Pioneer Natural Resource plans a strategic retreat from the Eagle Ford while cutting its horizontal drilling program in half.
In an earnings call last week, Pioneer executives reported a fourth quarter loss of $27 million, production of 215,000 barrels of oil equivalent per day and that projected spending for 2016 capital expenditures will be about $2 billion.
After bucking the trend to reduce spending last year, Pioneer is now joining the ranks of other producers who are cutting back during this drastic downturn.
Besides reducing drilling, Pioneer also announced that will close its Victoria pumping services site in a move that will mean cutting 50 jobs and transferring another 100.
Eagle Ford Operational Highlights for 2016
- Rig count will reduce from six rigs at year-end 2015 to zero rigs during the first quarter
- Relocating Pioneer’s two Eagle Ford Shale pressure pumping fleets to the Spraberry/Wolfcamp
- 17 DUCs that the company will hold off until prices come back, likely 2017
- Spending in the Eagle Ford Shale for 2016 will be $60 million ($30 million for the horizontal drilling program and $30 million for compression, land and other)