Pioneer Natural Resources posts first quarter net loss of $70 million

Pioneer Natural Resources Co. reported a first-quarter net loss attributable to common stockholders of $70 million. Excluding the effects of noncash mark-to-market adjustments and certain other unusual items, adjusted income for the quarter was $396 million. Cash flow from operating activities was $377 million.

During the first quarter, drilling, completion, and facilities capital expenditures totaled $591 million. Total capital expenditures, including water infrastructure, totaled $605 million.

First quarter oil production averaged 281,000 b/d. Total first quarter production averaged 474,000 boe/d. During the first quarter, Pioneer placed 106 horizontal wells on production. Drilling operations averaged 1,250 drilled ft/day and completion operations averaged 2,000 completed ft/day in the quarter, an increase of 9% and 8%, respectively, when compared to 2020 averages.

The company closed the acquisition of DoublePoint Energy on May 4 (OGJ Online, Apr. 2, 2021).

Outlook

The company expects its 2021 drilling, completions, and facilities capital budget to be $2.95-3.25 billion, inclusive of an additional $530-570 million related to the DoublePoint acquisition. An additional $100 million and $50 million is budgeted for integration expenses related to the acquisition of Parsley and DoublePoint, respectively, resulting in a total 2021 capital budget of $3.1-3.4 billion. The company expects its capital program to be fully funded from forecasted 2021 cash flow of $5.9 billion.

During 2021, the company plans to operate an average of 22-24 horizontal drilling rigs in the Permian basin, including a one-rig average program in the Delaware basin and a three-rig average program in the southern Midland basin joint venture area.

Pioneer plans to reduce the operated rigs on DoublePoint acreage to 5 rigs by the end of the year from the current 7 rigs. The 2021 capital program is expected to place 470-510 wells on production, which includes the addition of 90 wells on the acreage acquired in the DoublePoint transaction.

Pioneer expects 2021 oil production of 351,000-366,000 b/d and total production of 605,000-631,000 boe/d, which includes current production from DoublePoint of 92,000 boe/d and 100,000 boe/d forecasted during second-half 2021.

Second-quarter 2021 oil production is forecasted to average 352,000-367,000 b/d and total production is expected to average 606,000-632,000 boe/d.