Pioneer Natural Resources 2023 Financial Report Highlights

Pioneer Natural Resources has released its 10-K report, detailing its operations as an independent oil and gas exploration and production company in the United States. The company explores for, develops, and produces oil, natural gas liquids (NGLs), and gas, with operations in the Midland Basin in West Texas. Founded in 1997 and headquartered in Irving, Texas, Pioneer Natural Resources reported several key financial metrics and changes in its 2022 results of operations compared to 2021.

Oil and gas revenues for the year ended December 31, 2023, were $12,989 million, a decrease of $3,321 million from 2022. The average daily sales volumes for oil, NGLs, and gas all increased, with oil sales volumes up 6%, NGLs up 13%, and gas up 17%. However, the liquids percentage of total production decreased by 1%. The average prices for oil, NGL, and gas all decreased, with oil prices down 19%, NGL prices down 35%, and gas prices down 57%.

The net effect from sales of purchased commodities decreased by $200 million, primarily due to a decrease in margins on downstream Gulf Coast refinery and export sales. Interest and other income, net, decreased by $80 million, primarily due to changes in the fair value of the company's investment in an affiliate.

Derivative loss, net, decreased by $240 million, with significant changes in marketing derivatives, conversion option derivatives, and commodity derivatives. The company uses marketing derivatives to diversify its oil pricing to Gulf Coast and international markets.

The net gain on disposition of assets decreased by $82 million, primarily representing nonmonetary transactions in which the company exchanged proved and unproved oil and gas properties in the Midland Basin with unaffiliated third parties.

Oil and gas production costs increased by $120 million, with lease operating expense per BOE up 10% and gathering, processing, and transportation expense per BOE down 25%.

Production and ad valorem taxes decreased by $180 million, with production taxes per BOE down 31% and ad valorem taxes per BOE down 7%. Depletion, depreciation, and amortization expense increased by $332 million, with total DD&A expense per BOE up 3%.

Exploration and abandonments expense increased by $39 million, primarily related to plugging and abandonment costs exceeding their estimated abandonment liability on certain vertical wells and an increase in geological and geophysical labor costs.

General and administrative expense increased by $127 million, with cash general and administrative expense per BOE down 3% and noncash general and administrative expense per BOE up 235%. Interest expense increased by $25 million, primarily due to various financial activities and changes in the company's indebtedness.

These financial metrics and changes reflect the challenges and fluctuations faced by Pioneer Natural Resources in 2023 compared to the previous year. Following these announcements, the company's shares moved 0.1%, and are now trading at a price of $233.87. For more information, read the company's full 10-K submission here.

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