Hart Energy 2014 DUG Permian Basin Conference Midland Basins Spraberry/Wolfcamp: Most Active Play in the World and Accelerating Growth May 21, 2014
Pioneer At A Glance Total Enterprise Value (B) 30 Top U.S. Fields By Rig Count1 2014 Drilling Capex (B) 3.0 (Pioneer Operated Count in Green 43 rigs) 313 Q1 2014 Production (MBOEPD) 172 2013 Reserves (BBOE) 0.8 218 204 2013…
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 55 billion 1,200% 1,000% 800% 600%…
Geologic Provinces of the Permian Basin Spraberry/ Wolfcamp Shale Midland Ozona Platform KS OK NM TX 20 Miles Permian Basin is composed of multiple uplifts and basins that formed during the Pennsylvanian and…
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…
Midland Basin: Stacked Play Potential Midland Basin Delta log R (excess electrical resistance) Red intervals indicate hydrocarbons Clear Fork Petrophysical analysis indicates significantly more oil-in-place in the Wolfcamp and…
Drilling Results Confirming Pioneers Midland Basin Sweet Spot PXD Wolfcamp B Prospectivity Map (Early 2013) 2014 ITG Research Report Wolfcamp Test Rates Higher Tier 1 Tier 2 Pioneer Land Pioneer Wolfcamp B wells Wolfcamp B depth…
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…
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…
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);…
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…
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…
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…
Largest U.S. Oil Fields Estimated Recoverable Resource (BBOE)1 0 25 50 75 Spraberry/Wolfcamp Eagle Ford Shale Prudhoe Bay, AK Bakken Shale Delaware Basin East Texas Basin Midway-Sunset, CA Wilmington, CA Kuparuk River, AK Kern…
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…
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%…
Production Growth Profiles For 3 Largest U.S. Oil Shale Plays Includes Horizontal Wells Only 10,000,000 Eagle Ford 196 Horizontal Rigs (down from 218 rigs in early 2013) 1,000,000 Gross Production (BOEPD) Bakken 168 Horizontal…
Spraberry/Wolfcamp Production History Includes Vertical and Horizontal Wells 650,000 600,000 585,000 550,000 500,000 Spraberry/Wolfcamp production has 450,000 increased 425,000 BOEPD since 2009 400,000 Production (BOEPD)…
Pace of Eagle Ford Production Growth is Slowing 20 Source: Credit Suisse, E&P Performance Monitor, April 28, 2014
Pace of Bakken Production Growth is Slowing North Dakota Daily Oil Production (MBOPD) 1,000 900 800 Daily Oil Production (MBOPD) 700 600 500 400 300 200 100 0 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 21 Source:…
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…
ITGs Permian Basin Oil Growth Forecast 1-1.8 MMbbl/d Total Permian Growth by 2025 3,500 High Case 3.2 MMbbl/d by 2025 3,000 2,500 Wellhead Oil (MBbl/d) Current 2,000 1.5 MMbbl/d Base Case 2.5 MMbbl/d by 2025 1,500…
Primary Sources of Domestic Oil Growth Bakken Niobrara Permian Midland Basin Spraberry/Wolfcamp 75 BBOE Recoverable Resource Potential Delaware Basin Eagle Ford Deepwater Gulf of Mexico 24
U.S. Production Forecast by Grade History Forecast 12 10 8 MMBPD Production (MMBPD) 8 Light 6 4 2 Medium Heavy 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Heavy Medium Light Condensate…
U.S. Rig Activity Since 1990 1,800 1,600 1,400 1,200 U.S. Gas Rig Count 1,000 800 600 400 U.S. Oil Rig Count 200 - Jan-90 Jan-94 Jan-98 Jan-02 Jan-06 Jan-10 Jan-14 26
Historical WTI and Brent Price Relationship Historical WTI and Brent Prices WTI - Brent Price Differential 150 30 Brent Relationship 20 broke in 125 January 2011 10 Oil Price (/BBL) Oil Price (/BBL) 100 - (10) 75…
U.S. PADD III (Gulf Coast) Crude Imports Since 2005 Majority of the light crude imports have been displaced, but mediums may be stickier, which could put a ceiling on U.S. production growth Oil Imports to PADD 3 7,000 Average API…
Increased U.S. Petroleum Product Exports Over 10 Years U.S. Petroleum Product Exports (million barrels per day) Product exports reached 4.3 MM in 12/2013 4.5 4.0 Gasoline 3.5 3.0 Kerosene & distillates Kerosene & driving…
WTI, Brent and PADD 3 Gasoline Price History Gasoline prices are more closely tied to Brent than WTI 350 PADD 3 Brent Price 300 Gasoline Price 250 Price (Cents per Gallon) 200 WTI Price 150 100 50 Jan-06…
The Export Ban Threatens to Strand U.S. Crude Downstream industry is responding to increased light production Announced refinery and splitter investments, increased refinery utilization Product exports are booming Increased exports of…
The Foreseeable Consequences of Inaction Producers will be forced to lay down rigs Production growth will stall and production will quickly decline A substantial portion of domestic natural gas production is associated with oil…
Banned Commodities Exports Only 3 commodities are included in the Export Administration Regulations Short Supply Control list1 Unprocessed Crude Oil Horses Exported by Sea Western Red Cedar Source: BIS Short Supply Controls…
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