U.S. shale player Pioneer plans no more rigs

HOUSTON, Nov. 11 (UPI) -- U.S. shale company Pioneer Resources told investors in Houston mid-term gains were expected in production, but no new rigs were planned for 2015.

Pioneer last week reported a profit for the third quarter of $646 million, compared with $374 million year-on-year. That contrasts to market peers, who reported weak quarterly results as lower crude oil prices continue to dig into corporate profits.

In a presentation to investors, Chairman and Chief Executive Officer Scott Sheffield said eight rigs were added in the Spraberry/Wolfcamp shale basin in Texas between July and October.

"No further rig additions planned for 2015," his presentation stated.

That's a reversal from statements made during the second quarter, when Sheffield said the company was "putting rigs back to work." Two rig additions were planned per month for the second half of the year in the Texas shale.

Sheffield said in his second quarter statements activity for 2016 would be on par with operations from before the market began its slump in mid-2014.

In the investor presentation, the company said it was expected to deliver reserves as planned using fewer rigs because of efficiency gains in the Spraberry/Wolfcamp shale.

An annual production increase of 15 percent is expected through 2018, the company said.

Total production of oil and gas during the third quarter for Pioneer was 210,711 barrels of oil equivalent per day, a 13 percent increase from third quarter 2014.