Pioneer Natural Resources (NYSE:PXD) revealed on Thursday that its 2023 production surpassed previous forecasts, highlighting its resilience as a U.S. shale producer amidst its impending acquisition by oil giant Exxon Mobil (NYSE:XOM) for approximately $60 billion later this year.
The company reported an average total production of 715,000 barrels of oil equivalent per day (boepd) for the full year, exceeding its earlier guidance range of 708,000 to 713,000 boepd.
Pioneer attributed its robust production performance to the implementation of longer lateral wells, noting that over 125 wells with lateral lengths exceeding 15,000 feet were brought into production last year.
Exxon’s agreement in October to acquire Pioneer in an all-stock transaction aims to strengthen the largest U.S. oil company’s presence in the Permian Basin, with the deal expected to conclude in the second quarter.
Gabriele Sorbara of Siebert Williams Shank & Co remarked, “We view Pioneer’s Q4 results as a non-event, given the pending acquisition by Exxon. While we expect the deal to ultimately close, as of yesterday’s close, shares trade at a 4.1% discount to the deal terms with risk/delays from regulatory approval.”
However, Pioneer’s fourth-quarter profit fell short of expectations, primarily due to lower oil and gas prices alongside increased production costs.
The company reported a decline of approximately 6% in average realized prices to $78.47 per barrel of oil in the quarter, while expenses associated with oil and gas production rose by around 16%.
Excluding exceptional items, Pioneer earned $5.26 per share, missing analysts estimates of $5.48, according to LSEG data.
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