Permian Investor Presentation
October 2012
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.
2
Topics
 PXD Overview
Tim Dove
 Spraberry Overview & Geology
Chris Cheatwood
 Spraberry Operations
Danny Kellum
 Horizontal Wolfcamp Shale
Chris Cheatwood
3
PXD Overview
4
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
5
2012 Production Growth Target1
MBOEPD
150 - 155
148 – 153
FY Guidance
147
 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
151
120
104
 Production growth rate beyond
2012 dependent on commodity
prices and service costs
~65%
Liquids
27%
Oil
34%
Oil
39%
Oil
41%
Oil
2010
2011
Q1
Q2
2012 E
1)
Reflects Tunisia and South Africa as discontinued operations
2H E
6
2012E Capital Spending and Cash Flow1
 Capital program includes:
$B
– Drilling capital
2.4
– Vertical integration
0.5
Sensitivity to Commodity Prices ($ MM)
• Includes $100 MM for field facilities
6.00
5.00
 Capital program funded from:
– Operating cash flow
1.8
– Equity offering proceeds
0.5
2,175
1,949
2.9
3.00
– Liquidated derivatives and
inventory reduction
– Credit facility borrowings
2.00
0.3
0.2
– South Africa divestiture and
South Texas acreage sale
4.00
NYMEX Gas Price ($/MCF)
accelerated into 2012
60.00
70.00
80.00
90.00
100.00
110.00
1.00
120.00
NYMEX Oil Price ($/BBL)
0.1
$85/bbl oil and $3/mcf gas
2.9
1) Capital spending excludes acquisitions, asset retirement obligations, capitalized interest and G&G G&A
7
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
Horizontal Wolfcamp Shale
80% Oil / 10% NGLs / 10% Gas
400,000+ Gross Acres
3.5 BBOE Resource Potential
~8,000 Drilling Locations
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
8
Significant Proved Reserves and Resource Potential1
Proved Reserves + Estimated Net Resource Potential of >7 BBOE and 35,000 Drilling Locations
12/31/11 Proved Reserves: 1.1 BBOE2
Raton
170 MMBOE
150
PUD locations
Eagle
Mid-Continent
Ford Shale
70 MMBOE
120 PUD locations
107 MMBOE
Other
107 MMBOE
120 PUD locations
Additional Net Resource Potential: 6.7 BBOE
Spraberry
40-ac Drilling4
600 MMBOE
5,200 locations
Eagle Ford Shale
600 MMBOE
1,700 locations
Spraberry
20-ac Drilling4
1.2 BBOE
13,500 high-graded locations
Spraberry Waterflood
300 MMBOE
40% acreage
Spraberry
609 MMBOE
4,700 PUD locations
Horizontal Wolfcamp5
3.5 BBOE
8,000 locations
1) All drilling locations shown on a gross basis
2) SEC pricing of $96.13/BBL for oil and $4.12/MMBTU for gas (NYMEX)
3) Primarily reflects Alaska, Raton and South Texas
4) Includes vertical well potential from Wolfcamp and deeper intervals
5) 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
9
Spraberry Overview & Geology
10
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
11
Geologic Provinces of the Permian Basin
CONFIDENTIAL
PEDERNAL UPLIFT &
ROOSEVELT POSITIVE
Spraberry Trend
OZONA
PLATFORM
Basin
Basement
Uplift
DEVIL’S
RIVER
UPLIFT
Shelf
Thrust Belt




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
12
– 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
Upper ClearSpraberry fork
 Submarine fans of Dean and Spraberry were deposited during relative sea-level fall via submarine canyons
cut mainly in Northern Shelf
~6,000 ft
Midland Basin Depositional Setting and Source
Lower
Spraberry
 Main productive interval in Spraberry Trend is the middle-upper Spraberry Formation
– Subordinate production Dean and Wolfcamp
– Sourced from Spraberry shales and basal shales
~11,000 ft
Limestone Pay
Sandstone Pay
Non-Organic Shale Non-Pay
Organic Rich Shale Pay
Blakey, Early Leonardiian Representation
Handford, 1981
Atoka
Strawn
or Miss.
~10,000 ft
Wolfcamp
Dean
13
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
14
Spraberry Operations
15
Operations
Example of Spraberry Development, NW Martin County

Excellent operating environment

PXD has long history of development in the area
16
Progression of Field Development1
1950s – Early Development
Major Oil Company
development; principally
Texaco, Phillips and Mobil
1980s – Expansion & Infill
Independents including
Parker & Parsley
(Pioneer’s predecessor
Company) become large
players; less emphasis by
Majors
1960s – Field extension
Continued development by
Majors with a few minor
Independents
1990s – Infill and efficiency
Independents become the
dominant player
1) Source: IHS – Well location data prior to 1970 is limited
1970s – Dramatic expansion
Continued development by
Majors with a few minor
Independents
2000s – Infill and efficiency
Independents continue to
dominant the landscape
driven by Pioneer
2010s – Deeper and horizontals
Independents lead the charge
going deeper; activity builds in the
Horizontal Wolfcamp Shale in
southern portion of the basin
17
Upper ClearLower
Spraberry Spraberry fork
~6,000 ft
History of Spraberry Trend Completions
1950 - 70s
1980 - 90s
2000s
2008 - 09
2010+
Average
Casing Depth
Fracture
Stimulation
Stages
Limestone Pay
Sandstone Pay
Non-Organic Shale Non-Pay
Organic Rich Shale Pay
Drilling deeper, adding fracture stimulation
stages and capturing pay from nontraditional shale/silt intervals have added
production and improved recoveries
Testing
deeper zones
Atoka
Strawn
or Miss.
~11,000 ft
~10,000 ft
Wolfcamp
Dean
18
Permian Basin Historical Oil Production
Source: BENTEK, HPDI
19
Permian Rig Count Increased 5X Since 2009
Source: Baker Hughes
20
PXD – Largest Spraberry Acreage Holder, Driller and Producer
100
83
80
Spraberry Field Gross Production
by Operator (MBOEPD1)
PXD Acreage
(~900,000 Acres;
~75% HBP)
Spraberry Field
60
40
30
29
28
20
16
14
12
11
11
11
0
1) April 2012 IHS Data gross reported oil and wet gas
 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
Field Operations & Logistics
 Currently operate ~7,000 wells
– 1,600+ well batteries/facilities
– Substantial expansion of field offices
Highway 80 Field Office
 Growth and expansion
– Drilling ~650 vertical wells and ~35
horizontal wells in 2012
– Ongoing construction of new roads, tank
Midkiff Field Office
batteries and gathering lines
– Significant expansion of gas processing
San Angelo Field Office
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
22
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
23
Production Optimization Pays Dividends
Failures per Month
Mean Time Between Failures (Months)
~7,000 Operated Wells
1 Failure Every 55 Months
2,900 Operated Wells
1 Failure Every 10 Months
24
PXD’s Vertical Integration Reduces Costs and Enhances Execution
Spraberry
Barnett Shale Combo
Eagle Ford Shale
5 vertical frac fleets (~20,000 HP each)
2 horizontal frac fleets (~35,000 HP each)
15 drilling rigs
Well service equipment1
1 frac fleet
(30,000 HP)
1 coiled tubing unit
2 frac fleets
(50,000 HP each)
2 coiled tubing units
Brady sand mine
Current frac capacity: ~300,000 HP
13th largest pressure pumping company in North America
1) Includes pulling units, frac tanks, hot oilers, water trucks, blowout preventers, construction equipment and fishing tools
25
147
30
~70%
Atoka
54
163
50 – 70
40% - 50%
Mississippian
7
124
15 – 40
~20%
Current Spraberry 40-acre type curve EUR including Lower Wolfcamp: 140 MBOE
Deeper drilling provides potential to add up to 100 MBOE
1) Compares to average 24-hour IP of 90 BOEPD for 140 MBOE EUR type curve well in the Lower Wolfcamp
Limestone Pay
Sandstone Pay
Non-Organic Shale Non-Pay
Organic Rich Shale Pay
Dean
Wolfcamp
53
~10,000 ft
Strawn
Upper ClearSpraberry fork
Lower
Spraberry
Prospective PXD
Acreage
~11,000 ft
Commingled
Potential
Average 24-hour
Wells Placed on
Incremental EUR
IP (BOEPD)1
Production in Q2
(MBOE)
Atoka
Strawn
or Miss.
Deeper drilling increased from 50% to 65% of 2012 vertical drilling program
~6,000 ft
Spraberry Vertical Deeper Drilling Driving Production Outperformance
26
Continuing to Successfully Grow Spraberry Production
Spraberry Net Production1
(MBOEPD)
63 - 67
61 – 65 MBOEPD
FY Guidance
62
 Q2 production negatively impacted by
~4,800 BOEPD due to unplanned thirdparty fractionation capacity shortfall
− Included 2,800 BOEPD associated with
inventory build and 2,000 BOEPD from
ethane rejection
64
− Inventory build expected to be drawn
down by year-end
45
 Increased 2012 production growth
target from 61 MBOEPD – 65 MBOEPD to
63 MBOEPD - 67 MBOEPD
2011
Q1
Q2
2H E
 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
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 1 st
27
Horizontal Wolfcamp Play
Industry Activity Focused in the Southern Area
PXD Acreage
Spraberry Field
Current Industry horizontal
Wolfcamp Shale Focus Area
Source: PXD
29
Southern Horizontal Wolfcamp Players
Laredo
PXD
Apache
Apache
PXD
EOG
Devon
El Paso
COP
Horizontal Wells
Horizontal Permits
Approach
BHP
El Paso
Horizontal Wolfcamp Rig Count Increasing
43
Wolfcamp
Horizontal
Rigs
31
PXD Has Multiple Horizontal Wolfcamp Shale Target Intervals
 PXD has an extensive Midland Basin geologic
database:
U. Spraberry
− Over 70,000 logs of which 9,000 are digital,
allow for excellent structural control and
detailed petrophysics
M. Spraberry
L. Spraberry
Jo Mill Sand
L. Spraberry
Shale
− 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
Dean
Wolfcamp A
Upper Wolfcamp B
Horizontal
Wolfcamp
Shale
Target
Intervals
Lower Wolfcamp B
Wolfcamp C1
Wolfcamp C2
Wolfcamp D
Strawn
Miss/Atoka
32
Regional Structure Maps: Strawn and Wolfcamp B
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
Strawn
Structure
CI = 200’
13,820 Control Points
10 Miles
Wolfcamp B1
Structure
CI = 200’
6,558 Control Points
Wolfcamp D
Strawn
10 Miles
33
Wolfcamp Facies & Depositional Model
Platform
Carbonate
Midland
Basin
CBP
Platform Carbonate
Land
Shelf Edge Carbonate
Clastic Detrital
Slope Sediments & Reef Talus
Fluvial - Deltaic
Carbonate Debris Flows
Delta
Carbonate Gravity Flows
Clastic Slope Sediments
Basinal Sediments
Clastic Gravity Flows
Pelagic Sediments
Silt Cloud in Suspension
Anaerobic Zone
(Organic-rich Sediments)
Land
Marathon
Thrust Belt
Land
Pelagic Sed.
Glasscock
Nose
Marathon
Thrust Belt
Clastic
Slope
Land
Wolfcamp Facies Map
Platform
Carbonate
Carbonate Slope
Clastic
Gravity Flow
Debris
Flow
Older
Wolfcamp
Clastics
Carb
Gravity Flow
Schematic Block Diagram of
Wolfcamp Facies
In Midland Basin
North Basin
Platform
San Simon
Channel
North
Simultaneous deposition of organic-rich carbonate
and clastic sediments in an anaerobic basin results in
hydrocarbon-rich, interbedded, conventional
and unconventional reservoirs
34
Wolfcamp Comparison to Other Plays
Major Oil Shale Play Characteristics
Attribute
Units
Wolfcamp Shale
1
2
3
Eagle Ford
(Oil Window)
Barnett Shale
(Combo Play)
Niobrara
4
Bakken
5
Age
Permian
Cretaceous
Mississippian
Cretaceous
Devonian/Mississippian
Basin
Midland
South Texas
Fort Worth
Denver
Williston
TVD Depth
ft
5,500 - 11,000
7,500 - 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
Carbonate
%
10 – 60
60 - 75
6 - 25
Clay
%
10 - 45
10 - 40
25 - 50
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
30 - 60
~70
30 - 80
25
Wolfcamp compares favorably to other major oil shale plays
1)
2)
3)
4)
5)
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
35
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
36
Horizontal Wolfcamp 960-Acre Development Block
 Up to 55 wells per 960-acre section
(20-acre field rules)
960
acres
− 41 vertical wells in Spraberry-Wolfcamp
− Up to 14 horizontal Wolfcamp wellbores
• 7 horizontal wells in Wolfcamp A
− Additional horizontal wellbores possible in
B, C and D intervals
7,920 ft
 960-acre section metrics (55 wells)
1 Mile
• 7 horizontal wells in Wolfcamp B
− Capital required: $ 180 MM
− Resource potential: ~15 MMBOE
− F&D cost: ~$15 / BOE
 Spacing
− Vertical wells
• 360’ from horizontal wells
− Horizontal wells
½ Mile
• 900’ from other vertical wells
• 725’ from other horizontals in same interval
• Stacked horizontals within 300’ in map-view
count as one location for spacing purposes
Vertical Well
Horizontal “A” Well
Horizontal “B” Well
5,280 ft
467’ from lease line
Horizontal wells in same
interval spaced at ~725’
100’ from
lease line
37
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)
First two wells in XBC Giddings Estate
Stimulated lateral lengths: 5,300’
Frac stages: 30
EURs: 650 MBOE
 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)
Well
University 10-20 #4H
University 10-19 #4H
University 3-32 #4H
University 3-31 #4H
University 10-13 #5H
First 5 wells in southern area
Stimulated
Peak 24- Peak 30Lateral
Frac
Hour IP Day IP
Length (ft) Stages (BOEPD) (BOEPD) % Oil
6,422
36
454
332
77%
6,422
5,702
5,882
6,577
36
671
499
32
451
380
33
485
404
37
942
597
87%
90%
90%
83%
 Continuing to bring new wells on production,
including A and B intervals
PXD Acreage
PXD Initial Drilling Areas
P E C O SHorizontal
Competitor
Acreage
Spraberry Field
 Expect increasing production rates and EURs as
stimulated lateral lengths increased to 7,000’+
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
38
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
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
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
Proposed JV Area
− $85 oil and $4 gas
− $7 MM well cost
Accelerated development enhances
net asset value and project returns
41
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 Drilling
350 MMBOE
Spraberry
20-ac Drilling
500 MMBOE
Spraberry
40-ac Drilling2
600 MMBOE
Spraberry Waterflood
300 MMBOE
+400%
Spraberry Waterflood
300 MMBOE
Horizontal Wolfcamp3
3.5 BBOE
2010 Permian Resource Potential:
1.15 BBOE4
1) All drilling locations shown on a gross basis
2) Includes vertical well potential from shalt/silt, Wolfcamp and deeper intervals
3) 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
4) 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
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
43
Appendix
140 MBOE Spraberry 40-Acre Type Curve
Gross Production Per Well (BOEPD)
90
Deeper drilling in Spraberry increasing EURs
80
70
60
50
140 MBOE
Spraberry/Dean/Full Wolfcamp
40
(70% oil, 20% NGLs, 10% gas)
30
20
110 MBOE
10
Spraberry/Dean/Upper Wolfcamp
(70% oil, 20% NGLs, 10% gas)
0
12
24
Month
36
48
Strawn / Atoka / Mississippian Potential Not Included
60
45
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
46
Spraberry Waterflood Continuing to Perform
600





Water injection
begins
500
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
BOPD
400
300
200
100
0
Aug 2010
Strong waterflood production wedge
from flooded zone; number of
responding wells continues to increase
Upper
Spraberry Base
Production
(110 wells)
Aug 2011
Upper
Spraberry Base
Production
Forecast
Aug 2012
Aug 2013
Continuing to see uptick in production; Upper Spraberry production increased ~25% during Q2
within project area compared to base production decline; further increase expected
47
Permian Oil Production Transport Options
Permian Basin Crude Takeaway
Current
Operator
Plains
Sunoco
Kinder Morgan
Local Refiners
Destination
Name
Cushing
Basin
Nederland
West Texas Gulf
El Paso
Wink
Local
Rail
TOTAL
Planned
Possible
Operator
Magellan
Destination
Name
Houston
Longhorn (phase I)
Magellan
Houston
Operator
Magellan/Oxy
Destination
Name
Houston
BridgeTex
Sunoco
Nederland
Longhorn (phase II)
TOTAL
Permian Express II
TOTAL
Capacity
Time Frame
450,000
400,000
100,000
200,000
20,000
1,170,000
Capacity
Time Frame
135,000
early-2013
90,000
225,000
mid-2013
Capacity
Time Frame
278,000
mid-2014
200,000
478,000
mid-2014
48
Growing Midstream Infrastructure to Support Production Growth
Gas Processing
Pipeline NGL Takeaway
to Mont Belvieu
 Midkiff / Benedum
− Current capacity: 260 MMCFD1
− PXD production makes up ~40%
of throughput
 Sale Ranch
− Current capacity: 25
− Q3 2012 expansion: +100
MMCFD1
− PXD production makes up ~40%
of throughput
 Chaparral & West Texas
Pipelines
− PXD production throughput of
Sale Ranch
~13 MBPD in Q1 2012
MMCFD1
 Planned Driver Plant
− Recent West Texas pipeline
debottlenecking providing an
additional 4 MBPD to PXD
Planned Driver
Plant
 New Lone Star Pipeline
Lone Star Pipeline (est.)
To Mont Belvieu
− Online 1Q 2013
− Planned additional capacity:
200 MMCFD1,2
increasing to 16 MBPD by 2020
− Will connect to all PXD gas
Midkiff
Benedum
− 4 MBPD to PXD in late-2012
processing plants
PXD Acreage
Spraberry Field
Existing NGL Pipeline
Planned NGL Pipeline
 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
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
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 www.pxd.com. These filings also can be obtained from the SEC by
calling 1-800-SEC-0330.
50