Good day, ladies and gentlemen, and welcome to Pioneer Natural Resources Second Quarter Earnings Conference Call. Joining us today will be Scott Sheffield, the Chief Executive Officer, Richard Dealy, President and Chief Operating Officer, and Neal Shah, Senior Vice President and Chief Financial Officer. Pioneer has prepared presentation slides to supplement comments made today. These slides are available on the Internet at www.pxd.com. Again, the Internet website to access the slides presentation for today's call is www.pxd.com. Navigate to the Investors tab at the top of the webpage and then select Investor Presentations. For information, today's conference is being recorded and a replay of the call will be archived on www.pxd.com through August 28, 2022. The company's comments today will include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements in the business prospects of Pioneer are subject to a number of risks and uncertainties that may cause actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties are described in Pioneer's news release on page two of the slide presentation and in Pioneer's public filings made with the Securities and Exchange Commission. At this time, for opening remarks, let's turn the call over to Mr. Pioneer Senior Vice President and Chief Financial Officer, Mr. Neal Shah. Please go ahead, sir. Thank you, George. Good morning, everyone, and thank you for joining us for Pioneer's Second Quarter Earnings Call. Today, we'll be discussing Pioneer's strong second quarter financial and operating results and our peer-leading return of capital strategy. We will also detail our best-in-class margins and unmatched depth of high-quality inventory, along with our leading ESG strategy, which is also detailed in our recently published 2022 sustainability report. We will then open the call for your questions. With that, I will turn it over to Scott. Thank you, Neil. Good morning. We'll be starting on slide three. Pioneer delivered strong results, generating $2.7 billion in free cash flow in the second quarter. Additionally, this quarter, we increased our base dividend by more than 40%, which is supported by our high-quality assets, deep inventory, peer-leading margins and strong balance sheet. This is the third base dividend increase in the previous four quarters and represents a greater than 95% increase to the base dividend over the previous 12 months. This annualized base dividend of $4.40 per share has a yield that exceeds the S&P 500 average at our current share price. Inclusive of this base increase, the quarter's base plus variable dividend results in a total dividend payout of $8.57 per share to be paid in mid-September. As I've always said, we would aggressively repurchase shares when the market presented opportunities. Consistent with this, we repurchased $750 million since the end of the first quarter, including $500 million during the second quarter, an additional $250 million repurchased in July at an average share price of $213. Since we initiated stock buybacks in the fourth quarter of last year, we have retired approximately 2.5% of our shares outstanding. Additionally, we recently republished our 2022 sustainability report, which highlights our focus and significant progress on ESG initiatives, including accelerating our target to end routine flaring to 2025 and joining the Oil & Gas Methane Partnership 2.0. Pioneer places a high priority on environmental stewardship and continues to make progress toward our goals. Going to slide number four. Pioneer's strong execution continued during the second quarter, with total production in the upper half of our guidance range, supporting significant free cash flow generation of $2.7 billion. Our horizontal LOE continues to be low, and our strong balance sheet is one of the best in the sector. Going to slide number five. We believe that maintaining a strong and growing base dividend is the foundation of our capital return strategy. As I mentioned earlier, we have further strengthened our base dividend with a significant increase of greater than 40% from last quarter. This material increase is underpinned by our balance sheet strength and our durability of our cash flow across commodity price cycles. Inclusive of this increase, our base dividend has grown by an average of 95% annually over the previous six years. This increase significantly outpaces both peers and majors over the same period, many of which have cut or suspended their dividend. Going to slide six. Complementing our strong shareholder cash returns through dividends, we continue to repurchase our shares opportunistically. We have executed $1.25 billion since the fourth quarter of 2021, an average share price of $218. This represents a reduction of total shares outstanding by approximately 2.5%. Consistent with our statements to be aggressive during market opportunities, we repurchased an additional $250 million of stock during the market pullback in July at an average share price of $213. As evidenced by the repurchase during July, we will continue to utilize 10b5-1 programs to take advantage of market opportunities. To date, we have utilized one quarter of our current $4 billion authorization, leaving $3 billion remaining. Going to slide number seven. We remain committed to our core investment thesis underpinned by low leverage, strong corporate return, and low reinvestment rate. This delivers oil production growth of up to 5% annually and generates significant free cash flow. The majority of this free cash flow was returned to shareholders in the form of base plus variable dividends, with total cash return via dividends representing approximately 80% of our free cash flow. This compelling cash return is enhanced by opportunistic share repurchases and continued balance sheet fortification. When including second quarter share repurchases, we returned greater than 95% of second quarter free cash flow, which equates to an annualized yield of approximately 19%. Going to slide number eight. Pioneer's capital return framework remains best in class. With the return to capital framework described on the prior slide, you can see here Pioneer is forecasting to lead all peers in the percentage of free cash flow being returned to shareholders through dividend and share repurchases. Going to slide number nine. Dividends through cycle. Pioneer high-quality assets, low break-even, disciplined oil growth of up to 5% provides the ability to return significant free cash flow through dividends over a wide range of commodity prices, inclusive of the impact of expected cash taxes. As seen on the graph, if oil prices were to average $60 per barrel over the next five years, Pioneer shareholders would receive approximately 5% annual yield at current share prices. This yield is over 2.5 times more than the S&P 500 average. Again, that is $60 WTI flat. At $100 WTI flat, which I believe will be the most likely outcome over the next five years as we march forward, as demand continues to increase with minimal supply increases, the yield is 12%. Significant upside. Going to slide 10. The third quarter dividend payments outlined previously result in extremely compelling annualized yield of approximately 15%. This yield exceeds all peers, majors, and the average yield of the S&P 500. Going to slide 11. Pioneer's 15% annualized dividend yield surpasses the S&P 500 average by greater than seven times. When looking beyond our peer group to the broader market, Pioneer's dividend yield exceeds every S&P 500 sector and remains higher than any individual company in the S&P 500. With our double-digit dividend yield, complementary share repurchases, and up to 5% oil growth, the case for owning Pioneer stock is compelling. I will now turn it over to Rich. Thanks, Scott. Good morning, everybody. I'm gonna start on slide 12, where you can see our current full-year 2022 production guidance remains unchanged at 350,000- 365,000 barrels of oil per day and 623,000 - 648,000 BOEs per day. You can see we revised up our 2022 capital to $3.6-$3.8 billion, up from $3.3-$3.6 previously, really reflecting the inflationary pressures we have seen in diesel and steel primarily, and to a lesser extent in sand and chemicals and labor. Our plan is expected to generate greater than $13 billion in operating cash flow, which is up from $10.5 billion at the beginning of the year, so $2.5 billion dollar increase relative to midpoint to midpoint, $250 million on capital. This is gonna result in over $9 billion of forecasted free cash flow in 2022. Consistent with our investment framework that Scott outlined, we expect modest production growth this year and a reinvestment rate of less than 30% and return the vast majority of our free cash flow back to investors via dividends and opportunistic share repurchases. On average, our activity level for the year remains unchanged. We expect to run 22-24 drilling rigs and approximately six frac fleets, of which two of those are simul-frac fleets. This will result in placing about roughly 500 wells on production in 2022. Turning to slide 13, and thanks really to the hard work and focus of our teams across the company, we continue to realize operational efficiency improvements. Our implementation of simul-frac has been a great success in both reducing cycle time and costs. As evidenced by the chart on the left, we have established ourselves as a leading simul-frac operator, having completed the most simul-frac wells of any operator. As you can see from the right side of the graph, the implementation of simul-frac, combined with continued operational improvements, have significantly benefited our completions efficiencies. We have doubled our completed feet per day since 2018 and are targeting further improvement in 2023 with the addition of a third simul-frac fleet early next year. Turning to slide 14, which highlights Pioneer's best-in-class cash margins. Our high oil% realizations and our strong marketing arrangements drive top-tier price realizations for BOE. When you combine that with Pioneer's low cost structure as a result of our highly efficient field operations, our low corporate overhead, and our inexpensive borrowing cost at below 2%, you get peer-leading cash margins that support our strong return of capital framework. Turning to slide 15. This slide really highlights the sustainability of those best-in-class margins by showing our unmatched depth and quality of drilling inventory. This third-party data shows the durability of our position with decades of high-quality inventory in the Midland Basin. You can see on the right side that the Midland Basin has more than two times the remaining top-tier inventory than the Delaware Basin. Turning to slide 16, this slide complements the prior slide quite well. It matches our inventory duration with free cash flow per BOE, highlighting Pioneer's favorable position with the longest inventory and highest free cash flow per BOE. This combination provides Pioneer the ability to distribute significant free cash flow to shareholders for decades, considering the quality and depth of our inventory. With that, I'm gonna turn it over to Neil. Thank you, Rich. Turning to slide 17. Pioneer's compelling value proposition is further evidenced through the combination of the two graphs on this slide, high corporate returns and an inexpensive valuation. The graph on the left demonstrates the culmination of our high-quality assets, capitally efficient development, our people, and our best-in-class margins, which drive our strong corporate returns. In fact, Pioneer's projected ROCE exceeds all other sectors within the S&P 500 to also include the majors and the broader energy sector. Pairing the strong returns profile with our discounted valuation on the right graph, we believe results in an extremely compelling and durable investment opportunity. With that, I'll turn it over to Scott. Finishing up on slide number 18, a leading sustainability plan. We recently published our 2022 sustainability report, which highlights Pioneer's focus and significant progress on our ESG initiatives. The comprehensive report details our environmental initiatives and targets, including those highlighted on the right side of this slide. Since our last earnings call, we announced our membership into OGMP 2.0 and the addition of Jacinto Hernandez to our board of directors, who brings decades of investment experience. We believe that these actions demonstrate our commitment and focus on ESG and further strengthens Pioneer's position as a leader in the industry. Our updated sustainability report can be found on our website. Additionally, we expect to publish an updated climate risk report later this year. Slide 19 just summarizing all the things that we're doing in regard to enhancing shareholder value. We will now open it up for Q&A. Thank you. Thank you much, sir. Ladies and gentlemen, if you'd like to ask an audio question, please press star one on your telephone keypad at this time. Please also ensure your mute function is not activated to allow your signal to reach equipment. Once again, ladies and gentlemen, please press star one to ask a question. Just pause for a moment to give everybody a chance to signal. Today's first question is coming from Mr. John Freeman calling from Raymond James, sorry. Your line is open, sir. Good morning, guys. Hey, John. Hi. How you doing, sir? Good, thanks. Very impressive dividend. Specifically I wanted to focus on the base dividend. You know, a year or so ago, when y'all first introduced the base plus variable dividend sort of framework, you know, the outlook was, you know, you'll have sort of this kinda couple% kind of a rate of growth on the base dividend. Obviously, y'all have done dramatically better than that since it was introduced. I guess just trying to get a sense, maybe you can just remind us when y'all think about where to take the base dividend, like how much of this is, you know, the commodity environment was far better, so the balance sheet got rapidly stronger than you would've initially expected, versus maybe other things that we wouldn't be as aware of, like something about the underlying asset reinvestment rate, some change in your view on the mid-cycle pricing? Just anything else that sort of goes into the confidence of that base dividend, so we have some a little better idea going forward how we should think about that. Yeah, John, great question. As I said before, we believe in a stable and growing base dividend, and we'll continue to increase our base dividend over time. We've materially increased our base dividend in recent quarters, increasing about 95% over the past year, including this 40% increase. Over the past five years, we've demonstrated our commitment to the base dividend, increasing it by 55x without cutting it or suspending it like many of our peers. We have the ability to still grow the base dividend even when stress testing at lower oil prices between $45-$50 WTI. In addition, I'll finish up by saying we expect to continue to increase the base dividend, commensurate with our production growth. If we're able to grow 5% a year long-term, you would anticipate a 5% increase in the base dividend on an annual basis. Great. Thanks. Thanks, Scott. My follow-up question. You know, Rich, last quarter, you kinda mentioned how it was actually, you know, pretty easy for y'all to pick up that spot frac crew when you needed it, 'cause y'all had, you know, ready access to things like sand and diesel. I guess I'm just interested in sort of maybe an update, as, you know, three months later here as, you know, service companies keep talking about how they're pretty much maxed out on the frac side. U.S. frac count has sort of stalled out here, you know, the last couple months, even as the overall rig count's gone higher. Just sort of any updated thoughts you've got on that. Is it still, do you think, relatively easy for someone like y'all to pick up, you know, crews, or are you starting to see a lot more tightness? I would say it's generally gotten tighter, John, you know, over time. I just think you've seen, you know, continue to pick up a little bit of rig activity in some frac fleets. I don't know that there's a lot of spare capacity out there. I think there are some new fleets that you've seen, you know, electric fleets that are coming into the market later this year, early next year that'll help on the pressure pumping side. I think it's what it's caused all of us to do is, you know, move up our contracting timeline for 2023 earlier than in prior years. I think all that work's underway. I don't have any concern about Pioneer getting the equipment or services that we need or materials, but for me, it's definitely a tighter market, so we're starting earlier. Thanks, guys. I appreciate it. Thanks, John. Thank you. Thanks, John. We'll now move to Jeanine Wai calling from Barclays. Please go ahead. Hi, good morning, everyone. Thanks for taking our questions. Yeah, Jeanine, good morning. Good morning, Scott. Our first question is on the tank battery expansions. That work, I think you're starting to do that in Q3. Is there more of that work that needs to be done beyond whatever you're gonna handle pretty soon? Is that work concentrated in certain areas? Yeah, Jeanine, I'd say our, you know, our tank battery program is consistent with how we laid it out at the beginning of the year. It really hasn't, you know, the timing of it hasn't changed. We had a little bit of that capital that was in plan for second quarter that's, you know, sliding into third quarter just for various reasons, but nothing that's, you know, impacting production at all. So nothing new there, and our tank battery size is still, you know, the same that we've done before. We're really just, you know, really focused on, you know, with the wells that we're selecting going into existing tank batteries where we have excess capacity already. Nothing really unusual on the tank battery side and, you know, work related to it just is going on, and as normal as we would've planned it at the beginning of the year. Okay. Perfect. Thank you. Our second question, maybe we can just move to the CapEx number. I don't know if Pioneer thinks about it in this way or not, but some companies, they've marked to market their 2022 budgets based on a certain price outlook, and that just kind of helps the analysts understand directionally how CapEx could change if prices change, oil prices change. Is your updated $3.6-$3.8 billion budget based on a certain oil price? Do you have an update on what% of 2022 or 2023 is locked in on price? Thank you. Sure, Jeanine. You know, I would say, you know, we don't pick a specific price, but I think, you know, that capital budget range of $3.6-$3.8 is, you can kind of target around, you know, $100-$120 Brent is where we would, you know, generally say that probably, you know, fits into. You know, the biggest variable on that is tied to oil prices is really diesel because it'll fluctuate with that. In terms of 2022 capital, in terms of locked in, you know, obviously, the longer we go through the year, the more of it that's locked in. I think last quarter I talked about being, you know, 60%. I don't have the exact number, but my guess, you know, just given where we're at, we're in that probably 70%-80% range at this point. There's, you know, most of it's, you know, pretty well, you know, locked up or on order, purchase orders have been put in place. In 2023, we're still in the midst of contract, so it's still a little bit early. I mean, I think just in general, as we think about 2023, I mean, we're, you know, as I think we've talked on previous, you know, calls that we're probably gonna see another, you know, roughly 10% increase for inflation in 2023 just based on early indications. Still early, but, you know, just for planning purposes, I think that'd be a good number to plan around. Very helpful. Thank you, gentlemen. You bet. Thank you. Thank you very much, ma'am. Ladies and gentlemen, once again, if you have any questions, please press star one. Thank you. Now we'll go to Neil Mehta calling from Goldman Sachs. Please go ahead. Yeah. Good morning, team. Just wanted to build on that last comment around how you're thinking about 2023. Scott, given we have a little bit more visibility, it seems, on the oil markets into 2023 as we've worked our way through the year, do you think it makes sense to grow in 2023? How are you thinking about the production profile at this point, both for your company and for the broader U.S. E&P industry? Yeah. Neil, good morning. I'm still very optimistic that the oil price is gonna continue to march forward with probably more upside than downside. Demand's coming back around the world. People are flying more. China's gonna come back. As you know, there's not much supply. The OPEC agreement, OPEC Plus announced a minuscule increase today, obviously to give the Biden administration some important ammunition, even though it was minuscule today. They just don't have the supply. Very little left in UAE and in Saudi. On the basis that oil price will continue to march forward, our focus will be on that 5% production growth of oil. I see if we ever enter a downturn, that's a different question. We can actually ratchet back in that regard, but we're still focused on that long-term 5% production on oil. Next year should be one of those positive years to do it. Okay. That's helpful, Scott. The follow-up is around the share repurchase program. You highlighted that you ended up buying back stock here opportunistically in July. Just talk about your framework around it. Should we think of this as a level loaded program, which supplements the dividend or one where you're gonna look to use weakness to add? Thank you. Yeah. I mean, we've averaged about 2.5 over the last, call it, nine-10 months. We've bought back 2.5% of our stock. A lot of it is in the, what I call, opportunistic. Obviously, it depends on where share price goes. Well, as I said in the past, we'll always continue to buy a little bit each quarter. Then when we see pullbacks is when we will step up. That's really our policy, and we'll continue to do that. We got the firepower and the free cash flow to be able to transact on that policy. Thank you, Scott. Thank you much, sir. The next question is coming from Bertrand Donnes, calling from Truist Securities. Please go ahead. Good morning. I'm just gonna piggyback on that last one on the share repurchases. You characterized it as opportunistic. You know, obviously, oil pulled back and so did the stock. I'm just wondering, is it a nominal level of the Pioneer stock, or was Pioneer in a better relative position during the pullback? Or is it just maybe your or your optimistic view on oil, so anytime oil pulls back, it kind of creates an opportunity? Yeah. I mean, we do run our net asset value on the company. We like to get a great return when we go into the market and buy a lot of the stock like we did. Obviously, we don't know where the stock's gonna go based on the marketplace. Our policy is continue to buy back a little each quarter. If for some reason we see big dips, whether it's in oil or something else affecting the marketplace, then we'll be more aggressive like we have. Hopefully that's about as simple as we can describe it. That sound good. Maybe shifting gears. Across your acreage position, could you maybe talk about, you know, what the returns look like in Martin and Howard versus your southern position versus your JV, and maybe how that'll influence where you run your rigs, you know, maybe at the end of this year and next year? Yeah. You can really look at where we have our rigs running across the basin, and, you know, we spread the rigs out to manage water and supply, I mean, moving things around and stuff. Our returns is, when you look at our top-tier inventory and the depth of our inventory that we've talked about, I mean, it's really consistent across the basin for our acreage position, so we're just less in that regard that, you know, we're tier one acreage, over 15,000 locations, 20-year inventory. They just don't look that different among locations. That's really how we have. You've seen over the last couple of years, we're not concentrated in any one area. We spread our activity out, and the returns are great in all those areas. Okay. Is it fair to say that the infrastructure is more important because of the kind of uniformity of the returns? Well, yeah, that's what I think really separates Pioneer, is the water infrastructure that we've built, is really the ability to move water around so we can actually add and, you know, be at two simul-frac fleets consistently and get to that third simul-frac fleet, is really that infrastructure allows us to to do it at scale, where others, you know, are may not have the ability to do that at the same scale. Thanks. That's all for me. Sure. Thank you much, sir. We'll now go to Derrick Whitfield, calling from Stifel. Please go ahead, sir. Thanks, and good morning, all. Good morning. For my first question, I wanted to touch on the Inflation Reduction Act, which could be voted on this week. Focusing on the minimum tax and methane fee components, could you speak to the expected implications for Pioneer? Yeah, I'll hit the methane fee, and Neil can talk about the tax thing. Really we've looked at it, and you know, if passed, we don't expect the proposal to have material impact on Pioneer, just based on our goal of continuing to reduce methane emissions and where we're on that curve so far and what we've done to reduce emissions. We'll continue to monitor, but you know, feel that we're well positioned to reduce our emissions intensity with our productions we've laid out in our sustainability report and our goals that we outlined this morning. Really not expecting anything material based on our analysis of it so far. Hey, Derrick, good morning. This is Neil. You know, as Rich said, we took a look at the act. As we anticipate becoming full cash taxpayers in 2023, our effective tax rate is gonna be above that 15% threshold. We wouldn't anticipate this proposal to have any impact on us and our cash tax profile. Terrific. That's what I was expecting on the tax side. Maybe as my follow-up, in thinking about the second half 2022 and 2023 capital projections, could you help frame the degree of self-help you're attaining in your simul-frac operations and long lateral development? Yeah. Well, I think the simul-fracs, you know, we've talked about saves about $200,000 per well, so you know, the cost benefit is there. But we're also, you know, what's driving that is we're completing, you know, roughly 50% more feet per day. So it's just been a big benefit. As I mentioned earlier, our water infrastructure really, you know, supports that operations and is allowing us to get to that third frac fleet early next year. Then the longer laterals is really, one, we've seen, you know, great productivity out of the wells, but it just saves us 15% on a drilling and completion cost per foot. So it's just a more capital efficient way to do it. Our contiguous acreage position and the block, blocking some acres allows us to, you know, we've got about 1,000 of those locations that we've identified today. With trades and small acquisitions that we continue to work at, we're adding to that inventory. Our acreage position just, you know, sets up well for just given how contiguous it is. Terrific. Great update and thanks for your time. Thanks, Derrick. Thank you, Mr. Whitfield. The next question is coming from JPMorgan Chase. Please go ahead, sir. Good morning. Scott, on slide 13, you highlight some of the efficiency gains you're getting on the frac side. I wanted to get your thoughts on just, you know, Pioneer's kind of future procurement strategy on frac. We all know that your relationship with ProPetro kind of ends around your year-end. I just wanted to get your thoughts on what you plan to do with your future frac needs. Is electrification in the future or a shift towards more Tier 4 DGB equipment? Wanted to get your thoughts on that. Yeah, Arun, I'll take that. Really, as I mentioned earlier, we are in the midst of contracting 2023. As you mentioned, we have a great relationship with ProPetro. They do a terrific job, and they'll definitely, you know, part of our 2023 program. Will they be 100% of it? You know, probably not in the grand, but they're gonna still be part of it. In terms of moving to electric fleets and DGB, we're in the process of moving that. We're definitely looking at contracting some electric fleets. I think it'll be a transition to get to high line power. We'd love to get there sooner, but the infrastructure and the current basins, it's gonna take some time to build that out. It's probably gonna be a progression where we'll move off diesel and move to CNG, LNG, that we're evaluating right now first, and then get to high line power, you know, later next year, 2024 timeframe. But it's definitely the path we're going on. In the midst of that, we'll also have some DGB equipment. We're gonna have. You know, we're moving that way, and ultimately we'll be, you know, more a 100% electricity, but that's, you know, still a couple years out. Hopefully that helps. That's super helpful. Just my follow-up would be, we've been getting just a couple of questions around, you know, well productivity, you know, as you have completely integrated the Parsley and the DoublePoint assets. Rich, I was wondering if you could give us a sense of how you would gauge year-to-date well productivity for Pioneer relative to, you know, historical trends? I'll leave it there. Yeah. You know, we're continuing to complete our wells across the field, and so each bench has a little bit different profile. You know, overall, you know, the returns as you've seen from our free cash flow per BOE that we generate are significant. You know, I'd say they're consistent with the last year or so of production profiles. They're probably not quite as high as they were in 2018, 2019. We're just doing Wolfcamp A and Wolfcamp B because we're doing the full stack, because it just avoid some parent-child issues longer term and a better way to develop the field and maximize NAV. Overall, we've had, you know, consistent results, you know, relative to the last couple of years. Great. Thanks a lot, Rich. You bet. Thank you much, sir. Ladies and gentlemen, that will conclude today's question and answer session. I'd like to turn the call back over to Mr. Sheffield for any additional or closing remarks. Thank you. Again, thank you for participating in the call today, and look forward to seeing everybody either on the road or next quarter's call. Again, thank you very much. Thank you much, sir. Ladies and gentlemen, this concludes today's call. We thank you much for your participation. You may now disconnect. Have a good day and goodbye.