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.
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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 pxd.com