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1Q 2019 Earnings Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · May 7, 2019 · 32 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. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 1
    Q1 2019 EARNINGS MAY 7, 2019
  2. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 2
    Creating Differentiated Value 800 MM 2019 Free Cash Flow Estimated1 152 MM Cash Flow Uplift from firm transportation Improving Capital Efficiency 11% decrease in capital delivering (FT) agreements in Q1 2019 15% production…
  3. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 3
    Solid Execution Drives Strong First Quarter Results Permian Permian Firm Permian Net Debt Oil Production BOE Production Transportation Horizontal to EBITDAX1 Uplift LOE 203 320 152 MM 2.99/BOE 0.3x MBOPD MBOEPD Permian…
  4. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 4
  5. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 5
    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…
  6. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 6
    Reorganization Drives Improving Execution and Results Old PXD Structure New PXD Structure CEO CEO Eagle Ford & Colorado Vertical South Texas & WestPan Integration Permian Permian Permian Permian Permian Drilling & Facilities &…
  7. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 7
    Strategic Direction Increased Execute at a high level Return of Competitive dividend Focus on Capital to and opportunistic Execution while reducing costs Shareholders share repurchases Prioritize Free Cash Mid-teens production…
  8. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 8
    Strengthening Value Proposition Improving Cost Structure Reducing G&A expense Optimizing Cash Flow Monetizing midstream; assessing field facilities and water infrastructure Accelerating Value Evaluating options on long-dated…
  9. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 9
    Improving Cost Structure G&A/BOE1 5.00 New organizational structure to support a single asset company 4.00 Streamlining roles and responsibilities 3.00 Flatter reporting structure drives greater transparency 2.00 and…
  10. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 10
    Monetizing Assets and Optimizing Cash Flow Opening data room for 27% interest in Targa-operated Midland Basin gas processing infrastructure PXDs Targa Midland Basin Details Throughput Capacity (Gross) 1.8 BCFPD1 Buffalo 2019 Capital…
  11. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 11
    Accelerating Value of Long-Dated Inventory Exploring options to monetize inventory not slated for near term development MIDLAND Prioritizing areas that are BASIN subject to lease expiration if not drilled Sources: Esri, USGS,…
  12. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 12
    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…
  13. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 13
    Top-Tier ROCE Driven by Low Acreage Cost Basis 2018 ROCE 1 Pioneer generates 16% higher corporate returns 14% due to low acreage cost basis 12% Acquisition Cost per Acre 10% 8% PXD: 500 6% Recent Permian Transactions2…
  14. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 14
    Capitalizing on Unmatched Footprint in World Class Asset Horizontal Development Strategies Pioneers Well Productivity by Year 200 Updated late January Peers Pioneer…
  15. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 15
    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…
  16. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 16
    Operations Update Third Stackberry pad successful; de-risking a further 30,000 acres 120 Martin County Stackberry 2-Well Wolfcamp D pad POPd 5 wells (1 Middle Spraberry, 2 Jo Mill, 2 Lower Spraberry) early Q1 2019: 100 Average…
  17. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 17
    Long-Term Planning Benefitting Bottom Line Q1 2019 Oil Pricing Realizations Oil Exposed to Brent Pricing PXD Realized Price1 58 Permian Peers2 Midland Pricing 90% Through 2021 MIDLAND Nederland Houston 49 54 Corpus…
  18. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 18
    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…
  19. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 19
    SUPPLEMENTAL SLIDES
  20. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 20
    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…
  21. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 21
    Q1 2019 Summary Q1 2019 Earnings Q1 2019 Guidance vs. Results Millions Per Diluted Permian Basin Specific Guidance Guidance Results of Operations (After Tax) Share Average Daily Production Volume (MBOEPD) 302 - 317 320 Net income…
  22. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 22
    Q2 2019 Guidance Permian Basin Guidance Total Company Guidance Production (MBOEPD) 313 - 328 Exploration & Abandonment ( MM) 20 - 30 Oil Production (MBOPD) 198 - 208 G&A ( MM) 93 - 98 Production Costs (/BOE) 8.50 - 10.50 Interest…
  23. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 23
    Price Realizations 68.33 65.30 62.62 Uplift due to FT 59.16 57.56 35.97 27.74 28.83 26.88 22.79 2.59 2.50 1.97 2.21 1.75 Q118 Q218 Q318 Q418 Q119 Q118 Q218 Q318 Q418 Q119 Q118 Q218 Q318 Q418 Q119 Oil (/BBL)…
  24. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 24
    Production Costs (Per BOE) 10.50 10.30 9.62 0.82 0.79 9.51 0.87 Q1 2019 compared to Q4 2018: 8.70 1.00 Workovers 2.35 1.07 2.26 Increase in production costs Production and Ad 2.70 primarily attributable to Valorem Taxes…
  25. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 25
    Production By Commodity Q118 Q218 Q318 Q418 Q119 Oil (BOPD) 144,628 151,083 163,952 171,988 179,741 Permian Basin Horizontal NGL (BOEPD) 45,718 45,342 47,518 50,813 56,704 Gas (MCFPD) 179,987 266,923 254,242 271,147 286,104 Total…
  26. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 26
    Cash Margin By Asset Q1 2019 Cash Margin by Asset (/BOE) Permian Permian Other Total Horizontals Verticals Assets Company Realized price 38.31 38.38 26.64 37.84 (ex-derivatives) Production costs1 (4.36) (29.26) (12.78) (7.36)…
  27. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 27
    Liquidity Position Net debt at the end of Q1 2019 (reflects cash on hand, including liquid investments, of 1.0 B) 1.3 B Unsecured credit facility availability 1.5 B Net debt-to-book capitalization at the end of Q1 2019 10%…
  28. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 28
    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…
  29. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 29
    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…
  30. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 30
    Supplemental Non-GAAP Financial Measures Adjusted income excluding noncash MTM adjustments, and adjusted income excluding noncash MTM adjustments and unusual items, as presented in the Q1 2019 Summary Millions Per Diluted slide, are…
  31. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 31
    ROCE Return on Capital Employed (ROCE) is a non-GAAP financial measure. As used by Pioneer, ROCE is net income adjusted for tax-effected interest expense, noncash MTM derivative gains and losses and other unusual items divided by the…
  32. 1Q 2019 Earnings Presentation – Pioneer Natural Resources Co. – slide 32
    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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