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2Q 2018 Earnings Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Aug 7, 2018 · 29 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. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 1
    Q2 2018 Earnings August 8, 2018
  2. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 2
    HIGHLIGHTS Q2 2018 adjusted income: 243 MM, or 1.41 per diluted share1 Q2 Permian Basin Production2 MBOPD MBOEPD Reported 175 280 Production Adjustments 2 (8) Q2 Adjusted Production 177 272 Q2 Guidance Range 175 181 268 276 Q2…
  3. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 3
    HIGHLIGHTS (CONT.) Delivered 165 MBOPD of Q2 Permian Basin oil to the Gulf Coast under firm transportation (FT) contracts, of which 103 MBOPD were exported FT uplift due to Gulf Coast refinery and export sales added 69 MM of…
  4. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 4
    2018 UPDATE Operating 20 horizontal rigs in the Permian Basin Plan to add four rigs to support the 2019 plan; two in August and two during Q4 2018 Expecting to POP 250 - 275 wells during 2018 Cash operating margins and IRRs…
  5. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 5
    2018 UPDATE (CONT.) Divestiture process expected to be completed by year end, resulting in Pioneer becoming a Permian Basin pure play Closed sales of Raton Basin and selected Eagle Ford acreage for 182 MM Signed purchase and sale…
  6. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 6
    57 VERSION 3.0+ COMPLETIONS SHOWING STRONG RESULTS ( E X C L U D E S 8 W E L L S T H AT A R E S T I L L C L E A N I N G U P ) Northern and Central Midland Basin: LSS Updated Central Midland Basin: Wolfcamp B Updated Mid July Mid July…
  7. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 7
    PERMIAN BASIN PRODUCTION GROWTH FORECAST Permian Basin Net Production 1 MMBOEPD 176 184 MBOPD 266 278 MBOEPD 700 MBOPD 278 - 288 2741 2661 224 171 175 178 - 184 170 148 118 Oil (MBOPD) 2016 2017 Q1 Q2 Q3 Q4 2026E…
  8. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 8
    BENEFITS OF LONG TERM PLANNING IN THE PERMIAN Targas Midland Basin Gas Processing Capacity Targa significantly increasing gas plant 1,750 capacity during Q318, Q119 and Q2 19 Capacity of 2019 new-build plants Greater mix of effluent…
  9. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 9
    P IONE E R S TE MP LATE FOR E NHA NC ING SHA R E HOLDE R VA LUE FOCUS ON RETURNS: Low-cost, high-return Permian Basin wells underpin increasing corporate returns CAPITAL DISCIPLINE: Capital program within cash flow drives strong…
  10. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 10
    FIR M T R A NSP ORTATION P R OV IDE S C OMP E T IT IV E A DVA NTAGE Sales Volumes to Gulf Coast (MBOPD)1 160 165 Gulf Coast Refinery Midland 115 Sales 80 103 89 87 Nederland 60 Houston Exports Corpus 12 15 Christi Q2…
  11. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 11
    MA R K E T ING STR ATE G Y DR IV E S A DDIT IONA L C A SH FLOW A ND E NHA NC E S MA R GINS Jan Feb Mar Apr May Jun Jul Aug Sep Cash Flow Uplift Brent/WTI Differentials Locked In 2 months prior Quarter Reported Q2 Q3 Quarterly…
  12. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 12
    W E LL P OSITIONE D TO MOV E P E R MIA N G A S P R ODUC T ION 70% of Pioneers Q2 Permian Basin gas production was transported under firm SoCal pipeline contracts tied to the southern California gas price index Midland Remainder…
  13. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 13
    Q2 2018 EARNINGS SUMMARY Millions Per Diluted (After Tax) Share Net income attributable to common stockholders 66 0.38 Noncash mark-to-market (MTM) derivative losses (218 MM before tax) 170 0.99 Adjusted income excluding noncash MTM…
  14. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 14
    PRICE REALIZATIONS 65.30 62.62 Uplift/(detriment) due to FT 53.70 44.18 44.52 27.53 27.74 28.83 24.71 21.68 2.86 2.84 2.77 2.59 1.97 Q217 Q317 Q417 Q118 Q218 Q217 Q317 Q417 Q118 Q218 Q217 Q317 Q417 Q118 Q218 Oil…
  15. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 15
    PRODUCTION COSTS (PER BOE) 10.50 10.30 9.70 9.63 0.79 Workovers 9.09 0.76 1.02 0.82 Q2 2018 compared to Q1 2018: Production & Ad 0.78 2.35 Valorem Taxes 2.19 2.10 2.70 Gathering, processing and 2.23 Gathering, Processing…
  16. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 16
    LIQUIDITY POSITION Net debt at the end of Q2 2018 (reflects cash on hand, including liquid 0.8 B investments, of 1.5 B) Unsecured credit facility availability 1.5 B Net debt-to-book capitalization at the end of Q2 6% Maturities…
  17. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 17
    Q3 2018 GUIDANCE 1 Guidance Permian Basin Production (MBOEPD) 278 288 Production Costs (/BOE) 9.50 - 11.50 Exploration & Abandonment ( MM) 20 30 Drilling and Acreage 5 - 10 Personnel and Seismic 15 - 20 DD&A (/BOE) 12.50 14.50…
  18. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 18
    SUPPLEMENTAL SLIDES 19
  19. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 19
    PRODUCTION BY COMMODITY Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Permian Basin Oil (BOPD) 110,028 126,771 140,260 144,628 151,083 Horizontal NGL (BOEPD) 32,546 37,923 40,895 45,718 45,342 Gas (MCFPD) 150,061 149,286 174,613 179,987…
  20. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 20
    PRODUCTION BY COMMODITY (ASSETS BEING DIVESTED) Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Eagle Ford Oil (BOPD) 6,279 6,956 9,896 9,010 6,510 NGL (BOEPD) 6,490 6,981 8,280 8,178 6,461 Gas (MCFPD) 39,531 40,775 50,755 48,849 37,952 Total…
  21. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 21
    Q2 PERMIAN BASIN PRODUCTION RECONCILIATION Q1 2018 Q2 2018 MBOPD MBOEPD MBOPD MBOEPD Reported Production 169.8 260.2 175.1 280.2 ASC 606 Q1 Adjustment (incl. in Q2 production) - 5.8 - (5.8) Pro forma Adjusted Production 169.8…
  22. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 22
    CASH MARGINS BY ASSET Q2 2018 Cash Margin by Asset ( per BOE) Permian Permian Other Total Horizontals Verticals Eagle Ford Assets Company Realized price (ex-derivatives) 45.73 44.91 35.18 23.78 43.12 Production costs1 (4.68)…
  23. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 23
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 8/6/18 Oil Q3 2018 Q4 2018 2019 Collars (BPD) 3,000 3,000 - NYMEX Short Call Price 58.05 58.05 - (/BBL) NYMEX Put Price (/BBL) 45.00 45.00 - Three Way Collars (BPD)1 154,000 159,000…
  24. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 24
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 8/6/18 Ethane Q3 2018 Q4 2018 2019 Frac Spread (BPD) 1 2,500 2,500 2,500 MMBTUPD Equivalent 6,920 6,920 6,920 Price differential to NYMEX (/MMBTU) 1.60 1.60 1.60 Permian Basin NGL…
  25. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 25
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 8/6/18 Gas Q3 2018 Q4 2018 2019 Swaps (MMBTUPD)1 100,000 100,000 - NYMEX Price (/MMBTU) 3.00 3.00 - Three Way Collars (MMBTUPD)1,2 50,000 50,000 - NYMEX Call Price (/MMBTU) 3.40 3.40 -…
  26. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 26
    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…
  27. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 27
    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…
  28. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 28
    SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES Adjusted income excluding noncash MTM derivative losses, and adjusted income excluding noncash MTM derivative losses and unusual items, as presented in the Financial and Operating Highlights slide…
  29. 2Q 2018 Earnings Presentation – Pioneer Natural Resources Co. – slide 29
    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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