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Permian Giant Pioneer Removes 2022 Hedges in Bullish Oil Outlook

  • Move will cost $328 million spread over the course of the year
  • Pioneer incurred heavy hedging losses last year as crude rose
Pumpjacks operate on oil wells in the Permian Basin in Crane, Texas.

Pumpjacks operate on oil wells in the Permian Basin in Crane, Texas.

Photographer: Daniel Acker/Bloomberg

Pioneer Natural Resources Co., the biggest oil producer in the Permian Basin, closed out almost all its hedges for this year, indicating a bullish outlook for crude prices. 

The move will cost $328 million spread over the course of 2022, Pioneer said in a filing Wednesday, but leaves the company well positioned to bank any uplift in oil prices. The company also said it bought back $250 million of its own shares during the fourth quarter.