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Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Nov 14, 2013 · 46 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. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 1
    Spraberry/Wolfcamp Field Trip November 13-14, 2013
  2. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 2
    Agenda Welcome Frank Hopkins 3:00 3:05 PXD Overview Tim Dove 3:05 3:20 Midland Basin Geology Chris Cheatwood 3:20 4:35 PXDs Southern Horizontal Wolfcamp Bill Hannes 4:35 5:05 Shale Joint Venture (Sinochem) PXDs Northern…
  3. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 3
    Pioneer At A Glance Total Enterprise Value (B) 28 Top U.S. Fields By Rig Count1 2013 Drilling Capex (B) 2.8 (Pioneer Operated Count in Green 40 rigs) 259 Q3 2013 Production (MBOEPD) 173 221 2012 Reserves (BBOE) 1.1 181 161 2012…
  4. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 4
    Significant Q3 Accomplishments Best horizontal Wolfcamp Shale D interval IP in Midland Basin Best IP of all intervals in Midland Basin Best horizontal Wolfcamp Shale B interval IP in Midland Basin Extended productivity of the…
  5. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 5
    Pioneers New Well Results Best horizontal Wolfcamp Best IP of any interval in B interval IP in Pioneers the Midland Basin northern Spraberry/Wolfcamp PXD University 7-43 10H (Wolfcamp D) PXD E.T. ODaniel 1H 24-hr IP: 3,605 BOEPD…
  6. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 6
    2013E Capital Spending and Cash Flow1 Capital program remains at 3.0 B Drilling Capital: 2.75 B Sensitivity to Commodity Prices ( MM) 1,225 MM northern Wolfcamp/Spraberry area o 400 MM for horizontal program 5.00 NYMEX Gas Price…
  7. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 7
    Pioneer Focusing Capex in Highest Margin Assets 2013E 2013E Cash Margins (/BOE ex-hedges)1,2 % Liquids Assumes 98.00/BBL WTI Crude and 3.70/MCF Gas Production PXD…
  8. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 8
    Forecasting 2013 Production Growth at 14%1 172 - 173 Q4 benefits from higher horizontal POP count in Eagle Ford Shale and 172 177 MBOEPD Spraberry/Wolfcamp Q3 impacted by production FY Guidance (90 vs. 46 in Q3) (Reflects Alaska as…
  9. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 9
    Horizontal Pad Drilling Impact for 2H 2013 Production (MBOEPD) (Reflects Alaska as Discontinued Operations) 11 - 16 179 - 184 Current production: 179 MBOEPD 172 (3) (3) 2 168 167 93 46 90 Spraberry/Wolfcamp…
  10. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 10
    Liquidity Position (09/30/13) Net debt (net of cash balance of 744 MM): 2.1 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 21% Maturities and Balances1,2 2016 2017 2018 2020 2022 2028 455 MM 485…
  11. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 11
    Pioneers Significant Proved Reserves and Recoverable Resource Potential1 Proved Reserves + Estimated Net Recoverable Resource Potential of 9 BBOE and 40,000 Drilling Locations 12/31/12 Proved Reserves: 1.1 BBOE2 Additional Net…
  12. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 12
    Southern Wolfcamp JV Significant resource potential JV Resource By Hydrocarbon Type JV acreage estimated to have between 80 to 220 million barrels in place per square mile (section) over the entire NGLs 25% Wolfcamp interval…
  13. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 13
    JV Agreement with Sinochem 40% of PXD interest in 207,000 acres; sold Wolfcamp and deeper horizons (retained Spraberry/Dean and shallower horizons) 1.7 B total consideration; 21,000/acre 631 MM of upfront cash (includes Sinochems…
  14. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 14
    Southern Wolfcamp Joint Venture Area Drilling Program 16 new Wolfcamp interval wells placed on production during Q3 (90 wells on production) 24-hour peak IP rates up to 1,241 BOEPD Currently running 8 rigs Expect to spud 100 wells…
  15. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 15
    Southern Wolfcamp JV Drilling Performance Improving Drilling Days Per Well 34 31 28 Q1 2013 Q2 2013 Q3 2013 Drilling Feet Per Day 765 610 669 Q1 2013 Q2 2013 Q3 2013 20
  16. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 16
    Southern Wolfcamp JV Completion Costs Being Reduced Average Completion Cost ( per lateral foot) 660 560 530 Q1 2013 Q2 2013 Q3 2013 21
  17. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 17
    Initial Design Reduced pad volume 4,360 (380) Switch to brown sand (115) Increase to 4 clusters/stage (110) Reduce resin coated sand (280) Increase to 5 clusters/stage (110) Replace Nanosurfactact…
  18. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 18
    SWAT Reservoir - Ongoing Projects Production Trends and Well Performance vs. Drawdown Forecasting Lateral Length Management Offset Frac Interference Pad Drilling Strategy Well Spacing Pilot 23
  19. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 19
    Downspacing Test Underway in Southern JV Area Joint Venture Area Began testing downspacing from 720 (116-acre spacing) to (Wolfcamp and deeper intervals) 480 (77-acre spacing) in the Giddings area Tested 12 wells on 3-well pads using…
  20. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 20
    Giddings Spacing Pilot (Gun Barrel View) WC-B2 480 720 250 WC-B3 3-Well Pads: I------------1---------------I I-------------2-------------I I----------------3-----------------I I----------------4-----------------I Microseismic…
  21. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 21
    Giddings Area Drilling Rigs Ensign 156 Giddings Estate 2135H, 2136H & 2137H Patterson 244 Giddings Estate 2132H, 2133H & 2134H 28
  22. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 22
    Giddings Area Frac Fleet Fleet 2 Giddings Estate 3064H, 3065H & 3066H 29 29
  23. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 23
    Giddings Area Facilities (Tank Batteries) Facilities/Tank Batteries Fleet 2 Giddings Estate 3064H, 3065H & 3066H 30
  24. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 24
    Giddings Area D&C Simultaneous Operations Ensign 156 Giddings Estate 2135H, 2136H & 2137H Patterson 244 Giddings Estate 2132H, Fleet 1 2133H & 2134H Giddings Estate 3067H, 3068H & 3069H Fleet 2 Giddings Estate 3064H, H&P…
  25. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 25
    Southern Wolfcamp JV: Focused on Growing Production in 2014 Expect to continue operating 8 horizontal rigs in 2014 2014 drilling plan calls for 115 horizontal wells compared to 100 horizontal wells in 2013 Average lateral length…
  26. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 26
    PXDs Northern Spraberry/Wolfcamp Horizontal Drilling Program 33
  27. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 27
    Northern Spraberry/Wolfcamp Acreage Progressing Appraisal Program 2013 Appraisal Areas 2013 drilling program Appraising prospective acreage and confirming additional resource potential across 6 stacked intervals on 600,000 gross…
  28. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 28
    Northern Spraberry/Wolfcamp Acreage Pioneers 2013 Drilling Plan Wolfcamp Wolfcamp Wolfcamp M. Spraberry L. Spraberry D B A Shale Jo Mill Shale U. Spraberry 15 wells M. Spraberry Shale Jo Mill Shale Jo Mill Silt L.…
  29. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 29
    Pioneers Northern Horizontal Wolfcamp D Shale Wells University 7-43 10H Wolfcamp D (Andrews County); 7,382 lateral 24-hour peak IP rate of 3,605 BOEPD (74% oil) . E.T. ODaniel 2H Wolfcamp D (Midland County); 9,112 lateral 24-hour…
  30. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 30
    Pioneers Wolfcamp D Wells Extend Play 60 Miles West PXD University 7-43 10H U. Spraberry 24-hr IP: 3,605 BOEPD 7,382 lateral length APA Barracuda 45-4H M. Spraberry 24-hr IP: 695 BOEPD Shale 30-day IP: 511 BOEPD 4,560 lateral…
  31. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 31
    Pioneers Northern Horizontal Wolfcamp B and Wolfcamp A Shale Wells1 E.T. O'Daniel 1H Wolfcamp B (Midland County); 9,229 lateral 24-hour peak IP rate of 2,801 BOEPD (75% oil) DL Hutt C 3H Wolfcamp B (Midland County); 7,142 lateral…
  32. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 32
    Notable Industry Wolfcamp A, B & C and Spraberry Shale Horizontal Results PXD Scharbauer 202H (WC B) FANG - UL III 4 1-H (WC B) 24-hr IP: 979 BOEPD 24-hr IP: 613 BOEPD 8,342 lateral length 4,050 lateral length PXD - Mabee K 1H (WC B)…
  33. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 33
    Northern Horizontal Wolfcamp Before Tax Well Economics1,2 BTAX IRR 150% 125% 60% 650 MBOE 800 MBOE 1,000 MBOE Payout 1.7 0.9 0.8 Years3 1) Pricing: 95 oil / 4 gas 2) Assumes horizontal well with a 7,000 lateral length…
  34. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 34
    Pioneers Northern Spraberry/Wolfcamp Activity1 16 horizontal wells on production with 4 of these currently flowing back Pioneers Northern Includes 10 Wolfcamp Shale wells and 6 Spraberry Spraberry/Wolfcamp Acreage Shale wells in…
  35. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 35
    Northern Spraberry/Wolfcamp: Focused on Growing Production in 2014 Expect to ramp up from 5 horizontal rigs to 10+ horizontal rigs in early 2014 Vertical rig count expected to be reduced from 15 rigs to 12 or less Expect to utilize…
  36. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 36
    Pioneers Midland Basin Presence Midland Office HWY 80 Office Pioneer Pumping Services Pioneer Well Services 150 miles Hutt Lease San Angelo Office Midkiff Office Big Lake Office 75 miles 44
  37. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 37
    Pioneer Well Services Pioneer Well Services has grown to include the following: 30 total pulling units 870+ frac tanks 18 winch trucks 31 vacuum trucks Large inventory of fishing tools 5 hot oilers 10 reverse rigs 30 BOPs 30…
  38. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 38
    Pioneer Pumping Services 46
  39. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 39
    Horizontal Rig Vertical Rig 47
  40. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 40
    Horizontal Drilling Water Supply for Fracs from Frac Ponds 48
  41. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 41
    Horizontal Drilling Tank Battery, Separators and Compression DL Hutt Horizontal Tank Battery and Separators DL Hutt Separators and Compressor Station for Gas lift 49
  42. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 42
    Salt Water Disposal Produced water piped from horizontal wells to central disposal facility 50
  43. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 43
    Summary 51
  44. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 44
    Increased 2013 Spraberry/Wolfcamp Shale Production Growth Range Spraberry/Wolfcamp Net Production1 (MBOEPD) 80 - 81 Q3 production impacted by: Increased 77 80 MBOEPD guidance range FY Guidance Production conveyance to Sinochem of…
  45. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 45
    Forecasting 2013 Production Growth at 14%1 Spraberry/Wolfcamp expected to be key driver of achieving 172 - 173 top end of 13% - 18% CAGR 172 177 MBOEPD FY Guidance (Reflects Alaska as Discontinued Operations) 179 - 184 167 172…
  46. Spraberry Wolfcamp Field Trip – Pioneer Natural Resources Co. – slide 46
    Pioneer in the Spraberry/Wolfcamp Shale Largest acreage position in the Midland Basin High oil exposure from proved reserves + net recoverable resource potential of 7.5 BBOE Technology leader Sophisticated geologic maps from 70,000…

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