Tuesday, Pioneer Natural Resources Co. (PXD) reported a profit for the fourth quarter compared to a loss last year, primarily from improved oil prices, despite a decline in revenue. Looking ahead, the company provided guidance for the first quarter of the fiscal 2010.
Irving, Texas-based Pioneer reported fourth quarter net income attributable to common stockholders of $56.6 million or $0.48 per share, compared to net loss of $69.4 million or $0.60 per share in the prior year quarter. Loss from continuing operations for the quarter narrowed to $21.9 million or $0.18 per share from $45.1 million or $0.44 per share in the year-ago period.
The company recorded income from discontinued operations of $76.2 million or $0.66 per share compared to a loss of $17.9 million or $0.16 per share in the same quarter last year.
Excluding a noncash unrealized loss on commodity derivatives of $38 million after tax or $0.32 per share, adjusted income for the fourth quarter would have been $95 million or $0.80 per share.
On average, 21 analysts polled by Thomson Reuters expected the company to earn $0.05 per share for the quarter. Analysts' estimates typically exclude one-time items.
Results for the quarter also include an income of $73 million after tax or $0.62 per share, related to the recognition of a $119 million royalty refund receivable from the Minerals Management Service related to the overpayment of royalties on production from deepwater Gulf of Mexico properties prior to the January 1, 2006 effective date of the sale, net hurricane-related insurance recovery of $1 million after tax and stacked rig charges of $3 million after tax.
Quarterly revenue and other income slipped to $463.6 million from $468.7 million in the comparable quarter last year.
Eleven street analysts expected the company to generate revenues of $408.54 million for the fourth quarter.
Oil and gas revenue increased to $461.4 million from $450 million in the year-ago period, interest and other income for the quarter plunged to $2.5 million from $23.9 million and net loss on disposition of assets narrowed to $327 thousand from $5.1 million in the year-ago period.
Fourth quarter sales from continuing operations averaged 106 thousand barrels oil equivalent per day or MBOEPD, consisting of oil sales averaging 31 MBOPD, Natural Gas Liquids or NGL sales averaging 19 thousand barrels per day and gas sales averaging 338 million cubic feet per day or MMCFPD.
Average price for oil was $88.16 per barrel that included $8.47 per barrel related to deferred revenue from VPPs for which production was not recorded in the quarter. The reported price for NGLs was $37.54 per barrel and price for gas was $4.56 per thousand cubic feet or MCF, which included $0.40 per MCF related to deferred revenue from VPPs. Fourth quarter production costs averaged $11.60 per BOE.
For the full year, the company reported net loss of $52.1 million or $0.46 per share compared to net profit of $210 million or $1.76 per share last year. Loss from continuing opeartions was $132.3 million or $1.25 per share compared to profit of $234.9 million or $1.79 per share in the year-ago.
Net revenue and other income for the full year, was $1.7 billion, down from $2.3 billion in the prior year period.
Analysts estimated a loss of $0.20 per share on revenues of $1.65 billion for the fiscal 2009.
Looking forward, the company expects first quarter 2010 production in the range of 112 MBOEPD to 117 MBOEPD, reflecting increased 2010 drilling activity, the expiration of the VPP obligation in the Hugoton field, the return of production in South Africa after the maintenance shutdown and the planned oil lifting schedule for Tunisia.
Production costs for the first quarter is expected to average $11.50 to $13.50 per BOE, based on current NYMEX strip prices for oil and gas. Total exploration and abandonment expense is expected to be $25 million to $35 million, primarily related to exploration wells, including related acreage costs seismic and personnel costs.
Noncontrolling interest in consolidated subsidiaries' income, excluding noncash mark-to-market adjustments, is expected to be $9 million to $12 million, primarily reflecting the public ownership in Pioneer Southwest Energy Partners L.P.
Pioneer increased its 2010 through 2012 commodity price derivative positions to support the company's free cash flow model and the resumption of oil drilling. Pioneer has derivative positions covering approximately 85%, 90% and 35% of its forecasted oil production for 2010, 2011 and 2012, respectively, and derivative positions covering 85%, 70% and 25% of its forecasted gas production for 2010, 2011 and 2012, respectively.
PXD closed Tuesday's regular trading at $46.78, up $0.94 or 2.05% on a volume of 1.66 million shares on the NYSE. In the after hours the shares further rose 1.45% or $0.68, trading at $47.46.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.