State-owned Petroleos Mexicanos (Pemex) reported lower year-over-year oil and gas production and dramatically reduced net income in the first quarter but still managed to reduce its debt.
First-quarter income came in at $281 million in the first quarter, down 91% compared to $3.1 billion year-over-year. Income fell due to higher expenses across the board even as the average price of the Mexican Export Blend was $71.91 per bbl in first-quarter 2024, up 9.1% compared to first-quarter 2023, Pemex said in the release.
Pemex oil production averaged 1.82 MMbbl/d in first-quarter 2024, down 3% compared to 1.87 MMbbl/d in first-quarter 2023. Gas production averaged 3.8 Bcf/d in the first quarter, down 8% compared to 4.1 Bcf/d year-over-year.
“The change is explained by the decline in the Zaap, Xanab, Ayatsil, Ku and Quesqui fields, which is being mitigated by increased maintenance of base production and drilling of new field strategy wells,” Pemex reported in its April 26 earnings.
RELATED
Pemex to Remain Fiscally Challenged for Mexico’s Next President
Despite the negative operational and financial results Pemex, the most indebted company in the world, did make strides to reduce its total debt.
Pemex’s total debt reached $101.5 billion to end the first quarter, down 5% compared to $107.4 billion at the end of first-quarter 2023.
The lower debt “was due to support and coordination with the federal government, despite criticism,” Pemex’s acting CFO Carlos Cortez said during the webcast.
Recommended Reading
Top Exxon Directors Cruise to Re-election Despite Activist Opposition
2024-05-29 - The campaign amounted to a test of whether top fund firms would rally to defend the small shareholders whose resolutions have put topics like the environment and workforce diversity at the center of many corporate annual meetings.
Energy Capital Partners Raises $6.7B, Buys Atlantica
2024-05-29 - The New Jersey-headquartered Energy Capital Partners said its ECP V (Fund V) secured capital commitments of $4.4 billion plus an additional $2.3 billion of co-investment capital; the private equity firm also announced a $2.6 billion take-private of Atlantica Sustainable Infrastructure.
Hess Shareholders Approve Chevron Merger
2024-05-28 - Hess Corp. stockholders voted in favor of the company’s merger with Chevron Corp. during Hess’ May 28 special meeting.
Permian Resources Completes Liquidation of Canada’s Lynden Energy
2024-05-28 - Permian Resources said the liquidation of Lynden Energy, a subsidiary of Earthstone Energy, will simplify its corporate structure and reduce go-forward tax obligations at the time of the Earthstone acquisition.
Earthstone’s Anderson Relaunches, Seeks Conventional
2024-05-24 - The new E&P PetroPeak Energy will also take a look at unconventional property in the Eagle Ford and Austin Chalk.