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Q3 2017 Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Nov 2, 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. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 1
    Q3 2017 Earnings NOVEMBER 2,2017
  2. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 2
    HIGHLIGHTS Q3 2017 adjusted income: 80 MM, or 0.48 per diluted share1 Q3 2017 production: 276 MBOEPD Increase of 17 MBOEPD, or 6%, from Q2 Q3 production was negatively impacted by 3,500 BOEPD due to Hurricane Harvey and unplanned…
  3. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 3
    HIGHLIGHTS (CONT.) Added 2018 derivatives for 59 MBOPD of oil and 83 MMCFPD of gas 2018 derivative positions now cover 80% of forecasted oil production and 35% of forecasted gas production Strong quarter-end balance sheet with 2.1 B…
  4. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 4
    DRILLING AND OPERATING UPDATE Spraberry/Wolfcamp Recently added 2 rigs to improve operational flexibility by increasing the DUC inventory Once an adequate DUC inventory is built in 2H 2018, the 2 rigs will be used to achieve…
  5. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 5
    DRILLING AND OPERATING UPDATE (CONT.) Eagle Ford Shale Completing 20 wells (9 DUCs and 11 new drills; 46% WI) Objective of the program is to test longer laterals, wider spacing and higher intensity completions IRRs expected to range…
  6. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 6
    2017 CAPITAL PROGRAM 1 AND CASH FLOW 2017 capital program of 2.75 B Drilling and Completion Capital: 2.475 B 2017 Cash Flow Sensitivity to Forward Commodity Prices ( MM) 2.35 B Spraberry/Wolfcamp2 (95% of total) 5.00 o 1.86 B for…
  7. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 7
    PRODUCTION GROWTH FORECAST Total Net Production 1+ MMBOEPD Q3 negatively impacted by 3,500 269 271 MBOEPD BOEPD due to Hurricane Harvey and 700 unplanned 3rd party processing MBOPD downtime at West Panhandle 292 - 302 276 259…
  8. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 8
    OIL BREAKEVENS BY SHALE PLAY IN NORTH AMERICA 50 Breakeven Oil Price (/BBL) 40 30 20 10 - Midland Basin considered the top oil shale play in North America with a breakeven oil price of 24/BBL Source: Citi Research…
  9. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 9
    NORT H A ME R ICA N SHA LE P LAY OIL BR E A K E VE NS BY C OMPA NY 50 Breakeven Oil Price (/BBL) 40 30 20 10 - Pioneers world-class Midland Basin acreage position delivers industry leading breakeven oil price…
  10. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 10
    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 low cost with…
  11. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 11
    2017 SPRABERRY/WOLFCAMP DRILLING PROGRAM Operating 20 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…
  12. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 12
    E A R LY R E SU LT S FR OM 1 2 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 End October End October Version 3.0+: 3 wells in Q2 Version 3.0+: 3 wells in…
  13. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 13
    JO MILL PERFORMANCE ENCOURAGING Jo Mill wells since Q4 2014 Updated End October Cumulative Production (MBOE)1 Jo Mill POP Locations 4 POPs during Q2 2017: 8,250 avg. lateral length Q3 Jo Mill POPs 5 POPs between Q4 2014 and…
  14. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 14
    SPRABERRY/WOLFCAMP PRODUCTION FORECAST Spraberry/Wolfcamp Net Production (MBOEPD)1 Q3 negatively impacted Q3 production: 231 MBOEPD by 1,300 BOEPD due to 222 226 Hurricane Harvey (+19 MBOEPD, or 9%, vs. Q2) 231 61 wells placed on…
  15. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 15
    2017 EAGLE FORD SHALE DRILLING PROGRAM Completing 20 horizontal wells in the Eagle Pioneers Eagle Ford Shale Ford Shale Includes 9 DUCs that are testing higher intensity completions and 11 new drills that are testing longer…
  16. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 16
    EAGLE FORD WELL PERFORMANCE TO DATE Pioneers Eagle Ford Shale Updated 2017 New Drills: 2 wells in Q3 End October 6,800 avg. lateral length 550 avg. well spacing Completion: 40 bbls/ft, 2,000 lbs/ft Q4 POPs 2017 DUCs: 9 wells in…
  17. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 17
    Q3 2017 EARNINGS SUMMARY Millions Per Diluted (After Tax) Share Net loss attributable to common stockholders (23) (0.13) Noncash mark-to-market (MTM) derivative losses (161 MM before tax) 103 0.61 Adjusted income excluding noncash MTM…
  18. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 18
    PRICE REALIZATIONS Realized Prices 49.05 46.13 45.00 45.35 41.44 19.33 18.96 16.76 16.91 12.46 2.59 2.79 2.62 2.58 2.43 Q316 Q416 Q1'17 Q2'17 Q3'17 Q316 Q416 Q1'17 Q2'17 Q3'17 Q316 Q416 Q1'17 Q2'17 Q3'17 Oil (/BBL)…
  19. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 19
    PRODUCTION COSTS (PER BOE) Q3 2017 compared to Q2 2017: 8.42 8.38 8.11 8.20 7.85 0.59 LOE declined due to increasing Workovers 0.46 0.76 1.02 0.37 production attributable to lower cost Production & 1.78 2.11 Ad Valorem 1.43…
  20. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 20
    LIQUIDITY POSITION Net debt at the end of Q3 2017 (reflects cash on hand, including liquid 0.6 B investments, of 2.1 B) Unsecured credit facility availability 1.5 B Net debt-to-book capitalization at the end of Q3 5% Maturities…
  21. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 21
    Q4 2017 GUIDANCE Guidance Daily Production (MBOEPD) 292 302 Production Costs (/BOE) 7.50 9.50 Exploration & Abandonment ( MM) 20 30 Drilling and Acreage 5 - 10 Personnel and Seismic 15 - 20 DD&A (/BOE) 13.50 15.50 G&A ( MM) 80…
  22. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 22
    SUPPLEMENTAL INFORMATION Supplemental Information Slides Slide Production History 24 Cash Margins by Asset 25 2017 Drilling and Completions Capital 26 Oil and Gas Revenue 27 Derivative Positions 28 - 30 General & Administrative…
  23. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 23
    PRODUCTION BY COMMODITY BY AREA Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Spraberry/Wolfcamp Oil (BOPD) 120,663 130,236 134,522 137,307 152,261 NGL (BOEPD) 34,631 31,637 36,529 42,176 47,678 Gas (MCFPD) 144,249 154,836 178,586 198,514…
  24. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 24
    CASH MARGINS BY ASSET Q3 2017 Cash Margin by Asset ( per BOE) Permian Permian Other Total Horizontals Verticals Eagle Ford Assets Company Realized price (ex-hedges) 36.05 34.14 27.51 19.76 33.72 Production costs1 (1.85) (18.08)…
  25. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 25
    2017 DRILLING AND COMPLETIONS CAPITAL 1 Millions 2,475 644 646 661 524 Q1 '17 Q2 '17 Q3 '17 Q4 '17E FY '17E 1) Excludes acquisitions, asset retirement obligations, capitalized interest and geological and geophysical G&A…
  26. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 26
    OIL AND GAS REVENUE Millions 855 809 753 768 643 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 27
  27. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 27
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 10/31/17 Oil Q4 2017 2018 Collars (BPD) 6,000 3,000 NYMEX Short Call Price (/BBL) 70.40 58.05 NYMEX Put Price (/BBL) 50.00 45.00 Three Way Collars (BPD)1 155,000 152,781 NYMEX Call…
  28. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 28
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 10/31/17 Ethane Q4 2017 2018 2019 Collars (BPD)1 3,000 - - Mont Belvieu Call Price (/BBL) 11.83 - - Mont Belvieu Put Price (/BBL) 8.68 - - Frac Spread (BPD) 2 2,500 2,500 2,500 MMBTUPD…
  29. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 29
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 10/31/17 Gas Q4 2017 2018 2019 Swaps (MMBTUPD) 1 - 82,740 - NYMEX Price (/MMBTU) - 3.03 - - Three Way Collars (MMBTUPD)1,2 300,000 62,329 NYMEX Call Price (/MMBTU) 3.60 3.56 - NYMEX Put…
  30. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 30
    GENERAL AND ADMINISTRATIVE COSTS Millions 89 82 84 81 81 15 16 15 14 11 Noncash Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017 31
  31. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 31
    INTEREST COSTS Millions 50 2 46 46 1 1 35 37 1 Noncash 1 Q3 Q4 Q1 Q2 Q3 2016 2016 2017 2017 2017 32
  32. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 32
    EXPLORATION & ABANDONMENTS ( Millions) Drilling, Acreage & Other Abandonments - Geological & Geophysical Seismic 3 Personnel & Other 15 3rd Quarter Total 18 33
  33. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 33
    INCOME TAXES ATTRIBUTABLE TO CONTINUING OPERATIONS Quarter Ended September 30, 2017 ( Millions) Current tax benefit - Deferred tax benefit 11 Income tax benefit 11 34
  34. Q3 2017 Presentation – 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. Q3 2017 Presentation – 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. Q3 2017 Presentation – Pioneer Natural Resources Co. – slide 36
    SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES Adjusted income excluding noncash MTM derivative losses, as presented in the Financial and Operating Highlights slide and in the Q3 2017 Earnings Summary slide, is presented and reconciled to…

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