Pioneer eyes increase in Permian wells placed on production

Pioneer Natural Resources plans to operate an average 23-24 horizontal rigs in the Permian Basin in 2020, including five in the southern joint venture area. An estimated 345-375 wells are expected to be placed on production compared to 306 wells in 2019.

OGJ editors

Feb. 20, 2020

2 min read

Pioneer Natural Resources Co., Dallas, plans to operate an average of 23-24 horizontal rigs in the Permian Basin in 2020, including five rigs in the southern joint venture area. An estimated 345-375 wells are expected to be placed on production (40% Wolfcamp B, 40% Wolfcamp A, 15% Spraberry, 5% other), compared to 306 wells in 2019. Average lateral length is expected to be 9,800 ft. The 2020 drilling, completions, and facilities capital budget is $3-$3.3 billion, with an additional $125 million budgeted for differentiated water infrastructure.

Oil production for 2020 is expected at 235,000-245,000 b/d with total production of 383,000-403,000 boe/d.

First quarter 2020 oil production is expected to average 217,000-227,000 b/d with total production expected to average 361,000-376,000 boe/d.

2019

Fourth quarter oil production averaged 220,000 b/d, at the top end of guidance. Averaged fourth quarter total production was 363,000 boe/d, above the top end of guidance. The company placed 77 horizontal wells on production in the quarter.

Fourth quarter net income attributable to common stockholders was $344 million. The results include the effects of noncash mark-to-market adjustments and certain other unusual items. Excluding these items, non-GAAP adjusted income for the fourth quarter was $395 million. Cash flow from operating activities for the fourth quarter was $828 million.

During the quarter, Permian drilling, completion, and facilities capital expenditures totaled $569 million. Total Permian capital expenditures for the quarter, including gas processing and water infrastructure expenditures, totaled $627 million.

For the full year 2019, reported net income attributable to common stockholders was $756 million. Cash flow from operating activities for the full year was $3.1 billion.

Permian drilling, completion, and facilities capital expenditures for the year totaled $2.7 billion. Total Permian capital expenditures for the full year, including gas processing and water infrastructure expenditures, totaled $3.0 billion.