Pioneer Natural Resources cuts additional $300 million from 2020 budget

Pioneer Natural Resources Co., Dallas, expects to operate an average of 5-8 horizontal rigs in the Midland basin, including averaging one horizontal rig in the southern joint venture area during the second quarter through the fourth quarter of 2020 with an average of 2-3 three frac fleets during the same time period. Drilling and completion activity will be reviewed on an economic basis, with future activity levels assessed monthly.

The company has cut an additional $300 million from its 2020 drilling, completions, and facilities capital budget to $1.3-1.5 billion, with an additional $100 million budgeted for Pioneer's differentiated water infrastructure, resulting in a revised total 2020 capital budget range of $1.4-1.6 billion—a reduction of 55% when compared to the original budget (OGJ Online, Mar. 19, 2020).

First quarter oil production was 223,000 bo/d. The company averaged first quarter production of 375,000 boe/d. During the quarter, the company placed 85 horizontal wells on production.

The company expects revised 2020 oil production to average 198,000-208,000 bo/d and total production of 341,000-359,000 boe/d, which includes current voluntary curtailments of about 7,000 bo/d. The production outlook does not include the potential for any additional curtailments.

For the year’s first quarter, the company reported net income attributable to common stockholders of $289 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 first quarter was $190 million. Cash flow from operating activities for the first quarter was $825 million.

Drilling, completion, and facilities capital expenditures totaled $591 million for the quarter. Total capital expenditures, including water infrastructure, totaled $620 million.