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Pioneer Natural profit misses Street despite output jump

Pioneer Natural

Outgoing Pioneer Natural Resources CEO Scott Sheffield said he expects the company to be cash flow neutral by 2018 if oil prices stay near $55 per barrel.  Company photo.

Pioneer Natural Q3: $22 million profit

Nov 1 (Reuters) – Pioneer Natural Resources Co posted a lower-than-expected quarterly profit on Tuesday as an increase in the average selling price and sales of its oil failed to offset higher expenses.

Pioneer boosted its 2016 production forecast slightly and increased its hedging program for 2017, highlighting executives’ optimism that the oil market has reached a kind of equilibrium after more than two years of uncertainty.

The company posted a third-quarter net income of $22 million, or 13 cents per share, compared to $646 million, or $4.27 per share, in the year-ago period, which included a one-time gain from asset sales.

Analysts expected earnings of 16 cents per share, according to Thomson Reuters I/B/E/S.

Average sales volumes rose 13 per cent to 238,878 barrels of oil equivalent per day. Pioneer exported 610,000 barrels of oil from the Permian Basin of West Texas to Europe during the quarter, executives said.

The average price Pioneer received for its oil and natural gas rose 2 per cent to $29.24 per barrel of oil equivalent.

Still, the company’s expenses rose about 1 per cent during the quarter.

Scott Sheffield, Pioneer’s outgoing chief executive, said he expects the company to be cash flow neutral by 2018 if oil prices stay near $55 per barrel.

Shares fell 1 per cent to $179.15 in after-hours trading on Tuesday.

(Reporting by Ernest Scheyder; Editing by Chris Reese)

Ph: 432-978-5096 Website: www.mapleleafmarketinginc.com

Ph: 432-978-5096 Website: www.mapleleafmarketinginc.com

Posted in: Energy Financial

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