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Investor Presentation – Pioneer Natural Resources Co.

Pioneer Natural Resources Co. · Aug 1, 2014 · 45 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 August 2014
  2. Investor Presentation – Pioneer Natural Resources Co. – slide 2
    Pioneer At A Glance Total Enterprise Value (B) 32 Top U.S. Fields By Rig Count2 2014 Drilling Capex (B) 3.0 328 (Pioneer Operated Count in Green 41 rigs) Q2 2014 Production (MBOEPD)1 176 2013 Reserves (BBOE) 0.8 206 204 2013…
  3. Investor Presentation – Pioneer Natural Resources Co. – slide 3
    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…
  4. Investor Presentation – Pioneer Natural Resources Co. – slide 4
    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…
  5. Investor Presentation – Pioneer Natural Resources Co. – slide 5
    Narrowing 2014 Production Growth Range from 14% - 19% to 16% - 19% FY Guidance MBOEPD1 180 - 185 195-208 181-186 176 166 155 137 59% 63% 66% 66% 75% Liquids Liquids Liquids Liquids Liquids 2012 2013 Q1 Q2 Q3E Q4E 2015E…
  6. Investor Presentation – Pioneer Natural Resources Co. – slide 6
    Horizontal Pad Drilling on Target to Deliver Expected 2H 2014 Production Growth1 180 - 185 MBOEPD (Full-Year Guidance) Q2 Latest POP forecast in 176 MBOEPD 187 POPs line with early May Q1 in 2H outlook 166 MBOEPD +56 131…
  7. Investor Presentation – Pioneer Natural Resources Co. – slide 7
    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…
  8. Investor Presentation – Pioneer Natural Resources Co. – slide 8
    Midland Basin Horizontal Resource Potential Continues to Grow 75 BBOE Recoverable Resource Potential (Up from 50 BBOE in 2013) Spraberry Wolfcamp D Shales Wolfcamp C 13 BBOE 14 BBOE 2 BBOE Wolfcamp A Wolfcamp B 19 BBOE 27…
  9. Investor Presentation – Pioneer Natural Resources Co. – slide 9
    Liquidity Position (6/30/14) Net debt (net of cash balance of 445 MM): 2.2 B Unsecured credit facility availability: 1.5 B Net debt-to-book capitalization: 25% Maturities and Balances1 2016 2017 2018 2020 2022 2028 455 MM 485…
  10. Investor Presentation – Pioneer Natural Resources Co. – slide 10
    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…
  11. Investor Presentation – Pioneer Natural Resources Co. – slide 11
    Pioneers 2013/Early 2014 Northern Spraberry/Wolfcamp Program Successfully placed 27 horizontal Wolfcamp and 7 horizontal Lower Spraberry Shale wells on production Pioneers Northern Spraberry/Wolfcamp Acreage during 2013 and 1H 2014…
  12. Investor Presentation – Pioneer Natural Resources Co. – slide 12
    Average Production for Northern Horizontal Wells Drilled to Date1 Lower Spraberry Shale: 7-well average in 4 counties; 6,200 avg. lateral length Updated Late July 2,000 Wolfcamp D: 6-well average in 3 counties; 7,500 avg. lateral…
  13. Investor Presentation – Pioneer Natural Resources Co. – slide 13
    Recent Middle Spraberry Shale and Jo Mill Shale Horizontal Results 2,000 Middle Spraberry Shale: 1-well (PSU 1702H) in Midland County; 6,182 lateral length Updated Late July Jo Mill Shale: 2-well average in Midland and Martin…
  14. Investor Presentation – Pioneer Natural Resources Co. – slide 14
    Northern Spraberry/Wolfcamp: Focused on Growing Production in 2014 Successfully transitioning from a horizontal appraisal program to a horizontal development program during 2014 Increased horizontal rig count from 5 rigs at YE 2013 to…
  15. Investor Presentation – Pioneer Natural Resources Co. – slide 15
    Southern Wolfcamp JV: Focused on Growing Production in 2014 2014 plan calls for placing 100 horizontal wells on production Average lateral length expected to be 9,400 Utilizing mostly 3-well pads Expect to drill 2/3 Wolfcamp B…
  16. Investor Presentation – Pioneer Natural Resources Co. – slide 16
    Developing 10-Year Growth Plan for Spraberry/Wolfcamp Optimized Marketing/ Procurement/ Development Plan Takeaway Gas Processing Services Cushing Keystone South Seaway Permian Basin Wink GC Market Pioneer is…
  17. Investor Presentation – Pioneer Natural Resources Co. – slide 17
    Continuing to Successfully Grow Spraberry/Wolfcamp Production Spraberry/Wolfcamp Net Production (MBOEPD)1 40 horizontal wells placed on production in Q2 16 in northern acreage and 24 in southern Wolfcamp joint venture area 96 100…
  18. Investor Presentation – Pioneer Natural Resources Co. – slide 18
    Eagle Ford Shale Condensate Exports US Department of Commerce confirmed that condensate processed through Central Gathering Plant in Karnes County, TX distillation units such as those located at several of PXDs Eagle Ford Shale…
  19. Investor Presentation – Pioneer Natural Resources Co. – slide 19
    Eagle Ford Shale Downspacing and Staggering Update Expect to place 50 wells on production in 25% of acreage prospective for Upper Eagle Ford Shale Upper targets during 2014 as part of the downspacing and staggering program in the…
  20. Investor Presentation – Pioneer Natural Resources Co. – slide 20
    Continuing to Successfully Grow Eagle Ford Shale Production Eagle Ford Shale Net Production (MBOEPD)1 Placed 31 wells on production in Q2 46 49 MBOEPD Record Eagle Ford Shale net production of 47 MBOEPD in Q2; up from 43 MBOEPD in…
  21. Investor Presentation – Pioneer Natural Resources Co. – slide 21
    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…
  22. Investor Presentation – Pioneer Natural Resources Co. – slide 22
    Appendix 23
  23. Investor Presentation – Pioneer Natural Resources Co. – slide 23
    Pioneer Large Independent U.S. E&P Company Total Enterprise Value (B) 32 2014E Operating Cash Flow (B) 2.5 2014E Drilling Expenditures (B) 3.0 2Q 2014 Production 67% Liquids (MBOEPD)1 176 Operating Areas 2013 Drillbit F&D (/BOE)…
  24. Investor Presentation – Pioneer Natural Resources Co. – slide 24
    Production Costs (per BOE)1 Q2 2014 production costs in line 14.17 14.33 13.96 13.77 13.36 with prior periods Workovers 0.69 0.73 0.57 0.99 0.52 Production & 3.52 3.68 Ad Valorem 3.54 3.44 3.09 Taxes Third Party 2.01 1.03…
  25. Investor Presentation – Pioneer Natural Resources Co. – slide 25
    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…
  26. Investor Presentation – Pioneer Natural Resources Co. – slide 26
    Production (MBOEPD) Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 1 2 Spraberry/Wolfcamp 80 79 80 86 92 Eagle Ford Shale 38 35 40 43 47 Raton 23 22 22 21 21 West Panhandle 9 10 9 10 10 South Texas 5 6 5 5 6 Other 1 1 1 1 0 Total Cont. Ops. 156…
  27. Investor Presentation – Pioneer Natural Resources Co. – slide 27
    PXD Production By Commodity By Area Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Spraberry/W olfc amp Oil (BOPD) 52,595 51,903 52,957 58,307 57,893 NGL (BOEPD) 13,919 16,200 16,251 16,693 19,754 Gas (MCFD) 83,021 62,939 65,863 66,770 83,368…
  28. Investor Presentation – Pioneer Natural Resources Co. – slide 28
    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…
  29. Investor Presentation – Pioneer Natural Resources Co. – slide 29
    Open Commodity Derivative Positions as of 8/1/2014 Oil Q3 2014 Q4 2014 2015 2016 Swaps WTI (BPD) 10,000 15,000 - - NYMEX WTI Price (/BBL) 93.87 96.31 - - Three Way Collars (BPD)1,2 69,000 69,000 95,767 58,000 NYMEX Call Price…
  30. Investor Presentation – Pioneer Natural Resources Co. – slide 30
    Open Commodity Derivative Positions as of 8/1/2014 Natural Gasoline Q3 2014 Q4 2014 2015 2016 Three Way Collars (BPD)1,2 3,500 3,500 - - Mont Belvieu Call Price (/BBL) 97.93 97.93 - - Mont Belvieu Put Price (/BBL) 90.14 90.14 -…
  31. Investor Presentation – Pioneer Natural Resources Co. – slide 31
    Open Commodity Derivative Positions as of 8/1/2014 Gas Q3 2014 Q4 2014 2015 2016 Swaps - (MMBTUPD) 195,000 195,000 20,000 - NYMEX Price (/MMBTU)1 4.04 4.04 4.31 - Three Way Collars (MMBTUPD)1,2 115,000 115,000 285,000 20,000…
  32. Investor Presentation – Pioneer Natural Resources Co. – slide 32
    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…
  33. Investor Presentation – Pioneer Natural Resources Co. – slide 33
    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…
  34. Investor Presentation – Pioneer Natural Resources Co. – slide 34
    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…
  35. Investor Presentation – Pioneer Natural Resources Co. – slide 35
    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…
  36. Investor Presentation – Pioneer Natural Resources Co. – slide 36
    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.…
  37. Investor Presentation – Pioneer Natural Resources Co. – slide 37
    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 56% Vertical Rigs 96%…
  38. Investor Presentation – Pioneer Natural Resources Co. – slide 38
    Production Growth Profiles For 3 Largest U.S. Oil Shale Plays Includes Horizontal Wells Only 10,000,000 Eagle Ford 189 Horizontal Rigs (down from 218 rigs in early 2013) 1,000,000 Bakken Gross Production (BOEPD) 172…
  39. Investor Presentation – Pioneer Natural Resources Co. – slide 39
    Spraberry/Wolfcamp Production History Includes Vertical and Horizontal Wells 700,000 650,000 600,000 550,000 500,000 Spraberry/Wolfcamp production has 450,000 increased 480,000 BOEPD since 2009 Production (BOEPD)…
  40. Investor Presentation – Pioneer Natural Resources Co. – slide 40
    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…
  41. Investor Presentation – Pioneer Natural Resources Co. – slide 41
    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…
  42. Investor Presentation – Pioneer Natural Resources Co. – slide 42
    Crude Pipeline Capacity to Gulf Coast Cushing Permian Basin Crude Takeaway Capacity Operator Origin Destination Name Capacity Time Frame Plains Permian Cushing Basin 450,000 Oxy Permian Cushing Centurion 75,000 Sunoco Permian GC…
  43. Investor Presentation – Pioneer Natural Resources Co. – slide 43
    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…
  44. Investor Presentation – Pioneer Natural Resources Co. – slide 44
    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…
  45. Investor Presentation – Pioneer Natural Resources Co. – slide 45
    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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