Pioneer increased its Eagle Ford Shale production from 24 MBOEPD in the second quarter of 2012 to 29 MBOEPD in the third quarter, achieving another record production level. Strong well performance continues to drive this growth. Fifty percent of Pioneer’s wells across the entire play are in the top quartile of industry EURs, while 80% of the Company’s wells are above the industry mean EUR. The choke management program being utilized by Pioneer on its wells is contributing to the strong well performance. The Company expects fourth quarter production to range from 32 MBOEPD to 35 MBOEPD. On a full-year basis, this will result in average production of 27 MBOEPD to 28 MBOEPD, up from 12 MBOEPD in 2011. The updated production forecast for 2012 reflects a narrowing from the previous guidance range of 25 MBOEPD to 29 MBOEPD.Eleven central gathering plants (CGPs) are now operational as part of the joint venture’s Eagle Ford Shale midstream business. Pioneer’s share of its Eagle Ford Shale joint venture midstream activities is conducted through a partially-owned, unconsolidated entity. Funding for ongoing midstream infrastructure build-out costs that are in excess of operating cash flow is provided from external debt sources. Cash flow from the services provided by the midstream operations is not included in Pioneer’s forecasted operating cash flow.
Pioneer Natural Resources Reports Third Quarter 2012 Financial And Operating Results
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