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Q1 Earnings Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · May 7, 2020 · 27 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. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 1
  2. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 2
    Navigating Unprecedented Times Health and safety of our employees and communities is the top priority Offices closed, with majority of employees working from home; essential field employees on location, who are adhering to enhanced…
  3. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 3
    Solid Execution Drives Strong First Quarter Results Oil BOE Free Cash Horizontal Net Debt to Production Production Flow1 LOE EBITDAX2 100 MM 2.50/BOE 0.5x Generated 100 MM of Free Cash Flow 1 in Q1 1) Free cash flow is a…
  4. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 4
    Low Controllable Cash Costs 4.80 per BOE High net revenue interest, combined with low controllable 2.50 cash costs improve cash margins when compared to peers Decreasing controllable cash 2 costs by 140 MM - 160 MM ; further…
  5. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 5
    Updated 2020 Operational Plan Revised 2020 Plan Capital Budget1 Total Production Oil Production 1.4 B - 1.6 B 341 359 MBOEPD 198 208 MBOPD Q2 - Q4 Activity Average Rig Count: 5-8 Includes 1 rig in the southern joint venture area…
  6. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 6
    Unmatched Footprint in World Class Asset Pioneers low acreage cost basis enhances corporate returns 1 1) Source: PLS as of 5/5/2020. Permian transactions of 100 MM or greater since 2017. Peers: CXO, FANG, NBL, MRO, PE and…
  7. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 7
    All Oil is Not Created Equal Q1 2020 Midland Premium to WTL1 2.50 2.00 1.50 1.00 0.50 0.00 Jan-20 Feb-20 Mar-20 Pioneers Midland Basin oil receiving a premium compared to Delaware Basin WTL 1) Source: Argus.…
  8. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 8
    Preserving a Strong Balance Sheet 2020E Net Debt/EBITDA1 10x Independent Major 8x Pioneer plans to maintain its 6x pristine balance sheet through this downturn 4x 2x 0x Peer 1 Pioneer Peer 2 Peer 3 Peer 4 Peer 5 Peer 6…
  9. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 9
    Strong Financial Protection Derivative Value1 (Q2 - Q4 2020) (estimated settlement proceeds) 1,400 Derivative portfolio reduces cash flow volatility 1,200 Cash flow protected in 2021 with 1,000 derivatives covering 135 MBOPD of…
  10. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 10
    Well Positioned to Flow Economic Barrels Prior to current market dislocation, firm transportation (FT) provided 741 MM of incremental cash flow to Pioneer during 2018 and 2019 FT contracts provide access to higher priced markets,…
  11. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 11
    Operations Update D&C Efficiencies 1,800 Reducing D&C costs through increased 1,600 efficiencies and service cost deflation 1,400 Focused on lowering LOE Limiting maintenance to an as-needed basis 1,200 Curtailing higher cost…
  12. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 12
    Delivering Best-in-Class Oil Production 1) Source: Enverus.com; average Permian Basin oil mix for gross production between January 2016 and January 2020. 2) Peers: APA, COP, CVX, CXO, DVN, EOG, FANG, MRO, MTDR, NBL, OXY, PE, WPX, 13…
  13. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 13
    Providing Low-Emission Barrels 1) The foregoing information was obtained from The Edge, a product of Wood Mackenzie. 14
  14. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 14
    Flaring Intensity Improvements in the Permian Pioneer has the lowest flaring intensity in the Permian Basin Source: Rystad Energy research and analysis, Rystad Energy ShaleWellCube April 2020. 1Q20 estimates are based on preliminary…
  15. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 15
    Enhancing Shareholder Value Low-cost, Capital spending Free cash flow high-return within cash flow generation Low leverage Significant Midland Basin while increasing supports return provides financial inventory of wells underpin…
  16. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 16
  17. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 17
    Q1 2020 Summary Q1 2020 Earnings Q1 2020 Guidance vs. Results Results of Guidance Operations Millions Per Diluted Average Daily Production Volume (MBOEPD) 361 - 376 375 (After Tax) Share Average Daily Oil Production Volume (MBOPD)…
  18. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 18
    Q2 2020 Guidance Production Costs (/BOE) 6.50 - 8.00 DD&A (/BOE) 12.50 14.50 Exploration & Abandonment ( MM) 5 - 15 G&A ( MM) 52 - 62 Interest Expense ( MM) 25 - 30 Other Expense ( MM)1 20 - 30 Accretion of Discount on ARO ( MM) 2…
  19. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 19
    Price Realizations 55.50 56.01 53.93 49.38 45.60 22.79 19.63 18.60 16.81 14.52 2.50 2.21 1.54 1.61 0.89 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Oil (/BBL) NGL (/BBL)1…
  20. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 20
    Production Costs (Per BOE) 9.62 9.47 9.70 Q1 2020 compared to Q4 2019: Workovers 0.87 8.48 0.85 0.68 7.31 Decrease in production costs 0.47 Production and Ad 2.26 0.44 primarily attributable to: Valorem Taxes 2.26 2.67…
  21. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 21
    Production By Commodity Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Oil (BOPD) 202,538 206,140 215,194 220,306 222,644 Total Permian Basin NGL (BOEPD) 63,277 65,968 74,844 80,175 84,333 Gas (MCFPD) 322,986 346,418 364,372 377,529 408,536 Total…
  22. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 22
    Liquidity Position Net debt at the end of Q1 2020 (reflects unrestricted cash on hand of 784 MM) 1.9 B Unsecured credit facility availability (includes 905 MM in 364-day credit facility) 1.6 B Net debt-to-book capitalization at the end…
  23. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 23
    Supplemental Earnings Per Share Information The Company uses the two-class method of calculating basic The Company's net income attributable to common stockholders is reconciled to basic and diluted earnings per share. Under the…
  24. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 24
    Supplemental Non-GAAP Financial Measures EBITDAX, discretionary cash flow (DCF) (as defined below) and net debt to trailing twelve months EBITDAX are presented herein, and reconciled to the GAAP measures of net income and net cash…
  25. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 25
    Supplemental Non-GAAP Financial Measures Adjusted income attributable to common stockholders excluding noncash mark-to-market (MTM) adjustments and income attributable to common stockholders excluding noncash MTM adjustments and unusual…
  26. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 26
    Supplemental Non-GAAP Financial Measures Free cash flow (FCF) is a non-GAAP financial measure. As used by the Company, FCF is defined as net cash provided by operating activities, adjusted for changes in operating assets and liabilities,…
  27. Q1 Earnings Presentation – Pioneer Natural Resources Co. – slide 27
    ROCE Return on Capital Employed (ROCE) is a non-GAAP financial measure. As used by the Company, ROCE is net income adjusted for tax-effected noncash mark-to- market (MTM) adjustments, unusual items and interest expense divided by the…

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