11 Feb

PXD’s 4Q15 Operational Performance, Management Strategies

WRITTEN BY Nicholas Chapman

Pioneer Natural Resources’ 4Q15 operational performance

For 4Q15, Pioneer Natural Resources (PXD) reported total production of ~215 Mboe (thousand barrels of oil equivalent) per day, which is within its revised 4Q15 production guidance range of 213–215 Mboe per day.

PXD’s 4Q15 Operational Performance, Management Strategies

Pioneer Natural Resources’ 4Q15 production is higher by ~7% when compared with 4Q14 production of ~200 Mboe per day. Sequentially, PXD’s 4Q15 production is higher by ~2% when compared with 3Q15.

For 2015, Pioneer Natural Resources (PXD) reported total production of ~204 Mboe per day, which is higher by ~12% when compared with 2014. PXD’s 2015 production growth is better than its own revised production growth guidance of ~11%. Pioneer Natural Resources’ production growth is driven by the Spraberry and Wolfcamp Shales horizontal drilling program.

PXD’s 1Q16 and 2016 production guidance

  • For 1Q16, PXD expects total production volume in a range of 211–216 Mboe per day.
  • For 2016, PXD expects total production growth of ~10%.

Other upstream players

Other upstream companies like Occidental Petroleum (OXY) and EQT Corporation (EQT) have reported ~10% and ~13% year-over-year increases in their 4Q15 total production respectively. Murphy Oil (MUR) reported a ~23% year-over-year decrease in its 4Q15 total production. The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies.

PXD’s 2016 operational plan

In response to continuing weak oil prices, PXD decided to reduce its horizontal drilling activity by 50%. PXD will reduce the total number of rigs from 24 at the end of 2015 to 12 by mid-2016.

PXD’s capex

In 2015, Pioneer Natural Resources (PXD) spent ~$2.2 billion in capex, which is according to its 2015 capex guidance. Due to planned reduction in drilling activity, PXD revised its 2016 capex guidance to ~$2 billion, a midpoint reduction of ~20% from its previous capex guidance range of $2.4 billion–$2.6 billion.

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