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Pioneer Natural Resources posts smaller-than-expected loss on cost cuts

Credit: REUTERS/ANGUS MORDANT

Pioneer Natural Resources Co on Tuesday posted a quarterly loss that was smaller than estimates, as the U.S shale producer reined in costs to cushion the impact from the COVID-19 pandemic that has hurt demand for crude and slashed oil prices.

Compares with estimates, adds outlook

Aug 4 (Reuters) - Pioneer Natural Resources Co PXD.N on Tuesday posted a quarterly loss that was smaller than estimates, as the U.S shale producer reined in costs to cushion the impact from the COVID-19 pandemic that has hurt demand for crude and slashed oil prices.

U.S. crude prices CLc1 plunged earlier this year to a stunning low of -$37.63 a barrel and remains about 33% lower from January's levels despite a recent rally as coronavirus lockdowns drained demand and a feud between top producers flooded the market with oil.

The Permian basin producer said it cut costs and expenses by more than a third as prices for its oil and gas dropped 55.2% to $17.61 per barrel of oil equivalent.

Average sales volume during the quarter rose to 374,563 barrels of oil equivalent per day (boepd), from 334,167 boepd last year.

Pioneer also raised its full-year production guidance to between 356,000 boepd and 371,000 boepd which reflects the company's current voluntary curtailments.

It curtailed about 7,000 bopd of net production during the second quarter and expects about 6,000 bopd to remain curtailed in the current commodity price environment.

The Permian basin producer said net loss attributable to common shareholders was $439 million, or $2.66 cents per share, compared with a loss of $169 million, or $1.01 per share, last year.

On an adjusted basis it posted a loss of 32 cents per share, smaller than analysts' average estimate of 35 cents loss per share, according to Refinitiv IBES.

(Reporting by Arunima Kumar in Bengaluru; Editing by Devika Syamnath and Shailesh Kuber)

((Arunima.Kumar@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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