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TRANSCRIPT
IPAA Leaders in Industry
Luncheon
Crude Oil Export Policy Debate
March 2014
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 with third parties on mutually acceptable terms, completion of
planned divestitures, litigation, the costs and results of drilling and operations, availability of
equipment, services, resources and personnel required to complete the Company's operating
activities, access to and availability of transportation, processing, fractionation and refining
facilities, Pioneer's ability to replace reserves, implement its business plans 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 the Company’s industrial
sand mining and oilfield services businesses 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.
2
Pioneer – Large Independent U.S. E&P Company
3
Eagle Ford Shale
West Panhandle
Raton Hugoton
Northern Spraberry/Wolfcamp
Operating Areas
Southern Wolfcamp JV Area
Dallas Headquarters
Resource-focused strategy, with activity
concentrated in 3 of the most active U.S. fields
Best performing energy stock in S&P 500
since 2009
Second largest oil producer in Texas
Operating in core Spraberry/Wolfcamp asset
since early 1980s
– PXD holds ~900,000 acres in
Spraberry/Wolfcamp
– Largest producer in Spraberry/Wolfcamp with
31 rigs operating (20 horizontal and 11 vertical)
and 7,000+ producing wells
– Preeminent, low-cost operator benefitting from
vertical integration strategy
Attractive derivative positions protect margins
Strong investment grade financial position
Pioneer At A Glance
1) November 2013 IHS data, gross reported oil and wet gas
Spraberry/Wolfcamp Gross
Production By Operator
(MBOEPD)1
Top U.S. Fields By Rig Count1
(Pioneer Operated Count in Green – 40 rigs)
Total Enterprise Value ($B) $30
2014 Drilling Capex ($B) $3.0
2013 Production (MBOEPD) 161
2013 Reserves (BBOE) 0.8
2013 Reserves + Resource (BBOE) >11.0
4
1) Baker Hughes Rig Count (2/14/14) and PXD Internal
319
273
216189
176
80 7855 53 46 43 42
30
93
51
3728 27
20 19 18 16 15
Primary Sources of Domestic Oil Growth
5
Deepwater
GOM
Bakken
Niobrara
Permian
Eagle Ford
0
2
4
6
8
10
12
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Pro
ducti
on (
MM
BO
PD
)
Heavy Medium Light Condensate
U.S. Production Forecast by Grade
6 Source: Turner, Mason & Company
History Forecast
Light
Medium
Heavy
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan-90 Jan-94 Jan-98 Jan-02 Jan-06 Jan-10 Jan-14
U.S. Rig Activity Since 1990
7
U.S. Oil Rig Count
U.S. Gas Rig Count
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
Pro
ducti
on (
BO
EPD
)
Spraberry/Wolfcamp Production History
From 2009 to 2012, production growth primarily attributable to increased vertical activity
Post 2012, production growth expected to be driven by horizontal activity
Monthly
Production
Source: IHS Energy through October 2013 for the Spraberry, Credo East, Garden City South and Lin Fields
Includes Vertical and Horizontal Wells
8
Spraberry/Wolfcamp production has
increased ~400,000 BOEPD since 2009
0
50
100
150
200
250
300
350
Spraberry/Wolfcamp Rig Count
Source: Rig count data provided by Baker Hughes, 2/14/14
Vertical Rigs
Horizontal Rigs
Counties: Andrews, Borden, Crockett, Dawson, Ector, Gaines, Glasscock, Howard, Irion, Martin,
Midland, Mitchell, Reagan, Schleicher, Scurry, Sterling, Tom Green and Upton
96% Vertical Rigs 62% Vertical Rigs
4% Horizontal Rigs
38% Horizontal Rigs
(up from 23% in early 2013)
9
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
2.25
2.50
2.75
2013 2018 2023 2028 2033
Gro
ss D
aily P
roducti
on (
MM
BO
ED
)Spraberry/Wolfcamp Horizontal Drilling Production Growth Profile
1) Potential impediments to achieving this forecast include oil price, capital, infrastructure (Midland and oil field) and people
2) Assumes industry rig count ramps up from ~65 horizontal rigs in 2013 to ~120 rigs per year in 2018 and thereafter (excludes Pioneer’s portion)
3) Includes royalties and joint interest partner’s share of production in southern Wolfcamp
Other Operators2
(~200 Independent Operators)
Pioneer2,3
Assumes Pioneer’s rig count increases from 24 rigs in
early 2014 to 50+ rigs in 2018 and thereafter
10
1
TPH’s Industry Permian Basin Production Growth Forecast
Source: IR Presentations, Drillinginfo, RigData, TPH Research; 2-stream; Forecast from 2H 2013
TPH’s Total Permian Production Forecast: 4.8 MMBOEPD by 2025
11
Midland Basin: Stacked Play Potential
“Delta log R” (excess electrical resistance)
Red intervals indicate hydrocarbons
Petrophysical analysis indicates significantly more oil in place
in the Wolfcamp and Spraberry Shale intervals in the Midland
Basin compared to other major U.S. shale oil plays
200 f
t Eagle Ford
Condensate
Barnett
Combo Marcellus
Barnett
Miss Lime
Woodford
Wolfcamp D
“Cline”
Wolfcamp A
Wolfcamp B
L. Spraberry
Shale
M. Spraberry
Shale
Clear Fork
Bakken
Jo Mill Shale
Midland Basin
Source: PXD internal
Dean
Wolfcamp C
U. Spraberry
Atoka
Strawn
Niobrara
12
GC
Market
Wink
Seaw
ay
Keysto
ne S
outh
Permian
Basin
Cushing
Crude Pipeline Capacity to Gulf Coast
13
Operator Origin Destination Name Capacity Time Frame
Plains Permian Cushing Basin 450,000
Oxy Permian Cushing Centurion 75,000
Sunoco Permian GC West Texas Gulf 400,000
Kinder Morgan Permian El Paso Wink 120,000
Magellan Permian GC Longhorn 225,000
Total 1,270,000
Magellan Permian GC Longhorn-add 50,000 3Q 2014
Magellan Permian GC BridgeTex 278,000 3Q 2014
Plains Permian Corpus Cactus 200,000 2Q 2015
Sunoco Permian GC Permian Express II 200,000 2Q 2015
Operator Origin Destination Name Capacity Time Frame
Enbridge/Enterprise Cushing GC Seaway 400,000
Transcanada Cushing GC Keystone South 300,000
Enbridge/Enterprise Cushing GC Seaway-add 450,000 2Q 2014
Transcanada Cushing GC Keystone South-add 530,000 3Q-4Q 2014Planned
Permian Basin Crude Takeaway Capacity
Current
Cushing to Gulf Coast Pipeline Takeaway
Planned
Current
$(40)
$(30)
$(20)
$(10)
$-
$10
$20
$30
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
WT
I Pri
ce D
iscount
to B
rent
($/B
BL)
14
Brent – WTI Price Differential
Source: EIA
Relationship
broke in
January 2011
($30/bbl)
($23/bbl)
($17/bbl)
U.S. Condensate Production
Source: Turner, Mason & Company
U.S. Condensate Production is Expected to reach 1.3 MMBPD by year end 2020
15
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Condensa
te P
roducti
on (
MBPD
)
All Other
Utica
OK/KS
Niobrara
Eagle Ford
Permian Basin
Williston Basin
History Forecast
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Condensa
te P
roducti
on (
MBPD
)
All Other
Utica
OK/KS
Niobrara
Eagle Ford
Permian Basin
Williston Basin0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Condensa
te P
roducti
on (
MBPD
)
All Other
Utica
OK/KS
Niobrara
Eagle Ford
Permian Basin
Williston Basin
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Condensa
te P
roducti
on (
MBPD
)
All Other
Utica
OK/KS
Niobrara
Eagle Ford
Permian Basin
Williston Basin
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Condensa
te P
roducti
on (
MBPD
)
All Other
Utica
OK/KS
Niobrara
Eagle Ford
Permian Basin
Williston Basin
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Condensa
te P
roducti
on (
MBPD
)
All Other
Utica
OK/KS
Niobrara
Eagle Ford
Permian Basin
Williston Basin
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Condensa
te P
roducti
on (
MBPD
)
All Other
Utica
OK/KS
Niobrara
Eagle Ford
Permian Basin
Williston Basin
0
200
400
600
800
1,000
1,200
1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Condensa
te P
roducti
on (
MBPD
)
All Other
Utica
OK/KS
Niobrara
Eagle Ford
Permian Basin
Williston Basin
~875 MBPD
PXD Eagle Ford Condensate Differential vs Brent
16 Source: PXD Internal
($36)
($33)
($30)
($27)
($24)
($21)
($18)
($15)
($12)
($9)
($6)
($3)
$0
$3Jan-1
0
Mar-
10
May-1
0
Jul-
10
Sep-1
0
Nov-1
0
Jan-1
1
Mar-
11
May-1
1
Jul-
11
Sep-1
1
Nov-1
1
Jan-1
2
Mar-
12
May-1
2
Jul-
12
Sep-1
2
Nov-1
2
Jan-1
3
Mar-
13
May-1
3
Jul-
13
Sep-1
3
Nov-1
3
Jan-1
4
PXD Eagle Ford Condensate Diff to Brent
PXD Eagle Ford Condensate Price Differential to Brent
$/b
bl
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
Increased U.S. Petroleum Product Exports Over 10 Years
17
U.S. Petroleum Product Exports (million barrels per day)
Other
LPG
Residual Fuel
Gasoline
Coke
Kerosene &
Distillates
Source: EIA
Other includes pentane plus, gasoline blending components and other products
Product exports reached
4.3 MM in 12/2013
Kerosene &
distillates
driving growth
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13
10 Years of Increased U.S. Petroleum Product Exports
18 Source: EIA
Asia
Other
Latin
America
Europe
Canada
Africa
U.S. Petroleum Product Exports by Country (million barrels per day)
Country percentages have remained essentially flat
but absolute volumes have increased
50
100
150
200
250
300
350
Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14
Pri
ce (
Cents
per
Gallon)
WTI, Brent and PADD 3 Gasoline Price History
19 Source: EIA
WTI Price
PADD 3
Gasoline
Price
Brent Price
Gasoline prices are more closely tied to Brent than WTI
Effects of Not Lifting Crude Oil Ban
20
Once all North American Light Sweet imports are displaced, the Gulf Coast will
become saturated with domestic production
Producers will experience >$30/bbl price differentials to Brent
Producers will be forced to lay down rigs: starting with the marginal plays and
eventually every play will shut down
Natural gas supplies will reduce dramatically as 60% of natural gas production
is associated with oil production
Resulting in hundreds of thousands of lost jobs
Production growth will stall and begin to decline
Resulting in less tax revenue for federal, state and local governments
Amid declining domestic production, refineries will increase imports of foreign
Medium Sour crudes
U.S. trade deficit will resume expansion as refineries purchase foreign crude
21
Effects of Lifting Crude Oil Ban
Current U.S. Oil and Gas Industry’s Impact (API)
Supports 9.8 million U.S. jobs
Accounts for 8% of the U.S. economy
Delivers $85 million per day in revenue to the federal government
Invested over $2 trillion in U.S. capital projects since 2000
Effects of Lifting Crude Oil Ban
Industry will create up to 1.7 million new jobs by 2020 (McKinsey)
Reduced gasoline prices to the U.S. consumer (Resources for the Future)
Dramatically improved U.S. oil and gas trade balance
– Forecasted $354 billion deficit in 2011 to $5 billion surplus in 2020 (Citi)
Less dependent on foreign oil sources