Pioneer Natural Resources Profit Hurt By Higher Costs, Hedging Loss
Aug 7 (Reuters) - Pioneer Natural Resources Co posted lower-than-expected quarterly profit on Tuesday due to higher spending and a hedging loss of $358 million that kept the U.S. shale oil producer from fully benefiting from higher crude oil prices.
Costs rose 83 percent to $2.03 billion in the quarter, with the company's purchased oil and gas expenses nearly tripling.
Pioneer, which operates in West Texas' Permian Basin, said its average realized price of oil rose 24.5 percent to $43.12 per barrel in the quarter at a time when U.S. crude prices averaged at $74.15 per barrel.
However, the oil producer raised its capital budget forecast to between $3.3 billion and $3.4 billion from its prior estimate of $2.9 billion.
Net income fell to $66 million, or 38 cents per share, in the second quarter ended June 30, from $233 million, or $1.36 per share, a year ago.
Excluding one-time items, the company earned $1.41 per share, while analysts expected $1.49 per share, according to Thomson Reuters I/B/E/S.
The year-ago quarter included a gain of $195 million, mainly related to the sale of acreage in Texas.
Production rose to 327,704 barrels of oil equivalent per day (boepd) from 259,087 boepd in the quarter.
Revenue for the Irving, Texas-based producer rose 44 percent to $2.11 billion, beating average analyst estimate of $1.25 billion.
(Reporting by Karan Nagarkatti in Bengaluru; Editing by Arun Koyyur)
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