Oil and gas producers Occidental Petroleum Corp. and Pioneer Natural Resources Co. have pushed back their fourth-quarter earnings announcements, citing impacts from the harsh winter weather occurring across Texas.
Occidental said it would announce fourth-quarter and full-year 2020 financial results after market close on Feb. 22, instead of Feb. 16. Pioneer is now expected to report fourth-quarter results on Feb.23 instead of Feb. 17.
“With temperatures expected to remain below freezing throughout this week, rolling power outages and winter weather conditions are impacting our employees, operations and office facilities,” Pioneer said in a statement Feb. 16.
A deep freeze across the United States is taking a toll on the energy industry in the largest U.S. crude-producing state, halting Texas oil wells and refineries on Feb. 15 and forcing restrictions from natural gas and crude pipeline operators.
The cold snap left at least one person dead, and more than 4 million people in Texas were without power, with the state’s electric grid operator forced to impose rotating blackouts to meet surging power demand.
High costs, regulatory hurdles and environmentalist opponents have made it difficult to construct major natural gas pipelines out of Appalachia.
Constraints on the midstream will result in higher gas prices, East Daley says, leading utilities to rely more on cheaper coal.
Adjustment to low prices will be much faster than in the past.