Texas-based Pioneer Natural Resources Company’s (PXD) share price increased by 1.4% following the announcement that severe winter weather in West Texas has considerably affected production and drilling operations in the Spraberry/Wolfcamp area.
Due to heavy icing and freezing temperatures at the beginning of Jan 2015, the Spraberry/Wolfcamp area experienced extensive power outages, facility freeze-ups, trucking curtailments and restricted access to production and drilling facilities.
The recovery is expected to be a lengthy one and several weeks will be required to understand the full impact of this event. However, the Spraberry/Wolfcamp productions during forth quarter 2014 were not affected by it.
The severe weather has had an impact on production and costs for the first quarter of 2015. An update on the same will be provided as part of its fourth quarter 2014 earnings release on Feb 10, 2015.
Pioneer is an independent oil and gas exploration and production company, the asset base of which is anchored by the Spraberry oil field located in West Texas, the Hugoton gas field in Southwest Kansas and the West Panhandle gas field in Texas Panhandle. Along with these areas, Pioneer has exploration and development opportunities and/or oil and gas production activities in the U.S. and offshore South Africa. Additionally, the company pursues strategic acquisitions that allow it to expand into new geographical areas.
Pioneer Natural Resources’ oil-weighted reserves base and large drilling inventory (over 20,000 liquids-rich drilling locations in low-risk resource plays) with significant resource potential are catalysts to unlock value for shareholders. The company offers a deep inventory of high-return, liquids-leveraged drilling opportunities.
Currently, Pioneer carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks include Enbridge Energy Management LLC (EEQ), Seadrill Partners LLC (SDLP) and QEP Midstream Partners, LP (QEPM), each sporting a Zacks Rank #1 (Strong Buy).
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