Pioneer Natural Resources expects higher production
US shale producer Pioneer Natural Resources said August 2 it expects net output to improve over second quarter levels, which were already at the top of its expectations.
Pioneer, where the operational focus is on the Permian shale basin, reported that second quarter production averaged 629,000 barrels of oil equivalent (boe)/day, at the top end of its guidance.
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Third quarter production is expected to be in the range of 660,000 to 685,000 boe/d. The yearly range is between 605,000 and 631,000 boe/d.
On upstream activity, the company said it plans to put an average of 22-24 drilling rigs in the Permian basin and its capital program for the year targets 470-510 wells in production.
The Permian basin is the largest oil producer and second-largest natural gas producer among the seven primary US shale basins. A drilling productivity report from the US Energy Information Administration forecasts oil production at 4.6mn b/d and natural gas production at 18bn ft3/d for August.
“Pioneer views sustainability as a multidisciplinary focus that balances economic growth, environmental stewardship and social responsibility,” it added. “The company emphasises developing natural resources in a manner that protects surrounding communities and preserves the environment.”
Pioneer set a goal of reducing greenhouse gas emissions intensity by 25% and methane emissions intensity by 40% by 2030. Elsewhere, the company said it aims to end routine flaring no later than 2030.
The company reported net income in the second quarter of $380mn, reversing a year-ago loss of $449mn.
Pioneer was among the shale producers engaged heavily in merger and acquisition activity last year. In October, it paid $4.5bn to buy fellow Permian basin producer Parsley Energy. In April, it acquired DoublePoint Energy in a transaction worth $6.4bn.