Fracker Pioneer Posts Wider Second-Quarter Loss on Derivatives
HOUSTON, July 27 (Reuters) - U.S. oil producer Pioneer Natural Resources Co posted a second-quarter net loss on Wednesday that widened from a year earlier on $229 million in losses on derivatives it uses to insulate its revenues from volatile oil prices.
Pioneer, known for its aggressive hedging program and for being one of the most efficient oil producers in the Permian Basin of West Texas, said its second quarter net loss was $268 million, wider than $218 million a year ago.
It was the first time in a year that the company posted derivatives losses and the biggest such loss in five years, according to filings. Oil prices rose to hover between $40 and $50 barrel for much of the second quarter, surprising some analysts after bottoming at $27 a barrel in the first quarter.
Excluding derivatives losses, the adjusted loss was $37 million.
Revenue in the latest quarter was $786 million, up 22 percent from the same period last year.
Pioneer reiterated on Wednesday it would start drilling more as oil prices improve and now that its capital spending program has been raised to $2.1 billion from $2.0 billion.
Pioneer bought Texas shale acreage from Devon Energy Corp last month for $435 million, issuing 5.3 million shares to help fund the deal. Pioneer also said that it planned to add five drilling rigs to Texas starting in September, bringing its total count in the state to 17. Pioneer expects to spend about $2.1 billion this year on its capital budget.
Pioneer has been one of the leaders in the U.S. shale oil industry in technological development, with improved fracking techniques helping to stabilize the company's production this year and offset slipping crude prices.
(Reporting by Terry Wade; Additional reporting by Catherine Ngai; Editing by Sandra Maler)
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