Pioneer and Halcon
Posted: Fri Feb 22, 2019 10:22 am
Paragraph from Flynn
U.S. record production is at a record high so one might assume that shale producers would be raking in the cash. Well, you would be thinking incorrectly. The Wall Street Journal reported that Pioneer Resources, who the Wall Street Journal says is one of the biggest oil and gas producers in the hottest U.S. shale drilling region, the Permian Basin of West Texas and New Mexico, with a market capitalization of about $24 billion, according to FactSet, is seeing its CEO retire. It might be because Pioneer declared fourth-quarter profits of $324 million. That was a 51% decline from the same period a year earlier. They also had to spend about 20% more in capital than analysts expected. So, in other words the company had to spend more and drill more to make a lot less. The Stock fell about 7%, according to the Journal, and it may have been the reason CEO Timothy Dove decided to retire early.
It’s not just Pioneer, Halcon Resources an independent energy company focused on the acquisition, production, exploration and development of liquids-rich assets in the Delaware Basin, has also announced a management shakeup They announced a $10 million estimated reduction in annual overhead costs as part of renewed focus on maximizing shareholder value through operational improvement. In other words, despite optimistic talk about U.S. shale output they are cutting back.
U.S. record production is at a record high so one might assume that shale producers would be raking in the cash. Well, you would be thinking incorrectly. The Wall Street Journal reported that Pioneer Resources, who the Wall Street Journal says is one of the biggest oil and gas producers in the hottest U.S. shale drilling region, the Permian Basin of West Texas and New Mexico, with a market capitalization of about $24 billion, according to FactSet, is seeing its CEO retire. It might be because Pioneer declared fourth-quarter profits of $324 million. That was a 51% decline from the same period a year earlier. They also had to spend about 20% more in capital than analysts expected. So, in other words the company had to spend more and drill more to make a lot less. The Stock fell about 7%, according to the Journal, and it may have been the reason CEO Timothy Dove decided to retire early.
It’s not just Pioneer, Halcon Resources an independent energy company focused on the acquisition, production, exploration and development of liquids-rich assets in the Delaware Basin, has also announced a management shakeup They announced a $10 million estimated reduction in annual overhead costs as part of renewed focus on maximizing shareholder value through operational improvement. In other words, despite optimistic talk about U.S. shale output they are cutting back.