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Pioneer Reports Second Quarter 2001 Results
Dallas, Texas, July 27, 2022 -- Pioneer Natural Resources Company (“Pioneer”)(NYSE:PXD) (TSE:PXD) today announced financial and operating results for the second quarter of 2001.
Second Quarter Results
Pioneer reported net income of $28.3 million, or $0.28 per share on a diluted basis, for the second quarter of 2001. Second quarter net income included a $1.5 million gain on the disposition of assets and a $9.3 million mark-to-market gain primarily related to derivatives not treated as hedges. Earnings as adjusted for the above items were $17.6 million or $0.18 per share. For the same period last year, Pioneer reported a net loss of $16.1 million or $0.16 per share. Cash flow from operations for the second quarter of 2001 was $135.3 million compared to $122.2 million for the second quarter of 2000.
Scott D. Sheffield, Chairman and CEO stated, “We are pleased with our accomplishments during the second quarter. We increased production 6% over the prior quarter, sanctioned two high-impact development projects, completed five successful exploration wells, and continued an aggressive hedging program to lock in returns and protect cash flow. We plan to drill three key exploration wells during the second half of the year and continue to move ahead with the development of Canyon Express, Devils Tower and Sable to achieve our targets for production growth in 2002 and 2003.”
Second quarter oil sales averaged 34,482 barrels per day (BPD) and natural gas liquids sales averaged 21,546 BPD. Natural gas sales in the second quarter averaged 366 million cubic feet per day (MMcfpd). On a barrel oil equivalent (BOE) basis, total sales averaged 117,047 BPD. Realized prices for oil and natural gas liquids for the second quarter were $24.74 and $19.29 per barrel, respectively. The realized price for natural gas was $3.10 per thousand cubic feet (Mcf).
Second quarter production costs averaged $4.88 per BOE, a $0.71 per BOE decrease compared to the first quarter. The decrease primarily resulted from reductions in field fuel costs and production taxes due to lower gas prices. Exploration and abandonment costs of $46.6 million for the quarter included $16.0 million of geologic and geophysical expenses including seismic costs, $2.2 million of non-cash leasehold abandonments including expired leases, and $28.4 million of exploration costs. More exploratory wells were drilled during the quarter than were originally scheduled, causing total exploration and abandonment costs to exceed forecasts for the quarter. Several wells were drilled earlier than originally scheduled, and one unscheduled well was drilled in Tunisia. As a result of the accelerated schedule, fewer wells will be drilled during the last half of the year reducing potential exploration and abandonment costs.
For the same quarter last year, Pioneer reported oil sales of 33,404 BPD, natural gas liquids sales of 23,520 BPD and natural gas sales of 381 MMcfpd. Realized prices for the 2000 second quarter were $22.59 per barrel for oil, $18.37 per barrel for natural gas liquids and $2.60 per Mcf for natural gas.
Six Month Results
For the six months ended June 30, 2001, Pioneer reported net income of $96.3 million, or $0.97 per share on a diluted basis. Excluding a gain of $8.8 million on the disposition of assets and a $.5 million mark-to-market gain primarily related to derivatives not treated as hedges, profits as adjusted were $87.0 million or $0.87 per share. For the same period last year, Pioneer reported a net loss of $1.3 million, or $0.01 per share. Cash flow from operations for the six-month period was $267.1 million compared to $169.4 million for the same period in 2000.
Six-month oil sales averaged 34,809 BPD and natural gas liquids sales were 20,989 BPD. Natural gas sales were 349 MMcfpd. On a BOE basis, total sales averaged 114,047 BPD. Six-month realized price for oil increased from the prior year period to $24.89 per barrel. Realized price for natural gas liquids was $20.94 per barrel. Realized price for natural gas was $3.80 per Mcf. For the first half of 2000, Pioneer reported oil sales of 34,082 BPD, natural gas liquids sales of 23,093 BPD and natural gas sales of 370 MMcfpd. Realized prices for the 2000 six-month period were $22.51 per barrel for oil, $18.68 per barrel for natural gas liquids and $2.29 per Mcf for natural gas.
The following statements are estimates based on current expectations. These forward-looking statements are subject to a number of risks and uncertainties which may cause the Company's actual results to differ materially from the following statements. The last paragraph of this release addresses certain of the risks and uncertainties to which the Company is subject.
Third quarter production is expected to average 117 to 120 MBPD on an oil equivalent basis. Third quarter lease operating expenses (including production and ad valorem taxes) are expected to average $4.60 to $4.80 per BOE based on today's NYMEX strip prices for oil and natural gas. Depreciation, depletion and amortization is expected to average $5.30 to $5.60 per BOE. Total exploration and abandonment expense is expected to be $15 million to $35 million. Three Gulf of Mexico exploration wells are scheduled during the third quarter on the Malta and Ozona Deep prospects and an appraisal well on the Stirrup discovery. General and administrative expense is expected to be approximately $9 million. Interest expense is expected to be $34 million to $35 million, including approximately $3 million of non-cash interest. The effective tax rate is expected to be approximately 5% of pre-tax income as the Company benefits from the carryforward of prior years' net operating losses in the U.S. and Canada. For the third quarter of 2001, cost incurred is expected to range from $115 million to $125 million.
The Company has oil and natural gas hedges that will impact third quarter and future period realizations. These hedges are summarized in the attached schedules.
Earnings Conference Call
On Friday, July 27, 2001, at 9:00 a.m. Central, investors will have the opportunity to listen to the second quarter earnings call and view a presentation over the Internet via Pioneer's website located at http://www.pioneernrc.com. At the website, select the “Investors” button at the top of the page; then select “Earnings Calls” from the list across the bottom of the page. To listen to the live call, please go to the website approximately ten minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available on the website shortly after the call. Alternately, you may dial (800) 314-7867 (confirmation code: 424086) to listen to the conference call and view the accompanying visual presentation at the Internet address above. A telephone replay will be available by dialing (888) 203-1112--confirmation code: 424086.
Pioneer is a large independent oil and gas exploration and production company with operations in the United States, Canada, Argentina, South Africa, Gabon and Tunisia. Pioneer's headquarters are in Dallas. For more information, visit Pioneer's website at www.pioneernrc.com.
Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer Natural Resources Company are subject to a number of risks and uncertainties that may cause Pioneer's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, product supply and demand, competition, government regulation or action, litigation, the costs and results of drilling and operations, Pioneer's ability to replace reserves, implement its business plans, or complete its development projects as scheduled, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, and environmental risks. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
Investor Relations Contact: Susan Spratlen (972) 444-9001
Important Legal Information ©2001 Pioneer Natural Resources Company
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