By Josh Beckerman
Pioneer Natural Resources Co. swung to a loss in the second
quarter as revenue fell 30% amid sharply lower energy prices.
The oil and gas company said margins remain strong at its
horizontal drilling activities in the Spraberry/Wolfcamp area in
Texas and New Mexico "due to our aggressive pursuit of cost
reductions and efficiency gains combined with our highly productive
wells."
In July, the company said second-quarter production was slightly
below its guidance but reiterated its full-year growth goal of more
than 10% and said it expected to increase its 2015 capital budget
by about $350 million to $2.2 billion.
For the quarter ended June 30, the company posted a loss of $218
million, or $1.46 a share, compared with a profit of $1 million, or
one cent a share, a year earlier.
Excluding derivative mark-to-market losses and other items, the
company earned $15 million, or 10 cents a share.
Revenue fell to $648 million from $932 million. At the start of
the quarter, U.S. oil prices were about half of what they had been
on April 1, 2014.
Analysts polled by Thomson Reuters had projected earnings of
five cents a share on revenue of $753.75 million.
In July, pipeline company Enterprise Products Partners LP paid
$2.15 billion for the Eagle Ford Shale Midstream business, a
pipeline joint venture between Pioneer and India's Reliance
Industries Ltd.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires