Pioneer delivered a very strong first quarter, generating free cash flow of approximately $370 million when adjusted for partially acquisition cost.
You can see that we increased our 2021 estimated free cash flow up to about $2.7 billion.
You can see the magnitude of the synergies, $525 million, which will improve our free cash flow generation, which will be highlighted on a subsequent slide.
And going into 2022, the company will be over 700,000 barrels of oil equivalent per day just in the Permian Basin in 2022.
As Neal mentioned, we closed yesterday on our DoublePoint acquisition, approximately 100,000 acres right in the heart -- core of the core of the Midland Basin.
This will take our Midland Basin on up to over 900,000 net acres.
Now with the contiguous acreage and the operational synergies, just to give you an idea how dominant we are in the Midland Basin, we'll have 25% of the basin rig count and 25% of the basin frac fleet rig count.
When you look at the strip, last year -- I mean, of the strip over the next several years as it continues to move up and look at our model of growing oil production 5% per year over the next several years, our reinvestment rate will actually be below, we say 50 to 60% here.
It'll actually be below 50%.
We'll continue to reduce it below 0.75 next year and continue to drive it down to a very, very low level.
So we're targeting a 10% total return.
We're showing now, with DoublePoint Energy on top in the brighter -- darker blue color, adding about $5 billion of free cash flow over the next several years to 2026, increasing our total free cash flow at the company.
So the number continues to move up with the strip moving up, generating $23 billion of free cash flow.
As we have already stated, approximately -- this actually represents 50% of our current enterprise value, that 20 -- total enterprise value, including market cap plus debt.
The addition of DoublePoint is a 25% increase on top of our free cash flow.
That's taken the $5 billion over the $23 billion -- $5 billion over $23 billion.
I think what's key is that when you look at the current stock price, our dividend yield will move up from 1.5% to over 4% in 2022 and over 8% in the following years to 2026.
I do have to have a call out for Devon and Rig's great slide, comparing their dividend to peers, I think we're in there around 1.5% toward the bottom quartile.
They're showing them leading this year at 7%.
Pioneer will move to second place next year, moving over 4, and then moving up to the top spot above Devon.
And the primary driver is really just our low -- our margins in the high 20s, our low-cost basis in addition to the fact that we're paying out 75% of our cash flow versus Devon's 50%.
Mechanics will be paying out long term, roughly 75% of the remaining annual free cash flow after the base dividend is paid.
When you look at -- including the base dividend, approximately 80% of the company's free cash flow is expected to be returned to shareholders.
As Scott mentioned, DoublePoint is currently producing at 92,000 BOEs per day, and we expect to ramp them up to about 100,000 BOEs per day by the end of the quarter and with an additional 20 to 25 POPs planned between now and quarter end.
We plan to maintain that production, 100,000 BOEs a day for the second half of the year.
So overall, we are forecasting 2021 production of 351,000 barrels of oil per day to 366,000 barrels of oil per day.
And on a BOE basis, 605,000 to 631,000.
Looking at capital, we are adding $530 million to $570 million of incremental capital related to the DoublePoint transaction over the course of the remainder of the year.
Total capex is now projected at $2.95 billion to $3.25 billion on cash flow of about $5.9 billion based on strip prices, which is leading to what Scott talked about, $2.7 billion of free cash flow for the year.
You can see our -- for a full year, that we plan to average 22 to 24 rigs and deliver 470 to 510 POPs.
If you take that just for the remainder of the year, we plan to run with the addition of DoublePoint, 24 to 26 rigs and seven to nine frac fleets.
Currently, we're at 26 rigs and nine frac fleets.
And longer term, as we think about reducing our growth rate from 30% down to 5%, we can drive that down to three to four rigs as we are consistent with our 5% growth plan over the long term.
You can see on the map there over one million acres, predominantly in the Midland Basin, 920,000 and 100,000 acres in the Delaware.
And just for a point of reference, first quarter production was 74% oil in the Delaware.
On G&A, we've accomplished $100 million of Parsley savings.
As it relates to DoublePoint, they're running about $25 million annually in G&A.
We expect to bring that under $10 million on an annual basis, and we think we'll be there beginning of the third quarter of 2021.
If you recall, those were over 5% coupon.
We refinanced those on a weighted average base well under 2%.
We've also, and Joey will talk more about this, successfully tested simulfrac on our acreage during the first quarter, and we're seeing significant savings like the industry -- other industry participants in that $200,000 to $300,000 per well.
And what this allows us to do, is we've successfully drilled longer laterals out to 15,000 feet, really up from the 9,000 to 10,000 feet that we've been drilling at, really allow for a lot of locations that we can drill longer laterals on, which is much more capital efficient and really adding essentially the same production by drilling fewer wells.
We are forecasting G&A per BOE to be around $1.15 to $1.20 by year-end.
On slide 13, you can see how Pioneer's high-quality asset base positions us as the only E&P to realize a corporate breakeven below $30 a barrel WTI within our peer group.
Our simulfrac operations contributed to these gains with the successful execution of four pads in Q1, where we were able to achieve approximately 3,000 feet of completed lateral per day.
This is greater than a 50% improvement when compared to our program average.
It's still early days, but we estimate savings to be in the range of $200,000 to $300,000 per well.
So this chart represents more than 64 million barrels of hydrocarbon liquids per day, including the largest national oil companies, majors and independents.
On slide number 16, the strong focus on ESG.
Pioneer inclusive of Parsley is a very low flaring intensity of 0.4% compared to peers of 1.3%.

Summary:
When you look at the strip, last year -- I mean, of the strip over the next several years as it continues to move up and look at our model of growing oil production 5% per year over the next several years, our reinvestment rate will actually be below, we say 50 to 60% here.
It'll actually be below 50%.
As we have already stated, approximately -- this actually represents 50% of our current enterprise value, that 20 -- total enterprise value, including market cap plus debt.
And the primary driver is really just our low -- our margins in the high 20s, our low-cost basis in addition to the fact that we're paying out 75% of our cash flow versus Devon's 50%.
Total capex is now projected at $2.95 billion to $3.25 billion on cash flow of about $5.9 billion based on strip prices, which is leading to what Scott talked about, $2.7 billion of free cash flow for the year.
You can see our -- for a full year, that we plan to average 22 to 24 rigs and deliver 470 to 510 POPs.
This is greater than a 50% improvement when compared to our program average.