Pioneer Natural Resources have been on the rebound since a disappointing Q4 earnings report, in part because the company’s debt levels and development costs are lower than its competitors, which puts it in a strong position to weather the oil slump, according to a Bloomberg profile.
Pioneer Natural Reso (PXD) $186.20 up 0.87 (0.47%) Volume: 1,249,374
-Price of WTI Oil: $50.49 @ bbl
-The IHS Energy Analysis of Drilled, but Uncompleted Wells [DUC] in the Eagle Ford Shale indicates DUCs can be converted to producing assets for approximately 65 percent of the cost of a new drill, significantly lowering the economics when evaluated against remaining costs. When considering the productivity of the Eagle Ford DUC inventory, nearly 40 percent of the *1,400 DUCs are considered to have attractive economics (break-even costs below $30 per barrel) and belong to a handful of operators, IHS said. Those operators include BHP Billiton, Chesapeake, Anadarko Petroleum, EOG Resources, ConocoPhillips and Pioneer Resources. Thirty-three other operators account for the remainder.