Pioneer Natural Resources in 1Q16: Operational Performance
Pioneer Natural Resources’ 1Q16 operational performance
In 1Q16, Pioneer Natural Resources (PXD) reported a total production of 222 MBoe (thousand barrels of oil equivalent) per day, which is above its 1Q16 production guidance range of 211–216 MBoe per day.
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Pioneer Natural Resources’ 1Q16 production is ~15% higher than its 1Q15 production of ~194 MBoe per day. Sequentially, PXD’s 1Q16 production is ~3% higher than it was in 4Q15. In 1Q16, PXD reported a ~9% growth in crude oil (SCO) (UWTI) production, resulting in ~55% crude oil in its 1Q16 production mix.
PXD’s updated production growth guidance
For 2Q16, Pioneer Natural Resources expects a total production in the range of 224–229 MBoe per day. For 2016, Pioneer Natural Resources now expects a production growth of ~12%, higher than the previous production growth guidance of ~10%. PXD increased its production growth guidance due to the improving Spraberry and Wolfcamp well productivity.
Pioneer Natural Resources’ production costs
In 1Q16, PXD reported production cash costs of $9.17 per boe (barrel of oil equivalent). These costs include LOE (lease operating expenses), natural gas processing expenses, third-party transportation expenses, production and ad valorem taxes, and workovers. PXD’s 1Q16 production cash costs are lower than its guidance range of $10.50–$12.50 per boe and ~17% lower than they were in 4Q15. In 1Q16, PXD’s LOE were $5.20 per boe, ~20% lower than the expenses in 4Q15.
For 2016, PXD has maintained its plan for reduced activity and capital expenditures of $2 billion, of which $1.9 billion is for drilling and completions and $150 million is for vertical integration, systems upgrades, and field facilities.