(Reuters) - Pioneer Natural Resources Co (PXD.N) reported a 40% jump in quarterly adjusted profit on Tuesday, as the Permian pure-play oil producer’s higher output helped it offset the impact of lower crude prices.
The company is among several others that have turned to the prolific Permian basin of West Texas and New Mexico, which has been at the heart of the shale revolution in the United States.
Total production rose nearly 2% to 334,167 barrels of oil equivalent (boe) per day in the second quarter, while the company earned $39.35 per boe, down from $43.12 per boe a year earlier.
Oil prices have been under pressure from fears of slowing global demand and lack of pipeline capacity in the United States despite OPEC members and Russia cutting production.
Pioneer said it was lowering the top end of its 2019 capital budget by $150 million and that of its full-year budget for Permian by $100 million to the range of $2.8 billion to $3 billion.
Pioneer Natural reported a net loss attributable to common shareholders of $169 million in the quarter ended June 30 compared with a profit of $66 million a year earlier, as it recorded a non-cash charge related to the divestiture of its South Texas assets.
The company said in May sold its Eagle Ford and remaining South Texas assets for up to $475 million.
On an adjusted basis, the company earned $2.01 per share.
Separately, smaller rival Diamondback Energy missed profit estimates on Tuesday, becoming the latest oil producer to be hit by lower crude prices.
Reporting by Debroop Roy in Bengaluru; Editing by Shinjini Ganguli and Arun Koyyur