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Pioneer Natural's third quarter net loss attributable to common stockholders widened to $7.16 million or $0.06 per share from $5.23 million or $0.04 per share year-ago. Loss from continuing operations for the quarter was $10.27 million or $0.17 per share, compared with a profit from continuing operations of $2.86 million or $0.04 per share a year-ago.
On an adjusted basis, net income for the quarter was $3 million or $.02 per share. On average, twenty analysts polled by Thomson Reuters estimated earnings of $0.07 per share for the quarter. Analysts' estimates typically exclude special items.
Loss for the quarter included a non-cash unrealized loss on commodity derivatives of $10 million after tax, or $.08 per share.
Total revenues and other income for the quarter declined to $410.08 million from $602.88 million in the prior year period. Ten Street analysts estimated revenues of $400.08 million for the quarter.
Segment-wise, Oil and gas revenue declined to $409.96 million from $600.41 million, while interest and other revenue declined to $0.503 million from $2.28 million in the year-ago period. Net loss on disposition of assets was $0.385, compared with a net profit on disposition of assets of $0.190 million a year ago.
Third quarter sales from continuing operations averaged 112,623 barrels oil equivalent per day (BOEPD | Quote | Chart | News | PowerRating), consisting of oil sales averaging 31,663 barrels per day or BPD, Natural Gas Liquids or NGL sales averaging 18,602 BPD and gas sales averaging 374 million cubic feet per day or MMCFPD.
According to Pioneer, third quarter production averaged approximately 113 thousand barrels oil equivalent per day or MBOEPD, up 2% compared to the third quarter of 2008, reflecting the strong performance of Pioneer's low-decline assets during a period when drilling was severely curtailed. Production costs per barrel oil equivalent or BOE during the quarter were reduced by 24% from the year-ago period in response to the company's aggressive cost reduction initiatives.
The quarter's total costs and expenses declined to $425.56 million from $586.86 million in the prior year period.
Pioneer said that it reduced long-term debt by $112 million during the third quarter as a result of asset sales and free cash flow. Excluding the debt of its subsidiary, Pioneer Southwest Energy Partners L.P., attributable to its acquisition of properties from Pioneer, Pioneer's debt reduction was $247 million.
The company said that approximately 425 Spraberry wells are expected to be drilled during 2010, with a continual ramp up in quarterly production anticipated. Fourth quarter production is expected to average approximately 29 MBOEPD during 2009 and increase to approximately 34 MBOEPD in the fourth quarter of 2010. Pioneer will also implement a 7,000-acre waterflood project in 2010.
The company said that it plans to continue to add rigs beyond 2010, and by 2012, plans to operate 40 rigs and drill 1,000 wells per year. From 2009 through 2013, Spraberry production is expected to double with compounded annual production growth averaging approximately 20%.
Pioneer Natural's forecast for fourth quarter production includes average 105,000 BOEPD to 110,000 BOEPD, reflecting reduced 2009 drilling activity, downtime associated with the gas plant maintenance shutdown in South Africa and gas pipeline repairs and planned lifting schedule in Tunisia.
Scott Sheffield, chairman and chief executive officer, stated, "Despite a substantial reduction in drilling activity for 2009, our high-quality assets delivered production growth of 7% during the first nine months compared to last year, and we continue to expect full-year production growth of at least 5% per share. We remain committed to a free cash flow model, with excess cash flow being used to reduce debt this year."
Pioneer said that oil derivatives with price upside were added for 2010 and 2011, bringing forecasted oil production coverage to approximately 85% in both years and that gas derivatives with price upside were added for 2011, bringing forecasted gas production coverage to approximately 50% in 2011. Coverage for 2010 is 80%.
Year-to-date net loss was $108.76 million or $0.95 per share, compared with a net income of $279.41 million or $2.32 per share in the year-ago period. Year-to-date loss from continuing operations was $110.36 million or $1.07 per share, compared with an income from continuing operations of $280.08 million or $2.20 per share year-ago. Total revenue and other income for the nine-month period declined to $1.247 billion from $1.816 billion a year ago.
PXD closed Tuesday's trade on the New York Stock Exchange at $42.54, up $1.00 or 2.41%. However, in the after hours, the stock fell $0.35 or 0.82% to trade at $42.19.
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