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First Quarter 2014 Earnings – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · May 7, 2014 · 41 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. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 1
    First Quarter 2014 Earnings May 7, 2014
  2. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 2
    Financial and Operating Highlights Q1 2014 adjusted income1 of 183 MM, or 1.26 per diluted share1 Q1 2014 production: 172 MBOEPD from continuing operations (reflects Alaska and Barnett Shale as discontinued operations) Above Q1…
  3. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 3
    Financial and Operating Highlights (cont.) Closed sale of Alaska subsidiary in April; continuing to pursue sale of Barnett Shale assets Extended Atlas gas processing agreement in Spraberry/Wolfcamp for 10 years through 2032 to ensure…
  4. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 4
    Drilling Highlights Northern Spraberry/Wolfcamp horizontal oil drilling Production data from 17 Wolfcamp A, B and D wells and 6 Lower Spraberry Shale wells placed on production in 2013 and Q1 2014 continues to support strong EURs and…
  5. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 5
    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…
  6. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 6
    Targeting 16% - 21% Compound Annual Production Growth for 2014 - 2016 MBOEPD1 184 192 FY Guidance 195 - 210 172 173 - 178 161 144 59% 63% 67% 75% Liquids Liquids Liquids Liquids 2012 2013 Q1 Q2E Q3E-Q4E 2015E 2016E…
  7. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 7
    Horizontal Pad Drilling Results in 2H-Weighted 2014 Production Growth1 184 192 MBOEPD (Full-Year Guidance) +50 horizontal well POPs in 2nd half vs.1st half 2014 (increase driven by Northern Spraberry/Wolfcamp) Q1 175 POPs 172…
  8. First Quarter 2014 Earnings – 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. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 9
    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…
  10. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 10
    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…
  11. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 11
    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);…
  12. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 12
    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…
  13. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 13
    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…
  14. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 14
    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…
  15. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 15
    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…
  16. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 16
    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…
  17. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 17
    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…
  18. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 18
    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…
  19. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 19
    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…
  20. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 20
    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…
  21. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 21
    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…
  22. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 22
    Q1 2014 Earnings Summary Millions Per Diluted (After Tax) Share Net income attributable to common stockholders 123 0.85 Noncash mark-to-market (MTM) derivative losses (86 MM before tax) 55 0.38 Adjusted income excluding noncash MTM…
  23. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 23
    Price Realizations1 Realized Prices 101.70 90.35 90.88 92.38 87.67 33.38 30.86 28.54 30.76 30.71 4.81 3.76 3.17 3.35 3.44 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Oil…
  24. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 24
    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…
  25. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 25
    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…
  26. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 26
    Q2 2014 Guidance1 Guidance Daily Production (MBOEPD) 173 178 Production Costs (/BOE) 13.50 15.50 Exploration & Abandonment ( MM) 25 35 Drilling and Acreage 15 Personnel and Seismic 20 DD&A (/BOE) 13.50 15.50 G&A ( MM) 80…
  27. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 27
    2014 Drilling Capital1 Millions 3,000 612 Q1 '14 FY '14E 1) Excludes acquisitions, asset retirement obligations, capitalized interest, geological and geophysical administrative costs and capital expenditures during the 29…
  28. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 28
    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.…
  29. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 29
    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…
  30. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 30
    Oil and Gas Revenue1 Millions 910 836 810 781 729 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 32 1) All periods presented have been restated to exclude discontinued operations
  31. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 31
    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…
  32. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 32
    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)…
  33. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 33
    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…
  34. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 34
    General & Administrative Costs1 Millions 96 14 81 72 66 16 Noncash 62 14 13 13 Q1 Q2 Q3 Q4 Q1 2013 2013 2013 2013 2014 36 1) All periods presented have been restated to exclude discontinued operations
  35. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 35
    Interest Costs Millions 51 5 45 45 45 43 4 4 4 Noncash 4 XX Q1 Q2 Q3 Q4 Q1 2013 2013 2013 2013 2014 37
  36. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 36
    Exploration & Abandonments1 ( Millions) Drilling, Acreage & Other Abandonments: 7 Geological & Geophysical: Seismic 9 Personnel & Other 15 1st Quarter 2014 Total 31 38 1) Excludes discontinued operations
  37. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 37
    Income Taxes Attributable to Continuing Operations Quarter Ended March 31, 2014 ( Millions) Current tax provision 12 Deferred tax provision 41 Income tax provision 53 39
  38. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 38
    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…
  39. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 39
    Supplemental Earnings Per Share Information The Company uses the two-class method of calculating basic and diluted earnings per share. Under the two-class method of calculating earnings per share, GAAP provides that share- and unit-based…
  40. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 40
    Supplemental Non-GAAP Financial Measures Adjusted income excluding noncash MTM derivative losses and adjusted income excluding noncash MTM derivative losses and unusual items, as presented in the Financial and Operating Highlights slide…
  41. First Quarter 2014 Earnings – Pioneer Natural Resources Co. – slide 41
    Certain Reserve Information Cautionary Note to U.S. Investors --The SEC prohibits oil and gas companies, in their filings with the SEC, from disclosing estimates of oil or gas resources other than reserves, as that term is defined by the…

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