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Permian Investor Presentation October 2012

Permian Investor Presentation October 2012

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Permian Investor Presentation October 2012

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  1. Permian Investor PresentationOctober 2012

  2. Forward-Looking Statements Except for historical information contained herein, the statements, charts and graphs in this presentation are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer are subject to a number of risks and uncertainties that may cause Pioneer's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of commodity prices, product supply and demand, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements (including joint venture agreements) with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services and personnel required to complete the Company's operating activities, access to and availability of transportation, processing and refining facilities, Pioneer's ability to replace reserves, implement its business plans (including its plan to complete certain asset divestments) or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to Pioneer's credit facility and derivative contracts and the purchasers of Pioneer's oil, NGL and gas production, uncertainties about estimates of reserves and resource potential and the ability to add proved reserves in the future, the assumptions underlying production forecasts, quality of technical data, environmental and weather risks, including the possible impacts of climate change, the risks associated with the ownership and operation of an industrial sand mining business, international operations and acts of war or terrorism. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission. In addition, Pioneer may be subject to currently unforeseen risks that may have a materially adverse impact on it. Pioneer undertakes no duty to publicly update these statements except as required by law. Please see the appendix slides included in this presentation for other important information.

  3. Topics • PXD Overview Tim Dove • Spraberry Overview & Geology Chris Cheatwood • Spraberry Operations Danny Kellum • Horizontal Wolfcamp Shale Chris Cheatwood

  4. PXD Overview

  5. Investment Highlights • U.S. asset base • Oil exposure from proved reserves + estimated net resource potential of >7 BBOE • 2012 drilling program focused in three liquids and resource rich core assets in Texas • Spraberry Vertical • Horizontal Wolfcamp Shale • Joint venture accelerates future development • Eagle Ford Shale • Barnett Shale divestiture allows reallocation of capital to three core Texas assets • Strong production growth profile • Vertical integration substantially improving returns • Attractive derivative positions protect margins • Strong investment grade financial position

  6. 2012 Production Growth Target1 MBOEPD 150 - 155 • Increased 2012 production growth target from 23% - 27% to 25% - 29% • Strong drilling and well performance outweighs continuing third-party NGL fractionation capacity shortfalls and reduced 2H drilling activity • Production growth rate beyond 2012 dependent on commodity prices and service costs 148 – 153 FY Guidance 151 147 120 104 25% - 29% ~65% Liquids 39% Oil 41% Oil 27% Oil 34% Oil 2012 E Reflects Tunisia and South Africa as discontinued operations

  7. 2012E Capital Spending and Cash Flow1 • $B • Capital program includes: • Drilling capital 2.4 • Vertical integration 0.5 • Includes $100 MM for field facilities accelerated into 2012 2.9 • Capital program funded from: • Operating cash flow 1.8 • Equity offering proceeds 0.5 • Liquidated derivatives and inventory reduction 0.3 • Credit facility borrowings 0.2 • South Africa divestiture and South Texas acreage sale 0.1 2.9 Sensitivity to Commodity Prices ($ MM) NYMEX Gas Price ($/MCF) NYMEX Oil Price ($/BBL) $85/bbl oil and $3/mcf gas 7 1) Capital spending excludes acquisitions, asset retirement obligations, capitalized interest and G&G G&A

  8. Pioneer’s Liquids-Rich Growth Areas Spraberry Vertical 70% Oil / 20% NGLs / 10% Gas 900,000 Gross Acres 609 MMBOE Proved Reserves 2.1 BBOE Resource Potential ~23,000 Drilling Locations 64 MBOEPD Q2 Net Production Eagle Ford Shale 40% Oil / 20% NGLs / 40% Gas 300,000 Gross Acres 70 MMBOE Proved Reserves 600 MMBOE Resource Potential ~1,800 Drilling Locations 24 MBOEPD Q2 Net Production Horizontal Wolfcamp Shale 80% Oil / 10% NGLs / 10% Gas 400,000+ Gross Acres 3.5 BBOE Resource Potential ~8,000 Drilling Locations

  9. Significant Proved Reserves and Resource Potential1 Proved Reserves + Estimated Net Resource Potential of >7 BBOE and 35,000 Drilling Locations Additional Net Resource Potential: 6.7 BBOE 12/31/11 Proved Reserves: 1.1 BBOE2 Spraberry 40-ac Drilling4 600 MMBOE 5,200 locations Eagle Ford Shale 600 MMBOE 1,700 locations Raton 170 MMBOE 150 PUD locations Barnett 300 MMBOE 1,300 locations Eagle Ford Shale 70 MMBOE 120 PUD locations Spraberry 20-ac Drilling4 1.2 BBOE 13,500 high-graded locations Mid-Continent 107 MMBOE Other3 200 MMBOE 500 locations Other 107 MMBOE 120 PUD locations Spraberry Waterflood 300 MMBOE 40% acreage Spraberry 609 MMBOE 4,700 PUD locations Horizontal Wolfcamp5 3.5 BBOE 8,000 locations All drilling locations shown on a gross basis SEC pricing of $96.13/BBL for oil and $4.12/MMBTU for gas (NYMEX) Primarily reflects Alaska, Raton and South Texas Includes vertical well potential from Wolfcamp and deeper intervals Assumes average EUR of 575 MBOE per well, >8,000 locations, >400,000 acres , 140-acre spacing, laterals in all intervals (A, B, C & D) and 75% NRI 9 Permian 5.6 BBOE

  10. Spraberry Overview & Geology

  11. Permian Basin Producing Fields • Spraberry Trend • Largest Field in Midland Basin (~5,000 sq miles) • >14,000 producing wells • >1 billion barrels produced • >180,000 BOPD current production Source: Geomap, 2006

  12. Geologic Provinces of the Permian Basin CONFIDENTIAL PEDERNAL UPLIFT & ROOSEVELT POSITIVE Spraberry Trend Basin Basement Uplift DEVIL’S RIVER UPLIFT OZONA PLATFORM Shelf Thrust Belt • Permian Basin is composed of multiple uplifts and basins that formed during the Pennsylvanian and early Permian • The SpraberryTrend, which includes the Wolfcampinterval, is located in the Midland Basin of the Permian Basin • It was discovered in 1948 and commenced production in 1949 • It contains 40 BBO in-place in Spraberry-Dean interval • Much more oil in-place in deeper zones of Wolfcamp, Strawn, Atoka and Mississippian

  13. Midland Basin Depositional Setting and Source Clear- fork ~6,000 ft • Submarine fans of Dean and Spraberry were deposited during relative sea-level fall via submarine canyons cut mainly in Northern Shelf • Spilled into main depocentre to south forming distal fans • Saddles between atoll mounds acted as conduits for clastics • Spraberry formation was a mud-rich fan complex • High transport efficiencies allowed extensive network of muds, silts and very fine sands over 150 miles • Main productive interval in Spraberry Trend is the middle-upper Spraberry Formation • Subordinate production Dean and Wolfcamp • Sourced from Spraberry shales and basal shales Upper Spraberry Lower Spraberry Dean Wolfcamp Limestone Pay Sandstone Pay Non-Organic Shale Non-Pay Organic Rich Shale Pay ~10,000 ft Strawn Atoka or Miss. ~11,000 ft Handford, 1981 Blakey, Early Leonardiian Representation

  14. Evolution of Spraberry Trend Area 1983 Present Day PXD Acreage Spraberry Field >1,700,000 acres and growing 429,000 acres Source: Bureau of Economic Geology Source: PXD

  15. Spraberry Operations

  16. Operations Excellent operating environment PXD has long history of development in the area Example of Spraberry Development, NW Martin County

  17. Progression of Field Development1 1960s – Field extension 1970s – Dramatic expansion 1950s – Early Development Major Oil Company development; principally Texaco, Phillips and Mobil Continued development by Majors with a few minor Independents Continued development by Majors with a few minor Independents 2000s – Infill and efficiency 1980s – Expansion & Infill 1990s – Infill and efficiency 2010s – Deeper and horizontals Independents continue to dominant the landscape driven by Pioneer Independents become the dominant player Independents lead the charge going deeper; activity builds in the Horizontal Wolfcamp Shale in southern portion of the basin Independents including Parker & Parsley (Pioneer’s predecessor Company) become large players; less emphasis by Majors 1) Source: IHS – Well location data prior to 1970 is limited

  18. History of Spraberry Trend Completions 1950 - 70s 1980 - 90s 2000s 2008 - 09 2010+ Clear- fork Average Casing Depth ~6,000 ft Upper Spraberry Fracture Stimulation Stages Lower Spraberry Dean Wolfcamp Limestone Pay Sandstone Pay Non-Organic Shale Non-Pay Organic Rich Shale Pay ~10,000 ft • Drilling deeper, adding fracture stimulation stages and capturing pay from non-traditional shale/silt intervals have added production and improved recoveries Strawn Testing deeper zones Atoka or Miss. ~11,000 ft

  19. Permian Basin Historical Oil Production Source: BENTEK, HPDI

  20. Permian Rig Count Increased 5X Since 2009 20 Source: Baker Hughes

  21. PXD – Largest Spraberry Acreage Holder, Driller and Producer PXD Acreage (~900,000 Acres; ~75% HBP) Spraberry Field • PXD leasehold represents ~50% of total Spraberry acreage • ~7,000 operated wells • Drilling locations: • >23,000 vertical (central and northern parts of the field) • >8,000 horizontal Wolfcamp (based on 400,000 acres primarily in the southern portion of the field) • 540 total wells drilled YTD 21

  22. Currently operate ~7,000 wells 1,600+ well batteries/facilities Substantial expansion of field offices Growth and expansion Drilling ~650 vertical wells and ~35 horizontal wells in 2012 Ongoing construction of new roads, tank batteries and gathering lines Significant expansion of gas processing facilities in 2013 - 2014 Manage growth and increased workload Hiring additional field personnel Optimizing field personnel workloads by becoming more efficient Providing housing solutions for employees Field Operations & Logistics Highway 80 Field Office Midkiff Field Office San Angelo Field Office

  23. Automation Expansion • XSPOC SCADA1 System currently contains over 5,600 wells • PXD’s Permian Asset Team operates the largest XSPOC System in the US • Adding advanced programmable logic controllers to disposal & injection wells • Added monitoring for waterflood injection system • Installing electronic gauging on tank batteries Radio Transmitters 1) eXpert System Pump Off Controller – Supervisory Control And Data Aquisition

  24. Production Optimization Pays Dividends ~7,000 Operated Wells 1 Failure Every 55 Months Mean Time Between Failures (Months) Failures per Month 2,900 Operated Wells 1 Failure Every 10 Months

  25. PXD’s Vertical Integration Reduces Costs and Enhances Execution • Spraberry • 5 vertical frac fleets (~20,000 HP each) • 2 horizontal frac fleets (~35,000 HP each) • 15 drilling rigs • Well service equipment1 • Eagle Ford Shale • 2 frac fleets • (50,000 HP each) • 2 coiled tubing units • Barnett Shale Combo • 1 frac fleet • (30,000 HP) • 1 coiled tubing unit • Brady sand mine Current frac capacity: ~300,000 HP 13th largest pressure pumping company in North America • Includes pulling units, frac tanks, hot oilers, water trucks, blowout preventers, construction equipment and fishing tools

  26. Spraberry Vertical Deeper Drilling Driving Production Outperformance Clear- fork ~6,000 ft Deeper drilling increased from 50% to 65% of 2012 vertical drilling program Upper Spraberry Lower Spraberry Dean Wolfcamp Limestone Pay Sandstone Pay Non-Organic Shale Non-Pay Current Spraberry 40-acre type curve EUR including Lower Wolfcamp: 140 MBOE Deeper drilling provides potential to add up to 100 MBOE Organic Rich Shale Pay ~10,000 ft Strawn Atoka or Miss. ~11,000 ft • Compares to average 24-hour IP of 90 BOEPD for 140 MBOE EUR type curve well in the Lower Wolfcamp

  27. Continuing to Successfully Grow Spraberry Production Spraberry Net Production1 (MBOEPD) • Q2 production negatively impacted by ~4,800 BOEPD due to unplanned third-party fractionation capacity shortfall • Included 2,800 BOEPD associated with inventory build and 2,000 BOEPD from ethane rejection • Inventory build expected to be drawn down by year-end • Increased 2012 production growth target from 61 MBOEPD – 65 MBOEPD to 63 MBOEPD - 67 MBOEPD • Strong drilling and well performance expected to offset continuing ethane rejection (up to 2,000 BOEPD) and an earlier than anticipated reduction in the vertical rig count 63 - 67 61 – 65 MBOEPD FY Guidance 64 62 45 2012 2 1) Includes production from Strawn, Atoka and Mississippian in vertical wells and horizontal Wolfcamp Shale wells 2) Production from horizontal Wolfcamp Shale forecast at ~2,000 BOEPD in 2012; ~1,000 BOEPD average in Q2; ~2,300 BOEPD as of July 1st

  28. Horizontal Wolfcamp Play

  29. Industry Activity Focused in the Southern Area PXD Acreage Spraberry Field Current Industry horizontal Wolfcamp Shale Focus Area Source: PXD

  30. Southern Horizontal Wolfcamp Players Laredo PXD Apache Apache PXD PXD EOG Devon El Paso COP Horizontal Wells Horizontal Permits El Paso BHP Approach

  31. Horizontal Wolfcamp Rig Count Increasing 43 Wolfcamp Horizontal Rigs

  32. PXD Has Multiple Horizontal Wolfcamp Shale Target Intervals • PXD has an extensive Midland Basin geologic database: • Over 70,000 logs of which 9,000 are digital, allow for excellent structural control and detailed petrophysics • Growing 3-D seismic database (currently at 1,400+ square miles) ensures appropriate well placement • Access to ~4,000 feet of whole core provides increased confidence in petrophysical models and supports repeatable results • Petrophysical analysis has identified multiple prospective horizontal Wolfcamp Shale intervals with substantial resource potential U. Spraberry M. Spraberry L. Spraberry Jo Mill Sand L. Spraberry Shale Dean Wolfcamp A Upper Wolfcamp B Horizontal Wolfcamp Shale Target Intervals Lower Wolfcamp B Wolfcamp C1 Wolfcamp C2 Wolfcamp D Strawn Miss/Atoka

  33. Regional Structure Maps: Strawn and WolfcampB U. Spraberry M. Spraberry L. Spraberry Jo Mill Sand L. Spraberry Shale Dean Wolfcamp A Wolfcamp B1 Wolfcamp B2 Wolfcamp B3 Wolfcamp C1 Wolfcamp C2 Wolfcamp B1 Structure CI = 200’ Strawn Structure CI = 200’ Wolfcamp D Strawn 6,558 Control Points 13,820 Control Points 10 Miles 10 Miles

  34. Wolfcamp Facies & Depositional Model Platform Carbonate Land Platform Carbonate Pelagic Sediments Shelf Edge Carbonate Clastic Detrital View from NW Fluvial - Deltaic Slope Sediments & Reef Talus Silt Cloud in Suspension Carbonate Debris Flows Delta Anaerobic Zone (Organic-rich Sediments) Midland Basin CBP Block Diagram Outline Clastic Slope Sediments Carbonate Gravity Flows Clastic Gravity Flows Basinal Sediments Land Sea Level Marathon Thrust Belt Land Fluvial- Deltaic Pelagic Sed. Glasscock Nose Marathon Thrust Belt Clastic Slope Suspended Silt Land Wolfcamp Facies Map Organic-rich Basinal Sediments Older Wolfcamp Clastics Carbonate Slope Clastic Gravity Flow Debris Flow Platform Carbonate Val Verde Basin Land Carb Gravity Flow Central Basin Platform Schematic Block Diagram of WolfcampFacies In Midland Basin North Basin Platform San Simon Channel Simultaneous deposition of organic-rich carbonate and clastic sediments in an anaerobic basin results in hydrocarbon-rich, interbedded, conventional and unconventional reservoirs North

  35. Wolfcamp Comparison to Other Plays Wolfcamp compares favorably to other major oil shale plays Pioneer internal research (modified according to recent core and petrophysical data) EOG Analyst Conference April 2010 AAPG Bulletin April 2007, Hart Energy Databank December 2011, HIS, REPSI, EOG February 2010 Investor Presentation Hart Energy Databank December 2011, Oil & Gas Investor June and August 2011 Tudor, Pickering, Holt, “The Bakken Momentum Continues” November 2011, Hart Energy Bakken Playbooks 2008 and 2010, Jarvie – AAPG Section Meeting 2008

  36. Horizontal Wolfcamp Shale Drilling Activity • Currently focused on holding 50,000 acres in southern part of play during 2012 and 2013 • Expect to drill 90 wells by YE 2013 to hold acreage • 5 rigs currently running; increasing to 7 rigs late Q4 • 4 rigs drilling in southern area • Recently added 5th rig focused on delineating northern acreage in Midland, Martin and Gaines counties • Substantial portion of Pioneer’s acreage position in these counties could be prospective • Currently targeting ~7,000’ laterals; expect to test longer laterals up to 9,000’ • Transitioning from “science” drilling to “development” drilling • Results from recent “development” wells suggest wells can be drilled for ~$7 MM • Increasing utilization of Brady Brown® sand • Railroad Commission of Texas recently adopted new field rules to optimally develop horizontal Wolfcamp Shale and vertical Spraberry Current Drilling Focus Area

  37. Horizontal Wolfcamp 960-Acre Development Block • Up to 55 wells per 960-acre section (20-acre field rules) • 41 vertical wells in Spraberry-Wolfcamp • Up to 14 horizontal Wolfcampwellbores • 7 horizontal wells in Wolfcamp A • 7 horizontal wells in WolfcampB • Additional horizontal wellbores possible in B, C and D intervals • 960-acre section metrics (55 wells) • Capital required: $ 180 MM • Resource potential: ~15 MMBOE • F&D cost: ~$15 / BOE • Spacing • Vertical wells • 900’ from other vertical wells • 360’ from horizontal wells • Horizontal wells • 725’ from other horizontals in same interval • Stacked horizontals within 300’ in map-view count as one location for spacing purposes 960 acres 1 Mile 7,920 ft ½ Mile Vertical Well Horizontal “A” Well Horizontal “B” Well 100’ from lease line 5,280 ft 467’ from lease line Horizontal wells in same interval spaced at ~725’

  38. Horizontal Wolfcamp Shale Results Exceeding Expectations • Gross cumulative production of 2 Giddings wells in northern Upton county from B interval: • 107 MBOE in 9.5 months (75% oil) • 83 MBOE in 7 months (75% oil) • Placed 5 additional B interval wells on production during Q2 in southern Upton and Reagan counties • Wells delivered 30-day peak rates ranging from 332 BOEPD to 597 BOEPD (77% to 90% oil) • Continuing to bring new wells on production, including A and B intervals • Expect increasing production rates and EURs as stimulated lateral lengths increased to 7,000’+ First two wells in XBC Giddings Estate Stimulated lateral lengths: 5,300’ Frac stages: 30 EURs: 650 MBOE First 5 wells in southern area PXD Acreage PXD Initial Drilling Areas Competitor Horizontal Acreage Spraberry Field PECOS Based on strong production results and continuing petrophysical analysis, increased EURs in southern area to 575 MBOE1 1) Based on 7,000’ stimulated lateral with 30 – 35 frac stages; previous EUR range was 350 MBOE – 500 MBOE based on early offset operator data

  39. Horizontal Wolfcamp Well Performance Above 575 MBOE Type Curve Actual production from horizontal Wolfcamp wells Wells unloading fracture stimulation fluid Average daily oil production from all 7 horizontal Wolfcamp wells (includes Giddings wells) Average daily oil production from 5 horizontal Wolfcamp wells on University Lands (excludes Giddings wells) 575 MBOE Type Curve for 7,000’ lateral (oil portion only) 39

  40. Horizontal Wolfcamp Well Performance Above 575 MBOE Type Curve Horizontal Wolfcamp production normalized to 7,000’ lateral Wells unloading fracture stimulation fluid Average daily oil production from all 7 horizontal Wolfcamp wells (includes Giddings wells) Average daily oil production from 5 horizontal Wolfcamp wells on University Lands (excludes Giddings wells) 575 MBOE Type Curve for 7,000’ lateral (oil portion only) 40

  41. Wolfcamp Shale JV Opportunity • Offering 33% to 50% of Pioneer’s working interest in ~200,000 acres in southern portion of Midland Basin (8% to 12% of total acreage position) • Large, contiguous acreage position located in Upton, Reagan, Irion and Crockett counties • Includes all intervals (A, B, C & D) • >4,000 potential horizontal development locations excluding downspacing potential • >2.0billion barrel gross resource potential • Oil content >70%; liquids > 90% • EUR: ~575 MBOE for 7,000’ lateral • ~45% before-tax IRR • $85 oil and $4 gas • $7 MM well cost Proposed JV Area • Accelerated development enhances net asset value and project returns

  42. Pioneer’s Permian Resource Potential Continues To Grow1 Drilling deeper vertical wells, capturing non-traditional shale/silt intervals and drilling horizontally into the Wolfcamp Shale has increased Pioneer’s Permian resource potential by ~400% since 2010 Spraberry 20-ac Drilling2 1.2 BBOE Spraberry 40-ac Drilling2 600 MMBOE Spraberry 40-ac Drilling 350 MMBOE +400% Spraberry Waterflood 300 MMBOE Spraberry 20-ac Drilling 500 MMBOE SpraberryWaterflood 300 MMBOE Horizontal Wolfcamp3 3.5 BBOE 2010 Permian Resource Potential: 1.15 BBOE4 All drilling locations shown on a gross basis Includes vertical well potential from shalt/silt, Wolfcamp and deeper intervals Assumes average EUR of 575 MBOE per well, >8,000 locations, >400,000 acres , 140 acre spacing, laterals in all intervals (A, B, C & D) and 75% NRI Total PXD Proved Reserves + Estimated Net Resource Potential of >3 BBOE in 2010 and >7 BBOE in 2012 2012 Permian Resource Potential: 5.6 BBOE4 42

  43. Why Invest In PXD? • Significant Upside Potential From: • Oil exposure from proved reserves + estimated resource potential of >7 BBOE and 35,000 drilling locations • Aggressive Spraberry & Eagle Ford Shale drilling program • Extensive horizontal Wolfcamp Shale potential • Joint Venture accelerates future development • Strong returns from vertical integration • Margin protection from attractive derivatives • Strong balance sheet

  44. Appendix

  45. 140 MBOE Spraberry 40-Acre Type Curve Deeper drilling in Spraberry increasing EURs 140 MBOE Spraberry/Dean/Full Wolfcamp (70% oil, 20% NGLs, 10% gas) Gross Production Per Well (BOEPD) 110 MBOE Spraberry/Dean/Upper Wolfcamp (70% oil, 20% NGLs, 10% gas) Month Strawn / Atoka / Mississippian Potential Not Included

  46. Spraberry 20-Acre Vertical Well Update 20-Acre Drilling (~13,500 locations) • Drilled 39 wells to date • Most wells drilled to the Lower Wolfcamp with a few drilled to the Strawn • Results to date indicate production near type curve for a 40-acre Lower Wolfcamp well (EUR of 140 MBOE) • Targeting ~25 wells in 2012 Spraberry Drilling Rig

  47. SpraberryWaterflood Continuing to Perform • 7,000-acre project in Spraberry • 12 injectors and 110 producers • Injecting 4,100 BWPD • $6 - $7 MM capital cost • LOE savings from water handling Water injection begins BOPD Strong waterflood production wedge from flooded zone; number of responding wells continues to increase Upper Spraberry Base Production (110 wells) Upper Spraberry Base Production Forecast Continuing to see uptick in production; Upper Spraberry production increased ~25% during Q2 within project area compared to base production decline; further increase expected

  48. Permian Oil Production Transport Options

  49. Growing Midstream Infrastructure to Support Production Growth Pipeline NGL Takeaway to Mont Belvieu • Chaparral & West Texas Pipelines • PXD production throughput of ~13 MBPD in Q1 2012 • Recent West Texas pipeline debottlenecking providing an additional 4 MBPD to PXD • New Lone Star Pipeline • 4 MBPD to PXD in late-2012 increasing to 16 MBPD by 2020 • Will connect to all PXD gas processing plants • Expect >425 MBPD, or ~50%, increase in fractionation capacity at Mont Belvieu in 2013 Gas Processing • Midkiff / Benedum • Current capacity: 260 MMCFD1 • PXD production makes up ~40% of throughput • Sale Ranch • Current capacity: 25 MMCFD1 • Q3 2012 expansion: +100 MMCFD1 • PXD production makes up ~40% of throughput • Planned Driver Plant • Online 1Q 2013 • Planned additional capacity: 200 MMCFD1,2 Chaparral Pipeline To Mont Belvieu Sale Ranch West Texas Pipeline To Mont Belvieu Planned Driver Plant Lone Star Pipeline (est.) To Mont Belvieu Midkiff Benedum PXD Acreage Spraberry Field Existing NGL Pipeline Planned NGL Pipeline Expanding processing capacity and contracted takeaway to support Pioneer’s aggressive production growth 1) Wet gas stream with ~160 BBL/MMSCF NGL yield 2) Initial capacity of 100 MMCFD with expansion to 200 MMCFD by end of 2013 49

  50. Certain Reserve Information Cautionary Note to U.S. Investors --The U.S. Securities and Exchange Commission (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 SEC. In this presentation, Pioneer includes estimates of quantities of oil and gas using certain terms, such as “resource,” “resource potential,” “oil in place,” “EUR” or other descriptions of volumes of reserves, which terms include quantities of oil and gas that may not meet the SEC’s definitions of proved, probable and possible reserves, and which the SEC's guidelines strictly prohibit Pioneer from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being recovered by Pioneer. U.S. investors are urged to consider closely the disclosures in the Company’s periodic filings with the SEC. Such filings are available from the Company at 5205 N. O'Connor Blvd., Suite 200, Irving, Texas 75039, Attention Investor Relations, and the Company’s website at These filings also can be obtained from the SEC by calling 1-800-SEC-0330.