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Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Oct 20, 2020 · 16 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. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 1
    Acquisition of Parsley Energy The Premier Independent E&P October 20, 2020
  2. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 2
    Certain Notices Additional Information and Where to Find It This communication may be deemed to be solicitation material in respect of the proposed transaction between Pioneer and Parsley. The proposed transaction will be submitted to…
  3. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 3
    Creating Differentiated Value Highly Accretive to Free Cash Flow per share and Corporate Returns Maintains Strong Unmatched high- Enhances new 930,000 Balance Sheet quality inventory 2021E Net Debt/EBITDAX 1.1x; investment…
  4. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 4
    Transaction Overview All Stock Consideration - 7.6 B Transaction Value1 Accretive combination creates the 0.1252 shares of Pioneer per share of Parsley premier low-cost, Pro forma share count of 216 MM shares Permian independent E&P…
  5. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 5
    Transaction Enhances Investment Thesis Creating Significant Value for Shareholders Targeting 10% Total Return1 (inclusive of base dividend, variable dividend and oil growth) Significant Free Cash Flow Reinvestment rate lowered to…
  6. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 6
    Improving Free Cash Flow Profile 2,000 10% Transaction is highly accretive to free cash flow 1,500 8% Free Cash Flow Yield1 Free Cash Flow (MM)1 Attractive corporate breakeven 1,000 6% including dividend in the mid-30s…
  7. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 7
    Combining Two Premier Permian Assets Midland Basin Combined Enterprise Value1 16.3 B 7.6 B 23.9 B Q220 Oil Production (MBOPD) 215 113 328 Q220 Production (MBOEPD) 375 183 558 Oil Mix 57% 61% 59% Net Permian Acreage 680,000…
  8. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 8
    Unmatched Portfolio of Top Tier Permian Acreage 930,000 Net Acres A Rated Inventory1 (Breakeven…
  9. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 9
    Increasing Permian Scale 1 Midland and Delaware Basin Net Acreage (000) Bubble sizes based on Midland and 1,500 Delaware Basin gross oil production Peer 8 1,250 1,000 Pioneer + 750 Parsley Peer 1 (37% Oil Mix) 500 Peer…
  10. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 10
    Strong Balance Sheet Maintained 2021E Net Debt/EBITDAX 1 6x Independent Major 4x Transaction maintains Pioneers top-tier balance sheet 2x 0x 1) Source: FactSet Consensus 10/16/2020. Peers: APA, CLR, COP, CVX, CXO, DVN,…
  11. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 11
    Refinancing Opportunities 1,200 Parsley Maturities and Balances Schedule1 Parsleys Average Interest Rate 1,000 5% 800 700 MM 650 MM 5.625% 5.375% 1.1 B credit facility Pioneers Average Interest Rate 600 430 MM drawn 495 MM 3.500%…
  12. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 12
    Strong Focus on ESG Environmental Social Governance Focus on maintaining very low At Pioneer, a job is never so Board of Directors Committees: flaring intensity and GHG emissions important that it cannot be done Health, Safety and…
  13. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 13
    The Premier Permian E&P 60,000 Enterprise Value (MM)1 1,400 2020E Production (MBOEPD)1 50,000 1,200 1,000 40,000 800 30,000 600 20,000 400 10,000 200 0 0 Creates a top tier independent E&P with (1) a strong balance sheet…
  14. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 14
    Enhancing Shareholder Value Low-cost, Disciplined Free cash flow high-return reinvestment rate generation Low leverage Significant Permian Basin underpins compelling supports return provides financial inventory of wells drive strong…
  15. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 15
    Supplemental Slides
  16. Pioneer Acquires Parsley Energy – Pioneer Natural Resources Co. – slide 16
    Additional Information EBITDAX represents earnings before depletion, depreciation and amortization expense; exploration and abandonments; impairment of inventory and other property and equipment; accretion of discount on asset retirement…

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