Earnings call transcript Q2 2023

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Operator

Welcome to Pioneer Natural Resources Second Quarter Earnings Conference Call.

Joining us today will be Scott Sheffield, Chief Executive Officer; Rich Dealy, President and Chief Operating Officer; and Neal Shah, Executive Vice President and Chief Financial Officer.

Pioneer has prepared a presentation of slides to supplement comments made today. These slides are available on the Internet @www.pxd.com. Again, the Internet website to access slides presented in today's call is www.pxd.com. tab then the select Investors web of the and page Quarterly to found top at the Navigate Results.

XXXX. www.pxd.com Today's replay call pursuant Private September to on of harbor forward-looking of XXXX. Securities of A comments X, through the the call the will is will be statements being include The Company's recorded. Litigation provisions Act today safe archived Reform

with results to the that and Securities a Exchange Pioneer's prospects statements. are future actual number may and X Page the risks and of forward-looking business release the statements news differ subject These uncertainties and to slide in uncertainties of and cause the made in materially presentation Commission. in periods public Pioneer Pioneer's on of are from described risks These filings

opening At Scott Executive Chief I this to to ahead, would Officer, over call turn sir. for remarks, time, the Pioneer's Sheffield. go Please like

Scott Sheffield

It's you Good with great morning, be you, Thank everyone. Jay. to today.

second results, wanted prices. impact Before we outlook current quarter its I speak highlight to to on and oil macro the strong Pioneer's briefly

between As bound has this The expectation fairs suppressed in prices weak SBR recessionary of year. know, and $XX several a crude has for been supply-demand reflects by releases, range the recent been the from tightening half data second upward you China. economic and months, in over move all the previous oil $XX fundamentals

a Arabia's This is SBR a and and Brent U.S. oil preference production taken economy substantial to U.S. prices to or its contributors further likely releases supported the measures shale XX-year programs, preventing supply. pressures resulted major U.S. of this in The higher. Saudi XX recession, stimulus in limited outlook at end cuts oil bolster inflationary stabilize ABS' by which inventories. a low success include through The to has Fed actually landing managing resulting the China economy. for soft in

of initiated the draws do the July outpacing X resulting expect inventory these factors leading they to half cut expected demand 'XX. for a million-barrel by end pricing and X during 'XX. their I both demand second I underinvestment extend remainder the toward supply, day $XX global $XXX Saudi see in on. through range supportive of over The last with years, 'XX of 'XX the increase, are for to oil the in several combined the to industry

delivered and Now deliver of and safe results and highly detail. turning know performance, the speak team's the quarter highlighting of to strong I the focus our of as on will team. the presentation applaud the efforts Pioneer's year I second linked that throughout that we the efficient continue results operations into to employees. work Pioneer Rich and all great top-tier Rich more to execution will Neal excellent

with to to you Again, be the will hand all now over Rich. call today. it's great I

Rich Dealy

will morning. begin and I Scott, you, Slide X. good Thank on

an Pioneer As range. quarter guidance excellent oil our second of the you see, production can with end near delivered top

As operate we XXXX, well we performance a to teams at the relative very level. expected, are and improved high continue seeing to

lowering operations, highly our our reductions intentional full guidance, reflect our full deflation. are increasing production of a As simultaneously well XXXX result year to and while some efficient strong guidance year capital productivity and we activity

shareholders solid capital to return This returned further cash our and continue efficiency. capital free we improved with through strength opportunistic higher flow and enhances an outlook, of and plus results combination dividend year repurchases. Pioneer's with plan drives being XX% full production share XXXX base Along of capital and our these significant variable lower to and

X.X accordance Gas responsible sustainable or operations to initiative. and Methane with and in by newly methane socially committed we as established Partnership evidenced our less X.X% intensity in target Additionally, remain of XXXX Oil

progress our published recently in efforts XXXX found details sustainability and report. continued Additional be our on can

with execution the exceeding the oil resulted X. quarter production per Slide continued top total of to guidance and XXX,XXX equivalent at guidance quarter end on at day. oil barrels production focus production day XXX,XXX a near of second range Turning Team's barrels in per second oil strong of

bolstered and drive our our production, generation further low by top-tier strong costs, Our that talk price which later realizations the lifting significant presentation. free horizontal best-in-class will flow Neal in cash is about margins

Turning to Slide X.

day the midpoint As guidance. increases I concurrently highlighted The well completions efficient plan full resulting oil drilling, guidance we strong of by oil million in year our budget capital our original our more facilities program. our on This facilities and guidance to first driven barrels are and slide, from of completions $XXX production is midpoint XXXX by capital-efficient capital drilling, decreasing is highly our a while and execution lower raising per of the XXXX XXX,XXX now outlook. improved teams, productivity by our XXXX operations and

Turning X. to Slide

to day, to through per XXX,XXX oil production ranging the of our seen Company's up investment annual full year ranging deliver XXX,XXX Pioneer to of framework barrels moderate As guidance, XXX,XXX oil per of to barrels consistent XXX,XXX from that growth increased X%. XXXX production delivers equivalent day and production expects from with total production oil

capital sand same localized reduced and a our a few. reduced of as range efficiencies. utilization is and being which result are and to And activity facilities to by longer mines frac billion drilling budget expected $X.XXX of name Our completions operations driven operational laterals, billion between and $X.XXX

expectations Our exploration, other remain unchanged. environmental capital and

the capital Basin, allowing of field, recovery this more wells exploration as of to Wood to us discussed, our to as well continued Barnett the electrify is the infrastructure allocated enhanced adding previously targeting the activity our to oil move in four project. appraisal formations further grid we Midland our As

our average reductions. to now is due count XX to rig XXXX activity intentional XX rigs to expected Our

from wells during XXX. on result, XXX to protected placed production of XXXX number a now As the ranges

Turning X. Slide to

the left. Looking chart the on at

expected production. our XXXX the XXXX months surpass expected, above As significantly trending well productivity first average levels XXXX XX over of is and to is

execution Our strong full increased production underpins expectations. with year paired XXXX our production robust

returns. on We are long-term development, and improves stack recoveries full focused which optimizes

high-margin as the highly highly in have discussed productive our -- locations return past, This breakevens. peers. of to one development has Pioneer breakeven wells the on the locations our low of of we high right, for deepest rate of roughly deep best-in-class come. we've is enables Overall, low inventory decades inventories seen amongst productive with XX,XXX As

Turning Slide X. to

of require These benefits breakeven per approximately lateral highlights lateral low our wells. This rig long inventory, and slide of well in and in frac lateral XX,XXX-foot length lateral these drilling extensive development foot. developments drilling less of combination generates resulted increased significant the with wellbores, along length both mobilizations. of has XX% savings efficiencies and both The fleet of Pioneer benefits completions. cost capital a lateral inventory fewer an foot production part extended levels. As per length development lower

optimized by paired further These more with have XX% to laterals. with capital when returns savings lift increased artificial IRRs XX,XXX-foot than increasing compared

lift artificial the XX%, above improved uplift Our our refinements strong have well average previous estimate of well to and IRR XX%. results

XX,XXX Our highly laterals. locations contiguous future or acreage position with foot contains longer than more X,XXX

and lengths as XXX that pardon XX,XXX me, we more -- excess in XXXX. feet, these on move including expect placed some further of have And wells wells we we improving in of lateral than And production returns.

to acreage to the to working Our continues trades land actively benefits lateral our job position. again, team long increase a unique of by demonstrating our land position contiguous strategically Pioneer's optimize inventory, significant do great

efficiencies day average Turning to and better hard and industry-leading are Pioneer's testament with focus peers per of Slide feet efficiencies work These the X. approximately a completed U.S. than teams. being our XX% completions peer-leading to are Pioneer's majors.

focus efficiencies, additional sand our are through addition mines driving In operational utilization and the technology. to on of savings we capital simul-frac localized

cost of now our are continue fleets, savings high to delivering efficiencies, We simul-frac major $XXX,XXX contributor operating average full-time well. to three which be a per

road Pioneer or lower localized our second provide fuel of XXX% be XXXX, both powered traffic, in mine reduced either quarter. sustainable average COX capture the lines fleet well. fuel emissions and us reduce electric cost of began capital of emissions second operations, allowing dual per quarter savings the completion Consistent we localized with expect sand sand $XXX,XXX savings. and to to during commitment to our third These

I over will turn Neal. now to it

Neal Shah

Thank you, Rich, good and morning.

this shareholders opportunistic Turning continues and and combination framework, significant in flow to with to strong opportunistic repurchases the return share investment chart. dividends dividend base Consistent million Pioneer illustrated share as returned dividend, of the Pioneer repurchases. framework our and of cash outlined free on quarter as XX. through our right, $XXX through variable second left on Slide capital to a

average paired for with framework Our strong of continues substantially the growth X.X% outpace capital of to oil yield shareholders. yield XXX X.X%. of up annualized S&P dividend significant third annual to quarter value return this provides of believe We X%,

cash Turning following to Slide realizations will margins fact, XX. benefit strategy in highlight greater slide. Pioneer from margin detail marketing gas our combination the strategy, strength the Pioneer's of continues costs. top-tier in generate peer-leading our on of marketing our low diversified and I the to price through

driving on expense by our underpinned per Our bolstered compelling team's cost cash low peer-leading costs by and the focused interest G&A, BOE. operating are low

lower strong free that XXXX. quarter, operating flow our XX% second achieved we These in the than period the costs During approximately support best-in-class same margins were generation. cash

Turning to Slide XX.

introduced I gas This the market, the Coast a Gulf localized on our and realizations to our marketing strong which provides previous slide, regularly trades exposure to price strategy. benefit Coast to strategy and Pioneer's gas premium from the the markets indices. diversified West discount major As access at reduces Waha

right, of the on gas during nearly higher that quarter, XX% price to Pioneer's was seen the the graph As first peers. realized than

that and peers. Thus results, strategic maintained relative multiyear to our a strong industry marketing we We access strategy price quarter have premium these has provided far, to gas us to on reported second planning realizations our approach based employ markets.

from XX% noted Pioneer XXXX left-hand the sold to basin the gas approximately the expects that further in approximately comes out the second graphic online. increase corner, the As today half Matterhorn XX% to is of in of when lower in of percentage

free in $XX at X-year XX% enterprise growth the or our to long-term next free even to investment $XX oil WTI, high up on our prices. oil high-quality five generate Slide an which assuming right power approximately cash over graphic resiliency generate our cumulative flow framework, of is WTI cash our assets, XX. flow Pioneer's delivers margin $XX The flow years, program, the production cash moderate free and of annual value. to of growth forecasted the billion price at to program lower generative expected are X%. which illustrates of flat approximately $XX Even of the oil cumulative demonstrates billion, Turning

productive slide generation inventory and all with capital various culmination discussed here what highly at we've wells elements result durable our are improved essentially flow realizations, efficiency, margins compelling peer-leading price the deep free and contributing of Pioneer's prices. represents commodity of strong the cash you This to today.

to that, with back things will I And hand Rich.

Rich Dealy

Company Neal. includes targets. Pioneer's to which reduction The Thanks, published recently resume make emissions Slide sustainability report. continued our has progress I'll towards on XXXX XX, highlights from

the achieving that proud which designation. mentioned with in of methane path intensity a established we OGMP we X.X% places standard accordance I initiative, in gold are As Pioneer to on X.X before, of XXXX, target less announce OGMP or

In support of completed XX% this target, recently fixed production. our installation methane of monitoring sensors, of the we have gas

our reduction We pneumatic resulted XXXX surveys efforts reduction to methane a baseline. also methane to intensity controllers retrofit conduct during in and methane XXXX our assets. continue These compared in across XX% aerial

our begin operation to In addition to project is in early methane our renewal track efforts, Hutt reduction on Wind XXXX.

reduce electricity We project to also operations. expect to a cost competitive this our only our at provide emissions, very but not

allow We footprint. making progress on reducing production our drilling, to emissions further will move our us to more operations are also and completions electric significant power, of field infrastructure

progress in detail which report, website. operations on socially outlined sustainability and be can commitment Our our and found sustainable is our to responsible within

to of creating can commitment Slide on supports where value conclude element which our see foundational I Pioneer's XX, shareholders. our you to strategy,

to going we're Jay, to call the the or open that, with questions. up happy open for call So

Operator

you. Thank

the We of first John ahead. Your will question-and-answer line go Please session. [Operator James. from Freeman the begin Instructions] Raymond of now

John Freeman

two year. thinking you well And in trends growth in It's about continue. the of was to X% you'll the talk about and the that kind a when kind one all productivity adding or just guess of I past X% really nice range, talked I long-term rigs

that said accomplish view base based a what is Or efficiency as rig half productivity, you're case guess, kind what that close seeing of of something add on changed capital that how 'XX is differently, activity should XX? assume I is from that? you rate, we to sort to of improvement, run second kind Just all for necessary the

Rich Dealy

John, rigs is we our range production target as probably day. see 'XX it about little for Yes, a as at it's upper forward, about, at total just based that we as half from outlined, a it, in standpoint, a one to In general, going that where but would production say talk to takes look talked of to X% you two we've to grow on XXXX X% we level. I

in But point as had in we've XXXX. significant you out, growth productivity

XXX very make that efficient. are so should capital And

we're that rigs flat. means to even the one it me, maybe so And two that at to lower probably end potentially of or

great driving things do a to more which great the teams but rigs by allows fleets, with execution and and the doing are really efficiencies, less job on less job more tell, So to frac team.

John Freeman

second And to on activity at is Is due just million break versus CapEx question between the down then the that other weren't $XXX reduction to midpoint. that maybe it my expecting? cost much savings in originally reduction the how you possible

Rich Dealy

driven average XX rig is less by one by it activity, and you the really of saw then reduced Most pops. Yes. down as

So that's tubular and the goods, some contribution. helping. seeing or projects casing on Clearly, are chemicals are mainly biggest that deflation and fuel some we on steel

X what they're those on mainly heard down commentary on coming We've rates spot efficient and frac I'd and less Tier rig the we've seen, from what call side. frac about fleet and rates rates equipment are on rigs

our contracts quoted. at our below prices are those still contracts, given where are look we scale, when today just size being our and spot And

so I getting and just and don't half this favored the really it's back in benefits just we're other still maybe on and price the But than steel a test steel of think year, of impact change fuel. a I XXXX. today, teams. pricing of lot our And in see it's

Operator

you. Thank

from ahead. comes of line question Mehta Neil Goldman go Please next of the Your Sachs.

Neil Mehta

[indiscernible] productivity John's comments, improvements good through coming to see the here.

a So against of perspective made. of the CEO on about can announcement executing your how that since this? Would success within or been you're priorities and important just we talking strategic was your couple love it's business on benchmark most Rich, the then two three months

Rich Dealy

Neil. Yes. Thanks,

costs the I improved of you're efficiencies. driving our delivering I And to demonstrated the the the our the seeing in increasing productivity employees and on it the results I quarter. well execution what X,XXX at of capital we focus mean set great seeing think with out is delivering down beginning think work year. and you're

is testament how delivering of really we're example to Midland set we given that just really of this measuring do. have I we Basin. hope this we wells the that's at to what inventory can a is And the high-quality think internally inventory future, of our so, quarter time year. And beginning decades, for ourselves out the in it's to And so deep long just a the the we do a into depth of good for

Neil Mehta

shareholders you free share dividend share was right or of cash follow-up the flow balanced XX% just least the your here the return And repurchases how then variable the went And of back thinking the is the to of on about flywheel focus between XX%? you're of talk about number capital, should base of Maybe can dividend and the capital. return is at the we XX% repurchases. or

Neal Shah

the which a to includes dividend assessing variable Also shareholders. of based shareholder opportunistic you're flexibility capital approach as Really we best as to really kind Neal we opportunistic of capital have, right. share it's allocate share repurchases. really return repurchases. well. variable a framework well, value The Neil, Look, the employ for provides considering dividends the income-oriented and us that balanced on between base see diverse where investors precisely versus

So, component where XX% of going anticipate a quarter-to-quarter of in the on a we I will of framework really we that and opportunistic the number. we it if if stock quarter. -- stepping capital balance precipitously. and kind really chance in it we you a the the value, but opportunity firm market have based But think this said really on see to each that's drops kind it of we basis, about will market the to quarterly see the the based as sheet talk shareholders, of forward, step utilize return being terms in on as were past shift

that's think a So, definite I possibility. always

Operator

you. Thank

Your JPMorgan. of from Jayaram line the ahead. go Arun next comes question Please of

Arun Jayaram

the bolster last Rich, and guys wondering well is first the my in this IRR well on first doing And plans how And a could of maybe call you the results year. year. the third half your see you question Scott sauce at is I of do reflected kind gains thresholds your raise secret productivity your you're was much still sense or of how announced of us are the your your point? to you productivity to give much in quarter what come? on

Rich Dealy

question. development I'd we past are full our really is talked inventory thing. Great focused our in say what Arun. the across on developing Sure, it's we've about stack

And we deep inventory so, have unique that you've seen position acreage that then which that also the those. move. of to you've move XX,XXX-foot you And our laterals, seen something as to a is

I combination productivity the so we things it's driving coming expected into the really of results And that those think year. as are the

it's than on little team that of still done year the into something year. continue It's fantastic. we second by think a are can but well the something has The will probably execution happened see job guidance, anticipated, a in you the earlier half great I the that updated results and the

So that's It's the improves really the our fancy. get -- is with stack development, recoveries optimized it and position not highest acreage anything and way is return. the maximizes I just plan think developing of which full great rate to

Arun Jayaram

CapEx to my And down and the a any that X% of give could or deliver efficiency thoughts deflation by I to of two XXXX CapEx kind X% about you expectations if by think to your taking of add some the about given the growth? gains, below XXXX sense you one how rigs was you follow-up, on Great. have fact you're X% that wondering us XXXX to could if Rich, CapEx XXX.

Rich Dealy

Yes.

the got in just year, a X% you're next what's highly X% about is efficient. you XXXX. think mentioned as when with think XXXX, in happened upper it, half basically growth we're going when the good really I that I in question, showing XXXX, think start to jump our just John's on you I growing in of to capital -- be

see 'XX So efficient. very as we capital

better me Hopefully, cost back like the given it's half what of some the pressure even just where year. for things. side -- prices that's what to going may too to early headed are kind with on this be look of deflationary and prices predict of where It's oil oil

program we see, on said, wait make a but and you're to team capital-efficient in to that we pricing right day have to going 'XX it's But we'll supply and see based So, XXXX. favorable out in our all something sure think today. on how can day I be chain know we working into is going what very it's have

Operator

Thank you.

question Scott Citigroup. line go Please next of Gruber ahead. comes the Your of from

Scott Gruber

You guys drop completion been efficiency year same a this normalized it better? frac is still And really adding new have such frac possibly getting frac on crew But and that crews, can you your basis. impressive. crews gains are sufficient the is

Rich Dealy

that every Scott, working that it's on something drive to the day teams are efficiency.

teams I think us harder it's But the to location. say movement for simul-frac aren't logistics, the to because on biggest be just the more The having efficient. it thing. looking add gotten another less efficient will more at mainly time But are non-productive of teams of is we have it. not really

ideal that. -- is And the so do that's goal to

the third to got in continue be thing So, to to of improve There's costs that term. on. would another looking that that that those. working other two 'XX. on is longer XXXX could efficiency applied sand ultimately, be in well those focus localized the that's reduce We're We've would teams it the a of one at like mine we're things

on costs well are that. to The 'XX. continuing allow to will hopefully in teams improve that So, either further like work there's things us

Scott Gruber

Got just improve and initiative another it. to program. efficiency, XX,XXX-foot reduce the well on And costs capital

consisted this year. think XXX around I wells it of

figure to going how start up year, go As meaningfully? Is it for that you will to change? plan next

Rich Dealy

just is logistics up planning the drill how to we and program, same in as we're less goal more given still like, it less well really But go that They're meaningfully in field obviously, targets. goes of where the what have it up. on then balancing the can activity get know with is and And the production to to at the it higher think I the the for timing. rates go looks we into move of return, those wells front the really better. we of

and a still today, great something 'XX, we're I'd definitely that So what work so and increase modestly Company working on to advantage the it's in in but say, progress.

Operator

you. Thank

Please Portillo next the from of comes Matt Your ahead. TPH. line of go question

Matt Portillo

any was improvement particular, in the a Obviously, dig curious to grading if point dynamics I'm big you data, a guys that's the spacing all is other that changes the to due or I the really you Just for high at state we XXXX the design for little to driving Spraberry? improvement you the gain been program, has bit. have look seen curious, in for productivity year-to-date have well the that as that factors implemented fantastic. Spraberry could

Rich Dealy

but really seeing the don't specifics all zone, broader more picture, Matt, development have Yes, I'd say on full I just we're stack that zones. the across

the look you developing stack state full maximize out better a in data returns. when that think way is just the and by a recoveries I improvement to

our And the And terms so well. of focus. in that's as those across been really doing XX,XXX-foot zones all we're ladders

think has don't the overall, So, can the I performance data. see particular. know it's I Spraberry, in well from as you specifics the fantastic just the on been But lower

Matt Portillo

And a follow-up, the know operators growth then macro amount in a sugar driving the a you environment. years, looking just the over the broader shale We've at high huge of last private I as lot two Scott. the seen program. for given spent development maybe time of Perfect.

the your pretty management of significant on evolve operator how forward cut a count. years as to as curious, the next over moving inventory also the might we've and seen views couple it relates private rig Just to industry growth supply

Scott Sheffield

Yes.

think the Lower I EIA U.S. with recent the data. it see to you're to starting production in XX

Pioneer, another to over except it lead Permian consolidation. definitely will are which of to of lead to in run us, others or definitely going it's So two three -- the Basin, out a Most inventory years. extreme slowing. next the several few for like people, should People

opportunities private continue will running on out inventory. all and divest. based there's is of that So, And it's equity to

Operator

you. Thank

Please Your next question comes go ahead. from Deckelbaum Cowen. the David line of of

David Deckelbaum

already, life well in that online this going two morning. where of curious, see, well foot months guess do as like the been last just slide Neal talk Rich, back I this some covered I to Thanks time outperformance productivity the you has but Scott. get about A you're greater as longer lot and you gains. you guess, the a the into year estimating a was And appreciate and I I beyond per One, curious. the year to initial have on of that before you wells year for in date, three put I'm relative this of to the you've six seen year the what this terms I guess, basis? years. to program a percentage outperformance and

Rich Dealy

That and David, real is actuals and XX-month really graph drawing by and forecast to that we wells down quicker, really customize over that's really dividends what great paid say question. just the I'd includes of artificial productivity area, refinements allowing to-date period as then forward. these lift that artificial benefit bring by did the zone but anticipate. lift the and we

artificial by so, of just And and managing those data, the state really wells that, just customizing the appropriate. can the seen productivity benefits it we've higher and see in the from where you lifts it

David Deckelbaum

then appreciate I side. little And just a that. that color on maybe bit more

something up a Or or sort over of intensity positive that 'XX? more that lateral you to completion more per like XX,XXX-foot water in that be down is on laterals is capital trending something direction either should the area And going per how in saw this 'XX with changing some is time? coming tick but length the guidance pad and to infrastructure? or year, you As move facilities of spend that that's intensity

Rich Dealy

Yes.

it The 'XX as and I is so about. too. as 'XX, basin time, different going so and facilities those, moderate in to yes, volume economics term, should term, infrastructure was it's go longer areas in talked we advantage add probably in that can but think we're see of where to can with the going around of developed the worthwhile wells not time facilities -- XXXX. got capital you I to that strong, and handle, than existing mean, XX,XXX-foot and over additional a gets little very terms use that are we've that, in it's the take laterals But of longer more too as what more they've

we overall, about, pointing term. like longer capital-efficient to operations So it's all talked more

Operator

Thank you.

Capital comes question of Please Your RBC go next from of Hanold Markets. the ahead. Scott line

Scott Hanold

Just Or term? and what producing performance you the what another the a foot seeing productivity longer do question prolifically versus, guess, shallower it When a you're a with on between specifically XX,XXX-foot XX,XXX-foot on those dated on is and the, What time, decline wells. say, at longer the is look of you're improvement as a kind you of initial over standard basis? more differential the seeing productivity I lateral? per laterals see longer

Rich Dealy

we're great with lateral is expect and they're you'd seeing the a question. foot. like quite, basically lift what really almost And modifications productivity essentially from per XX,XXX-foot Yes, artificial better that not on maybe but a

volumes the and high-pressure basically a say, I'd that, we down proportionate quicker by them drawing moving be limited fluid we're sometimes ESPs, there's XX,XXX-foot these bigger gas to a on So lift, we're and they're what move can therefore, fluid, more until getting a short where flatter lateral. curve because of

Scott Hanold

some fixed obviously that dividend kind of But in competitive Neal. back good and returns color think some forward? income helpful. moving to like do shareholder like and a that your goal buybacks. base pace growth that's on then got one, to is No, you dividend? it? you of Like pretty And you've investor balanced what the fixed about How going Yes. be? want do where this the gave you on it How Obviously, maybe

Neal Shah

Yes, that's question, a great Scott.

just previous the quarter, seen we an over years. and previous consistently to recently, additional You've increased last strong base And XX%. it six increased growing We've commitment by a dividend. it our

which S&P current XXX dividend, X.X%. we're Our base if at you outpaced X.X%, think total the the package, yield about

return to an we of and extremely base believe So, avenue the shareholders. dividend important is our

capital commence that would our So for expect growth. going it's that cash But production getting us terms important shareholders' pockets. again, in forward, of a base very and with increase into avenue return back roughly I dividend

Operator

you. Thank

comes Johnson next the Charles of Rice. of Your ahead. question Meade from go line Please

Charles Meade

average Rich, rig the reduction Scott me. for team about have count question the -- Rich, and the for PXD Neal and to year. one I the of the rig It's just rest the there. and just of

Am the in a me reduced about more and or you if reducing the if the that's to since actually more to could. color -- rigs it to going half of in I the of that way back rig year And back the for down half one. for the are if So you're it's the there next just this a tell right think of those you already right the color that's months happening by is or couple happen half give that count back range by two. maybe year little think

Rich Dealy

Yes, Charles, on. question, is average the good count mean spot year. I the and you're rig for

So flows activity and our count level. rig have just we with ebbs

it's not always stagnant. So

We and But have multiple directionally, count roll bring we me that reflecting ones you're dropped this that really on. average rigs right rig some that point. at have off on.

right. you're So exactly

Operator

Thank you.

next Please from Securities. Dingmann the comes ahead. Neal Your of of line go question Truth

Neal Dingmann

about in My how first the maybe wondering, how you all question consider just we well would the -- everybody's through is 'XX? given costs. year, particular could about for end well wondering all I'm well obviously, just just -- noticeable I'm cost have talking the certainly well been us on productivity potential in you of deflation. and

Rich Dealy

'XX. for early still Yes,

of the and down that's that you few well is out Like are our hate We're where OCTG out seeing. like we a on activity million can other -- kind and chemicals just talked the terms there, savings program. but are cost we're really about. in forward I then that fuel and that decrease moving the majority because take of $XXX the we're get from deflationary obviously, to of with the what just things things coming going seeing improved in steel said, I and it key reduced and there, well So divide capital costs but that's seeing of things,

and to overall, hope and the see right So trending on way those is that. working continue everybody

Neal Dingmann

Yes, it it shareholder And certainly maybe Neal, on sheet. balance rich. just and return. seems the like secondly, for then

bit. all It little the on debt You up a that's been went net term looks done like job great about. talked a shareholder

of end down should do balance through and specifically, materially So maybe I'm I think year on wondering to starting just year? all debt how the forward, a ask guess, you'll things, next more go into go we about the more net you those

Neal Shah

commodity more question. We've as gross be a debt. the debt the in in importance that's sheet. as having management more balance environment, we're debt as Yes, to a here of net I going -- committee putting price on higher well good a cash talked low and mean

So, I lower our it's well. over really as debt and term to the term goal net drive medium mean short

So balance And sheet yes, and would can. But net to of keep the debt we goal our I would put about on we'll X.Xx. to that is pay set continue debt kind we I bogey. our low relatively kind cash say off of to and target where that's say continue

Operator

you. Thank

line Your next question the ahead. of Whitfield Please Derrick comes from of Stifel. go

Derrick Whitfield

Congrats on a strong front.

Rich Dealy

you. Thank

Derrick Whitfield

in or Taking on limitations are on any wells laterals the there concerns XX,XXX XX,XXX XX,XXX commentary with laterals, laterals, on of uptick improved an laterals, a, the further. have With one notable many results you a mystery in laterals? been achieving how drilling b, perhaps locations There's quarter inventory with this foot a XX,XXX do XX,XXX step range. and technical have could to sense your you that support you foot E&Ps have XX,XXX positive outlook foot

Rich Dealy

Yes.

it's I question. great think a

could foot know don't our in XX,XXX. noted our terms drilled the of drilled commentary. I how specific just exact many I X,XXX-plus count acreage on slightly so say What of be XX,XXX the I'd is, probably XX,XXX. And it's over ones Obviously, wells longest we've we what -- in

But we there the that. range. and other And foot very peers longer have think out and XX,XXX more XX,XXX We're I risk little laterals XX,XXX larger as there a comfortable with becomes with get know bit successfully. to done

like XX.X was and better. tools get and the better when not limit equipment thought technology to just started So that that the got and and the we it's and technology,

extent more think the those right if And We efficient. improves can longer capital it to the then can do and way we laterals, it's returns. it's drawdown, get IRRs So the right to go. we

XX,XXX we're to far, test to we've continue so it. very done what So with going But is successfully. feet

So we hopefully, over can that time. to continue extend

Derrick Whitfield

be Page you've that outlined my are Pioneer's with prices? desire with in how marketing on about as And LNG XX, international gas Great. gas more over you strategy and time follow-up, your connected to role thinking

Rich Dealy

something X.X day Yes. And gas. been gross on of we've are obviously, we about Bcf basis probably No, thinking lot. a a a

the European gas price. at portion what diversification the to just markets our TTF standpoint, from looking to and economics the new of diversify a and and are we a And looking JKM of coming or LNG at being Asian a link facilities on LNG so are markets or to them able

the and definitely get over that may, gas add to something has looking our evaluating call a, it, we're for time, to got so And that. at built. won't it facility be to Obviously, of XX% we XX%

definitely but out, years at and from few in standpoint that a and still makes something it's to think interested longer markets. pricing we're So, diversification term looking sense

Operator

you. Thank

from of go Bank of of comes question the line next America. Please ahead. Doug Your Leggate

Douglas Leggate

little how a And figuring haven't go you again, productivity on don't long looks When back the a a look guess stage I the chart if differently, a I lot yet. of maybe. recovery. is ask later like it's of laterals those kind but want to cumulative got It of mind, improving. to the question I'm you at you more of productivity,

And expect proportion So you because of my question kind feeds to improvement is, activity that's productivity through what's this lateral? how play production? of that how that's to currently would into the obviously, long evolve,

Rich Dealy

total production wells. on mean, are Yes. Maybe the be and terms long a forecasting they of because reading team that's -- think couple wells much location really But we're would forecast there's roughly comments, putting those of year, Doug. it's planning and XXX-plus well. may a the that XX,XXX-foot out total on into got program, graph I a we've in of -- our One, the technical laterals of I too this just XXX wells you as our of

XXXX. activity long in of it, laterals call So XX% is our

helps. So hopefully, that

Douglas Leggate

is run you Or bigger a that Will do expect good that going become How to forward? it rate? evolve? proportion a

Rich Dealy

earlier it's No, of prone I think the questions.

and it as all think with logistics basis more we to we the have go that I wells increase on see kind But drill an obviously we can in have slightly the We'll just of move annual production it. to sure forward, in less with that growth. will it those the higher. make pull better and them is from fit the XX% IRRs to get same that

always XXXX it's and to intent a in few is probably a balance, than So the XXX beyond. but more drill

Operator

you. Thank

go comes Fargo. next Wells of Please line ahead. from Read the of Your question Roger

Roger Read

to Yes. you on anymore going well hammer Not productivity.

base been I want did But come to the dividend hit. growth I think that's outlook. to back

actually I production premium incorporate was then S&P yield? of curious You yield back the premium And to well, you're we you is if how for as production do that mentioned Or part share with should does dividend adjusted maintaining as grows you as buying XXX? shares a but relative the question count other think matter that of it well? to

Neal Shah

Roger, way at for I on questions, growing actually holding base that's look production terms better commensurate basis. growth absolute Good as and a basis talking the was is as back share would and I great shares that you're that you buy right, But on equity. in to look, of dividend, say, prove those about it, will beneficiary a an are per

So, a as good way it I think to about think that's well.

about to base. certain. that goal the relative the But ability We S&P be above As view the to -- us, as you to it's dividend being commitment to our as talked as a sensitize that dividend. mean nice XXX. for investor think before, it's sacrosanct we've a about yield yield the really for I want it's pay and we to

that one fact can at at one we prices. -- we lower we can in it's oil all So that ensure that

important us that's as So to well.

going provides Now, in flow support absolute dividend cash increase of as greater base that and we forward to grow the going forward yield as support terms well. the production base the us a that

kind us, of important we view important shareholder very base as But focused here. So, to it's something how we our to very well. are again, on, that's very that and it's it and it's

with go-forward as So, commensurate historically, we'll to grow that but a production continue basis. more base dividend have we growth on

Operator

you. Thank

go the of of comes Cheng Please Paul next question from Scotiabank. ahead. Your line

Paul Cheng

With please. two questions,

major now it this based and could today's have have competitors that and successful in has testing Pioneer economically? been the One be technology That's first From that think been activity wondering the kind improving tried like you your success whether rate. of you your standpoint, support recovery seems has your, of on pricing, question. that or

XX%. we your about cuts at is to down in if XX%, in about oil XX% Second XX%, question is that look the first half XXXX

naturally one the oil, portfolio? case, so years? want know is gas And what's Just the or as expect two you whether of gassy is because because line to that your you at or a naturally that this moving portion might are if trend become a that's slower say, into creep pace natural in that than more result over a next, the

Rich Dealy

take I'll Maybe one. Paul. first Thanks, the

-- size happening scale per how or we Just what's wells standpoint. on of the and we're in basin many see our the We're from in given year. basin the standpoint, understand technology technology and completing most a

improve working it. excellent recoveries and day to day technology an are teams Our out do on and job at in

there So changing designs not from are aware completion our significant radically in that recoveries. things we're of that peers of terms any are any changes out are of

X% And what recovery we're oil only improve it, that like X% of things comments are to today. enhanced ground ability recovery the working mentioned as our to call I'd our tell you, in I recovering, things on, the the the we're in resource

hopefully like testing technologies sure to to improved like we're a got And recoveries improve But we it's be oil of working are. enhanced us still so more peers that to our that, number recovery, allow will And that. done. I'm on

we look and I this down kind cut, growth, slowed cut oil think our XX% comes saw But it XX% just XX%, I the that over particularly you decade. a modeling, function at of where the as time, look of oil that when longer term, normal happens. later towards towards think as terms In at we're recently, you the really the part trends at we of

yes, down moved -- slowly. it it's gradually so And

forward. moving overall, going And we're of not focused Some is of -- it's development. we're function But oil on dramatically it not growth. a

in other the than not just we're wells perform. gassier so how And from occurrence the place getting any normal of

helps. that So hopefully,

Operator

you. Thank

go ahead. line Leo of from Your the Please comes next ROTH of question MKM. Mariani

Leo Mariani

of on bit briefly here, production oil oil beats sort high oil cut mean, of on at from this up that this less cut, sort so quarter, comment on quarter. little the very a XX% you end. first quarter went I follow kind strong just of but To so obviously,

recovery. gas just make additional one maybe much there some but was want don't I quarter, So, to about too

perhaps necessarily you on high the and but are little talked to new as more just program is going about anything little of oil the of a you development on focusing sort You here, gas grade forward focused bit to not kind zones were bit there look a gassy.

trying Just of recent here? change on some the color get to local the

Rich Dealy

plant up. I the Yes. second as the appreciate we our relates follow No. really to say specifically had yields. benefit processors to And I strong mean it of I the having And would quarter.

and definitely so during out add plus quarter, pressure line to that lowering So helped field there compression the continue we helped. has

And those so production things all gas the quarter. the in that have benefited

efficient gas. obviously, drilling really to the that try get of and continue to the in what slow a this we're change just of wells. as the nothing in and time it's are But think the I to mix or to production happens we're base process the things that going do of the and like decline oil wells normal I towards we those XX with bigger said, forward. do going maximize and over And a and half decade it's It's bigger back

Neal Shah

what Leo, have popping. following wells we're And oil related Rich, up, cuts be the historically. they it's been Those new to are that not clear, to

related no at terms all pointed we're where zones anything out. Rich or drilling that similar, or change as in of So there's to

Leo Mariani

seems performance that like the the Okay. credited lot It you expecting second certainly half strikes made. these of the than No, the 'XX already helpful lot that's strong then sure. on follow production second of of a for folks to you've that in more of seen changes up me And of productivity. until a just half you're weren't in it some implemented and to kind changes XXXX. But well have that

last So presumably, in handful to they're now of hit just the of starting months. kind

new see a lot percentage couple over as should the our into way work bigger sort like an gets year into of of of change production in as end year, we years. larger the we the next just productivity really even of of seems kind So next the

just couple started continues, for So the do Am of efficiency sort right each thinking if here. your to we're sort year with getting will capital less. of you continue of years trend seems like I improve on that program next guys be more and It about able seems way? the the like to the

Rich Dealy

moving, we that earlier only in call, changes and say the full to I probably terms started made Leo, program from there some, of what I'd minor we stack. Yes,

that ranges and And and guidance we've capital our the our our you that as that production think into on, but baked Clearly, laid we've teams out guidance. would goal working are what into forecast. everything the so we built

-- not we I have. in because I So, haven't just we don't baked want to people think --

Operator

call. I will This concludes now of remarks. Dealy the for today's the portion Rich question-and-answer turn over closing call to

Rich Dealy

all today. and the we enjoy I appreciate your call joining summer seeing for forward look your get everybody you as in the Thank hope rest of time. you really I you guys into early upcoming conferences to the fall.

week. everybody, a rest you. your great So of Thank have

Operator

concludes today's this And you. call. Thank

disconnect. now may You

Pioneer Natural Resources (PXD) 2 Aug 232023 Q2 Earnings call transcript