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Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Sep 4, 2018 · 35 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 Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 1
    Barclays CEO Energy-Power Conference SEPTEMBER 5, 2018
  2. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 2
    PIONEER AT A GLANCE Permian pure play (post divestitures) Midland Basin Largest Midland Basin acreage position with decades of oil drilling inventory Oil 64% 274 Gas 3 750,000 gross acres MBOEPD 17% Q2 2018 20,000 drilling…
  3. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 3
    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…
  4. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 4
    2018 UPDATE (CONT.) Divestiture process expected to be completed by year end, resulting in Pioneer becoming a Permian Basin pure play Closed sales of West Panhandle field, Raton Basin and selected Eagle Ford acreage for 383 MM…
  5. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 5
    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…
  6. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 6
    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…
  7. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 7
    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…
  8. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 8
    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…
  9. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 9
    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…
  10. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 10
    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…
  11. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 11
    OIL BREAKEVENS BY SHALE PLAY IN THE U.S. Breakeven Oil Price (/BBL) 60 50 40 30 20 10 - Permian Basin considered among the top oil shale plays in North America with a breakeven oil price of less than 30/BBL 12 Source:…
  12. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 12
    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 drives industry leading breakeven oil price…
  13. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 13
    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…
  14. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 14
    SUPPLEMENTAL SLIDES 15
  15. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 15
    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…
  16. Barclays Global CEO Energy Power Conference – 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. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 17
    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…
  18. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 18
    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…
  19. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 19
    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…
  20. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 20
    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)…
  21. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 21
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 8/23/18 Oil Q3 2018 Q4 2018 2019 Collars (BPD) 3,000 3,000 - NYMEX Short Call Price (/BBL) 58.05 58.05 - NYMEX Put Price (/BBL) 45.00 45.00 - Three Way Collars (BPD)1 154,000 159,000…
  22. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 22
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 8/23/18 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…
  23. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 23
    OPEN COMMODITY DERIVATIVE POSITIONS AS OF 8/23/18 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 -…
  24. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 24
    PIONEERS YEAR-END 2017 PROVED RESERVES 1 Added 314 MMBOE from the drillbit, or 309% of full-year production, 2 at a drillbit F&D cost of 8.46 per BOE Reflects successful Permian Basin and Eagle Ford horizontal drilling program…
  25. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 25
    MIDLAND BASIN MIDSTREAM INFRASTRUCTURE Gas Processing Pipeline NGL Takeaway Targa System to Mont Belvieu PXD has 27% interest Chaparral & West Texas Sale Ranch / Current capacity: 1,055 MMCFPD1 Martin County Pipelines PXD…
  26. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 26
    P I O N E E R S F O C U S O N I N N O VAT I O N A N D T E C H N O L O G Y W I L L D R I V E F U RT H E R E F F I C I E N C I E S I N T H E P E R M I A N B A S I N New technology initiatives are focused on improving productivity 4-D…
  27. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 27
    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…
  28. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 28
    PERMIAN BASIN TAKES THE GLOBAL STAGE Total Recoverable Resource (BBOE)1 0 20 40 60 80 100 120 140 160 Ghawar, Saudi Arabia Permian Basin, USA Produced To Date Midland Basin Delaware Basin Burgan, Kuwait U.S. hits all time high…
  29. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 29
    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…
  30. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 30
    U.S. LARGEST SHALE PLAYS Permian Basin Petrophysical analysis indicates significantly more oil in place in the Wolfcamp and Spraberry Shale intervals in the Midland Basin Permian compared to other major U.S. shale oil plays…
  31. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 31
    REGIONAL CROSS SECTION D-D 14 horizontal play intervals identified (so far) Successful Horizontal Wells in the Play 10 intervals have been tested successfully Future Horizontal Play 4 additional intervals remain to be tested North D…
  32. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 32
    IMPACT OF HORIZONTAL DRILLING IN THE MIDLAND BASIN Midland Basin production has increased Hz 1.4 MMBOEPD since 2009 From 2009 to 2012, production growth primarily attributable to increased vertical activity Post 2012,…
  33. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 33
    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 3.0 160 Permian Basin 140 2.5 Daily Oil Production (MMBOPD)…
  34. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 34
    PERMIAN BASIN CONTINUES TO GROW Permian Basin is the only continuously growing major U.S. oil shale since downturn began 3.5 Permian Basin 3.0 Nov. 2014 OPEC Decision Million Barrels Oil Per Day 2.5 2.0 1.5 Eagle…
  35. Barclays Global CEO Energy Power Conference – Pioneer Natural Resources Co. – slide 35
    HORIZONTAL OIL RIG COUNT Peak: 1,115 8/24/18: 766 +210% vs. bottom U.S. 8/24/18: 435 +275% vs. bottom Previous Peak: 349 Bottom: 247 Permian Bottom: 116 The Permian Basin is operating more horizontal oil rigs than…

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