Pioneer Natural Resources Inc., Irving, Texas, (NYSE: PXD) said its second-quarter profit more than quadrupled on increased average daily oil and gas sales and strong production growth. The company reported it increased its average daily oil and gas sales to 113,987 barrels oil equivalent per day; 19% above sales for the second quarter of 2007.

The company reported net income of $158.8 million in the second quarter compared with $36.5 million in the second quarter of 2007. Revenue jumped to $665.7 million from $444.3 in the year-ago period.

Pioneer chief executive Scott Sheffield says the company has increased its 2008 production growth forecast to 18% to 20% from 14% compared to 2007. Pioneer has increased its 2008 capital budget from $1 billion to $1.3 billion.

Sheffield says the capital budget was increased to reflect drilling efficiencies (more wells per rig), operational success and today’s higher cost environment, primarily for tubulars, fuel and pumping services.

Standard & Poor’s Equity Research analyst Michael Kay says the second-quarter earnings per share of $1.31 versus 52 cents is 14 cents short of his estimate, reflecting lower-than-forecast realized prices. Kay says he is lowering his recommendation on Pioneer shares from Buy to Hold and lowering the target price per share $16 to $62. He adds that he is also lowering his earnings-per-share estimate for 2008 by 94 cents to $5.61 and for 2009, $1.24 to $6.94.