Pioneer Resources Doubles Profits for Q3

Anadarko Q3 2015
Anadarko Q3 2015

Pioneer Natural Resources Co. credits the sale of its Eagle Ford midstream operations to huge profits during the Q3.

Related: Anadarko Loses Big in Q3

Pioneer Resources released third quarter financial results this week that showed a solid results. Company executives highlighted the following:

  • Profits of $646 million, almost doubling the $374 million from last year
  • Horizontal rig count was reduced from nine rigs in 2014 to six rigs in early 2015
  • Capital program will remain steady at $2.2 billion

Pioneer's Eagle Ford drilling activity is focused in Karnes and DeWitt counties where they are operating six horizontal rigs that are expected to keep production essentially flat over the 2016 through 2018 period compared to the third quarter of 2015.

In a higher commodity price environment, Eagle Ford would definitely be a place we’d look to add capital. That said, what’s hurting the Eagle Ford today is the fact that we still produce a decent amount of gas with these wells and a decent amount of NGLs, particularly ethane. And so, with ethane economics and natural gas prices having been where they’ve been, you can see that it’s taken it a little bit on the chin.
— Timothy L. Dove - President, Chief Operating Officer & Director

Other Eagle Ford highlights for Q3:

  • Placed 36 wells on production in the Eagle Ford Shale during the third quarter
  • Production from the Eagle Ford Shale averaged 43 MBOEPD
  • Drilling capital allocated for Eagle Ford Shale is $390 million
  • The sale of Pioneer’s Eagle Ford Shale midstream business in July for $2.15 billion