Pioneer Natural Targets Production Growth Of Above 12% In 2016 - Quick Facts

(RTTNews) - Pioneer Natural Resources Company (PXD) said its capital budget for 2016 continues to be $2.0 billion; which includes $1.85 billion for drilling-and-completions-related activities. The company expects to deliver production growth of 12%+ in 2016, compared to the previous production growth target of 10%. The company said the growth reflects Spraberry/Wolfcamp area production growing by 33%+, partially offset by declines of approximately 25% in the Eagle Ford Shale and 10% across Pioneer's other assets. Pioneer increased its forecasted 2016 growth rate for the Spraberry/Wolfcamp to 33%+ from 30%+ as a result of improving well productivity. Oil production is also expected to increase from 30%+ to 33%+ in 2016.

The company placed 55 horizontal wells on production in the Spraberry/Wolfcamp during the first quarter of 2016. Pioneer continues to expect to place approximately 230 horizontal wells on production in the Spraberry/Wolfcamp area during 2016. For the second quarter of 2016, the company expects to place approximately 60 horizontal wells on production.

During the first-quarter, the company produced 222 thousand barrels oil equivalent per day (MBOEPD), of which 55% was oil. Production was significantly above first-quarter guidance range of 211 MBOEPD to 216 MBOEPD.

CEO Scott Sheffield stated, "The performance from our Spraberry/Wolfcamp horizontal drilling program continues to be outstanding. We expect to add five to ten horizontal rigs when the price of oil recovers to approximately $50 per barrel and when our outlook for oil supply/demand fundamentals is positive."

For the second-quarter, the company's production is forecasted to average 224 MBOEPD to 229 MBOEPD.

Pioneer reported a first-quarter net loss attributable to common stockholders of $267 million, or $1.65 per share. Without the effect of noncash mark-to-market derivative losses and other unusual items, adjusted results for the first quarter were a net loss of $104 million after tax, or $0.64 per share. On average, 39 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.75 for the quarter. Analysts' estimates typically exclude special items.

Revenues and other income decreased year-over-year to $685 million from $869 million. Analysts expected revenue of $711.66 million, for the quarter.