July 18 (Reuters) - Pioneer Natural Resources Co reported quarterly production near the low end of its outlook range, hurt by an unplanned shutdown of a processing facility run by third party.
Production from continuing operations averaged 150,506 barrels oil equivalent per day (BOEPD) for the second quarter. The company had earlier expected production of 149,000 BOEPD to 154,000 BOEPD.
The company said natural gas liquids (NGLs) fractionation downtime hurt production by about 4,800 barrels of oil equivalent per day (BOEPD) at its Spraberry field in Texas.
Once NGLs are removed from the natural gas stream, they are broken down into their base components. Separating the mixed stream of different NGLs is called fractionation.
Midkiff/Benedum gas processing plants were also forced to reject ethane into the residue gas stream during the quarter resulting in a loss of production of about 2,000 BOEPD, Pioneer said.
“Ethane rejection continues and is expected to impact Pioneer’s production over the remainder of 2012.”
Pioneer also said expects to report a before-tax net gain of about $276 million on mark-to-market derivative contracts for quarter ended June 30.
Shares of the company closed at $89.9 Wednesday on the New York Stock Exchange.