Pioneer Natural Resources Co., Dallas, posted second-quarter 2021 net income attributable to common stockholders of $380 million, compared to a first-quarter net loss of $70 million (OGJ Online, May 7, 2021). These results include the effects of noncash mark-to-market adjustments and certain other unusual items. Excluding these items, non-GAAP adjusted income for the second quarter was $629 million. Cash flow from operating activities for the quarter was $1.5 billion.
During the second quarter, the Pioneer’s drilling, completion, and facilities capital expenditures totaled $883 million. The company’s total capital expenditures, including water infrastructure, totaled $900 million.
Cash flow from operating activities during the quarter was $1.5 billion, leading to free cash flow of $616 million for the quarter.
Exploration and abandonment costs were $10 million. G&A expense was $75 million. Interest expense was $41 million. The net cash flow impact related to purchases and sales of oil and gas, including firm transportation, was a loss of $40 million, or a loss $53 million when including the cash flow impact from the company’s firm transportation marketing contracts that are accounted for as derivatives. Other expense was $47 million, or $14 million excluding unusual items.
Operations, outlook
During the second quarter, Pioneer placed 157 horizontal wells on production. The company plans to run two simulfrac fleets during second-half 2021.
Pioneer expects its 2021 drilling, completions, and facilities capital budget to be $2.95-3.25 billion. 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 (OGJ Online, Apr. 2, 2021; Oct. 20, 2020). Pioneer expects its capital program to be fully funded from forecasted 2021 cash flow of about $6.45 billion.
During 2021, the company plans to operate an average of 22 to 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. The 2021 capital program is expected to place 470-510 wells on production. Oil production of 351,000-366,000 b/d and total production of 605,000-631,000 boe/d is expected for the year.
Third-quarter 2021 oil production is forecasted to average 380,000-395,000 b/d and total production is expected to average 660,000-685,000 boe/d.