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
Analysts: Chesapeake-SWN Poised to Supply Growing Global LNG Demand
2024-01-11 - Chesapeake Energy and Southwestern Energy are combining in a $7.4 billion merger to serve more domestic customers and access growing global LNG demand.
Which Haynesville E&Ps Might Bid for Tellurian’s Upstream Assets?
2024-02-12 - As Haynesville E&Ps look to add scale and get ahead of growing LNG export capacity, Tellurian’s Louisiana assets are expected to fetch strong competition, according to Energy Advisors Group.
Is Grayson Mill the Next Bakken Domino to Fall After Chevron-Hess?
2024-01-31 - As E&Ps look to bulk up outside of the Permian Basin, EnCap-backed Bakken player Grayson Mill Energy is reportedly exploring a sale valued around $5 billion.
EQT Ups Stake in Appalachia Gas Gathering Assets for $205MM
2024-02-14 - EQT Corp. inked upstream and midstream M&A in the fourth quarter—and the Appalachia gas giant is looking to ink more deals this year.
EIG’s MidOcean Energy Acquires 20% interest in Peru LNG
2024-02-08 - On top of acquiring a 20% interest in Peru LNG, MidOcean Energy is also in the process of acquiring interests in four Australian LNG projects.