While reviewing the year-end report by Pioneer Natural Resources
The first was that more than half of Pioneer's reserves are oil and liquids, which isn't as common as you'd think. Many more mid-sized independents, like Newfield Exploration
I was already aware of Pioneer's strong presence in the Eagle Ford shale, which is shaping up to be one of the more interesting new shale plays, but the fact that the company is looking to bring in a joint-venture partner is news to me. The company is thus going the route of Carrizo Oil & Gas
A third thing that struck me is how heavily hedged Pioneer is in 2010. With derivatives covering 85% of forecasted oil production and 85% of expected gas output, that doesn't leave a lot of room for doubt as to Pioneer's $1 billion cash flow projection. Planned capital spending, 90% of which is oil-focused, falls well within this cash flow forecast.
Pioneer is a sturdy-looking outfit that may hold a lot of appeal for those who don't want to have to worry about which way oil and gas prices zig or zag in any given week. If you want me to add this one to my roster of routine coverage, just say the word.