Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Pioneer Natural Resources warns of $832 million derivatives loss

07/27/2021 | 12:34pm EDT

(Reuters) -U.S. independent shale producer Pioneer Natural Resources on Tuesday warned it would be hit by an $832 million second-quarter loss on oil and gas derivatives.

Many producers locked in sales when oil prices rose above $40 a barrel last year, but are now facing losses after crude prices jumped above $60 a barrel during the quarter.

For the first half of the year, Pioneer will face $1.523 billion in total net losses on derivatives, the majority of which stem from oil contracts, it said in a regulatory filing.

During the first quarter, U.S. oil firms were expected to face an aggregate $7 billion in hedging losses, according to consultancy Enverus. Oil and gas producers use derivative instruments as a form of insurance to lock in prices for their future output.

Pioneer said it paid $570 million to settle contracts during the second quarter. The company had a non-cash derivative loss of $262 million related to changes in fair value of other contracts during that quarter, the filing said.

The company also anticipates reporting a non-cash loss of $25 million for its investment in hydraulic fracturing firm ProPetro Holding Corp for the second quarter. Pioneer owns 16.6 million shares of ProPetro.

Shares of Pioneer were down 2.05% to $141.70 in midday trading.

Pioneer will release its second-quarter earnings on Aug. 2.

(Reporting by Liz Hampton in DenverEditing by David Holmes and Marguerita Choy)

By Liz Hampton


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
LONDON BRENT OIL -0.35% 75.05 Delayed Quote.46.23%
PIONEER NATURAL RESOURCES COMPANY 0.01% 157.05 Delayed Quote.37.88%
WTI -0.29% 71.701 Delayed Quote.50.62%
Latest news "Economy & Forex"
02:10pU.s. cdc says 181,382,976 individuals have been fully vaccinated against covid-19 as of sept 19 versus 181,035,022 individuals as of sept 18
RE
02:10pU.s. cdc says 2.16 mln people received an additional covid-19 vaccine dose since august 13, 2021
RE
02:09pU.s. cdc says administered 385,586,012 doses of covid-19 vaccine as of sept 19 vs 384,911,290 doses administered as of sept 18
RE
02:09pU.s. cdc says 211,776,515 individuals have received at least one dose of covid-19 vaccine as of sept 19 versus 211,489,242 individuals as of sept 18
RE
02:08pU.s. cdc says delivered 466,561,785 doses of covid-19 vaccine as of sept 19 versus 466,569,635 doses delivered as of sept 18
RE
01:59pDEUTSCHE LUFTHANSA : Lufthansa launches $2.5 billion capital increase to repay state bailout
RE
01:42pWorld leaders return to U.N. with focus on pandemic, climate
RE
01:32pNigeria brings in custody rules to guard $9.7 billion funds industry
RE
01:32pARGUS MEDIA : Baker Hughes agrees new Iraq gas capture project
PU
12:30pUK has plans to protect consumers from soaring gas prices -business minister
RE
Latest news "Economy & Forex"