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Pioneer Energy's 2Q net income more than doubles

287 days ago

(AP:SAN ANTONIO, Texas) Pioneer Energy more than doubled its second-quarter net income as it expanded production services, but it fell short of Wall Street expectations for revenue and shares slid.

The drilling and production company reported earnings of $9.7 million, or 15 cents per share, for the quarter that ended June 30. That's up from $3.7 million, or 7 cents per share, earned in the same quarter last year.

Pioneer Energy's total revenue increased to $229.8 million from $171.3 million with gains in both production and drilling from the prior year.

The company has put a heavier emphasis on production service and said it will soon announce a name change to reflect its broader array of services. The company's revenue from this sector grew 71 percent to $110. 8 million, nearly rivaling the $119 million in revenue it generated from drilling during the quarter.

Pioneer's quarterly profit met market expectations but revenue fell short of the $235.4 million that analysts were looking for.

The company said that it is seeing lower natural gas prices and demand for utilization services in the third quarter. While it expects some market pressure to continue during the period, it said that should be offset by fleet additions.

Shares of Pioneer Energy Services Corp. fell 18 cents, roughly 2 percent, to $8.12.

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