Natural GasFuel Program

DRAFT

August 19, 2014

Lynn LyonDirector Fuel Market Development

Lynn.Lyon@PXD.comTwitter – LynnMurrayLyon

LinkedIn – Lynn Lyon

The Opportunity

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Reduce Fuel Costs• Optimize natural gas fleet operations with bi-fuel light duty and dedicated heavy duty• Pilot dual fuel off road projects to minimize risk and decrease costs displacing diesel • Fuel option based on costs and logistics (field gas, pipeline gas, CNG, LNG)• Assess potential for dedicated engines using 100% natural gas in the future

Decrease Emissions• Decrease greenhouse gas emissions• Decrease nitrogen oxide emissions• Decrease particulate matter

Optimize Natural Gas Powered Operations • Develop staff, partners, and supply chain• Develop standard operating procedures• Align with new and revised regulations

Texas Clean Transportation Triangle

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• 87 Stations Open

• >75 Planned to Open

http://www.texasnaturalgasnow.com/

Natural Gas Powered Operations

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• Dual Fuel Natural Gas Rig Pilot — 3 rigs running in Eagle Ford

— Pawnee CNG station providing fuel

— No downtime in operations

• CNG stations and fleet vehicles — Trinidad CO station

— Bivins TX station

— Ulysses KS station

— Pawnee TX station

— Midland vehicles using 3 public stations Patterson 248Yorktown, Texas

ANGA Peer Activity (October 2013)

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Member Company Fleet Drilling PPSAnadarko Yes Pilot Pilot

Apache Yes Yes YesBG Group – – –

BHP Billiton Yes Pilot NoCabot Yes Yes Pilot

Chesapeake Yes Yes PilotCimarex Pilot Yes PilotDevon Yes Pilot NoEncana Yes Yes YesEnergen No No –

EOG Yes No NoEP – – –

EQT Yes Yes YesLaredo Yes Pilot NoLINN – – –

Newfield Yes Pilot –Noble Yes Yes Pilot

Pioneer Yes Pilot PilotPXP No No NoQEP Yes Pilot No

Range Yes Pilot –Seneca Pilot Pilot Pilot

SM No No NoSWN Yes Pilot NoUltra Pilot – NoWPX Pilot Pilot NoXTO Pilot Yes No

78% Fleet Vehicles70% Drilling Rigs37% Pumping Services