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March 2019 Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Mar 27, 2019 · 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. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 1
    INVESTOR PRESENTATION MARCH 2019
  2. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 2
    Pioneer at a Glance Permian pure play (post divestitures) Largest Midland Basin acreage position with significant drilling inventory 680,000 net acres DALLAS HEADQUARTERS Low-cost, high-return horizontal wells MIDLAND BASIN Low…
  3. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 3
    Creating Differentiated Value 9% ROCE in 2018 1 increase from 4% in 2017 Focus on +458 MM Cash Flow Uplift from firm transportation (FT) agreements in 2018 88% Cash Flow Increase over 20172 Permian Streamlining Portfolio…
  4. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 4
    Low Cost of Supply Underpins Strong Returns Through Cycles Pioneers 2018 Midland Basin Horizontal Cost Structure (/BOE) Low fully-burdened cost structure generates 23 strong margins Advantaged cost structure coupled with Brent-…
  5. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 5
  6. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 6
    Improving Capital Efficiency 11% Decrease in D,C & F Capital Delivers 12%-17% Growth in Production 3.3 B 2.95 B 2018 D,C & F Capital Pressure Pumping Sand1 Water & Efficiency Activity 2019 D,C & F Capital2 Offsetting…
  7. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 7
    Delivering Best-in-Class Oil Production Total Permian Oil Mix (2 Stream) 1,2 Cumulative Oil Production2,3 200 75% PXD 160 65% Peers 120 55% 80 40 45% 1 2 3 4 5 6 7 8 9 10 11 12 Peer 1 Peer 2 Peer 3 Peer 4…
  8. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 8
    Operations Update Second Stackberry pad successful; Two Stackberry projects de-risking a further 40,000 acres to spud late in 2019 140 Midland County Stackberry Outperforming by 34% 2-Well Wolfcamp D pad POPd 8 wells (2 Middle…
  9. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 9
    Long-Term Planning Benefitting Bottom Line 2018 Oil Pricing Realizations Oil Exposed to Brent Pricing PXD Realized Price1 64 Permian Peers2 Midland Pricing 90% Through 2021 MIDLAND Nederland Houston 57 58 Corpus…
  10. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 10
    Enhancing Shareholder Value Focus on Returns - Low-cost, high-return Permian Basin wells underpin increasing corporate returns Capital Discipline - Capital spending within cash flow while maintaining strong production growth…
  11. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 11
    Industry-Leading Acreage Cost Basis FOCUS ON RETURNS 100,0000 Permian Basin Acquisitions (Late 2016 - Present)3 90,000 2018 ROCE 80,000 9% 70,000 PIONEERS AVERAGE COST BASIS OF 6% 60,000 500/ACRE 50,000 Peer…
  12. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 12
    Capital Discipline: Growth within Cash Flow CAPITAL DISCIPLINE 2019 Sources and Uses of Cash Cash on Hand Return of Capital Share & to Shareholders Repurchases, Free Cash Flow Cash on Hand & Investments Cash Flow D,C & F…
  13. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 13
    Priorities Aligned with Shareholders RETURN OF CAPITAL 1.9% Total Shareholder Yield 1 Increasing Dividend 328 Million 0.35 Executed2 0.30 0.25 700% Increase in Dividend 0.20 0.15 2 Billion 0.10 Authorized 0.05…
  14. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 14
    Maintaining Low Leverage PRESERVE STRONG BALANCE SHEET Balance Sheet Strength1,2 (bubble size represents market cap) 3 Net debt at YE 2018 of 0.9 B 2.5 (reflects cash on hand, including liquid investments, of 1.4 B) 2 Low…
  15. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 15
    Unmatched Footprint in World Class Asset HIGHLY REPEATABLE PROGRAM Well Productivity by Year 200 Updated late January 150 100 2018 2017 50 MIDLAND 2016 BASIN 2015 0 0 30 60 90 120 150 180 Days on Production…
  16. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 16
    A Commitment to Driving Results Focus on Capital Return of Preserve Highly Returns Discipline Capital Strong Repeatable Low-cost, Capital spending Free cash flow Balance Sheet Program high-return within cash flow generation leads…
  17. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 17
    SUPPLEMENTAL SLIDES
  18. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 18
    Midland Basin Midstream Infrastructure Gas Processing Pipeline NGL Takeaway to Mont Belvieu Targa System Sale Ranch/ PXD has 27% interest Martin County Chaparral & West Texas Pipelines Current capacity: 1,255 MMCFPD1 PXD production…
  19. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 19
    Benefits of Water Reuse vs. Disposal Pioneers water infrastructure provides a unique opportunity to reuse produced water Benefits of reusing produced water include: Reducing disposal costs Mitigating pressure increases in water…
  20. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 20
    Water Infrastructure Pioneers Water Distribution System Long-term, low-cost supply of water to Pioneers operations Future Midland Source Reduced need for fresh water, while making productive use of non-potable resources Odessa…
  21. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 21
    Environmental, Social & Governance Environmental: Reducing emissions through extensive Leak Detection and Repair (LDAR) program Greater mix of effluent, reuse and brackish water decreases dependence on fresh water Social: Proactive…
  22. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 22
    Successful 2018 Lays Foundation for Strong 2019 Permian Permian Firm Permian Lease Cash Flow Net Debt Oil Production BOE Production1 Transportation Operating Growth2 to EBITDAX3 Uplift Expense 194 302 173 MM 4.11/BOE 38% 0.3x…
  23. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 23
    Q4 2018 Summary Q4 2018 Earnings Q4 2018 Guidance vs. Results Millions Per Diluted Permian Basin Specific Guidance Guidance Results of Operations (After Tax) Share Daily Production (MBOEPD) 293-303 302 Net income attributable to…
  24. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 24
    Q1 2019 Guidance Permian Basin Guidance Total Company Guidance Production (MBOEPD) 302 - 317 Exploration & Abandonment ( MM) 20 - 30 Oil Production (MBOPD) 194 - 204 G&A ( MM) 95 - 100 Production Costs (/BOE) 8.50 - 10.50 Interest…
  25. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 25
    Price Realizations 68.33 65.30 62.62 Uplift due to FT 59.16 53.70 35.97 27.74 28.83 27.53 26.88 2.72 2.59 1.97 2.21 1.75 Q417 Q118 Q218 Q318 Q418 Q417 Q118 Q218 Q318 Q418 Q417 Q118 Q218 Q318 Q418 Oil (/BBL)…
  26. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 26
    Production Costs (Per BOE) 10.50 10.30 9.18 0.82 0.79 9.51 Q4 2018 compared to Q3 2018: 8.70 1.00 Workovers 0.76 2.35 1.07 Decrease in production costs Production and Ad 2.70 primarily attributable to 2.20 2.80 Valorem Taxes…
  27. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 27
    Production By Commodity Q417 Q118 Q218 Q318 Q418 Oil (BOPD) 140,260 144,628 151,083 163,952 171,988 Permian Basin Horizontal NGL (BOEPD) 40,895 45,718 45,342 47,518 50,813 Gas (MCFPD) 174,613 179,987 266,923 254,242 271,147 Total…
  28. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 28
    Cash Margin By Asset Q4 2018 Cash Margin by Asset (/BOE) Permian Permian Eagle Other Total Horizontals Verticals Ford Assets Company Realized price 38.22 39.45 34.45 35.11 38.16 (ex-derivatives) Production costs1 (3.90) (26.92)…
  29. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 29
    Liquidity Position Net debt at the end of Q4 2018 (reflects cash on hand, including liquid investments, of 1.4 B) 0.9 B Unsecured credit facility availability 1.5 B Net debt-to-book capitalization at the end of Q4 2018 7%…
  30. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 30
    Permian Basin Year End 2018 Proved Reserves 1 Added 304 MMBOE in the Permian Basin, or 290% of full-year Year-End 2018 Proved Reserves Permian production, at a drillbit finding and development (MMBOE) cost of 11.77 per BOE2 Permian…
  31. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 31
    Supplemental Earnings Per Share Information The Company uses the two-class method of calculating basic The following table is a reconciliation of the Company's net income attributable and diluted earnings per share. Under the two class…
  32. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 32
    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…
  33. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 33
    Supplemental Non-GAAP Financial Measures Adjusted loss excluding noncash MTM derivative gains, and adjusted income excluding noncash MTM derivative gains and unusual items, as presented in the Q4 2018 Summary Millions Per Diluted…
  34. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 34
    34
  35. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 35
    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…
  36. March 2019 Investor Presentation – Pioneer Natural Resources Co. – slide 36
    Common Share Repurchases Under the stock repurchase program, the Company may repurchase shares from time to time at managements discretion in accordance with applicable securities laws, including through open market transactions,…

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