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Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Jul 1, 2014 · 47 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. Investor Presentation – Pioneer Natural Resources Co. – slide 1
    Investor Presentation July 2014
  2. Investor Presentation – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance Total Enterprise Value (B) 35 Top U.S. Fields By Rig Count1 2014 Drilling Capex (B) 3.0 320 (Pioneer Operated Count in Green 43 rigs) Q1 2014 Production (MBOEPD) 172 2013 Reserves (BBOE) 0.8 215 204 2013 Reserves…
  3. Investor Presentation – Pioneer Natural Resources Co. – slide 3
    Share Price Performance of Permian Basin Operators since 20091 Since 2009, the combined enterprise value for Permian-weighted companies listed has increased from 20 billion to 75 billion 1,200% 1,000% 800% 600%…
  4. Investor Presentation – Pioneer Natural Resources Co. – slide 4
    2014E Capital Spending and Cash Flow1 Capital program of 3.3 B Drilling Capital: 3.0 B 2,165 MM northern Spraberry/Wolfcamp area Cash Flow Sensitivity to Commodity Prices o 1,225 MM for horizontal drilling program ( MM) o 440 MM for…
  5. Investor Presentation – Pioneer Natural Resources Co. – slide 5
    Pioneer Focusing Capex in Highest Margin Assets 2014E Cash Margins (/BOE ex-hedges)1,2 2014E Assumes 95.00/BBL WTI Crude and 4.25/MCF Gas % Liquids Production PXD…
  6. Investor Presentation – Pioneer Natural Resources Co. – slide 6
    Targeting 16% - 21% Compound Annual Production Growth for 2014 - 2016 MBOEPD1 184 192 FY Guidance 172 161 144 59% 63% 67% 75% Liquids Liquids Liquids Liquids 2012 2013 Q1 Q2E Q3E-Q4E 2015E 2016E 2014E Expect…
  7. Investor Presentation – Pioneer Natural Resources Co. – slide 7
    Horizontal Pad Drilling Results in 2H-Weighted 2014 Production Growth1 184 192 MBOEPD (Full-Year Guidance) Horizontal well POPs increase significantly in 2nd half 2014 (increase driven by Northern Q1 Spraberry/Wolfcamp) 172…
  8. Investor Presentation – Pioneer Natural Resources Co. – slide 8
    Pioneers Significant Proved Reserves and Recoverable Resource Potential1 Proved Reserves + Estimated Net Recoverable Resource Potential of 11 BBOE 22,000 Horizontal Drilling Locations 12/31/13 Proved Reserves: 845 MMBOE2 Additional…
  9. Investor Presentation – Pioneer Natural Resources Co. – slide 9
    Midland Basin Horizontal Resource Potential Continues to Grow 75 BBOE Recoverable Resource Potential (Up from 50 BBOE in 2013) Spraberry Wolfcamp D Shales 13 BBOE 14 BBOE Wolfcamp C 2 BBOE Wolfcamp A Wolfcamp B 19 BBOE 27…
  10. Investor Presentation – Pioneer Natural Resources Co. – slide 10
    Liquidity Position (3/31/14) Net debt (net of cash balance of 257 MM): 2.4 B Unsecured credit facility availability: 1.4 B Net debt-to-book capitalization: 27% Maturities and Balances1 2016 2017 2018 2020 2022 2028 455 MM 485…
  11. Investor Presentation – Pioneer Natural Resources Co. – slide 11
    Northern Spraberry/Wolfcamp Horizontal Drilling Program to Date Wolfcamp Wolfcamp Wolfcamp M. Spraberry L. Spraberry D B A Shale Jo Mill Shale U. Spraberry M. Spraberry Shale Jo Mill Shale Jo Mill Silt L. Spraberry…
  12. Investor Presentation – Pioneer Natural Resources Co. – slide 12
    Pioneers 2013/Early 2014 Northern Spraberry/Wolfcamp Program Successfully placed 23 horizontal Wolfcamp and Lower Spraberry Shale Pioneers Northern wells on production during 2013 and Q1 Spraberry/Wolfcamp Acreage 2014 Middle…
  13. Investor Presentation – Pioneer Natural Resources Co. – slide 13
    Pioneers First 6 Northern Horizontal Wolfcamp B and Wolfcamp A Shale Wells1 E.T. O'Daniel 1H Wolfcamp B (Midland County); 9,229 lateral Cumulative production: 165 MBOE (76% oil) Updated end of April Scharbauer Ranch 202H Wolfcamp B…
  14. Investor Presentation – Pioneer Natural Resources Co. – slide 14
    Pioneers First 4 Northern Horizontal Wolfcamp D Shale Wells1 University 7-43 10H Wolfcamp D (Andrews County); 7,382 lateral Cumulative production: 76 MBOE (69% oil) Updated end of April E.T. ODaniel 2H Wolfcamp D (Midland County);…
  15. Investor Presentation – Pioneer Natural Resources Co. – slide 15
    Pioneers First 5 Northern Horizontal Lower Spraberry Shale Wells1 Flanagan 14 Lloyd A 21H (Glasscock County); 7,212 lateral Cumulative production: 88 MBOE (84% oil) Updated end of April Hutt C 21H (Midland County); 6,662 lateral…
  16. Investor Presentation – Pioneer Natural Resources Co. – slide 16
    Pioneers Recent Successful Northern Horizontal Jo Mill Shale and Middle Spraberry Shale Wells 1 Glasscock A5 2H (Jo Mill Shale in Martin County); 4,700 lateral Updated end of April Cumulative production: 9 MBOE (83% oil)2 SSU 0102H…
  17. Investor Presentation – Pioneer Natural Resources Co. – slide 17
    Northern Horizontal Well Economics1,2 BTAX IRR 100+% 45% - 100+% 100+% 45% - 95% Lower Spraberry Wolfcamp D Midland County Midland County Shale Wolfcamp A & Wolfcamp B Martin County Wolfcamp B EUR (MBOE) 575 1,000 650 - 800…
  18. Investor Presentation – Pioneer Natural Resources Co. – slide 18
    Northern Spraberry/Wolfcamp: Focused on Growing Production in 2014 Transitioning from a horizontal appraisal program to a horizontal development program during 2014 Increased horizontal rig count from 5 rigs at YE 2013 to 16 rigs as…
  19. Investor Presentation – Pioneer Natural Resources Co. – slide 19
    Southern Wolfcamp JV: Focused on Growing Production in 2014 2014 plan calls for drilling 115 horizontal wells Average lateral length expected to be 9,400 Utilizing mostly 3-well pads Reducing spud-to-POP cycle time by 5 to 8…
  20. Investor Presentation – Pioneer Natural Resources Co. – slide 20
    Pioneers Original Two Horizontal Giddings Wells (Average)1 Updated end of April 1,000 Giddings 2041H & Giddings 2073H Wolfcamp B wells in southern Wolfcamp JV area (Upton County) 5,300 laterals; average cumulative production per…
  21. Investor Presentation – Pioneer Natural Resources Co. – slide 21
    Atlas Gas Processing Agreement Extended For 10 Years Through 2032 PXD Acreage Coverage area for Atlas gas processing agreement Spraberry Field extended into Andrews county PXD/Atlas Coverage Area Existing Plant System capacity…
  22. Investor Presentation – Pioneer Natural Resources Co. – slide 22
    Spraberry/Wolfcamp Production Outlook Spraberry/Wolfcamp Net Production (MBOEPD)1 Drilled 56 horizontal wells in Q1; 28 horizontal wells placed on production 95 100 MBOEPD 5 in northern acreage and 23 in southern Wolfcamp joint…
  23. Investor Presentation – Pioneer Natural Resources Co. – slide 23
    Upper Eagle Ford Shale Update 12 Upper Eagle Ford Shale wells placed on 25% of acreage prospective for Upper Eagle Ford Shale production through mid-April; results continue to be encouraging Initial Upper Eagle Ford Well Expect to…
  24. Investor Presentation – Pioneer Natural Resources Co. – slide 24
    Eagle Ford Shale Production Outlook Eagle Ford Shale Net Production (MBOEPD)1 Drilled 34 wells in Q1; 32 wells placed on production 45 49 MBOEPD Record Eagle Ford Shale net production of 43 MBOEPD in Q1; up from 40 MBOEPD in Q4…
  25. Investor Presentation – Pioneer Natural Resources Co. – slide 25
    PXD Investment Highlights U.S. asset base High oil exposure from proved reserves + estimated net resource potential of 11 BBOE Drilling program focused in liquids and resource rich core assets in Texas Spraberry/Wolfcamp Shale…
  26. Investor Presentation – Pioneer Natural Resources Co. – slide 26
    Pioneer Large Independent U.S. E&P Company Total Enterprise Value (B) 35 2014E Operating Cash Flow (B) 2.5 2014E Drilling Expenditures (B) 3.0 1Q 2014 Production 67% Liquids (MBOEPD) 172 2013 Drillbit F&D (/BOE) 19.70 2013 Reserve…
  27. Investor Presentation – Pioneer Natural Resources Co. – slide 27
    Production Costs (per BOE)1 Q1 2014 production costs 14.17 14.33 14.08 13.77 consistent with prior periods 13.36 0.73 Workovers 0.69 0.87 0.99 0.52 after excluding: Production & 3.52 3.68 Ad Valorem 3.61 3.09 Q4 adjustments…
  28. Investor Presentation – Pioneer Natural Resources Co. – slide 28
    Pioneers YE 2013 Proved Reserves1 Added 141 MMBOE from the drillbit, or 211% of full- year production, at a drillbit F&D cost of 19.70 per BOE2 Reflects significant drilling campaigns in horizontal Spraberry/Wolfcamp Shale and Eagle…
  29. Investor Presentation – Pioneer Natural Resources Co. – slide 29
    Production (MBOEPD) Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 1 2 Spraberry/Wolfcamp 75 80 79 80 86 Eagle Ford Shale 37 38 35 40 43 Raton 23 23 22 22 21 Mid-Continent 17 16 17 16 16 South Texas 5 5 6 5 5 Other 1 1 1 1 1 Total Cont.…
  30. Investor Presentation – Pioneer Natural Resources Co. – slide 30
    PXD Production By Commodity By Area Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Spraberry/Wolfcamp Oil (BOPD) 52,694 52,595 51,903 52,957 58,307 NGL (BOEPD) 12,864 13,919 16,200 16,251 16,693 Gas (M CFD) 58,653 83,021 62,939 65,863 66,770…
  31. Investor Presentation – Pioneer Natural Resources Co. – slide 31
    Derivative Philosophy Continue to use derivatives to mitigate commodity price exposure in order to ensure funding for development programs and to maintain strong financial position Target 50% on rolling 3 year basis Continue to use a…
  32. Investor Presentation – Pioneer Natural Resources Co. – slide 32
    Open Commodity Derivative Positions as of 5/5/2014 Oil Q2 2014 Q3 2014 Q4 2014 2015 2016 Swaps WTI (BPD) 10,000 10,000 10,000 - - NYMEX WTI Price (/BBL) 93.87 93.87 93.87 - - Three Way Collars (BPD)1,2 69,000 69,000 69,000 90,000…
  33. Investor Presentation – Pioneer Natural Resources Co. – slide 33
    Open Commodity Derivative Positions as of 5/5/2014 Natural Gasoline Q2 2014 Q3 2014 Q4 2014 2015 Three Way Collars (BPD)1,2 2,165 3,500 3,500 - Mont Belvieu Call Price (/BBL) 100.77 97.93 97.93 - Mont Belvieu Put Price (/BBL)…
  34. Investor Presentation – Pioneer Natural Resources Co. – slide 34
    Open Commodity Derivative Positions as of 5/5/2014 Gas Q2 2014 Q3 2014 Q4 2014 2015 2016 Swaps - (MMBTUPD) 195,000 195,000 195,000 20,000 - NYMEX Price (/MMBTU)1 4.04 4.04 4.04 4.31 - Three Way Collars (MMBTUPD)1,2 115,000…
  35. Investor Presentation – Pioneer Natural Resources Co. – slide 35
    Three-Way Collars (75 by 90 by 135 Example) Unhedged realization Hedged realization 160.00 NYMEX Price 150.00 Potential 140.00 Opportunity Loss Realized Price 130.00 Realized Price (/BBL) Short put at 75/BBL Long put at…
  36. Investor Presentation – Pioneer Natural Resources Co. – slide 36
    Geologic Provinces of the Permian Basin PEDERNAL UPLIFT & ROOSEVELT POSITIVE OZONA PLATFORM Basin DEVILS Basement RIVER Uplift UPLIFT Shelf Thrust Belt Permian Basin is composed of multiple uplifts and basins that…
  37. Investor Presentation – Pioneer Natural Resources Co. – slide 37
    Wolfcamp Depositional Model Midland Basin Platform Platform Carbonate Land Carbonate Shelf Edge Carbonate Pelagic Sediments Clastic Detrital Slope Sediments & Reef Talus Fluvial - Deltaic Silt Cloud in Suspension Midland…
  38. Investor Presentation – Pioneer Natural Resources Co. – slide 38
    Regional Cross Section D-D 13 horizontal play intervals identified (so far) Successful Horizontal Wells in the Play 10 intervals have been tested successfully Future Horizontal Play 3 additional intervals remain to be tested North…
  39. Investor Presentation – Pioneer Natural Resources Co. – slide 39
    Midland Basin: Stacked Play Potential Midland Basin Delta log R (excess electrical resistance) Clear Fork Red intervals indicate hydrocarbons Petrophysical analysis indicates significantly more oil in place U. Spraberry M.…
  40. Investor Presentation – Pioneer Natural Resources Co. – slide 40
    Spraberry/Wolfcamp Rig Count Counties: Andrews, Borden, Crockett, Dawson, Ector, Gaines, Glasscock, Howard, Irion, Martin, Midland, Mitchell, Reagan, Schleicher, Scurry, Sterling, Tom Green and Upton 350 58% Vertical Rigs 96%…
  41. Investor Presentation – Pioneer Natural Resources Co. – slide 41
    Production Growth Profiles For 3 Largest U.S. Oil Shale Plays 10,000,000 Includes Horizontal Wells Only Eagle Ford 192 Horizontal Rigs (down from 218 rigs in early 2013) 1,000,000 Gross Production (BOEPD) Bakken 160 Horizontal…
  42. Investor Presentation – Pioneer Natural Resources Co. – slide 42
    Spraberry/Wolfcamp Production History Includes Vertical and Horizontal Wells 650,000 610,000 600,000 550,000 500,000 Spraberry/Wolfcamp production has 450,000 increased 450,000 BOEPD since 2009 400,000 Production (BOEPD)…
  43. Investor Presentation – Pioneer Natural Resources Co. – slide 43
    Drilling Results Confirming Pioneers Midland Basin Sweet Spot PXD Wolfcamp B Prospectivity Map (Early 2013) 2014 ITG Research Report Wolfcamp (All Zones) Test Rates Higher Tier 1 Tier 2 Pioneer Land Pioneer Wolfcamp B wells…
  44. Investor Presentation – Pioneer Natural Resources Co. – slide 44
    Spraberry/Wolfcamp Horizontal Production Growth Profile PXDs 80 HZ Rig Growth Scenario PXDs 120 HZ Rig Growth Scenario PXD adds 5 HZ rigs/year for 10 years PXD adds 10 HZ rigs/year for 10 years Assumes strip pricing for oil & gas1…
  45. Investor Presentation – Pioneer Natural Resources Co. – slide 45
    Crude Pipeline Capacity to Gulf Coast Permian Basin Crude Takeaway Capacity Cushing Operator Origin Destination Name Capacity Time Frame Plains Permian Cushing Basin 450,000 Oxy Permian Cushing Centurion 75,000 Sunoco Permian GC…
  46. Investor Presentation – Pioneer Natural Resources Co. – slide 46
    Growing Midstream Infrastructure to Support Production Growth Gas Processing Pipeline NGL Takeaway Atlas System to Mont Belvieu Current capacity: 455 MMCFD1 Chaparral & West Texas PXD production makes up 33% Pipelines of throughput…
  47. Investor Presentation – Pioneer Natural Resources Co. – slide 47
    PXDs Vertical Integration Reduces Costs and Enhances Execution Spraberry/Wolfcamp1 Eagle Ford Shale 6 horizontal frac fleets (250,000 HP total) 2 frac fleets (100,000 HP total) 4 coiled tubing units 2 coiled tubing units Well…

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