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Barclays CEO Power Conference – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Sep 6, 2017 · 43 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. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 1
    Barclays CEO Energy-Power Conference SEPTEMBER 6,2017
  2. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 2
    PIONEER AT A GLANCE Largest Spraberry/Wolfcamp acreage position Active Drilling Areas with decades of oil drilling inventory Low cost with high returns Low average royalty and acreage cost basis Raton 2017 capital program of 2.7…
  3. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 3
    2017 DRILLING UPDATE Operating 18 horizontal rigs in the Spraberry/Wolfcamp 14 rigs in northern area and 4 rigs in southern Wolfcamp JV area (60% WI) Expect to place 230 wells on production Utilizing Version 3.0 completions o…
  4. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 4
    CUR R E NT LY UTILIZ ING 4 - ST R ING C A SING DE SIG N ON 7 5 % OF P IONE E R S MIDLA ND BA SIN DR ILLING P R OG R A M 2017 Spraberry/Wolfcamp Average Drilling Times Casing Design (actuals through August) by Area 4-String 45 Days…
  5. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 5
    PRODUCTION GROWTH FORECAST Total Net Production (MBOEPD) Q3 and FY17 guidance ranges do not include potential impacts 269 271 from Hurricane Harvey 274 - 279 259 249 234 204 59% Oil 57% Oil 2015 2016 Q1 Q2 Q3 Q4 52%…
  6. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 6
    2017 SPRABERRY/WOLFCAMP DRILLING PROGRAM Operating 18 horizontal rigs in the Pioneers Spraberry/Wolfcamp Acreage Position and 2017 Drilling Areas Spraberry/Wolfcamp Version 3.0 completions are the standard design Northern Area…
  7. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 7
    E A R LY R E SU LT S FR OM V E R SIO N 3 .0 + C O M P LE T IO N S E NC O U R A G ING North University Area: LSS Updated Hutt Area: Wolfcamp B Updated 300 Mid-August Mid-August 300 Version 3.0+: 3 wells in Q2 Version 3.0+: 3 wells in…
  8. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 8
    JO MILL PERFORMANCE ENCOURAGING Jo Mill wells since Q4 2014 Updated Mid-August 225 Cumulative Production (MBOE)1 Jo Mill POP Locations 200 Remaining 2017 POPs 175 Q2 2017 POP: Pembrook 905H 150 9,500 avg. lateral 125 5…
  9. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 9
    SPRABERRY/WOLFCAMP PRODUCTION FORECAST Spraberry/Wolfcamp Net Production (MBOEPD)1 FY17 guidance range does not include potential impacts Q2 production: 213 MBOEPD from Hurricane Harvey 222 226 (+12 MBOEPD, or 6%, vs. Q1) 61…
  10. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 10
    LIMITED 2017 EAGLE FORD SHALE DRILLING PROGRAM UNDERWAY Completing 20 horizontal wells in the Eagle Ford Shale Includes 9 DUCs that are testing higher intensity completions and 11 new drills that are testing longer laterals with…
  11. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 11
    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…
  12. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 12
    PXD INVESTMENT HIGHLIGHTS U.S. asset base Largest Spraberry/Wolfcamp acreage position (800,000 gross acres) Low cost with high returns Low average royalty and acreage cost basis High oil exposure from substantial resource…
  13. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 13
    APPENDIX 14
  14. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 14
    PIONEERS AREAS OF OPERATIONS Current Total Enterprise Value (B) 23 Q2 2017 Production 57% Oil (MBOEPD) 259 2016 Drillbit F&D (/BOE) 9.59 2016 Proved Developed F&D (/BOE) 9.11 2016 Reserve Replacement (%) 232% YE 2016 Proved…
  15. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 15
    2017 CAPITAL PROGRAM 1 AND CASH FLOW 2017 capital program of 2.7 B Drilling and Completion Capital: 2.4 B 2017 Cash Flow Sensitivity to Forward Commodity Prices ( MM) 2.3 B Spraberry/Wolfcamp2 (95% of total) 5.00 o 1.8 B for…
  16. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 16
    LIQUIDITY POSITION Net debt at the end of Q2 2017 (reflects cash on hand, including liquid 0.3 B investments, of 2.4 B) Unsecured credit facility availability 1.5 B Net debt-to-book capitalization at the end of Q2 3% Maturities…
  17. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 17
    PRODUCTION BY COMMODITY BY AREA Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Spraberry/Wolfcamp Oil (BOPD) 117,388 120,663 130,236 134,522 137,307 NGL (BOEPD) 27,829 34,631 31,637 36,529 42,176 Gas (MCFPD) 131,847 144,249 154,836 178,586…
  18. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 18
    CASH MARGINS BY ASSET Q2 2017 Cash Margin by Asset ( per BOE) Permian Permian Other Total Horizontals Verticals Eagle Ford Assets Company Realized price (ex-hedges) 34.92 33.39 26.66 20.86 32.56 Production costs 1 (2.23)…
  19. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 19
    PRODUCTION COSTS (PER BOE) Q2 2017 compared to Q1 2017: 8.42 8.38 8.36 8.20 Workovers 7.85 0.59 LOE declined due to increasing 0.25 0.46 0.76 Production & 0.37 production attributable to lower cost Ad Valorem 1.70 1.78 2.11…
  20. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 20
    CASING DESIGN COMPARISON 3-String 4-String 13 3/8 Surface Casing 13 3/8 Surface Casing Water Disposal Zone 9 5/8 Intermediate Casing 9 5/8 Intermediate Casing (Higher Pressures) Clearfork - Spraberry (Lower Pressures) 7 5/8…
  21. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 21
    BENEFITS OF WATER REUSE VS. DISPOSAL Blender SWD Existing Tank Battery Water Disposal Facility Tank Battery Water Reuse Storage Pond Produced Water Produced Water for Water Disposal Water Completion Pioneers water…
  22. Barclays CEO Power Conference – 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. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 23
    EXPANDING OIL PIPELINE COMMITMENTS TO MEET EXPECTED SPRABERRY/WOLFCAMP VOLUME GROWTH Pioneer is currently delivering Cushing 60 MBOPD of Spraberry/Wolfcamp oil to the Gulf Coast under firm pipeline contracts Longer-term target is…
  24. Barclays CEO Power Conference – 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. Barclays CEO Power Conference – 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 Current capacity: 855 MMCFD1 Pipelines Martin County / o Includes Q1 Benedum…
  26. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 26
    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…
  27. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 27
    H I G H E R G O R s O N P D P W E L L S I N C R E A S I N G S P R A B E R RY / W O L F C A M P G A S V O L U M E S W I T H N O D E G R A D AT I O N TO O I L P R O D U C T I O N Observing higher GORs than forecasted on horizontal PDP…
  28. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 28
    G R A D U A L LY I N C R E A S I N G G O R s O V E R T H E L I F E O F A W E L L H AV E B E E N O B S E RV E D I N T H E S P R A B E R RY / W O L F C A M P F O R D E C A D E S Normal for reservoirs driven by solution gas to experience…
  29. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 29
    GOR AND OIL CONTENT HISTORY ON PIONEERS EARLY HORIZONTAL WELLS Avg. Avg. June Avg. Avg. June Cumulative 2017 GOR Cumulative 2017 Oil % GOR (MCF/BBL) Oil % (MCF/BBL) 7 Initial Horizontal Wells in Upton & Reagan Counties 3,841…
  30. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 30
    GORs AND OIL PRODUCTION PERFORMANCE ON PIONEERS EARLY HORIZONTAL WELLS 7 Initial Horizontal Wells in 7 Initial Horizontal Wells in Upton & Reagan Counties Midland & Martin Counties 10,000 10,000 Oil Production 1,000 1,000 Oil…
  31. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 31
    DE FE R R ING 3 0 SP R A BE R RY/ WOLFC AMP C OMP LE T IONS IN 2 0 1 7 TO MA INTA IN E FFIC IE NT OP E R AT IONS 2017 plan assumed 260 horizontal wells would be POPd during the year, heavily weighted to 2H (150 wells in 2H) Due to…
  32. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 32
    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…
  33. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 33
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 9/1/17 Oil Q3 2017 Q4 2017 2018 Collars (BPD) 6,000 6,000 - NYMEX Short Call Price (/BBL) 70.40 70.40 - NYMEX Put Price (/BBL) 50.00 50.00 - Three Way Collars (BPD)1 147,000 155,000…
  34. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 34
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 9/1/17 Ethane Q3 2017 Q4 2017 2018 Collars (BPD)1 3,000 3,000 - Mont Belvieu Call Price (/BBL) 11.83 11.83 - Mont Belvieu Put Price (/BBL) 8.68 8.68 - Frac Spread (BPD) 2 2,500 2,500…
  35. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 35
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 9/1/17 Gas Q3 2017 Q4 2017 2018 Three Way Collars (MMBTUPD)1,2 290,000 300,000 62,329 NYMEX Call Price (/MMBTU) 3.57 3.60 3.56 NYMEX Put Price (/MMBTU) 2.95 2.96 2.91 NYMEX Short Put Price…
  36. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 36
    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…
  37. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 37
    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…
  38. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 38
    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…
  39. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 39
    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…
  40. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 40
    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…
  41. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 41
    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…
  42. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 42
    IMPACT OF HORIZONTAL TECHNOLOGY IN THE MIDLAND BASIN Midland Basin Spraberry/Wolfcamp Production Spraberry/Wolfcamp production has increased 1,200,000 BOEPD since 2009 From 2009 to 2012, production growth primarily…
  43. Barclays CEO Power Conference – Pioneer Natural Resources Co. – slide 43
    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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