Pioneer Waiting on $50 Oil for Eagle Ford

Pioneer Earnings Report
Pioneer Earnings Report

Pioneer Natural Resources announces first quarter results and hints that they might restart Eagle Ford activity when crude hits $50.

Related: Pioneer Halts Eagle Ford Drilling

In February, Pioneer announced they were halting all drilling in the Eagle Ford due to severe downturn. But in an earnings call this week, executives gave some hints about their plans for their South Texas assets. if WTI gets to $50 we would look at restarting Eagle Ford. We’ll have to make a decision at the time if we had 10 rigs for instance and 17, do we take two of those rigs and put them in the Eagle Ford? But, I could see us adding a couple of rigs in Eagle Ford.
— Scott Sheffield, Chairman and CEO commented

For the first quarter of 2016, Pioneer Natural Resources had an adjusted loss of $104 million alongside record production. Other Q1 highlights include:

  • Production: 222,000 barrels of oil equivalent per day. Oil production is up 10,000 barrels of oil per day or 9% versus the fourth quarter of 2015.
  • 55 horizontal wells on production in the Spraberry/Wolfcamp
  • Reduced combined production cost and G&A expense per barrel oil equivalent (BOE) by 15% compared to the fourth quarter of 2015
  • starting up the new Targa-operated Spraberry/Wolfcamp gas processing plant, which has a capacity of 200 million cubic feet per day (MMCFPD); and
  • increasing oil and gas derivative coverage for 2017.

Pioneer plans to keep capital expenditures at $2 billion for 2016, $1.5 billion for drilling and $150 million for vertical integration systems upgrades and field facilities.