Pioneer Natural Resources reported a 33.5% decline in revenues for the second quarter of the year, 50% lower earnings, and an updated, lower budget for the year.
The company said it had generated revenue of $4.6 billion over the quarter, with earnings coming in at $4.49 per share, down from $9.36 per share a year earlier.
This is in line with the performance of the rest of the industry so far this year, with lower oil prices naturally leading to lower sales and profits.
What is more important is the announcement that Pioneer now plans to spend $125 million less this year with its updated spending range set at $4.375 billion and $4.575 billion.
Pioneer also plans to put 490 to 520 new wells in operation this year, which is a downward revision from an earlier target of 500 to 530. The company plans to use 23 to 25 rigs in the Permian, down by one from earlier plans.
At the same time, Pioneer booked oil production at the upper end of its guidance range during the second quarter and boasted free cash flow of $742 million.
Oil production came in at 369,000 bpd, with oil-equivalent production at 711,000 bpd, with Pioneer upping its full-year guidance to 374,000 bpd from 372,000 bpd.
The revision of production plans was in all likelihood the result of oil price trends during the second quarter as well as demand doubts.
Yet now demand forecasts are being updated in a bullish direction and prices are once again on their way higher, which would no doubt affect third-quarter performance across the industry and maybe lead to new plan revisions.
Devon also reported second-quarter figures this week-also lower on the year-and, like Pioneer, announced less ambitious drilling and completions plan for the rest of 2023.
By Charles Kennedy for Oilprice.com
Read More: Pioneer Natural Resources Latest To Report Earnings Slump