2/6/2012 6:47 PM ET
(RTTNews) - Pioneer Natural Resources Co. (PXD: News ) Monday reported a loss for the fourth quarter, impacted by an impairment charge.
For the fourth quarter, Pioneer Natural Resources' net loss attributable to common stockholders was $111.1 million or $0.93 per share, compared to profit of $80.3 million or $0.67 per share in the year-ago quarter.
Pioneer's fourth quarter results included a net loss of $236 million or $1.94 per share, related to unusual items, primarily a noncash charge for the impairment of dry gas properties in the company's legacy Edwards trend play in South Texas as a result of the current low gas price environment.
Without the effect of noncash derivative mark-to-market losses and other unusual items, adjusted income for the fourth quarter was $147 million or $1.19 per share.
On average, 27 analysts polled by Thomson Reuters expected earnings of $1.03 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew to $703.1 million from $467.5 million last year. Fifteen Street analysts had a consensus revenue estimate of $700.0 million for the quarter.
Scott Sheffield, chairman and CEO, said, "The Company delivered another strong quarter, with production of 140 thousand barrels oil equivalent per day (MBOEPD), an increase of 12 MBOEPD, or 9%, from the third quarter of 2011 (including South Africa, which is being moved to discontinued operations, in both quarters). Our three core liquids-rich growth assets in Texas, the Spraberry field, the Eagle Ford Shale and the Barnett Shale Combo, were the drivers of this significant increase."
For 2012, the company expects 23 to 27 percent production growth. Pioneer's 2012 Spraberry vertical drilling program is for approximately 750 wells to be drilled.
The capital program for 2012 totals $2.5 billion, with 86 percent of the spending designated for drilling in the Spraberry field, the horizontal Wolfcamp Shale, the Eagle Ford Shale and the Barnett Shale Combo. Funding for the capital program includes forecasted operating cash flow of $2.2 billion and $0.3 billion of the proceeds from Pioneer's recent equity offering.
Sheffield added," We expect the Company to achieve a compound annual production growth rate of 20+% through 2014, with liquids increasing from 56% of total production currently to 65% in 2014.....Owning fracture stimulation fleets continues to enhance the execution of our drilling program and provide significant cash savings versus contracting for these services at market rates. By mid-2012, our fleet capacity will reach 300,000 in total horsepower."
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