U.S. shale producer Pioneer Natural Resources Co. posted a bigger quarterly loss on Aug. 4 as the result of the oil price plunge caused by the COVID-19 pandemic.

Pioneer reported a net loss attributable to common stockholders of $439 million, or $2.66 per diluted share, for the second quarter, compared with a loss of $169 million, or $1.01 per share, the same quarter last year.

Despite the loss, the Irving, Texas-based company generated $165 million of free cash flow for the quarter, which President and CEO Scott D. Sheffield attributed to significant cost reductions and operational efficiency improvements.

“The improvements in capital efficiency during the second quarter led to a 2.5% increase in our full-year oil production guidance, while maintaining our previous capital spending range,” Sheffield said in a statement.

Pioneer, a Permian Basin pure-play, averaged roughly 375,000 boe/d of production during the second quarter, from 334,000 boe/d a year ago. The company also reported capex of $235 million for the quarter, underspending its revised capital budget.

The company is maintaining its 2020 drilling, completions and facilities capital budget range of $1.3 billion to $1.5 billion. Meanwhile, its guidance for production has been increased to range between 356,000 and 371,000 boe/d for 2020.

The revised production guidance reflects the current voluntary curtailments that are expected to average approximately 6,000 bbl/d of oil as it continues to proactively curtail lower-margin, higher-cost vertical well production in the current commodity price environment, according to a company release.

Pioneer curtailed about 7,000 bbl/d of oil in the second quarter.

The company’s previous plans to operate an average of five to eight horizontal drilling rigs in the Midland Basin, including one horizontal drilling rig in the southern joint venture area, and an average of two to three frac fleets for the remainder of the year remains unchanged.

Comments