Pioneer Resources Reveals Q4 & 2015 Capex

Company Responds to Crude Prices by Reducing Spending in 2015
Pioneer Resources Map EFS

Pioneer Resources in the Eagle Ford

Pioneer Natural Resources, an Irving-based independent oil and gas company, announced its 2014 fourth quarter financials this week and revealed it will slash 2015 capex by 45%. Like many energy companies, Pioneer is making tough choices in order to ride out the current pricing storm.

Pioneer ended the year with a net income of of $431 million and strong production numbers including an 8% increase in oil production (up 15 MBOEPD) from the third quarter. 2014 Eagle Ford highlights include placing 16 horizontal wells on production exporting approximately 10 MBOEPD gross of Eagle Ford Shale condensate.

Related: Comstock Resources Q4 Report

Related: ConocoPhillips Reports Q4 Losses

Looking to the new year, the company estimates that of its $1.85 billion budget, $1.6 billion will be earmarked for drilling. The remainder of the funds will focus on infrastructure.

“In response to the current low oil price environment and reduced margins, we are preserving our strong cash position and balance sheet by reducing drilling activity and related infrastructure spending until margins improve significantly. Even with this slowdown, we will be able to continue to prudently develop and grow our industry-leading positions in the Spraberry/Wolfcamp and Eagle Ford Shale plays during 2015 by focusing our drilling activity in the best areas of both plays.”

Pioneer’s Eagle Ford Highlights for 2015

  • Approximately 20 MBOEPD gross (7 MBOEPD net) of Eagle Ford Shale condensate has been committed for export during 2015.
  • Part of the cuts in 2015 will include reducing horizontal drilling activity in Eagle Ford by six rigs. The company hopes to add horizontal rigs later in 2015 if conditions improve.

Read the full report at

Pioneer Addresses Eagle Ford Exports in Q2 2014 Report

Record Eagle Ford Production Recorded in Q2
Pioneer Central Gathering Plant

Pioneer Central Gathering Plant | Click to Enlarge

Recently, the U.S. Commerce Department (U.S. DoC) granted Pioneer Natural Resources Co. and Enterprise Product Partners LP permission to export minimally processed Eagle Ford condensate. According to Pioneer officials, the U.S. DoC confirmed that condensate processed at Pioneer’s Eagle Ford Shale central gathering plants in South Texas is a petroleum product that can be exported without a license.

The news in June 2014 that Pioneer was granted permission to export condensate made headlines and sparked a debate about the oil export ban, which has been in place for nearly forty years. Earlier this week, Eagle Ford Operator BHP Billiton confirmed it had applied for an export permit with the U.S. DoC.

Read more: Eagle Ford’s BHP Billiton Seeks to Export Condensate

It shouldn’t come as a huge surprise, but Pioneer is looking to Asian markets to sell its processed Eagle Ford condensate. According to the Energy Information Administration (EIA), Asia surpassed North America as the largest petroleum-consuming region in 2008, with demand increasing 146% (15 million b/d) from 1980 to 2010.

Pioneer CEO Scott Sheffield, said, “we are pleased that the U.S. Department of Commerce has recently confirmed that Pioneer may begin exporting processed condensate from the Eagle Ford Shale. Our first cargo was shipped in late July and monthly shipments are expected through the end of this year at prices higher than domestic condensate sales. International interest for our processed Eagle Ford Shale condensate is growing, particularly from Asian petrochemical companies.”

Pioneer Eagle Ford Q2 2014 Production and Operations Update

During the second quarter, Pioneer had record average Eagle Ford production of 47,000 boe/d. Thirty-one wells were placed on production during the quarter.

For 2014, the company expects to place approximately 125 liquids-rich wells on production in the Eagle Ford Shale (63 wells in the first half of 2014 and 62 wells in the second half). Company officials say most of these wells will be drilled utilizing three-well and four-well pads. The 2014 program reflects longer lateral lengths and larger fracture stimulations compared to 2013. Full-year production is forecasted to range from 46,000 boe/d to 49,000 boe/d, an increase of 22% to 30%, compared to 2013.


Pioneer’s Eagle Ford Growth Back Weighted – Drilling 2-6 Well Pads

Savings From Utilizing White Sand In Completions Balloons To $1.1. Million Per Well
Pioneer Eagle Ford Production Chart

Pioneer Eagle Ford Production Chart | Click to Enlarge

Pioneer Natural Resources brought on 58 Eagle Ford wells in the first half of the year and expects to bring on 78 wells in the second half. Production growth will be weighted to fourth quarter due to a shift from single-well to multiple-well pad drilling.

Only 45% of wells drilled in 2012 were drilled from pads, but that will grow to 80% in 2013. Wells drilled from pads take longer to bring to production, so the shift has delayed production growth. It takes Pioneer 100-120 days from the time of first spud to production from a three well pad. [Read more…]

Pioneer Natural Resources Eagle Ford Production Up & Costs Down

Eagle Ford Production On Pace To Eclipse 40,000 boe/d In 2013
Pioneer Eagle Ford Production Chart

Pioneer Eagle Ford Production Chart | Click to Enlarge

Pioneer Natural Resources’ Eagle Ford production was up to 37,000 boe/d in the first quarter.

That’s an increase from 35,000 boe/d in the fourth quarter and a 2012 average of 28,000 boe/d.

Pioneer drilled 37 wells in the quarter and brought 35 of those to production. In total, the company expects to drill 130 wells at a cost of $7-8 million each this year. Those wells will be drilled with just 10 rigs compared to 12 in 2012. [Read more…]

Pioneer Natural Resources Expanding Use of Pad Drilling in 2013

Horizontal Wells Will Have Laterals Extending 6,200 ft, From 5,700 ft in 2012
Pioneer Eagle Ford Update Map

Pioneer Update | Click to Enlarge

Pioneer Natural Resources’ (PXD) Eagle Ford drilling will come from centralized pads 80% of the time in 2013. That’s up from 45% of the time in 2012 and will allow the company to drill 130 wells with just 10 rigs. Pioneer saves $600,00-700,000 per well when utilizing pads. Approximately 130 wells were drilled in 2012 with an average of 12 rigs running. [Read more…]

Oil & Gas Jobs in South Texas Are Abundant

Only 15% of South Texas oilfield jobs added by 2021 will require a college degree
Eagle Ford Event Registration Line Photo

Registration line at a recent Eagle Ford Expo | Click to Enlarge

Oil and gas jobs in South Texas are abundant. From gate guards to industry sales reps and engineers, there’s a flood of new people running the roads of South Texas and more open positions than companies can find qualified people for. The Eagle Ford Shale oil boom has added oil and gas jobs in South Texas at a rate no one could have predicted.

Pioneer Natural Resources, an Irving, Texas-based driller, has hired 400 people in the South Texas area in the last two years, says Joey Hall, vice president in charge of Pioneer’s South Texas Asset Team.

About 75% or a little more of Pioneer’s workers are located in the field and contractors employ another 1,000 people who help build rigs and move crude. [Read more…]