Pioneer expects strong cash flow on increased U.S. production

Petroleum News Houston staff

Pioneer Natural Resources said July 30 it expects strong cash flow next year and will use it to finance new projects and to reduce debt.

The independent said it also expects to cut another $100 million of debt by the end of this year. The company reduced its debt by $57 million at the end of 2003’s second quarter.

Pioneer’s second-quarter oil and gas sales jumped 45 percent from the year-ago period to 159,092 barrels a day of oil equivalent. Most of the increase in the second quarter came from the Gulf of Mexico Falcon field. The Canyon Express project in the Gulf also boosted production, as it has for several quarters.

Natural gas sales alone increased to 626,143 million cubic feet per day from 342,478 million cubic feet per day in the 2002 second quarter. The company said it expects to average 150,000-to 165,000 barrels per day of oil equivalent in this year’s third quarter.

Pioneer’s second-quarter earnings soared to $77.2 million or 65 cents per share from $11.1 million or 10 cents per share in the year-ago period. However, earnings were down slightly from $84.2 million or 71 cents per share in the 2003 first quarter when commodity prices were higher.