Pioneer Natural Resources Company is an American energy company engaged in hydrocarbon exploration in the Cline Shale, which is part of the Spraberry Trend of the Permian Basin, where the company is the largest acreage holder. The company is organized in Delaware and headquartered in Irving, Texas.
Pioneer Natural Resources is focused on delivering competitive and sustainable results as we responsibly produce natural gas and oil to help meet the world’s energy demands. We also handle many of our own oilfield services and operate frac fleets, drilling rigs and coil tubing units.
Pioneer Oil & Gas Permits
Pioneer Resources Wells Drilled Last Two Years
Pioneer Resources Air Permits Texas Last 365 Days
CEO Scott D. Sheffield stated, “Pioneer delivered a strong quarter as we integrated DoublePoint operations into our asset base, while continuing to execute one of the most efficient capital programs in the industry.
We are witnessing strong oil demand growth as the global macroeconomic environment continues to improve, with a corresponding improvement in commodity prices. As a result of the improved commodity price outlook, which is expected to further strengthen our balance sheet, we have accelerated and increased our variable dividend return framework with the declaration of our inaugural variable dividend.
This inaugural variable dividend, combined with our base dividend, represents a significant return of capital to shareholders, with approximately 80% of our second quarter free cash flow being returned to shareholders. This announcement accelerates our long-term commitment to return capital to shareholders under our investment framework. Over the next six years, we expect to generate in excess of $23 billion of cumulative free cash flow1 based on current commodity prices, creating a compelling and durable value proposition for our shareholders.”
During the second quarter, Pioneer continued to deliver strong operational efficiency gains that enabled the Company to place 157 horizontal wells on production. Drilling and completion efficiencies continued to improve, with an increase of greater than 65% drilled feet per day and 75% completed feet per day when compared to 2017 averages. The Company continues to see benefits of utilizing simulfrac technology and now plans to run two simulfrac fleets during the second half of 2021. These efficiency and cost improvements in drilling and completions continue to benefit the Company’s overall capital efficiency and dampen inflationary pressures. Additionally, Pioneer continues to upgrade the acquired Parsley and DoublePoint facilities to Pioneer’s high operational and environmental standards.
The Company expects its 2021 drilling, completions and facilities capital budget to range between $2.95 billion to $3.25 billion. An additional $100 million and $50 million is budgeted for integration expenses related to the acquisition of Parsley and DoublePoint, respectively, resulting in a total 2021 capital budget3 range of $3.1 billion to $3.4 billion. The Company expects its capital program to be fully funded from forecasted 2021 cash flow5 of approximately $6.45 billion.
During 2021, the Company plans to operate an average of 22 to 24 horizontal drilling rigs in the Permian Basin, including a one-rig average program in the Delaware Basin and a three-rig average program in the southern Midland Basin joint venture area. The 2021 capital program is expected to place 470 to 510 wells on production. Pioneer expects 2021 oil production of 351 to 366 MBOPD and total production of 605 to 631 MBOEPD.
Areas of Operation
Drilling By Texas County
Drilling By Field
Pioneer’s Permian Basin asset team initiated a comprehensive study during 2007 to quantify the additional resource upside offered by enhanced recovery techniques in the Spraberry field, the fifth largest oil field and the 15th largest gas field in the U.S. according to the Energy Information Administration. Of the ten largest oil fields in the U.S., the Spraberry field is the only onshore field from which production has increased since 2003. Pioneer is the largest driller and producer in the field with 869,000 gross acres (more than 75% held by production), 5,300 active wells.
Spraberry reserves as of year-end 2007, and based on the comprehensive study, the Company estimates that the field has 1 billion BOE.
The Company estimates that its acreage in the Spraberry field holds a drilling inventory of approximately 19,000 locations. Pioneer plans to accelerate drilling and expects to add approximately 250 million BOE of proved reserves.
Historical waterflood results from ten projects in the Spraberry field have recovered 82 million barrels of oil reserves and suggest that secondary waterfloods, where appropriate, can be expected to recover an additional 50% of the reserves recovered under primary recovery. Pioneer estimates that approximately 40% of its Spraberry acreage has potential for secondary recovery through waterflooding and plans to initiate a large-scale waterflood program.
Wolfcamp formation extends across the Delaware Basin, Central Basin Platform, and Midland Basin—the three sub-basins that comprise the Permian Basin. The Wolfcamp play has helped drive overall crude oil and natural gas production growth in the Permian Basin during the past decade. Crude oil production in the Wolfcamp accounts for nearly one-third of total Permian crude oil production and more than one-third of Permian natural gas production.