Shale producer Pioneer Natural Resources Co. said on April 28 it anticipated production costs to come in above first-quarter guidance, according to a filing with the U.S. Securities and Exchange Commission.
Pioneer said it would maintain its 2022 production and capital guidance program, but that well costs were higher due to gathering, processing and transportation charges, as well as production and ad valorem taxes. It did not disclose the change in guidance.
Last quarter, the company said it anticipated production costs to average $9.25 per boe to $10.75 per boe in the first quarter.
The Irving, Texas-based company said first-quarter production averaged 355,000 bbl/d of oil and 638,000 boe/d compared with 281,000 bbl/d of oil and 474,000 boe/d, a year earlier.
The company said it faced a disruption to its contracted sand supply due to a third-party mine outage during the first quarter. Pioneer will temporarily add one hydraulic fracturing fleet during the second quarter to make up for the work lost during the outage, according to the filing.
Pioneer will report first-quarter earnings on May 4.
Rival Hess Corp. said on April 27 that an additional $80 million to $100 million could be added to its capital program amid inflationary pressures and that well costs in the Bakken had gone up 7% from a year ago.
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