Pioneer Natural Resources announced this week that a fire occurred at a compressor station on 6 March in its West Panhandle field in the panhandle region of Texas. The fire was contained within the compressor station and there were no injuries.
This asset is one the company said last month will be divested this year, along with its Eagle Ford, South Texas, and Raton holdings so it can move toward becoming a Permian Basin “pure play.”
Due to the extensive damage to the facility, production from the West Panhandle field, which averages approximately 8,000 BOE/D was shut in. West Panhandle production comprises approximately 20% oil, 55% natural gas liquids, and 25% gas. The company expects to use several idle compressors to reinitiate production from the field in late March or early April at approximately 80% to 90% of previous levels.
The West Panhandle field production interruption is expected to negatively impact first quarter 2018 production by approximately 2,000 BOE/D. However, the company continues to expect total production in the first quarter of 2018 to be within its previously announced guidance range of 304,000 to 314,000 BOE/D. Permian Basin production for the first quarter also continues to be forecast within its previously announced guidance range of 252,000 to 260,000 BOE/D.
The company’s first quarter earnings call will take place on 3 May.