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Drilling into Pioneer Natural Resources’ Operational Performance

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Pioneer Natural Resources’ 2Q17 operational performance

For 2Q17, Pioneer Natural Resources (PXD) reported production of 259.1 Mboepd (thousand barrels of oil equivalent per day), which is above its 2Q17 production guidance range of 254–259 Mboepd. Pioneer Natural Resources’ 2Q17 production is also ~11% higher compared to its 2Q16 production of 232.7 Mboepd. Sequentially, PXD’s 2Q17 production was ~4% higher than its 1Q17 production.

Pioneer Natural Resources president and CEO Timothy L. Dove said, “The Company delivered another strong quarter, with solid earnings, production at the top end of our second quarter guidance range, continued impressive horizontal well performance in the Spraberry/Wolfcamp and reduced production costs. We are drilling high-return and highly productive wells primarily as a result of our successful completion optimization program.” PXD’s production from the Spraberry-Wolfcamp region rose by 12 Mboepd or ~6% in 2Q17 compared with 1Q17.

PXD’s year-over-year increase in production could be due to higher capital expenditure, which resulted in higher exploration and production activity. We’ll look at PXD’s capital expenditures in the next part of this series.

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PXD’s production mix

In 2Q17, Pioneer Natural Resources reported total liquids production of 200.15 MBbls (thousand barrels) per day, which is ~77% of the total production in the same quarter. In 2Q17, PXD reported natural gas (UNG) production of ~353.61 Mcf (thousand cubic feet) per day, which is ~23% of the total production in the quarter.

In 2Q16, PXD reported ~76% liquids and ~24% natural gas in its production mix. PXD’s liquids percentage of its production mix has risen slightly in the last year.

PXD’s production guidance

Per Pioneer Natural Resources’ 2Q17 earnings press release, PXD now expects 3Q17 production in the range of 274–279 Mboepd, a mid-point increase of ~16% from its 3Q16 production of ~238.9 Mboepd. Sequentially, PXD’s forecasted 3Q17 production is ~7% higher than 2Q17.

PXD’s peer ConocoPhillips (COP) expects 3Q17 production in the range of 1170–1210 Mboepd, a mid-point decrease of ~24% compared with 3Q16 production. Sequentially, ConocoPhillips’s forecasted 3Q17 production is ~16% lower compared with 2Q17.

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