(Reuters) – Pioneer Natural Resources announced a decline in first-quarter profit on Thursday, weighed down by rising production costs and low natural gas prices.
Earlier today, the US Federal Trade Commission gave the green light to Exxon Mobil’s $60 billion takeover of the company, but barred former Pioneer CEO Scott Sheffield from joining the company’s board. Exxon administration over allegations that it attempted to collude with OPEC to raise oil prices. .
Sheffield retired as CEO of Pioneer on December 31, but continues to serve on its board of directors and was scheduled to serve on Exxon’s board of directors at the time the acquisition closed.
Exxon announced plans to close the all-stock deal on Friday, boosting the largest U.S. oil company’s production in the Permian Basin. Pioneer shareholders approved the merger in February, with a majority voting in favor of the deal.
Pioneer recorded average realized prices of $76.86 per barrel of oil during the quarter, up 2.3% from a year earlier, but average realized prices for gas fell 51% to $1.87 per thousand cubic feet (mcf).
Costs associated with oil and gas production have increased by approximately 31%.
Net income attributable to common shareholders for the quarter ended March 31 was $1.1 billion, or $4.57 per share, compared with net income of $1.2 billion, or $5 per share. action, a year earlier.
(Reporting by Mrinalika Roy in Bangalore; editing by Anil D’Silva)
