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November 2017 Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Nov 7, 2017 · 40 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. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 1
    Investor Presentation NOVEMBER 2017
  2. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 2
    PIONEER AT A GLANCE Largest Midland Basin (Spraberry/Wolfcamp) Active Drilling Areas acreage position with decades of oil drilling inventory 800 M gross acres with 20 M drilling locations Raton Low cost with high returns Low…
  3. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 3
    2017 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…
  4. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 4
    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…
  5. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 5
    PIONEERS PRODUCTION GROWTH FORECAST Total Net Production 1+ MMBOEPD 269 271 MBOEPD 700 292 - 302 MBOPD 276 259 249 234 204 171 - 177 162 146 147 134 105 Oil (MBOPD) 2015 2016 Q1 Q2 Q3 Q4E 2026E 2017 6
  6. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 6
    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…
  7. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 7
    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…
  8. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 8
    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…
  9. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 9
    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…
  10. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 10
    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…
  11. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 11
    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…
  12. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 12
    SPRABERRY/WOLFCAMP PRODUCTION FORECAST Spraberry/Wolfcamp Net Production (MBOEPD)1 Q3 production: 231 MBOEPD 222 226 (+19 MBOEPD, or 9%, vs. Q2) 231 61 wells placed on production in Q3 213 o 49 wells in northern area and 12…
  13. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 13
    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…
  14. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 14
    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…
  15. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 15
    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…
  16. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 16
    APPENDIX 17
  17. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 17
    PIONEERS AREAS OF OPERATIONS Current Total Enterprise Value (B) 27 Q3 2017 Production (MBOEPD) 276 2016 Drillbit F&D (/BOE) 9.59 2016 Proved Developed F&D (/BOE) 9.11 2016 Reserve Replacement (%) 232% YE 2016 Proved Reserves (BBOE)…
  18. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 18
    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…
  19. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 19
    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)…
  20. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 20
    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…
  21. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 21
    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…
  22. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 22
    BENEFITS OF WATER REUSE VS. DISPOSAL Treatment & Blending SWD Existing Tank Battery Water Disposal Facility Tank Battery Water Reuse Storage Pond Produced Water Produced Water for Water Disposal Water Completion Pioneers…
  23. November 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. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 24
    EXPANDING OIL PIPELINE COMMITMENTS TO MEET EXPECTED SPRABERRY/WOLFCAMP VOLUME GROWTH Pioneer is currently delivering 100 MBOPD of Spraberry/Wolfcamp oil to the Gulf Coast under firm pipeline contracts Longer-term target is to move…
  25. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 25
    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…
  26. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 26
    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 Sale Ranch / PXD production throughput…
  27. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 27
    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…
  28. November 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. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 29
    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…
  30. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 30
    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…
  31. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 31
    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…
  32. November 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. November 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. November 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. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 35
    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…
  36. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 36
    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…
  37. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 37
    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…
  38. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 38
    PERMIAN BASIN CONTINUES TO GROW Permian Basin is the only continuously growing major U.S. oil shale since downturn began 3.0 Nov. 2014 OPEC Decision Permian 2.5 Basin Million Barrels Oil Per Day 2.0 1.5 Eagle Ford 1.0…
  39. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 39
    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 2.5 160 Permian Basin Tight Oil Production 140 Daily Oil…
  40. November 2017 Investor Presentation – Pioneer Natural Resources Co. – slide 40
    Horizontal Oil Rig Count Peak: 1,115 10/27/17: 630 +155% vs. bottom U.S. 10/27/17: 339 Peak: 349 +192% vs. bottom Bottom: 247 Permian Bottom: 116 Source: Baker Hughes 41

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