Pioneer Natural Resources Co. of Dallas plans to become a Permian pure-play operator this year by divesting of some Texas properties and acreage in the Raton Basin of southeastern Colorado.
In its report for the fourth quarter of 2017, Pioneer also said it plans to operate 20 horizontal rigs in the Permian during 2018. It expects to place between 250 and 275 wells into production in the Permian Basin during the year. Oil production is forecast to increase 19 to 24 percent over 2017.
Pioneer is planning capital expenditures for 2018 of $2.9 billion, which includes $2.65 billion for drilling and completion activities and $260 million for water infrastructure, vertical integration, field facilities and vehicles. Funding for the capital program is based on a forecasted cash flow of $2.8 billion—assuming $55 per barrel of oil and $3 per million cubic feet of gas.
Pioneer said it will begin the divestiture process in the first quarter of 2018. The company’s primary asset in south Texas is its Eagle Ford shale acreage where it holds approximately 70,000 net acres by production. The Eagle Ford assets being sold represent all of Pioneer’s 46 percent working interest in the play, including its producing wells and associated infrastructure.