Pioneer Natural Resources announces 45% cut in 2020 capital budget

first_img Pioneer Natural Resources announces revised budget of $1.6-1.8bn. (Credit: Pixabay/skeeze) Texas-based Pioneer Natural Resources is slashing its 2020 capital budget of $3.0-3.3bn by nearly 45% owing to lower oil prices and the global uncertainty around macroeconomics.Following the reduction, the 2020 drilling, completion, and facilities capital budget for the company comes down to $1.6-1.8bn.The company has been engaged in exploration and production activities in the Permian Basin.In line with the reduced budget, the company is bringing down its budgeted water infrastructure spending to nearly $100m. As a result, the company’s total 2020 capital budget will be in the range of $1.7-1.9bn.Originally, Pioneer Natural Resources allocated $125m for its differentiated water infrastructure for the year 2020.The Texan oil and gas company expects its revised capital programme to be funded fully from forecasted cash flow of about $2.3bn and create free cash flow of nearly $500m. The numbers have been estimated based on the assumption that the West Texas intermediate (WTI) oil prices will average $35 per barrel for the rest of the year.The company said that given the challenging environment, its plan is to preserve low leverage and create free cash flow to position itself to be stronger once the global economy revives.Pioneer Natural Resources to halve its rig count to 11Pioneer Natural Resources said that in response to the prevailing commodity prices, it will bring down its operated rig count from 22 to 11 in the next two months. Apart from that, the company will look to cut down its contracted completion crews.The company anticipates its full-year oil production for 2020 to be similar to its Permian oil production average in 2019, which was about 211 thousand barrels of oil per day (MBOPD).Pioneer Natural Resources president and CEO Scott Sheffield said: “After successfully managing through the previous five cycles, it is apparent to me companies that maintain strong balance sheets and low leverage during these difficult times will prosper when economies eventually rebound and commodity prices recover.“As such, during this challenging environment, Pioneer will protect our pristine balance sheet and focus on free cash flow generation by cutting our capital budget by approximately forty-five percent.“Our balance sheet is among the best in the energy sector and provides us ample financial flexibility to manage through a period of prolonged low oil prices.” Following the reduction, the 2020 drilling, completion, and facilities capital budget for Pioneer Natural Resources comes down to $1.6-1.8bn last_img read more

Credit unions and small business: their underdog story

first_img ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr by: Austin RigbyNear the steps of the Philadelphia Museum of Art stands an iconic symbol, a statue, for Americans. This statue represents a man who would get hit over and over; sometimes he would fall, but ALWAYS he would get up and keep on fighting. That man was Rocky.Rocky is just one of the many underdog stories we love here in America. We want the little guy to win. We want him to overcome the big forces that seem to have all the money and resources to do whatever they want. The little guy has to be thrifty, cunning, and come up with a unique plan so he can win in the end. The underdog’s secret and x-factor is heart. They simply want it more!The underdog is ingrained into our blood as Americans. Just look back at how we started as a nation. To win our independence, America had to go up against the number one power in the world. England was such a powerful country, that it was said, “the Sun never sets on the British Empire”. Looking at the resources the Americans had in comparison to the British, we should have had no shot in winning our independence. What was the secret to our success? It was our x-factor, we wanted it more!It seems like today’s underdog attention focus is on sports and movies, and we seem to forget about the real-life, day-to-day underdog battles that are happening all around us; those of the small business. Within the last few decades, the buying and consumption of objects are unique. No longer are we going to markets and vendors to buy our food, instead we go to places such as, Acme, Shoprite, or a Costco. If we need household supplies, we go to Target or Wal-Mart. All of our spending takes place at “Big Box” stores. Small businesses may not have all the fancy commercials or advertising that large businesses have, but they do have quality products. continue reading »last_img read more