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Shares Of Pioneer Natural Resources Lower After Company Offers 2015 Update, Brief 2016 Outlook, Common Stock Offering


Shares of Pioneer Natural Resources (NYSE: PXD) were trading lower by more than 7 percent early Wednesday morning after the company issued a fiscal 2015 operating update, preliminary 2016 capital program guidance and the announcement of a common stock offering.

Fourth Quarter And Fiscal 2015 Update

Pioneer Natural Resources said it expects its fourth quarter 2015 production to be between 213,000 to 215,000 barrels equivalent per day to 215, which is above the top end of the company's previously announced production forecast.

Accordingly, management now expects full-year 2015 production growth of 12 percent compared to 2014. The company also expects its full-year 2015 capital budget expenditures to be consistent with its prior forecast of $2.2 billion.

Finally, Pioneer Natural Resources expects that its 2015 drillbit finding and development cost and reserve replacement percentage will be $10 to $14 per barrel oil equivalent and in excess of 200 percent, respectively.

2016 Capital Program

Pioneer Natural Resources offered a preliminary 2016 production growth forecast of 10 to 15 percent compared to 2015. The company added it continues to forecast compound annual production growth of 15 percent (oil growth of 20 percent-plus) over the 2016 through 2018 period, assuming the addition of 2 to 3 rigs per year during 2017 and 2018.

Pioneer Natural Resources also expects its preliminary 2016 capital program to be $2.4 to $2.6 billion.

Upsizing Of Stock Offering

In a separate press release, Pioneer Natural Resources announced that it has priced a public offering of its common stock at $117.00 per share. The company also noted that the size of its offering has been increased to 12 million shares from a previous 10.5 million shares.

Pioneer Natural Resources stated that it will use the proceeds from the offering for general corporate purposes, including continuing to actively develop its acreage position in the Spraberry and Wolfcamp play in West Texas.

Posted-In: Barrel Oil Equivalent pioneer natural resources Public Offering SpraberryNews Guidance Financing Movers


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