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After several special charges, Pioneer shows loss for quarter
Allen Baker, PNA contributing writer
Pioneer Natural Resources Co. shows a loss of $0.9 million for the third quarter after subtracting charges involving early repayment of some debts and other adjustments.
The Dallas-based company recently announced its entry to Alaska with the purchase of some offshore North Slope lease interests, and also announced it plans to drill up to three wells this winter. (See story on page 1.)
Income $15 million before special charges In the quarter, Pioneer showed $15 million in income before several unusual items, down 35 percent from an adjusted $23.2 million a year ago. Net income for the 2001 quarter after adjustments was $24.6 million.
The extraordinary charges listed by Pioneer for this year’s third quarter include $15.6 million associated with repaying a 20 percent interest-bearing capital obligation, as well as $3.9 million for paying off some 9.625 percent bonds. There was also a special gain of $3.4 million on asset sales.
Pioneer had a net income of $11.1 million in the second quarter of this year. Earnings before adjustments were $15.3 million.
On the production front, lower prices hurt results and oil production declined in the third quarter. But gas and liquids flows were up.
Oil sales totaled 29,611 barrels a day, down 10 percent from 32,920 barrels daily a year ago and also down from the 30,840 daily barrels produced in the second quarter. Pioneer received an average of $21.77 for the oil in the 2002 quarter, down 13 percent from the $25.06 each barrel brought in the third quarter of last year.
Pioneer produced a daily average of 385 million cubic feet of gas and 22,693 barrels of condensate in the quarter. The gas flow was up 3 percent from 374 million cubic feet a year ago and from 342 million cubic feet in the second quarter. Condensate production was up 2 percent compared with the third quarter of 2001.
Average gas price $2.25 Average gas price was $2.25 in the recent quarter, down 15 percent from $2.66 a year ago. Gas liquids brought $14.10 a barrel, down 6 percent from the earlier quarter.
With the lower oil flows and lower prices across the board, revenue slipped 13 percent for the quarter to $178.8 million from $204.5 million a year ago.
The company said production costs were cut to $4.66 per barrel of oil equivalent in the third quarter, down 6 percent from the $4.98 a barrel figure in the second quarter.
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