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…
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…
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…
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 &…
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…
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…
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…
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,…
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…
Capitalizing on Unmatched Footprint in World Class Asset Horizontal Development Strategies Pioneers Well Productivity by Year 200 Updated late January Peers Pioneer…
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…
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…
SUPPLEMENTAL SLIDES
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…
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…
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…
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…
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)…
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%…
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…
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 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…
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…
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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