Pioneer Natural reports strong FY production as Exxon takeover looms (updated)
22/02/2024 15:38
(Recasts first paragraph, adds details on FY production and
analyst comment in paragraphs 3-8)
Feb 22 (Reuters) - Pioneer Natural Resources PXD.N on
Thursday reported 2023 production that exceeded its prior
forecast, as the U.S. shale producer works to close its about
$60 billion purchase by oil major Exxon Mobil XOM.N later this
year.
The company said full-year total production averaged 715,000
barrels of oil equivalent per day (boepd), ahead of its prior
guidance of between 708,000 and 713,000 boepd.
Pioneer attributed the strong production to longer lateral
wells, and said more than 125 wells with lateral lengths of
15,000 feet or greater were placed on production last year.
Exxon agreed in October to buy Pioneer in an all-stock deal
to bolster the largest U.S. oil company's production in the
Permian Basin. The deal is expected to close in the second
quarter.
"We view Pioneer's Q4 results as a non-event, given the
pending acquisition by Exxon. While we expect the deal to
ultimately close, as of yesterday's close, shares trade at a
4.1% discount to the deal terms with risk/delays from regulatory
approval," Gabriele Sorbara of Siebert Williams Shank & Co said
in a note.
Still, Pioneer's fourth-quarter profit missed estimates,
partly due to lower oil and gas prices as well as higher
production costs.
Average realized prices fell about 6% to $78.47 per barrel
of oil in the quarter, the company said, while costs associated
with oil and gas production rose about 16%.
Excluding items, the company earned $5.26 per share, missing
analysts' estimates of $5.48, according to LSEG data.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Arun
Koyyur and Sriraj Kalluvila)
((mrinalika.roy@thomsonreuters.com;))