Tuesday, December 12, 2017

Pioneer Natural Resources Co News

Enterprise Products to Buy Midstream Assets

Pipeline company Enterprise Products Partners LP said it would buy member interests in EFS Midstream LLC from affiliates of Pioneer Natural Resources Co and Reliance Industries Ltd for $2.15 billion. The purchase price of this deal, which is expected to close in the third quarter, will be paid in two installments, Enterprise Products said on Monday. EFS Midstream was formed by affiliates of Pioneer Natural and Reliance Industries in June 2010 to construct, own and operate facilities providing gas gathering, treating, and transportation services in the Eagle Ford Shale in South Texas. (Reporting by Sneha Banerjee in Bengaluru)

Pioneer Natural Resources has Quarterly Loss on Writedowns

Pioneer Natural Resources Co on Tuesday reported a quarterly net loss compared with profit a year ago as the company wrote down the value of oil and gas assets due to low commodity prices.   Pioneer's first-quarter loss of $78 million, or 52 cents per share, compared with $123 million, or 85 cents per share in the year-earlier periods.   Sales volumes averaged 194,000 barrels oil equivalent per day (boed), up 17 percent from the 2014 first quarter.     (Reporting by Anna Driver; Editing by Ted Botha)

Pioneer Natural CEO to retire, be replaced by operating chief

U.S. shale oil producer Pioneer Natural Resources Co said on Thursday its Chief Executive Officer Scott Sheffield will retire at the end of the year and be replaced by Tim Dove, the company's chief operating officer.   Sheffield said he is retiring to spend time with his family. Dove joined a predecessor company to Pioneer in 1994 and has worked there ever since. (Reporting by Ernest Scheyder; Editing by Marguerita Choy)

Fracker Pioneer's Q2 Loss Widens on Derivatives

Photo: Pioneer Natural Resources Co

U.S. oil producer Pioneer Natural Resources Co posted a second-quarter net loss on Wednesday that widened from a year earlier on noncash mark-to-market losses for derivatives it uses to insulate its revenues from volatile oil prices.   Pioneer, known as one of the most efficient oil producers in the Permian Basin of West Texas, said its second quarter net loss was $268 million, or $1.63 per diluted share. Excluding derivatives, the adjusted loss was $37 million, or $0.22 a diluted share. (Reporting by Terry Wade)

Pioneer Natural Swings to Profit, but Slashes 2017 Budget

U.S. shale oil producer Pioneer Natural Resources Co said on Tuesday it swung to a quarterly profit but would cut $100 million from its 2017 capital budget.   The company, one of the largest oil producers in the Permian Basin of West Texas and New Mexico, posted second-quarter net income of $233 million, or $1.36 per share, compared to a net loss of $268 million, or $1.63 per share, in the year-ago period.   Production rose 11 percent to 259,087 barrels of oil equivalent per day. (Reporting by Ernest Scheyder; editing by Diane Craft)

Pioneer Says Increasing Drilling Activity

U.S. shale exploration and production company Pioneer Natural Resources Co on Wednesday said it is increasing drilling activity in Texas following the sale of its Eagle Ford shale pipeline and processing business. Pioneer, based in Dallas, said it has already added two drilling rigs in the Permian Basin this month and plans to add an average of two per month during the balance of the year as long as the crude oil price "remains constructive," the company said in a news release. The increase in drilling activity is not expected to have a big impact on 2015 production previously forecast to grow more than 10 percent…

Pioneer Natural Posts Quarterly Loss, Cutting Rig Count 50%

Pioneer Natural Resources Co, a U.S. shale oil company, on Wednesday reported a quarterly loss compared with a year-earlier profit and said it would slash by half the number of rigs it operates to 12 in response to the collapse in crude prices.   Dallas-based Pioneer posted a fourth-quarter loss of $623 million, or $4.17 per share, compared with a profit of $431 million, or $2.92 per share, in the year earlier period.   The Dallas company plans capital expenditures for 2016 of $2 billion, down from its preliminary forecast of $2.4 billion to $2.6 billion and 2015 spending of $2.2 billion.     (Reporting by Anna Driver; Editing by David Gregorio)

Apache Sees Modest Impact on Output from Permian Freeze

Icy weather in the Permian Basin of Texas that snarled truck traffic, caused power outages and disrupted operations for oil and gas companies at the start of the year is expected to have a small impact on Apache Corp's output, according to a company spokeswoman. "We are still quantifying the production deferment volumes, but anticipate a modest impact in the first quarter," Houston-based Apache said in an email. On Tuesday, West Texas producer Pioneer Natural Resources Co said severe winter weather significantly disrupted its production and drilling operations in the Permian Basin. Assessing the storm's impact will take several weeks, Pioneer said.

Statoil Won't Add North American Drilling Rigs This Year

Norwegian oil and natural gas producer Statoil ASA has no plans to add North American drilling rigs this year, an executive told Reuters on Wednesday. "I don't see us adding rigs this year," William Maloney, Statoil's head of North American exploration, said in an interview on the sidelines of the IHS CERAWeek conference in Houston, the world's largest gathering of oil producers. Pioneer Natural Resources Co Chief Executive Officer Scott Sheffield told Reuters on Tuesday his company may soon start adding rigs, a step that would mark the start of a reversal of a trend that has seen the U.S. oil rig rate halve since last September.

Williams Adds 3 New Directors as it Seeks to Fend Off Board Takeover

Pipeline company Williams Cos Inc added three new directors to its board on Monday as it works to fend off an attempt by activist investor Keith Meister to replace all of the company's directors. Williams said on Monday it appointed Pioneer Natural Resources Co CEO Scott Sheffield, PPL Corp CEO William Spence and former American Midstream Partners CEO Stephen Bergstrom as directors, effective immediately, increasing the size of its board to 10 directors. Meister, who runs hedge fund Corvex Management LP, nominated a slate of 10 directors last week, after assailing the quality of Williams' current directors.

Pioneer Natural's Losses Widen on Cheap Oil Prices

Oil producer Pioneer Natural Resources Co said on Monday its first-quarter loss widened as the price it received for its crude fell more than 30 percent.   The company posted a net loss of $267 million, or $1.65 per share, compared with a net loss of $78 million, or 52 cents per share, in the year-ago period.   Production rose 3 percent sequentially to 222,000 barrels of oil equivalent per day. Much of the company's output comes from parts of the Permian shale formation in West Texas. (Reporting by Ernest Scheyder; Editing by Jonathan Oatis)

OPEC Agrees Oil Cut Extension to End of 2018

OPEC agreed on Thursday to extend oil output cuts until the end of 2018 as it tries to finish clearing a global glut of crude while signalling it could exit the deal earlier if the market overheats. Non-OPEC Russia, which this year reduced production significantly with OPEC for the first time, has been pushing for a clear message on how to exit the cuts so the market doesn't flip into a deficit too soon, prices don't rally too fast and rival U.S. shale firms don't boost output further. The producers' current deal, under which they are cutting supply by about 1.8 million barrels per day (bpd) in an effort to boost oil prices, expires in March.

US Shale CEO Sees Saudi Arabia Moving to Lift Oil Prices

Saudi Arabia likely will move to boost oil prices after a recent drop in order to prop its own national finances, the chief executive of U.S. shale oil producer Pioneer Natural Resources Co said on Tuesday. Oil prices have tumbled in recent weeks despite moves by Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries last month to quell a global supply glut brought on in part by resurgent U.S. shale output. "I personally believe (the oil price) where we are right now is not sustainable. It comes in the form of two words: Saudi Arabia.

U.S. Allows Export of Minimally Refined Light Oil

U.S. officials have told energy companies that they may export a variety of ultra-light oil if it has been minimally refined, an apparent marginal loosening of a decades-old ban on selling U.S. crude abroad. The Wall Street Journal reported that the Department of Commerce, which has come under growing pressure to ease restrictions amid a resurgence in domestic production, had given approval via a private ruling to Pioneer Natural Resources Co and Enterprise Product Partners LP to export the so-called condensate. A Commerce spokesman did not comment on the specific rulings…

US Shale Eases Into Detente with OPEC as Supply Cut Extended

U.S. producers applauded Thursday's decision by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia to extend output cuts until the end of 2018. Texas and North Dakota - the two largest U.S. shale-producing states - described it as a boon for their producers. Their appreciation was in contrast to a more combative style in recent years, when shale states seemed to relish openly bashing the group. "Now that it seems prices are looking to stabilise with this OPEC deal around $60 (per barrel), I think that's going to be a very nice price environment for folks around the state…

Pioneer CEO Sheffield Doubts OPEC Will Reach Output Deal

Pioneer Natural Resources Co Chief Executive Scott Sheffield has little hope that OPEC members will agree later this month to curb production, a step that would boost low oil prices. "I give OPEC a 40 percent chance of reaching an agreement," Sheffield said on a conference call with investors on Wednesday. "And even if they do, everyone will cheat. Oil ministers from the Organization of the Petroleum Exporting Countries are scheduled to meet Nov. 30 to negotiate a deal on supply cuts. If OPEC fails to reach an agreement, oil prices likely will stay in the mid-$40 per barrel range for much of next year, Sheffield said.

US Shale Output Poised to Keep Rising Despite Investor Concerns

© Matt / Adobe Stock

Shale production in the largest U.S. oilfield should rise by as much as 300,000 barrels per day by December, according to updated forecasts following the industry's latest quarterly results. The higher outlooks, amid worries the recent breakneck pace of gains may not be sustained, come on the heels of one high-profile Permian Basin producer's oil output miss last quarter and decisions by several other energy companies to trim annual budgets. Oil production from the Permian Basin of West Texas and New Mexico is closely watched because its low costs and rapid growth have pressured efforts by the Organization of the Petroleum Exporting Countries to drain a global crude supply glut.

U.S. Shale Outfits Shine Amidst Gloom

A handful of U.S. shale oil producers are pushing up their production forecasts, saying efficiency gains from drilling in prime rock are helping them eke out more crude in the middle of the worst price crash in six years. The slightly bolder outlooks this week from Oasis Petroleum Inc, Devon Energy Corp, Pioneer Natural Resources Co and Diamondback Energy Inc show that the confident swagger that typified the U.S. shale boom's early days has yet to be fully tempered by the more than 50 percent drop in oil prices since last year. Though the consensus view is that rig productivity in U.S.

Devon Ready to Boost Drilling, Spending if Oil Prices Keep Climbing

Photo: Devon Energy Corp

Devon Energy Corp will ramp up drilling and spending if oil prices continue to recover, executives said on Wednesday, joining a growing list of companies expecting an increase in activity as the commodity price picture improves. The Oklahoma City-based oil and gas driller could start adding incremental drilling activity if oil prices hit $50 a barrel and could double capital spending if they reach $60, Chief Executive Officer Dave Hager told investors on a conference call to discuss first-quarter results. It would "probably take $60 oil or more to really get back to a capital spend level of close to $2 billion versus a $1 billion, where we're at now," Hager said.

Hess Would Add Bakken Rigs When Oil Nears $60/Barrel

Hess Corp said on Wednesday it would add drilling rigs in North Dakota's Bakken shale basin, its largest area of operations, if oil prices approach $60 per barrel, a level executives believe offers the best chance to return to profitability. The update came after the U.S. oil producer reported a smaller-than-expected quarterly loss, with cost cuts helping offset more than 60 percent drop in crude prices in the past 18 months. Hess, like other oil producers, has slashed its capital budget and trimmed production plans in the past year, although the company has stopped short of ending drilling and fracking altogether like rival Whiting Petroleum Corp.