Production for Pioneer Natural Resources Eases in 1Q15



Pioneer Natural Resources’ production pattern

We’ve been looking at production and reserves for EOG Resources (EOG). Now we’ll look at Pioneer Natural Resources’ (PXD) production pattern.

In 1Q15, Pioneer Natural Resources’ total production decreased 5.6% from 4Q14 to 17.4 million barrels of oil equivalent (or MMBoe). In comparison, Cenovus Energy’s (CVE) 1Q15 production increased 37% from the previous quarter. Continental Resources’ (CLR) 1Q15 production increased 4.6% over 4Q14.

Pioneer Natural Resources is a Texas-based independent upstream energy company. It makes up 3.3% of the Energy Select Sector SPDR ETF (XLE) and 1.3% of the iShares U.S. Energy ETF (IYE).

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Production may remain flat in 2Q15

Pioneer Natural Resources’ crude oil and natural gas production has increased over the past 13 quarters. From 1Q12 to 4Q14, total production increased 38%, from 13.5 MMBoe to 18.5 MMBoe. Despite the quarter-over-quarter decline, 1Q15 crude oil and natural gas production is still up 17% over the year-ago period.

In 2Q15, based on low commodity prices, the company expects to increase production marginally by ~4% to ~200,000 barrels per day (or MBOED) from 193 MBOED in 1Q15.

Crude oil gains, natural gas loses

As you can see in the above graph, crude oil’s share in Pioneer Natural Resources’ (PXD) total production increased over the past 13 quarters. It went from 39% in 1Q12 to 51% in 1Q15. At the same time, the share of natural gas in its production fell from 42% to 31%. The rest of Pioneer Natural Resources’ production consists of natural gas liquids (or NGLs).

In 1Q15, Pioneer Natural Resources primarily increased production in the unconventional Spraberry/Wolfcamp and Eagle Ford shales. All these are shales rich in crude oil.

In the next part of this series, we’ll cover Pioneer Natural Resources’ (PXD) reserves.


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