Download pptx - Permian Investor Presentation October 2012

Permian Investor Presentation

October 2012

2

Forward-Looking StatementsExcept 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.

Topics

PXD Overview Tim Dove

Spraberry Overview & Geology Chris Cheatwood

Spraberry Operations Danny Kellum

Horizontal Wolfcamp Shale Chris Cheatwood

3

4

PXD Overview

5

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

Investment Highlights

2010 2011 Q1 Q2 2H E

6

2012 Production Growth Target1

MBOEPD

25% - 29%

120

~65% Liquids

147

1) Reflects Tunisia and South Africa as discontinued operations

39% Oil

34% Oil

2012 E

104

148 – 153 FY

Guidance

27% Oil

151

41% Oil

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

150 - 155

1.00

2.00

3.00

4.00

5.00

6.00

60.00 70.00 80.00 90.00 100.00 110.00 120.00

1,949

2,175 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

0.12.9

NYMEX Oil Price ($/BBL)

NYM

EX G

as P

rice

($/

MCF

)

$85/bbl oil and $3/mcf gas

Sensitivity to Commodity Prices ($ MM)

7

2012E Capital Spending and Cash Flow1

1) Capital spending excludes acquisitions, asset retirement obligations, capitalized interest and G&G G&A

$B

Horizontal Wolfcamp Shale80% Oil / 10% NGLs / 10% Gas

400,000+ Gross Acres3.5 BBOE Resource Potential

~8,000 Drilling Locations

Pioneer’s Liquids-Rich Growth Areas

8

Spraberry Vertical70% Oil / 20% NGLs / 10% Gas

900,000 Gross Acres609 MMBOE Proved Reserves2.1 BBOE Resource Potential~23,000 Drilling Locations

64 MBOEPD Q2 Net Production

Eagle Ford Shale40% Oil / 20% NGLs / 40% Gas

300,000 Gross Acres70 MMBOE Proved Reserves

600 MMBOE Resource Potential~1,800 Drilling Locations

24 MBOEPD Q2 Net Production

9

12/31/11 Proved Reserves: 1.1 BBOE2

Additional Net Resource Potential: 6.7 BBOE

1)All drilling locations shown on a gross basis2)SEC pricing of $96.13/BBL for oil and $4.12/MMBTU for gas (NYMEX)3)Primarily reflects Alaska, Raton and South Texas4)Includes vertical well potential from Wolfcamp and deeper intervals5)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 Permian 5.6 BBOE

Spraberry 609 MMBOE

4,700 PUD locations

Raton 170 MMBOE

150 PUD locations

Other 107 MMBOE

120 PUD locations

Mid-Continent 107 MMBOE

Spraberry40-ac Drilling4

600 MMBOE5,200 locations


1.2 BBOE13,500 high-graded locations

Spraberry Waterflood 300 MMBOE 40% acreage

Eagle Ford Shale600 MMBOE

1,700 locations

Other3

200 MMBOE

500 locations

Barnett

300 MMBOE

1,300 locationsEagleFord Shale70 MMBOE

120 PUD locations

Horizontal Wolfcamp5

3.5 BBOE8,000 locations

Proved Reserves + Estimated Net Resource Potential of >7 BBOE and 35,000 Drilling Locations

9

Significant Proved Reserves and Resource Potential1

10

Spraberry Overview & Geology

Permian Basin Producing Fields

11Source: Geomap, 2006

Spraberry Trend Largest Field in Midland

Basin (~5,000 sq miles) >14,000 producing wells >1 billion barrels produced >180,000 BOPD current

production

Permian Basin is composed of multiple uplifts and basins that formed during the Pennsylvanian and early Permian

The Spraberry Trend, which includes the Wolfcamp interval, 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

OZONAPLATFORM

12

Geologic Provinces of the Permian Basin

PEDERNAL UPLIFT &ROOSEVELT POSITIVE

DEVIL’SRIVERUPLIFT

BasinBasementUpliftShelf

Thrust Belt

CONFIDENTIAL

Spraberry Trend

13

Midland Basin Depositional Setting and Source 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

Handford, 1981Blakey, Early Leonardiian Representation

~6,0

00 ft

~10,

000

ft

Clea

r-fo

rk

Dean

Upp

er

Spra

berr

yW

olfc

amp

Low

erSp

rabe

rry

Atok

aor

Mis

s.

~11,

000

ft

Stra

wn

Limestone PaySandstone PayNon-Organic Shale Non-PayOrganic Rich Shale Pay

Evolution of Spraberry Trend Area1983

429,000 acres

Present Day

>1,700,000 acres

and growing

14

PXD Acreage Spraberry Field

Source: Bureau of Economic GeologySource: PXD

15

Spraberry Operations

Operations

16

Example of Spraberry Development, NW Martin County

Excellent operating environment PXD has long history of development in the area

17

1950s – Early Development

1960s – Field extension

Progression of Field Development1

1) Source: IHS – Well location data prior to 1970 is limited

Major Oil Company development; principally Texaco, Phillips and Mobil

Continued development by Majors with a few minor Independents

1970s – Dramatic expansionContinued development by Majors with a few minor Independents

1980s – Expansion & Infill 1990s – Infill and efficiency 2000s – Infill and efficiency

Independents including Parker & Parsley (Pioneer’s predecessor Company) become large players; less emphasis by Majors

Independents continue to dominant the landscape driven by Pioneer

Independents lead the charge going deeper; activity builds in the Horizontal Wolfcamp Shale in southern portion of the basin

Independents become the dominant player

2010s – Deeper and horizontals

18

History of Spraberry Trend Completions 2010

+2008 - 092000s1980 - 90s1950 - 70s


Average Casing Depth

Test

ing

deep

er

zone

s

~6,0

00 ft

~10,

000

ft

Clea

r-fo

rk

Dean

Upp

er

Spra

berr

yW

olfc

amp

Low

erSp

rabe

rry

Atok

aor

Mis

s.

~11,

000

ft

Stra

wn

Fracture Stimulation Stages

Drilling deeper, adding fracture stimulation stages and capturing pay from non-traditional shale/silt

intervals have added production and improved recoveries

Permian Basin Historical Oil Production

19Source: BENTEK, HPDI

Permian Rig Count Increased 5X Since 2009

Source: Baker Hughes 20

PXD – Largest Spraberry Acreage Holder, Driller and Producer

PXD Acreage (~900,000 Acres; ~75% HBP)

21

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

0

20

40

60

80

10083

30 29 2816 14 12 11 11 11

Spraberry Field Gross Production by Operator (MBOEPD1)

1) April 2012 IHS Data gross reported oil and wet gas

22

Field Operations & LogisticsCurrently 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

Highway 80 Field Office

Midkiff Field Office

San Angelo Field Office

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

Automation Expansion

Radio Transmitters

1) eXpert System Pump Off Controller – Supervisory Control And Data Aquisition 23

24

Production Optimization Pays Dividends

2,900 Operated Wells

1 Failure Every 10 Months

~7,000 Operated Wells

1 Failure Every 55 Months

Mea

n Ti

me

Betw

een

Failu

res

(Mon

ths)

Failu

res

per

Mon

th

Spraberry5 vertical frac fleets (~20,000 HP

each)2 horizontal frac fleets (~35,000 HP

each)15 drilling rigs

Well service equipment1

Eagle Ford Shale2 frac fleets

(50,000 HP each)2 coiled tubing units

25

PXD’s Vertical Integration Reduces Costs and Enhances Execution

Current frac capacity: ~300,000 HP13th largest pressure pumping company in North

America

1) Includes pulling units, frac tanks, hot oilers, water trucks, blowout preventers, construction equipment and fishing tools

Barnett Shale Combo

1 frac fleet(30,000 HP)

1 coiled tubing unit

Brady sand mine

Spraberry Vertical Deeper Drilling Driving Production Outperformance

26

~6,0

00 ft

~10,

000

ft

Clea

r-fo

rk

Dean

Upp

er

Spra

berr

yW

olfc

amp

Low

erSp

rabe

rry


Atok

aor

Mis

s.

~11,

000

ft

Stra

wn

Current Spraberry 40-acre type curve EUR including Lower Wolfcamp: 140 MBOE

Deeper drilling provides potential to add up to 100 MBOE

Deeper drilling increased from 50% to 65% of 2012 vertical drilling program

Commingled Wells Placed on Production in

Q2

Average 24-hour IP

(BOEPD)1

Potential Incremental EUR

(MBOE)Prospective PXD

Acreage

Strawn 53 147 30 ~70%Atoka 54 163 50 – 70 40% - 50%

Mississippian 7 124 15 – 40 ~20%

1) Compares to average 24-hour IP of 90 BOEPD for 140 MBOE EUR type curve well in the Lower Wolfcamp

2011 Q1 Q2 2H E

Continuing to Successfully Grow Spraberry Production

27

Spraberry Net Production1 (MBOEPD)

1) Includes production from Strawn, Atoka and Mississippian in vertical wells and horizontal Wolfcamp Shale wells2) 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

45

62

20122

64

61 – 65 MBOEPD FY Guidance

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

Horizontal Wolfcamp Play

Industry Activity Focused in the Southern Area

29


Source: PXD

Current Industry horizontal Wolfcamp

Shale Focus Area

Southern Horizontal Wolfcamp Players

PXD

PXDPXD

COP

DevonEl Paso

El Paso

EOG

BHPApproach

Laredo

Apache

Apache

Horizontal Wells

Horizontal Permits

Horizontal Wolfcamp Rig Count Increasing

43 Wolfcamp Horizontal

Rigs

31

32

U. Spraberry

M. Spraberry

L. Spraberry

Jo Mill SandL. Spraberry

Shale

Dean

Wolfcamp A

Lower Wolfcamp B

Wolfcamp C1

Wolfcamp C2

Wolfcamp D

Strawn

Upper Wolfcamp B

Horizontal

Wolfcamp ShaleTarget

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

PXD Has Multiple Horizontal Wolfcamp Shale Target Intervals

Miss/Atoka

33

StrawnStructu

reCI = 200’

Wolfcamp B1

StructureCI = 200’

Regional Structure Maps: Strawn and Wolfcamp B

U. Spraberry

M. Spraberry

L. SpraberryJo Mill Sand

L. Spraberry

ShaleDean

Wolfcamp A

Wolfcamp B1

Wolfcamp C1

Wolfcamp C2

Wolfcamp DStrawn

Wolfcamp B2

Wolfcamp B3

13,820 Control Points

6,558 Control Points

10 Miles10 Miles

34

Platform Carbonate

Shelf Edge Carbonate

Slope Sediments & Reef Talus

Carbonate Debris Flows

Carbonate Gravity Flows

Land

Clastic Detrital

Clastic Slope Sediments

Clastic Gravity Flows

Delta

Pelagic Sediments

Silt Cloud in Suspension

Anaerobic Zone(Organic-rich Sediments)

Basinal Sediments

Wolfcamp Facies Map

Schematic Block Diagram ofWolfcamp FaciesIn Midland Basin

San SimonChannel

North BasinPlatform

Central Basin Platform

GlasscockNose

Val Verde Basin

MarathonThrust Belt

Fluvial-

Deltaic

Fluvial - Deltaic

Platform Carbonate

ClasticSlope

Land

Land

Carbonate Slope

DebrisFlow

CarbGravity Flow

ClasticGravity Flow

Organic-rich Basinal

Sediments

Pelagic Sed.

Suspended Silt

Platform Carbonate

Land

Land

CBP MidlandBasin

MarathonThrust Belt

Block Diagram

Outline Sea Level

North

Simultaneous deposition of organic-rich carbonate

and clastic sediments in an anaerobic basin results in

hydrocarbon-rich, interbedded, conventionaland unconventional reservoirs

OlderWolfcampClastics

Wolfcamp Facies & Depositional ModelView from NW

Wolfcamp Comparison to Other Plays

35

Wolfcamp compares favorably to other major oil shale plays

Major Oil Shale Play Characteristics

Attribute Units Wolfcamp Shale1 Eagle Ford2

(Oil Window)Barnett Shale3

(Combo Play)Niobrara4 Bakken5

Age Permian Cretaceous Mississippian CretaceousDevonian/

Mississippian

Basin Midland South Texas Fort Worth Denver Williston

TVD Depth ft 5,500 - 11,0007,500 - 11,000 5,000 - 8,000 4,000 - 8,000 9,000 - 11,000

Thickness ft 1,500 – 2,600 50 - 350 200 - 400 250 - 600 25 - 125

OOIP/Section MMBO 80 – 220 30 - 90 70 - 90 20 - 40 10 - 20

Porosity % 2 – 10 4 - 11 4 - 5 4 - 14 5 - 8

Quartz % 20 – 50 10 - 25 25 - 40 30 - 60

Carbonate % 10 – 60 60 - 75 6 - 25 ~70 30 - 80

Clay % 10 - 45 10 - 40 25 - 50 25

Permeability nd 10 - 3,000 40 - 1,300 150 - 200 <10,000 50,000 - 500,000

Pressure Gradient psi/ft 0.55 - 0.70 0.65 - 0.70 0.54 0.43 - 0.55 0.43 - 0.75

Recovery Factor % 3 - 15 3 - 10 4 5 - 10 8 - 15

1) Pioneer internal research (modified according to recent core and petrophysical data)2) EOG Analyst Conference April 20103) AAPG Bulletin April 2007, Hart Energy Databank December 2011, HIS, REPSI, EOG February 2010 Investor Presentation4) Hart Energy Databank December 2011, Oil & Gas Investor June and August 20115) Tudor, Pickering, Holt, “The Bakken Momentum Continues” November 2011, Hart Energy Bakken Playbooks 2008 and 2010, Jarvie – AAPG Section Meeting 2008

Horizontal Wolfcamp Shale Drilling Activity

36

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

Horizontal Wolfcamp 960-Acre Development Block

375,280 ft

Horizontal wells in same interval spaced at ~725’

7,920 ft

960 acres

467’ from lease line

Up to 55 wells per 960-acre section

(20-acre field rules)−41 vertical wells in Spraberry-Wolfcamp−Up to 14 horizontal Wolfcamp wellbores

• 7 horizontal wells in Wolfcamp A• 7 horizontal wells in Wolfcamp B

−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

100’ from lease line

Vertical Well Horizontal “A” Well Horizontal “B” Well

1 M

ile½

Mile

Horizontal Wolfcamp Shale Results Exceeding Expectations

38

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’+

P E C O S

PXD AcreagePXD Initial Drilling AreasCompetitor Horizontal AcreageSpraberry Field

First 5 wells in southern area

First two wells in XBC Giddings EstateStimulated lateral lengths: 5,300’

Frac stages: 30EURs: 650 MBOE

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

Based on strong production results and continuing petrophysical analysis, increased EURs in southern

area to 575 MBOE1

Well

Stimulated Lateral

Length (ft)Frac

Stages

Peak 24-Hour IP(BOEPD)

Peak 30-Day IP

(BOEPD) % OilUniversity 10-20 #4H 6,422 36 454 332 77%University 10-19 #4H 6,422 36 671 499 87%University 3-32 #4H 5,702 32 451 380 90%University 3-31 #4H 5,882 33 485 404 90%University 10-13 #5H 6,577 37 942 597 83%

39

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)

Horizontal Wolfcamp Well Performance Above 575 MBOE Type Curve

Actual production from horizontal Wolfcamp wells

575 MBOE Type Curve for 7,000’

lateral(oil portion only)

Wells unloading fracture stimulation

fluid

40

Horizontal Wolfcamp Well Performance Above 575 MBOE Type Curve

Horizontal Wolfcamp production normalized to 7,000’ lateral

575 MBOE Type Curve for 7,000’

lateral(oil portion only)

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)

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

>2.0 billion 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

1)All drilling locations shown on a gross basis2)Includes vertical well potential from shalt/silt, Wolfcamp and deeper intervals3)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% NRI4)Total PXD Proved Reserves + Estimated Net Resource Potential of >3 BBOE in 2010 and >7

BBOE in 2012


600 MMBOE


1.2 BBOE

Spraberry Waterflood 300 MMBOE

Horizontal Wolfcamp3

3.5 BBOE

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

42

Pioneer’s Permian Resource Potential Continues To Grow1

Spraberry20-ac Drilling500 MMBOE

Spraberry40-ac Drilling350 MMBOE

Spraberry Waterflood300 MMBOE

2010 Permian Resource Potential: 1.15 BBOE4

2012 Permian Resource Potential: 5.6 BBOE4

+400%

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 programExtensive horizontal Wolfcamp Shale potential

− Joint Venture accelerates future development Strong returns from vertical integrationMargin protection from attractive derivativesStrong balance sheet

Appendix

-

10

20

30

40

50

60

70

80

90

0 12 24 36 48 60

140 MBOE Spraberry 40-Acre Type Curve

45

Gro

ss P

rodu

ctio

n Pe

r W

ell (

BOEP

D)

MonthStrawn / Atoka / Mississippian Potential Not

Included

140 MBOESpraberry/Dean/Full

Wolfcamp(70% oil, 20% NGLs, 10%

gas)

110 MBOESpraberry/Dean/Upper

Wolfcamp(70% oil, 20% NGLs, 10% gas)

Deeper drilling in Spraberry increasing EURs

Spraberry 20-Acre Vertical Well Update

46

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

Aug 2010 Aug 2011 Aug 2012 Aug 20130

100

200

300

400

500

600

Spraberry Waterflood Continuing to Perform

47

BOPD

Upper Spraberry

Base Production(110 wells)

Upper Spraberry

Base Production Forecast

Strong waterflood production wedge from flooded zone; number of responding wells continues to increase

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

Continuing to see uptick in production; Upper Spraberry production increased ~25% during Q2 within project area compared to base production decline; further

increase expected

Permian Oil Production Transport Options

48

Permian Basin Crude TakeawayCurrent Operator Destination Name Capacity Time Frame

Plains Cushing Basin 450,000 Sunoco Nederland West Texas Gulf 400,000 Kinder Morgan El Paso Wink 100,000 Local Refiners Local 200,000 Rail 20,000 TOTAL 1,170,000

Planned Operator Destination Name Capacity Time Frame Magellan Houston Longhorn (phase I) 135,000 early-2013

Magellan Houston Longhorn (phase II) 90,000 mid-2013 TOTAL 225,000

Possible Operator Destination Name Capacity Time Frame Magellan/Oxy Houston BridgeTex 278,000 mid-2014

Sunoco Nederland Permian Express II 200,000 mid-2014 TOTAL 478,000

Growing Midstream Infrastructure to Support Production Growth

49

Benedum

Sale Ranch

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

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

Expanding processing capacity and contracted takeaway to support Pioneer’s aggressive production growth


West Texas Pipeline

To Mont Belvieu

Chaparral

Pipeline

To Mont Belvieu

Midkiff

1) Wet gas stream with ~160 BBL/MMSCF NGL yield2) Initial capacity of 100 MMCFD with expansion to 200 MMCFD by end of 2013

Planned Driver Plant Lone Star Pipeline

(est.)To Mont Belvieu

Existing NGL PipelinePlanned NGL Pipeline

50

Certain Reserve InformationCautionary 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 www.pxd.com. These filings also can be obtained from the SEC by calling 1-800-SEC-0330.