Pioneer Natural Resources Company (NYSE:PXD) today
announced that production for the third quarter of 2017 was 276
thousand barrels oil equivalent per day (MBOEPD), an increase of 17
MBOEPD, or 6% from the second quarter of 2017. Total oil production
for the quarter was 162 thousand barrels per day (MBPD), an
increase of 15 MBPD, or 10% from the second quarter of 2017. Total
Spraberry/Wolfcamp and horizontal Spraberry/Wolfcamp oil production
increased 11% and 15%, respectively, compared to the second quarter
of 2017, both driven by the Company’s successful Spraberry/Wolfcamp
horizontal drilling program. Total natural gas liquids (NGL)
production for the third quarter was 57 MBPD and total gas
production for the third quarter was 340 million cubic feet per
day.
Third quarter production was negatively impacted by 3,500
barrels oil equivalent per day (BOEPD) due to i) the effects of
Hurricane Harvey on the Company’s Spraberry/Wolfcamp and South
Texas operations and ii) unplanned downtime at the third-party
facility where gas from the Company’s West Panhandle field in Texas
is processed. The production lost from these curtailments was
mostly gas and NGLs. Adjusting for the lost production related to
the hurricane and the unplanned downtime at the third-party gas
processing plant, Pioneer’s third quarter production would have
been at the top end of Pioneer’s production guidance range of 274
MBOEPD to 279 MBOEPD.
The following areas of Pioneer’s Texas operations were adversely
impacted by Hurricane Harvey:
- Spraberry/Wolfcamp - Pioneer’s
Spraberry/Wolfcamp facilities in West Texas were not damaged by the
hurricane. This field produces oil and associated liquids-rich gas.
The liquids-rich gas includes NGLs that are separated from the gas
at various third-party Permian Basin gas processing plants and
transported to third-party facilities in Mont Belvieu, Texas, for
fractionation. These fractionation facilities sustained
flood-related interruptions from Hurricane Harvey. As a result, the
Permian Basin gas processing plants had to curtail NGL shipments to
Mont Belvieu from late August through mid-September, which limited
the amount of liquids-rich gas production the plants could receive
from producers in Permian Basin fields. The impact to Pioneer’s
Spraberry/Wolfcamp production was a loss of approximately 1,300
BOEPD for the third quarter, with most of this loss being gas and
NGLs.
- South Texas - No significant damages
were incurred at Pioneer’s facilities in South Texas. The Company
produces oil, condensate and associated liquids-rich gas in this
area. Production was shut in and fracture stimulation operations
ceased on new wells for safety reasons when the storm hit the area
on August 25. Production was brought back on line and fracture
stimulation operations resumed during the first half of September
after the storm passed. The impact to Pioneer’s third quarter
production in the Eagle Ford Shale and other nearby fields was a
loss of approximately 900 BOEPD.
In addition to the aforementioned hurricane impacts, Pioneer’s
third quarter production was impacted by unplanned downtime at the
Sunray, Texas, gas processing plant, which is owned by a third
party, where the liquids-rich gas from Pioneer’s West Panhandle
field in Texas is processed into gas and NGLs. Pioneer had to shut
in all production from the West Panhandle field (approximately 8
MBOEPD) in mid-September after the Sunray plant incurred
significant damage due to a fire. The impact to third quarter
production was approximately 1,300 BOEPD, with most of this loss
being gas and NGLs. Repairs to the Sunray plant are underway, but
it is expected to be several months before the plant can be placed
back into service. As a result, the third party and Pioneer are
making modifications to their respective facilities to enable field
production to resume, with the gas volumes being rerouted to the
third party’s Spearman, Texas, gas processing facility. The Company
expects these modifications to be completed and production to
resume in late October or early November.
Despite the lost production during the third quarter related to
the hurricane and unplanned downtime at the third-party gas
processing plant, Pioneer continues to expect full-year 2017
production growth to be within its targeted growth range of 15% to
16% (269 MBOEPD to 271 MBOEPD). In addition, oil production for
full-year 2017 continues to be targeted within a range of 156,000
barrels oil per day (BOPD) to 158,000 BOPD, or an increase of 17%
to 18% compared to 2016.
During the third quarter, the average realized price for oil was
$45.35 per barrel. The average realized price for NGLs was $18.96
per barrel, and the average realized price for gas was $2.58 per
thousand cubic feet.
A schedule highlighting Pioneer’s production by commodity by
area for the third quarter of 2017 is attached.
Further information regarding the third quarter 2017 results
will be discussed during the Company’s earnings conference call at
9:00 a.m. CDT on November 2, 2017.
Pioneer is a large independent oil and gas exploration and
production company, headquartered in Dallas, Texas, with operations
in the United States. For more information, visit Pioneer’s website
at www.pxd.com.
Except for historical information contained herein, the
statements in this presentation are forward-looking statements that
are made pursuant to the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements and the business prospects of Pioneer are subject to a
number of risks and uncertainties that may cause Pioneer’s actual
results in future periods to differ materially from the
forward-looking statements. These risks and uncertainties include,
among other things, volatility of commodity prices, product supply
and demand, competition, the ability to obtain environmental and
other permits and the timing thereof, other government regulation
or action, the ability to obtain approvals from third parties and
negotiate agreements with third parties on mutually acceptable
terms, completion of planned divestitures, litigation, the costs
and results of drilling and operations, availability of equipment,
services, resources and personnel required to perform the Company’s
drilling and operating activities, access to and availability of
transportation, processing, fractionation and refining facilities,
Pioneer’s ability to replace reserves, implement its business plans
or complete its development activities as scheduled, access to and
cost of capital, the financial strength of counterparties to
Pioneer’s credit facility, investment instruments and derivative
contracts and purchasers of Pioneer’s oil, natural gas liquid and
gas production, uncertainties about estimates of reserves and
resource potential, identification of drilling locations and the
ability to add proved reserves in the future, the assumptions
underlying production forecasts, quality of technical data,
environmental and weather risks, including the possible impacts of
climate change, the risks associated with the ownership and
operation of the Company’s industrial sand mining and oilfield
services businesses and acts of war or terrorism. These and other
risks are described in Pioneer’s Annual Report on Form 10-K for the
year ended December 31, 2016, and other filings with the Securities
and Exchange Commission. In addition, Pioneer may be subject to
currently unforeseen risks that may have a materially adverse
impact on it. Accordingly, no assurances can be given that the
actual events and results will not be materially different than the
anticipated results described in the forward-looking statements.
Pioneer undertakes no duty to publicly update these statements
except as required by law.
PXD Production by Area Q3 '16
Q4 '16 Q1 '17 Q2 '17
Q3 '17 Spraberry/Wolfcamp Oil (BOPD) 120,663
130,236 134,522 137,307 152,261 NGL (BOEPD) 34,631 31,637 36,529
42,176 47,678 Gas (MCFPD) 144,249 154,836 178,586 198,514 188,551
Total (BOEPD) 179,336
187,679 200,815
212,568 231,364 Eagle Ford Oil
(BOPD) 10,567 9,047 7,871 6,280 6,957 NGL (BOEPD) 10,659 8,830
6,799 6,491 6,981 Gas (MCFPD) 64,498 55,018 45,070 39,530 40,776
Total (BOEPD) 31,976
27,047 22,182
19,359 20,734 Raton Oil (BOPD) —
— — — — NGL (BOEPD) — — — — — Gas (MCFPD) 95,200 92,937 89,959
89,228 88,490
Total (BOEPD)
15,867 15,490
14,993 14,871
14,748 West Panhandle Oil (BOPD) 1,745 2,311 1,997
2,061 1,181 NGL (BOEPD) 3,641 3,566 3,344 4,371 2,466 Gas (MCFPD)
7,541 5,041 5,390 7,936 5,266
Total (BOEPD)
6,642 6,717
6,240 7,755 4,525
South Texas Oil (BOPD) 1,261 1,238 1,226 1,230 1,234 NGL
(BOEPD) 303 221 154 230 220 Gas (MCFPD) 20,902 20,607 19,565 18,346
17,225
Total (BOEPD) 5,047
4,893 4,641
4,517 4,325 Other Oil (BOPD) 4 3
4 7 1 NGL (BOEPD) 1 1 1 1 1 Gas (MCFPD) 25 26 33 57 76
Total (BOEPD) 10 7
10 17
15 Total Operations Oil (BOPD) 134,240 142,834
145,619 146,884 161,634 NGL (BOEPD) 49,235 44,255 46,828 53,268
57,346 Gas (MCFPD) 332,415 328,465 338,602 353,612 340,384
Total
(BOEPD) 238,878 241,833 248,881
259,087 275,711
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version on businesswire.com: http://www.businesswire.com/news/home/20171012005178/en/
Pioneer Natural ResourcesInvestorsFrank Hopkins,
972-969-4065orNeal Shah, 972-969-3900orTrey Muir,
972-969-3674orJerry Greer, 972-969-3597orMedia and Public
AffairsTadd Owens, 972-969-5760orRobert Bobo, 972-969-4020
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