U.S. shale producer Pioneer Natural Resources Co. (NYSE: PXD) on Jan. 29 said it anticipated a non-cash gain of $576 million on oil and gas hedging contracts for the fourth quarter, according to a filing with the U.S. Securities and Exchange Commission.
The gain on hedges, which act as insurance contracts to lock in prices, follows a hit to earnings on the derivatives in the previous quarter. Many shale producers last year reported losses on hedges after oil prices climbed above anticipated levels.
Rival producer EOG Resources Inc. (NYSE: EOG) this week also said it expected to report a fourth-quarter, non-cash gain from hedges after reporting losses in the prior quarter.
Pioneer will release its fourth-quarter earnings later this month. Wall Street analysts are anticipating the company to report an adjusted profit of $1.92 per share, down from $2.07 per share last quarter, according to data from Refinitiv. Last year, it reported a fourth-quarter profit of $1.22 per share.
The company boasts the largest Midland Basin acreage position with roughly 750,000 gross acres and more than 20,000 drilling locations in the prolific Permian Basin, according to Pioneer's December investor presentation.
Recommended Reading
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.