5 Things Pioneer Natural Resources’ Management Wants You to Know

Pioneer Natural Resources ' management team earlier this month spent nearly 75 minutes discussing its second-quarter results with analysts and investors. The companybelieves it is sitting on more than 10 billion barrels of recoverable oil and gas in the Permian Basin. Here's what management wants investors to know about its plans to create value from that massive resource.

No. 1: The water issue is slowly drying up

One reason for Pioneer Natural Resources' large resource base is that horizontal drilling and hydraulic fracturing are now being used in the Permian Basin. While the shift has the potential to unlock billions of barrels of oil, it is also creating logistical issues that need to be addressed. One top issue is securing the water needed to frack future wells, as there just isn't enough fresh water in Texas.

Source: Pioneer Natural Resources (link opens a PDF).

Source: Pioneer Natural Resources Investor Presentation (link opens a PDF).

To that end, Pioneer and Enterprise Products Partners were the first two companies to receive permission to export condensate, which is a minimally refined ultra-light oil. As those exports begin to flow, Sheffield said he sees more on the way, as "there is tremendous international interest primarily in Asia to pick up this condensate."

No. 5: Countdown to the end of the oil export ban

Condensate, however, is only the beginning of oil exports, according to Sheffield. He expressed confidence that the banon exporting oil will end in the near future.

We are making progress on the education process, and most people see it very beneficial. What's happening with the Ukrainian situation and the Iranian situation has been very helpful in regard to providing both LNG and oil to our neighbors in both Asia and Europe. And so I'm optimistic [that the oil export ban will be lifted] -- between now and the next administration '17, no later than '17.

Investor takeaway

To sum up, Pioneer Natural Resources' management team wants investors to know that it is making progress in key areas. It's securing the water needed to develop its massive resources base, and the company is open to completely focusing its future on the Permian Basin. Furthermore, it's making progress in securing better prices for commodities now that it is shipping out condensation and believes its efforts will eventually lead to oil being exported from the U.S. before President Barack Obama leaves office.

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The article 5 Things Pioneer Natural Resources' Management Wants You to Know originally appeared on

Matt DiLallo owns shares of Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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