Group 1 - The core viewpoint of the articles indicates that the U.S. oil and gas industry is entering a merger and acquisition (M&A) boom in 2024, with a projected total M&A value of $206.6 billion, representing a 331% year-on-year increase [1] - The number of leading publicly listed exploration and production (E&P) companies in the U.S. has decreased from 50 to 40, yet these 40 companies contribute approximately 41% of the nation's oil and gas production, highlighting a trend of "the strong getting stronger" [1] - In 2024, 42% of the M&A budget will be allocated to undeveloped reserves, a significant increase from 18% in 2023, indicating a strategic shift towards securing high-quality drilling locations for long-term production potential [1] Group 2 - The exploration and development costs have decreased by 7% year-on-year, despite the ongoing M&A activity, and the industry's reserve replacement rate remains above 100%, demonstrating the effectiveness of the new model of achieving reserve growth through M&A while reducing traditional exploration investments [2] - Following the M&A boom, U.S. oil and gas companies are focusing on addressing various uncertainties in the macro environment, with operational efficiency and capital discipline becoming critical for success [2] - The M&A activity is expected to slow significantly by the second quarter of 2025 due to the scarcity of quality targets, forcing buyers to diversify into non-core areas [2]

Senate Majority Leader Chuck Schumer, D-N.Y., led a group of 23 Democratic senators who wrote letters urging the Justice Department to take steps to prevent and prosecute alleged collusion and price fixing between the oil industry and the Organization of the Petroleum Exporting Countries (OPEC). The letter comes after the Federal Trade Commission (FTC) gave the green light to ExxonMobil's $60 billion acquisition of Pioneer Natural Resources but blocked former Pioneer CEO Scott Sheffield from serving on Exxo ...

______________________________ FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 1-13245 ______________________________ PIONEER NATURAL RESOURC ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13245 PIONEER NATURAL RESOURCES COMPANY (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) (I. ...

News Release Pioneer Natural Resources Reports Fourth Quarter and Full Year 2023 Financial and Operating Results Dallas, Texas, February 22, 2024 -- Pioneer Natural Resources Company (NYSE:PXD) ("Pioneer" or "the Company") today reported financial and operating results for the quarter and year ended December 31, 2023. Pioneer reported fourth quarter net income attributable to common shareholders of $1.3 billion, or $5.28 per diluted share. These results include the effects of noncash mark-to-market adjustme ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 10-Q ______________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 1-13245 ______________________________ PIONEER NATURAL RES ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three and six months ended June 30, 2023, and 2022, including balance sheets, statements of operations, equity, and cash flows, highlighting a net income of **$1.1 billion** for Q2 2023 and total assets of **$35.5 billion** [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) The company's consolidated financial statements show a significant decrease in profitability for Q2 and H1 2023 due to lower commodity prices, with Q2 2023 net income at **$1.1 billion** and total assets at **$35.5 billion** Key Financial Highlights (Q2 2023 vs. Q2 2022) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Oil and Gas Revenue | $2,977 million | $4,639 million | | Net Income | $1,102 million | $2,371 million | | Diluted EPS | $4.55 | $9.30 | Balance Sheet Summary (as of June 30, 2023) | Account | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $91 | | Total current assets | $2,342 | | Total assets | $35,494 | | Total current liabilities | $3,199 | | Long-term debt | $5,010 | | Total equity | $22,000 | Cash Flow Summary (Six Months Ended June 30) | Cash Flow Item | 2023 (in millions) | 2022 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,027 | $5,799 | | Net cash used in investing activities | $(2,466) | $(2,065) | | Net cash used in financing activities | $(2,502) | $(5,033) | [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies and transactions, including **$1.1 billion** in new senior notes, convertible note settlements, a new **$4 billion** stock repurchase program, and **$8.92 per share** in H1 2023 dividends - In March 2023, the Company issued **$1.1 billion** of 5.100% senior notes due 2026, with proceeds partially used to repay **$750 million** of 0.550% senior notes that matured in May 2023[85](index=85&type=chunk) - During the first six months of 2023, the company made cash payments of **$388 million** to settle exercised conversion options on its Convertible Notes and received **$58 million** from related Capped Call proceeds[94](index=94&type=chunk) - In April 2023, the Board authorized a new **$4 billion** common stock repurchase program, with the company repurchasing **601 thousand shares** for **$124 million** during Q2 2023[130](index=130&type=chunk)[131](index=131&type=chunk) Dividends Declared per Share (H1 2023 vs H1 2022) | Period | 2023 | 2022 | | :--- | :--- | :--- | | First Quarter | $5.58 | $3.78 | | Second Quarter | $3.34 | $7.38 | | **Total H1** | **$8.92** | **$11.16** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant impact of volatile commodity prices on financial results, with Q2 2023 net income falling to **$1.1 billion** due to a 42% decrease in realized prices despite an 11% production volume increase, alongside revised capital budgets and strong liquidity [Financial and Operating Performance](index=30&type=section&id=Financial%20and%20Operating%20Performance) Q2 2023 performance was defined by lower commodity prices, leading to a 54% decrease in net income to **$1.1 billion** despite an 11% increase in average daily sales volumes to **710,678 BOEPD**, while continuing capital returns Q2 2023 vs. Q2 2022 Performance Summary | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Net Income | $1.1 billion | $2.4 billion | | Avg. Daily Sales Volumes (BOEPD) | 710,678 | 642,844 | | Avg. Realized Price per BOE | $46.03 | $79.31 | | Net Cash from Operating Activities | $1.7 billion | $3.2 billion | - The primary driver for the decrease in earnings was a **$1.7 billion** decline in oil and gas revenues due to a 42% drop in average realized commodity prices[137](index=137&type=chunk) [Outlook and Drilling Highlights](index=31&type=section&id=Outlook%20and%20Drilling%20Highlights) Pioneer expects Q3 2023 production between **705-725 MBOEPD**, operating 22 drilling rigs and six frac fleets, and revised its full-year 2023 development capital budget downward to **$4.375 billion to $4.575 billion** due to efficiencies Q3 2023 Guidance | Metric | Guidance | | :--- | :--- | | Average daily production (MBOE) | 705 - 725 | | Average daily oil production (MBbls) | 367 - 377 | | Production costs per BOE | $10.50 - $12.00 | | DD&A per BOE | $10.50 - $12.00 | - The 2023 capital budget for development was revised down from **$4.45 billion-$4.75 billion** to **$4.375 billion-$4.575 billion** due to improved well performance and pricing[191](index=191&type=chunk) - In the first six months of 2023, the company successfully completed **252 horizontal wells**, primarily in the Spraberry and Wolfcamp intervals[141](index=141&type=chunk)[142](index=142&type=chunk) [Results of Operations Analysis](index=32&type=section&id=Results%20of%20Operations%20Analysis) This section details the drivers of financial results, highlighting a 42% YoY decrease in realized price per BOE as the main factor for lower revenues, alongside an 8% fall in production costs per BOE to **$7.53** and stable DD&A Average Realized Prices (Q2 2023 vs. Q2 2022) | Commodity | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Oil price per Bbl | $72.90 | $110.56 | (34%) | | NGL price per Bbl | $22.43 | $44.21 | (49%) | | Gas price per Mcf | $1.81 | $6.72 | (73%) | Production Costs per BOE (Q2 2023 vs. Q2 2022) | Cost Component | Q2 2023 | Q2 2022 | % Change | | :--- | :--- | :--- | :--- | | Lease operating expense | $4.04 | $3.71 | +9% | | Gathering, processing & transport | $2.97 | $4.53 | (34%) | | **Total Production Costs** | **$7.53** | **$8.18** | **(8%)** | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$91 million** in cash and **$1.8 billion** available under its credit facility, with H1 2023 operating cash flow at **$4.0 billion**, and a modified variable dividend framework returning 75% of prior quarter's free cash flow - As of June 30, 2023, the company had **$91 million** in cash and **$1.8 billion** of unused borrowing capacity under its Credit Facility[193](index=193&type=chunk) Sources and Uses of Cash (Six Months Ended June 30, 2023) | Item | Amount (in millions) | | :--- | :--- | | Net cash provided by operating activities | $4,027 | | Additions to oil and gas properties | $(2,420) | | Dividends paid | $(2,100) | | Purchases of treasury stock | $(646) | | Proceeds from issuance of debt, net | $1,689 | | Repayment of debt | $(1,488) | - The variable dividend strategy was modified in April 2023 to return **75%** of the prior quarter's free cash flow, inclusive of the base dividend and share repurchases[198](index=198&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is commodity price volatility, mitigated through financial flexibility and marketing derivatives, with a 10% change in Midland WTI-Brent differential impacting derivatives by **$50 million**, and exposure to interest rate risk on **$240 million** of variable-rate debt - The company's primary market risk exposure is from the price of oil, NGL, and gas, mitigated through a strong balance sheet, derivative instruments, and sales of purchased commodities[216](index=216&type=chunk) - The company uses long-term marketing derivatives to diversify oil pricing to Gulf Coast and international markets, where a 10% change in the differential between Midland WTI and Brent prices would impact the fair value of these derivatives by approximately **$50 million**[220](index=220&type=chunk)[222](index=222&type=chunk) - The company is exposed to interest rate risk on its **$240 million** of variable-rate debt under the Credit Facility, where a 100 basis point change in rates would impact annual interest expense by about **$2 million**[226](index=226&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, deemed the company's disclosure controls and procedures effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - Management, including the principal executive officer and principal financial officer, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2023[231](index=231&type=chunk) - No changes occurred during Q2 2023 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[232](index=232&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, notably receiving an EPA Notice of Violation on May 18, 2023, alleging Clean Air Act violations, with potential penalties exceeding **$300,000**, though not expected to have a material adverse impact - On May 18, 2023, the Company received a Notice of Violation from the EPA alleging violations of the Clean Air Act at certain locations[235](index=235&type=chunk) - The company does not believe the resolution of the EPA matter will have a material adverse impact, but notes that penalties may exceed **$300,000**[237](index=237&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - There has been no material change in the Company's risk factors from those described in the 2022 Annual Report on Form 10-K[238](index=238&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's Q2 2023 common stock repurchases, totaling **601,846 shares**, with **600,742** under the publicly announced program, and a new **$4 billion** stock repurchase program authorized in April 2023 Q2 2023 Share Repurchases | Period | Total Shares Purchased | Shares Purchased Under Program | | :--- | :--- | :--- | | April 1-30, 2023 | 906 | — | | May 1-31, 2023 | 478,297 | 478,232 | | June 1-30, 2023 | 122,643 | 122,510 | | **Total Q2** | **601,846** | **600,742** | - In April 2023, the Board authorized a new **$4 billion** common stock repurchase program, which has no time limit[241](index=241&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) The company states that no directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2023 - No directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2023[242](index=242&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the Second Amendment to the Credit Agreement, CEO and CFO certifications under Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL data files - Filed exhibits include the Second Amendment to the Credit Agreement, CEO/CFO certifications under Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL documents[245](index=245&type=chunk)

Financial Performance - Net income attributable to common stockholders for Q1 2023 was $1.2 billion ($5.00 per diluted share), down from $2.0 billion ($7.85 per diluted share) in Q1 2022, primarily due to a $764 million decrease in oil and gas revenues[137]. - Total oil and gas revenues for Q1 2023 were $3.166 billion, down from $3.930 billion in Q1 2022, reflecting a $764 million decrease[148]. - Net cash provided by operating activities decreased to $2,314 million in Q1 2023 from $2,581 million in Q1 2022, a change of $(267) million, attributed to a 25% decrease in average realized commodity prices per BOE[190]. - The income tax provision for Q1 2023 was $(552) million, an increase of $217 million compared to $(335) million in Q1 2022, primarily due to a decrease of $1.0 billion in income before income taxes[181]. - The company's effective tax rate for Q1 2023 was 22%, consistent with the rate for Q1 2022[181]. Production and Sales - Average daily sales volumes increased by 7% to 680,440 BOEPD in Q1 2023, compared to 637,756 BOEPD in Q1 2022, driven by the successful Spraberry/Wolfcamp horizontal drilling program[137]. - The company expects average daily production for Q2 2023 to be between 674 - 702 MBOE, with average daily oil production projected at 357 - 372 MBbls[140]. - Oil and gas production costs increased to $455 million for the three months ended March 31, 2023, from $416 million in 2022, representing a change of $39 million[166]. - Oil and gas production costs for Q1 2023 totaled $455 million, up from $416 million in Q1 2022, with total production costs per BOE increasing by 3%[166]. Dividends and Shareholder Returns - The company declared a base dividend of $1.10 per share and a variable dividend of $4.48 per share in Q1 2023, totaling $1.3 billion in dividend payments, compared to $1.1 billion in Q1 2022[139]. - The company declared base dividends of $260 million, or $1.10 per share, in Q1 2023, compared to $191 million, or $0.78 per share, in Q1 2022[191]. - Variable dividends declared in Q1 2023 amounted to $1.1 billion, or $4.48 per share, up from $731 million, or $3.00 per share, in Q1 2022[192]. - The company repurchased 2.4 million shares for $500 million in Q1 2023, compared to 1.1 million shares for $250 million in Q1 2022[142]. Costs and Expenses - Exploration and extension costs for Q1 2023 totaled $1.026 billion, with development costs at $168 million[144]. - The Company's depletion, depreciation, and amortization expense increased to $664 million in Q1 2023, up from $614 million in Q1 2022, a change of $50 million[171]. - Cash general and administrative expenses increased to $71 million in Q1 2023 from $66 million in Q1 2022, reflecting a change of $5 million[175]. - Cash interest expense decreased to $25 million in Q1 2023 from $34 million in Q1 2022, a reduction of $9 million[176]. - Other expenses decreased significantly to $41 million in Q1 2023 from $77 million in Q1 2022, a change of $36 million[178]. Debt and Liquidity - The company's net debt to book capitalization increased to 18% as of March 31, 2023, compared to 15% at the end of 2022[142]. - As of March 31, 2023, the company had $1.2 billion in unrestricted cash and $2.0 billion of unused borrowing capacity under its Credit Facility[188]. - The company had no outstanding borrowings under its Credit Facility as of March 31, 2023, and was in compliance with all debt covenants[188]. - The company’s outstanding debt includes senior notes and convertible senior notes, with total liabilities of $175 million from derivative obligations[207][209]. Future Outlook and Capital Expenditure - The company's capital budget for 2023 is projected to be between $4.45 billion and $4.75 billion for development-related capital and $150 million to $200 million for exploration and other capital[186]. - The company expects to fund its 2023 capital budget primarily from operating cash flow and, if necessary, from cash and cash equivalents or borrowings[187]. - The company plans to purchase third-party volumes to meet firm transportation commitments if economically viable, otherwise, it will incur demand fees for shortfalls[206]. Operational Highlights - The company successfully completed 114 horizontal wells in the non-JV portion of the Midland Basin during Q1 2023[146]. - The company drilled and evaluated 123 exploratory/extension wells in Q1 2023, achieving a 100% success rate[173]. - The company has outstanding oil derivative contracts for 3,000 Bbls per day with a weighted average differential of $4.33 between WTI and Brent prices[157].

Financial Performance - The company reported average NYMEX oil prices of $82.64 per Bbl and NYMEX gas prices of $6.26 per Mcf for the three months ended December 31, 2022, compared to $77.19 per Bbl and $5.84 per Mcf for the same period in 2021, indicating a year-over-year increase in prices[34]. - In 2022, the company's oil, NGL, and gas sales to significant purchasers accounted for 23%, 14%, 12%, and 10% of total revenues, highlighting reliance on a few key customers[44]. - The company aims to maintain a strong balance sheet and financial flexibility while returning free cash flow to shareholders through stable and growing dividends and share repurchases[32]. - The company’s return of capital strategies, including dividends and share repurchase programs, are subject to board discretion and market conditions[86]. - The company incurred total costs of $4,120 million in 2022, including $3,161 million in exploration costs and $625 million in development costs[221]. Operational Strategy - The company’s long-term strategy is anchored by its interests in the Spraberry/Wolfcamp oil field, which has an estimated remaining productive life of over 55 years[30]. - The company regularly reviews its asset base to identify nonstrategic assets for divestiture, aiming to enhance operational efficiencies and capital resources[37]. - The company’s production marketing strategies are aligned with industry practices, negotiating sales prices based on market conditions and commodity quality[40]. - The company plans to operate 24 to 26 horizontal drilling rigs and six to seven frac fleets in the Midland Basin in 2023[225]. - The company successfully completed 393 horizontal wells and seven vertical wells in the non-JV portion of the Midland Basin during 2022[223]. Workforce and Employee Engagement - As of December 31, 2022, the company employed 2,076 individuals, with 900 in field operations, reflecting its operational scale[51]. - The Company offers a comprehensive benefits program, including up to 12 weeks of paid parental leave for primary caregivers and 2 weeks for secondary caregivers[56]. - In 2022, the Company achieved a 76% participation rate in its annual employee engagement survey, ranking in the top 10% of companies using the same platform[65]. - The Company employs a 70/20/10 learning model for employee development, focusing on 70% on-the-job experience, 20% collaboration and coaching, and 10% formal training[60]. Environmental, Social, and Governance (ESG) Initiatives - The company’s ESG Task Force is focused on integrating climate-related risks into its governance and business strategy, aiming for long-term net zero emissions[50]. - The Company has established long-term diversity, equity, and inclusion goals, with senior leadership accountable for progress in their departments[57]. - The Company has set an aspirational long-term net zero emissions ambition for Scope 1 and Scope 2, with interim targets to reduce methane emissions intensity by 75% and GHG emissions intensity by 50% by 2030 from a 2019 baseline[178]. - The Company aims to maintain a flaring intensity standard of less than 1% of gas produced and end routine flaring by 2030, with an aspirational goal to achieve this by 2025[178]. - The Company faces potential litigation or government investigations regarding the sufficiency of its ESG disclosures, which could negatively impact its reputation and operations[179]. Regulatory and Compliance Risks - The Company is subject to extensive federal, state, and local regulations, which can impact profitability and operational costs[66]. - The company is subject to stringent environmental regulations that could increase operational costs and restrict business activities[86]. - The Texas Railroad Commission has imposed regulations on produced water disposal due to seismic activity concerns, which could affect the Company's operations[139]. - The Company must obtain numerous environmental and oil and gas-related permits, which may incur substantial costs and could delay project development[183]. - The SEC has proposed a rule mandating extensive disclosure of climate risks for U.S.-listed public companies, which may lead to additional compliance costs for the Company[172]. Market and Commodity Price Risks - The prices of oil, NGLs, and gas are highly volatile, and future declines could reduce the carrying value of the company's proved oil and gas properties[86]. - The company’s actual production and cash flows may differ materially from estimates due to uncertainties in reserve estimation and future commodity prices[111]. - The company’s ability to produce oil, NGLs, and gas economically may be adversely affected by significant or extended price declines, potentially leading to downward adjustments in estimated proved reserves[147]. - The company expects continued price volatility for oil and gas due to factors such as global economic conditions and geopolitical events[226]. - In 2022, Brent oil prices ranged from a high of $127.98 to a low of $76.10 per barrel, while NYMEX gas prices ranged from a high of $9.68 to a low of $3.72 per MMBtu, indicating significant price volatility[146]. Asset Management and Reserves - As of December 31, 2022, the Company carried unproved oil and gas property costs of $6.0 billion, which are subject to periodic evaluation for impairment[165]. - The Company had a carrying value for goodwill of $243 million as of December 31, 2022, assessed for impairment annually and whenever circumstances indicate potential impairment[166]. - As of December 31, 2022, the company's total proved reserves were 2,376,628 MBOE, with 89% developed and 11% undeveloped[218]. - The company's proved developed reserves increased to $34,763 million in 2022 from $24,992 million in 2021, while proved undeveloped reserves rose to $3,629 million from $2,692 million[219]. - The pre-tax present value of proved reserves discounted at 10% audited by NSAI was 98% for 2022, compared to 96% for 2021 and 100% for 2020[212].

Financial Performance - Net income attributable to common stockholders for Q2 2022 was $2.4 billion ($9.30 per diluted share), up from $380 million ($1.54 per diluted share) in Q2 2021, reflecting a $2.0 billion increase in oil and gas revenues due to a 69% rise in average realized commodity prices per BOE [158]. - Oil and gas revenues for Q2 2022 reached $4.639 billion, a 73% increase from $2.682 billion in Q2 2021, with total revenues for the first half of 2022 at $8.570 billion, up from $4.505 billion in the same period of 2021 [173]. - The company reported a net loss of $56 million in interest and other income for Q2 2022, compared to a loss of $20 million in Q2 2021 [179]. - Gain on disposition of assets increased to $36 million in Q2 2022 from $2 million in Q2 2021, primarily due to divestments in the Midland Basin [190]. - The income tax provision increased significantly from $120 million in H1 2021 to $657 million in H1 2022, driven by a $2.5 billion increase in income before income taxes [218]. - Net cash provided by operating activities rose from $1,843 million in H1 2021 to $5,805 million in H1 2022, an increase of $3,962 million [227]. Production and Sales - Average daily sales volumes increased by 2% to 642,844 BOEPD in Q2 2022 compared to 629,468 BOEPD in Q2 2021, driven by successful horizontal drilling and production from the DoublePoint Acquisition [158]. - The company expects average daily production for Q3 2022 to be between 635 - 660 MBOE, with average daily oil production projected at 345 - 360 MBbls [164]. - The company successfully completed 214 horizontal wells in the Midland Basin during the first half of 2022, with 51% of these wells being Spraberry interval wells [171]. - The company entered into long-term marketing contracts to purchase and sell 40,000 barrels of oil per day starting May 2022 and 30,000 barrels per day starting August 2022 [186]. Costs and Expenses - Production costs per BOE for Q3 2022 are estimated to be between $12.00 - $13.50, with DD&A costs projected at $10.50 - $12.00 [164]. - Oil and gas production costs rose to $478 million in Q2 2022, up from $316 million in Q2 2021, marking a $162 million increase [192]. - Total production costs per BOE increased by 48% to $8.18 in Q2 2022 from $5.51 in Q2 2021, with lease operating expenses rising by 22% and gathering, processing, and transportation expenses increasing by 70% [195]. - Lease operating expense per BOE increased by 22% to $3.71 for the three months ended June 30, 2022, compared to $3.05 in 2021 [195]. - Gathering, processing, and transportation expense per BOE rose by 70% to $4.53 for the three months ended June 30, 2022, compared to $2.66 in 2021 [195]. - Workover costs per BOE surged by 162% to $1.02 for the three months ended June 30, 2022, compared to $0.39 in 2021 [195]. - Production and ad valorem taxes increased by 118% to $271 million for the three months ended June 30, 2022, compared to $153 million in 2021 [198]. Dividends and Share Repurchases - The company declared and paid variable dividends of $2.3 billion, or $9.60 per common share, during the six months ended June 30, 2022 [230]. - The company paid base dividends of $530 million, or $1.56 per common share, in H1 2022, compared to $213 million, or $1.11 per common share, in H1 2021 [229]. - The Company paid dividends of $2.9 billion in 2022, including a quarterly base dividend of $1.10 per share and a variable dividend of $7.47 per share declared on August 2, 2022 [40][233]. - The company repurchased 2.1 million shares for $499 million during Q2 2022, compared to no share repurchases in Q2 2021 [162]. Capital Expenditures and Financial Position - The capital budget for 2022 was revised to a range of $3.6 billion to $3.8 billion, up from the previous range of $3.3 billion to $3.6 billion, due to inflation impacts [223]. - As of June 30, 2022, the company had unrestricted cash of $2.6 billion and $2.0 billion of unused borrowing capacity under its Credit Facility [225]. - The company expects to fund its 2022 capital budget primarily from operating cash flow and cash on hand [224]. - The company redeemed $1.3 billion of its outstanding senior notes during the six months ended June 30, 2022 [231]. Commodity Prices and Derivatives - Average oil prices for Q2 2022 were $108.41 per Bbl, up from $66.07 per Bbl in Q2 2021, while average gas prices increased to $6.76 per Mcf from $2.83 per Mcf [160]. - Noncash derivative gain for commodity price derivatives was $72 million in Q2 2022, a significant recovery from a loss of $279 million in Q2 2021 [183]. - The company experienced a total commodity derivative loss of $3 million in Q2 2022, a substantial improvement from a loss of $836 million in Q2 2021 [183]. - The company’s derivative obligations as of June 30, 2022, represented net liabilities of $442 million, including $167 million related to offsetting oil and gas commodity derivative trades [245]. Other Financial Metrics - Cash interest expense decreased by 20.5% to $31 million for the three months ended June 30, 2022, compared to $39 million in 2021 [212]. - The weighted average cash interest rate on the Company's indebtedness decreased to 1.8% for the six months ended June 30, 2022, compared to 1.9% in 2021 [213]. - The effective tax rate for Q2 2022 was 22%, a decrease of 2% from 24% in Q2 2021 [218]. - Other expenses decreased from $47 million in Q2 2021 to $5 million in Q2 2022, primarily due to $36 million in transaction costs related to acquisitions [215].