Pioneer Natural Resources Co., Dallas, has cut its 2020 drilling, completion, and facilities capital budget by 45% to $1.6-1.8 billion from $3-3.3 billion and its water infrastructure spending to $100 million from $125 million, resulting in a total 2020 capital budget of $1.7-1.9 billion.
The company will reduce its operated rig count to 11 from 22 within the next 2 months and plans to reduce its contracted completion crews to two to three from the current six during the same time period.
Full-year 2020 oil production is expected to be similar to its 2019 Permian oil production average of 211,000 b/d.
In February, the reported its original plan to operate an average of 23-24 horizontal rigs in the Permian Basin in 2020, including five rigs in the southern joint venture area (OGJ Online, Feb. 20, 2020). An estimated 345-375 wells were previously expected to be placed on production (40% Wolfcamp B, 40% Wolfcamp A, 15% Spraberry, 5% other), compared to 306 wells in 2019.
Oil production for 2020 is now expected at 235,000-245,000 b/d with total production of 383,000-403,000 boe/d.
Additional details will be released during the company’s first quarter earnings conference call.