Posted On: 01/06/2016 6:45:18 AM
Post# of 94339
Pioneer Natural Resources to Book $1 Billion in Write-Downs
Source: Dow Jones News
Pioneer Natural Resources Co. said it would write down the value of its oil-and-gas properties by about $1 billion, while the oil-and-gas explorer forecast production growth and higher capital spending for 2016.
Shares of Pioneer, down 10% in the past year, fell 2.5% in light after-hours trading.
Dallas-based Pioneer said it would take an $800 million to $1 billion write-down on the value of its Eagle Ford Shale assets in the fourth quarter that ended in December. It also will book a $50 million to $70 million impairment on its pipe inventory.
Meanwhile, Pioneer said it expects to top its production guidance for the quarter and 2015 full year. Pioneer is expected to report earnings Feb. 11.
Looking to 2016, Pioneer said it expects production to increase 10% to 15%, even as it takes two rigs out of production in the Eagle Ford Shale this month. Pioneer said it could cut its rig count further if commodity prices continue to pressure its returns.
Pioneer is forecasting $2.4 billion to $2.6 billion in capital spending this year, excluding special items, above the $2.2 billion budget it set for 2015.
Many oil-and-gas companies have been slashing capital spending in light of depressed energy prices.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
January 05, 2016 17:25 ET (22:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Source: Dow Jones News
Pioneer Natural Resources Co. said it would write down the value of its oil-and-gas properties by about $1 billion, while the oil-and-gas explorer forecast production growth and higher capital spending for 2016.
Shares of Pioneer, down 10% in the past year, fell 2.5% in light after-hours trading.
Dallas-based Pioneer said it would take an $800 million to $1 billion write-down on the value of its Eagle Ford Shale assets in the fourth quarter that ended in December. It also will book a $50 million to $70 million impairment on its pipe inventory.
Meanwhile, Pioneer said it expects to top its production guidance for the quarter and 2015 full year. Pioneer is expected to report earnings Feb. 11.
Looking to 2016, Pioneer said it expects production to increase 10% to 15%, even as it takes two rigs out of production in the Eagle Ford Shale this month. Pioneer said it could cut its rig count further if commodity prices continue to pressure its returns.
Pioneer is forecasting $2.4 billion to $2.6 billion in capital spending this year, excluding special items, above the $2.2 billion budget it set for 2015.
Many oil-and-gas companies have been slashing capital spending in light of depressed energy prices.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
January 05, 2016 17:25 ET (22:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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