Pioneer shows quarterly profit despite drop in liquids yield

Allen Baker, PNA contributing writer

Pioneer Natural Resources Co. reported profits of $18.4 million for the fourth quarter, after losing $20.9 million for the same reporting period a year ago. Pioneer also had a loss of 0.9 million in the third quarter of this year due to some special charges.

The Dallas-based company recently started operations in Alaska, and is planning to drill two or three wells in the state in the current quarter, as part of an ambitious 2003 exploration program involving 450 wells, up from 229 last year.

Fourth-quarter oil sales averaged 31,248 barrels daily, down 3 percent from 34,446 barrels in the same quarter a year ago, but up from 29,611 barrels in the third quarter.

Sales of natural gas liquids were 22,591 barrels a day, up 6 percent from a year ago and nearly equal to the 22,693 barrels produced each day in the third quarter.

Natural gas flows averaged 380 million cubic feet a day, up 16 percent from a year ago, and again just down from the third-quarter daily figure, 385 million cubic feet.

Pioneer recorded a 2002 profit of $26.7 million, about a quarter of the $100 million earned in 2001. There were some miscellaneous charges both years, but cash flow was also down 30 percent.

For the quarter, higher prices helped, particularly for gas liquids. That product sold for an average of $16.08 a barrel, up 34 percent from the year-ago period. Crude brought in about a dollar more at $22.96, and natural gas sold for $2.75, up a few pennies.

That brought revenue for the quarter to $197.7 million, a 16 percent improvement from $170.5 million in the 2001 quarter. For the year, revenues slid 18 percent to $717.4 million.