EFTA01457568.pdf

-to 'Figure PXD 04 Results ts.) (!I Actuals Consensus 08 Est Met mid-piont of guidance despite deferring hz well completions in 1O in the +1= Volume 194 196 194 spraberry/woltcamp. Impacts from weather 13 mboepd) and ethane rejection IS imboepc0 mboepd) were previously disclosed. Cash margins were lower than expected on lower realizations lox impact from unrealized = / .d CEPS $2.42 $2.56 hedging gains) - Reported adj EPS of -$.03 vs. DBe $0.05, driven by lower realizations for oil and NGLs I -$2.65/13b1 and 62.25/bbl delta from I Vs. DB our estimates) =, 71 Expectations - Higher production taxes and g&a costs were more than offset by lower lifting costs 1610.32/boo vs. Dbe 611.22/boel - O2 guidance of 198 - 203 mboepd Volumes - FY15 guidance of 200mboe/d, representing 10% overall growth and 20% oil growth. 25 hz wells in spraberry/wolcarno to be deferred to the latter part of the year so as to leverage the use of its pimping serycies = -1 Pricing Capital - 90% of 2015 oil production is hedged at $71/bbl and 100% of Permian production is protected against Midland-Cushing cliff, whale 90% of gas volumes aro hedged with Thee Way Colors - 2015 capex budget reflects the challenging price environment with PXD only planning on spending 61.6bn on drilling and Expenditure 5250mm on Spraberry/VVolfcamp water infrastructure. vertical integration and facilities. - Northern Wolf camp: HZ rig count is bang reduced 16 to 6 that will drill 60 wells in 2015190% in Wollcamp 81: 85-90 HZ wells will be placed on production due to backlog 1113 in 2014). No completed Hz wells In O1. being deferred to later in the year so as to utilize Pioneer pumping services. - D&C costs are expected to Sernm with an average lateral length of 9,00011 and EURs of 900rnboe • The vertical drilling program will be shut down by the end of February; PXD looks to have re-negotiated continuous drilling provisions on existing spraberry leases or converted to HZ development assumptions - Spraberry / Jo Mill: 4 lower Spraberry and 1 Jo Mill well were completed in O4. The Lower Somberly woes had mixed results. Assets while the Jo fall well had the highest 24-ht IP in the area with 914boe/d (81% oil) on a 4.850ft lateral - Southern Wolf camp: Reducing rig count to 4 by the end of February which will drill 45 new wells in 2016 PXD expects 75-80 wens to be placed on production during the year with an average well cost of Samm and EURs of 750mboe - Eagle Ford: 16 hz wells on production in 1O1519 upper. 7 lower). 30 Hz wells were placed on production during O4. with 16 being in the Upper Eagle Ford: HZ rigs are being reduced to 6 by February, which will focus on Karnes and DeWitt. - PXD expects 95-100 HZ wells to be placed on production in 2015. with the production relatively flat for the year due to the timing of the wells Thesis PXD has dekneated a high-quality, multi-zone resource in the Midland basin that provides a top-tier resource oppodurity amongst the peers. Hold Wide market's willingness to pay has outstripped our own valuation framework, the development plan was expected to hit an inflection point OUI 50R.11130S *Ma 0143SMOCI in 2015 which has now been delayed. OW view remains unchanged. Seem mane,Morn. Canon Oa Onion* ant CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0117172 CONFIDENTIAL SDNY_GM_00263356 EFTA01457568