This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pioneer Natural Resources Reports Third Quarter 2012 Financial And Operating Results

2012 Capital Budget

Pioneer’s capital program for 2012 of $3.0 billion (excludes acquisitions, asset retirement obligations, capitalized interest and geological and geophysical G&A) includes drilling capital of $2.5 billion and capital for vertical integration of $0.5 billion.

The Company is increasing its 2012 drilling budget from $2.4 billion to $2.5 billion. The increase of $100 million primarily supports the acceleration of appraisal activity in the horizontal Wolfcamp Shale. The overall program continues to be focused on liquids-rich drilling, with approximately 75% of the spending earmarked for Spraberry vertical and horizontal Wolfcamp Shale drilling and 10% for Eagle Ford Shale drilling.

The capital for vertical integration of $500 million includes $300 million for the U.S. industrial sands business acquired by Pioneer in early April, $100 million for pressure pumping and well service equipment and $100 million for the accelerated construction of field offices and facilities from 2013 into 2012.

The 2012 capital budget is expected to be funded from forecasted operating cash flow of $1.8 billion, assuming commodity prices of $85 per barrel for oil and $3 per thousand cubic feet (MCF) for gas for the fourth quarter of 2012; proceeds of $500 million from Pioneer’s equity offering during the fourth quarter of 2011; net proceeds of $200 million from the liquidation of certain 2014 and 2015 gas derivatives, liquidating expiring interest rate swaps and the utilization of existing pipe and equipment inventory; proceeds from the divestiture of South African and certain South Texas assets of $100 million and borrowings of $400 million under Pioneer’s credit facility.

Third Quarter 2012 Financial Review

The following financial results for the third quarter of 2012 reflect continuing operations and exclude the results of operations attributable to South Africa and the Barnett Shale that are included in discontinued operations.

9 of 14

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs