- producing 176.2 thousand barrels oil equivalent per day (MBOEPD) in the second quarter, an increase from the first quarter of 2013 of 5 MBOEPD, or 3%, as a result of continued production growth from the Company’s drilling programs in the liquids-rich horizontal Spraberry/Wolfcamp and Eagle Ford Shale areas; production would have been 177.6 MBOEPD excluding the effects of unexpected ethane rejection of 1.4 MBOEPD in the Spraberry/Wolfcamp area;
- narrowing the full-year 2013 production growth guidance range to 14% to 16% from 12% to 16%;
- progressing the highly successful northern horizontal Spraberry/Wolfcamp drilling program by placing on production (i) Pioneer’s first Wolfcamp A interval well in Midland County with a peak 24-hour initial production rate of 1,712 barrels oil equivalent per day (BOEPD), a peak 30-day average production rate of 1,107 BOEPD and an oil content of 74% and (ii) Pioneer’s first Wolfcamp B interval well in Martin County with a peak 24-hour initial production rate of 1,572 BOEPD, a peak 30-day average production rate of 1,040 BOEPD and an oil content of 76%;
- announcing that Pioneer’s first Wolfcamp B interval well in Midland County achieved cumulative production of 140 thousand barrels oil equivalent (MBOE) in six months;
- increasing from one horizontal rig to five horizontal rigs in the northern Spraberry/Wolfcamp area during the second quarter, with three rigs currently drilling Wolfcamp B and D interval wells in Midland and Martin counties and two rigs currently drilling Jo Mill and Lower Spraberry interval wells in Midland and Martin counties; planning to move two of the five rigs during the third quarter to drill the Company’s first horizontal Wolfcamp and Spraberry Shale wells in Andrews County;
- closing the southern Wolfcamp joint venture transaction with Sinochem Petroleum USA LLC, a U.S. subsidiary of the Sinochem Group (“Sinochem”) on May 31 (June 2013 production was lower by approximately 4,000 BOEPD, or approximately 1,300 BOEPD for the second quarter, reflecting Sinochem’s 40% share of production after closing);
- placing 22 new Wolfcamp B interval wells in the southern Wolfcamp joint venture area on production during the second quarter with peak 24-hour initial production rates up to approximately 1,000 BOEPD; well results continue to meet expectations;
- delivering development well costs ranging from $7.5 million to $8.0 million for 8,300-foot lateral wells in the southern Wolfcamp joint venture area; includes the benefits of lower slickwater fracture stimulation costs and declining hybrid fracture stimulation costs;
- adding oil derivative positions for the 2014 through 2016 period that increased the Company’s oil production coverage levels to approximately 85% in 2014, 60% in 2015 and 15% in 2016; and
- decreasing Pioneer’s net debt-to-book capitalization from 26% at the end of the first quarter to 22% at the end of the second quarter.
Pioneer Natural Resources Reports Second Quarter 2013 Financial And Operating Results
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