Pioneer Natural Resources to Hold off on New Rig Additions

Pioneer Natural Resources will not add any new oil rigs in 2015 and is mulling the timing of its previously announced 2016 rig expansion program, Chairman and Chief Executive Officer Scott Sheffield said on Tuesday.

 

The company had planned to add two rigs per month from July 2015 through the end of the year in the Permian Basin, but has stopped after adding just eight rigs. Pioneer had also planned to add six rigs in the Permian and two rigs in the Eagle Ford in the first quarter of 2016, but now says it is reconsidering the timing of those projects.

 

Sheffield attributed the slowing of rig additions to efficiency gains.

 

Going forward, he said the company would focus more heavily on its assets in the Permian Basin, calling it the "the only place to grow oil long-term in this country."

 

"I wouldn't be surprised if in five years the Eagle Ford is not a part of this company," Sheffield said.


(Reporting by Liz Hampton)