HOUSTON (Reuters) - Pioneer Natural Resources Co (PXD.N), one of the largest oil producers in the Permian Basin of West Texas and New Mexico, posted a better-than-expected adjusted profit on Wednesday, helped by rising commodity prices.
Pioneer, like many of its U.S. shale peers, forecast rising production for the rest of the year as improving technology lowers operating costs. The company boosted its 2017 capital budget by 2 percent to $2.75 billion to add two drilling rigs in the Permian.
“We are drilling low-cost, highly productive wells that generate high returns and have industry-leading break-even oil prices,” Chief Executive Tim Dove said in a statement.
Pioneer posted a third-quarter net loss of $23 million, or 13 cents per share, compared with a net profit of $22 million, or 13 cents per share, in the year-ago period.
Excluding a $161 million loss on hedging, the company earned $80 million or 48 cents per share. By that measure, analysts expected earnings of 30 cents per share, according to Thomson Reuters I/B/E/S.
Production rose about 15 percent to 275,711 barrels of oil equivalent per day. Output from the Permian was dented by Hurricane Harvey, which tore through the U.S. Gulf Coast region in August.
Pioneer’s stock fell slightly in after-hours trading to $152.50 alongside a dip in oil prices CLc1. The shares have dipped about 15 percent so far this year.
Executives plan to hold a conference call with investors to discuss results on Thursday morning.
Reporting by Ernest Scheyder; Editing by Matthew Lewis