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.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
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.