Q4 2017 Earnings and 2018 Capital Program FEBRUARY 7, 2018
FINANCIAL AND OPERATING HIGHLIGHTS Q4 2017 adjusted income: 209 MM, or 1.22 per diluted share1 Q4 2017 production: 305 MBOEPD Above top end of guidance range of 292 MBOEPD to 302 MBOEPD Increase of 29 MBOEPD, or 11%, vs. Q3 2017…
FINANCIAL AND OPERATING HIGHLIGHTS (CONT.) Strong year-end balance sheet with 2.2 B of cash on hand1 Net debt to 2017 operating cash flow of 0.3x and net debt-to-book capitalization of 5% Placed 64 horizontal wells on production in…
2018 PLAN AND CAPITAL PROGRAM Plan to divest Eagle Ford, South Texas, Raton and West Panhandle assets during 2018, making Pioneer a Permian Basin pure play Data rooms expected to open later in Q1 After the divestitures are…
2018 PLAN AND CAPITAL PROGRAM (CONT.) The 2018 drilling program is expected to deliver Permian Basin oil production growth ranging from 19% to 24% compared to 2017 Total BOE production is forecasted to grow by 19% to 24% compared to…
2018 PLAN AND CAPITAL PROGRAM (CONT.) Expect to repay May 2018 debt maturity of 450 MM from cash on hand Net debt to 2018 operating cash flow forecasted to remain below 0.5x Based on Pioneers strong balance sheet, expected proceeds…
1 0 - Y E A R P L A N : S I G N I F I C A N T LY I M P R O V I N G F I N A N C I A L M E T R I C S 1 , 2 , 3 Cash Flow (B) Cash Flow Breakeven Oil Price 11 58 50 40 2.8 2018 2019 2020 2021 2022 2023 2024 2025 2026 2018…
2018 CAPITAL PROGRAM 1 AND CASH FLOW 2018 capital program of 2.9 B Drilling and Completion Capital: 2.65 B 2018 Cash Flow Sensitivity to 2.63 B Permian Basin (99% of total) Forward Commodity Prices ( MM) (Permian Basin) o 2.05 B…
PERMIAN BASIN PRODUCTION GROWTH FORECAST Permian Basin Net Production 1 MMBOEPD Prolonged freezing temperatures in 176 184 MBOPD early January resulted in production 266 278 MBOEPD 700 losses of 6 MBOEPD for Q1 (includes impact of…
E A R LY R E S U LT S F R O M 1 5 V E R S I O N 3 . 0 + C O M P L E T I O N S ENCOURAGING ( E X C L U D E S 5 W E L L S T H AT P O P D I N D E C E M B E R A N D A R E S T I L L C L E A N I N G U P ) North University Area: LSS Updated…
JO MILL PERFORMANCE ENCOURAGING Updated Jo Mill wells since Q3 2014 Early February 250 Jo Mill POP Locations Cumulative Production (MBOE)1 4 POPs during Q2 2017: 225 8,250 avg. lateral length Q4 Jo Mill POPs 2 POPs during Q3…
LATEST WOLFCAMP D WELL PERFORMANCE IMPRESSIVE Wolfcamp D Wells Updated Early February Q4 Wolfcamp D POP Location 200 Cumulative Production (MBOE)1 Shackelford well 175 9,700 lateral length 33 POPs between 2013 and 2015: 7,900…
UNLOCKING ACREAGE VALUE Midland Basin 2018 Appraisal Activity Prospective Horizontal Intervals Clearfork 1 Appraisal in 2018 Middle Spraberry Shale Jo Mill 19 Appraisals in 2018 Lower Spraberry Shale Wolfcamp A Full…
2018 PERMIAN BASIN DRILLING PROGRAM Operating 20 horizontal rigs in the Permian Pioneers Acreage Position and 2018 Drilling Areas Basin Testing 45 wells in 1H with Version 3.0+ completions Northern Area Remaining wells for 2018…
C O N T I N U I N G TO B U I L D O U T P E R M I A N B A S I N I N F R A S T R U C T U R E A N D V E RT I C A L I N T E G R AT I O N Tank Battery/Saltwater Disposal (SWD) Facilities/Below-Grade Cellars Tank Battery/SWD Expect to…
I N C R E A S I N G O I L TA K E AWAY TO T H E G U L F C O A S T A N D E X P O RT C A PA B I L I T Y P R O V I D E S L L S A N D B R E N T - R E L AT E D P R I C I N G Sales Volumes to Gulf Coast (MBOPD)1 115 Gulf Coast Midland 89…
Q4 2017 EARNINGS SUMMARY Millions Per Diluted (After Tax) Share Net income attributable to common stockholders 665 3.87 Noncash mark-to-market (MTM) derivative losses (265 MM before tax) 169 0.99 Adjusted income excluding noncash MTM…
PRODUCTION COSTS (PER BOE) Q4 2017 compared to Q3 2017: 8.42 8.38 8.20 8.11 Workovers 0.59 7.60 LOE declined due to increasing 0.46 0.76 1.02 Production & 0.78 production attributable to lower cost Ad Valorem 1.78 2.11 Taxes…
LIQUIDITY POSITION Net debt at the end of Q4 2017 (reflects cash on hand, including liquid 0.6 B investments, of 2.2 B) Unsecured credit facility availability 1.5 B Net debt-to-book capitalization at the end of Q4 5% Expected to…
Q1 2018 GUIDANCE Guidance Daily Production (MBOEPD) Total Corporate 304 314 Permian Basin 252 - 260 Production Costs (/BOE) 7.00 9.00 Exploration & Abandonment ( MM) 20 30 Drilling and Acreage 5 - 10 Personnel and Seismic 15 -…
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PIONEERS YEAR-END 2017 PROVED RESERVES 1 Added 314 MMBOE from the drillbit, or 309% of full-year production, at a drillbit F&D cost of 8.46 per BOE2 Reflects successful Permian Basin and Eagle Ford horizontal drilling program Permian…
CASH MARGINS BY ASSET Q4 2017 Cash Margin by Asset ( per BOE) Permian Permian Other Total Horizontals Verticals Eagle Ford Assets Company Realized price (ex-hedges) 41.27 39.81 31.86 23.46 38.68 Production costs1 (1.87) (16.02)…
OPEN COMMODITY DERIVATIVE POSITIONS AS OF 2/5/18 Oil Q1 2018 Q2 2018 Q3 2018 Q4 2018 2019 Collars (BPD) 3,000 3,000 3,000 3,000 - NYMEX Short Call Price (/BBL) 58.05 58.05 58.05 58.05 - NYMEX Put Price (/BBL) 45.00 45.00 45.00…
OPEN COMMODITY DERIVATIVE POSITIONS AS OF 2/5/18 Ethane Q1 2018 Q2 2018 Q3 2018 Q4 2018 2019 Frac Spread (BPD) 1 2,500 2,500 2,500 2,500 2,500 MMBTUPD Equivalent 6,920 6,920 6,920 6,920 6,920 Price differential to NYMEX (/MMBTU)…
OPEN COMMODITY DERIVATIVE POSITIONS AS OF 2/5/18 Gas Q1 2018 Q2 2018 Q3 2018 Q4 2018 2019 Swaps (MMBTUPD) 1 61,111 100,000 100,000 100,000 - NYMEX Price (/MMBTU) 3.41 3.00 3.00 3.00 - Three Way Collars (MMBTUPD)1,2 100,000 50,000…
2017 DRILLING AND COMPLETIONS CAPITAL 1 Millions 2,611 100 MM above budget primarily due to: Drilling South Texas Wilcox and West Panhandle Granite Wash wells in preparation for asset sales Higher proppant, gel and water usage in…
OIL AND GAS REVENUE Millions 1,085 855 809 753 768 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 32
GENERAL AND ADMINISTRATIVE COSTS Millions 89 84 81 81 80 15 15 14 11 11 Noncash Q4 Q1 Q2 Q3 Q4 2016 2017 2017 2017 2017 33
EXPLORATION & ABANDONMENTS ( Millions) Drilling, Acreage & Other Abandonments 3 Geological & Geophysical Seismic 8 Personnel & Other 17 4th Quarter Total 28 35
INCOME TAXES ATTRIBUTABLE TO CONTINUING OPERATIONS Quarter Ended December 31, 2017 ( Millions) Current tax benefit 5 Deferred tax benefit 598 Income tax benefit1 603 (1) Includes the recognition of a 625 MM deferred tax…
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 income and net cash provided by operating…
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…
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES Adjusted income excluding noncash MTM derivative losses and adjusted income excluding noncash MTM derivative losses and an unusual item, as presented in the Financial and Operating Highlights…
DEFINITIONS Return on Capital Employed (ROCE) equals net income adjusted for tax-effected interest expense, net noncash MTM derivative gains and losses and other unusual items1 divided by the summation of average equity plus average…
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…
COMMON SHARE REPURCHASES The stock purchase program allows for up to 100 million of stock to be repurchased during 2018. Pioneer may repurchase shares from time to time at managements discretion in accordance with applicable securities…
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