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 30
    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…
  31. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 31
    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…
  32. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 32
    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…
  33. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 33
    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…
  34. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 34
    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…
  35. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 35
    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…
  36. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 36
    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…
  37. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 37
    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…
  38. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 38
    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 39
  39. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 39
    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…
  40. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 40
    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…
  41. June 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 41
    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…
  42. June 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. June 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…
  44. June 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. June 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. June 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. June 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. June 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. June 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. June 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…

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