State-owned Petroleos Mexicanos (Pemex) reported lower year-over-year oil and gas production and dramatically reduced net income in the first quarter but still managed to reduce its debt.
First-quarter income came in at $281 million in the first quarter, down 91% compared to $3.1 billion year-over-year. Income fell due to higher expenses across the board even as the average price of the Mexican Export Blend was $71.91 per bbl in first-quarter 2024, up 9.1% compared to first-quarter 2023, Pemex said in the release.
Pemex oil production averaged 1.82 MMbbl/d in first-quarter 2024, down 3% compared to 1.87 MMbbl/d in first-quarter 2023. Gas production averaged 3.8 Bcf/d in the first quarter, down 8% compared to 4.1 Bcf/d year-over-year.
“The change is explained by the decline in the Zaap, Xanab, Ayatsil, Ku and Quesqui fields, which is being mitigated by increased maintenance of base production and drilling of new field strategy wells,” Pemex reported in its April 26 earnings.
RELATED
Pemex to Remain Fiscally Challenged for Mexico’s Next President
Despite the negative operational and financial results Pemex, the most indebted company in the world, did make strides to reduce its total debt.
Pemex’s total debt reached $101.5 billion to end the first quarter, down 5% compared to $107.4 billion at the end of first-quarter 2023.
The lower debt “was due to support and coordination with the federal government, despite criticism,” Pemex’s acting CFO Carlos Cortez said during the webcast.
Recommended Reading
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.
U.S. Shale-catters to IPO Australian Shale Explorer on NYSE
2024-05-04 - Tamboran Resources Corp. is majority owned by Permian wildcatter Bryan Sheffield and chaired by Haynesville and Eagle Ford discovery co-leader Dick Stoneburner.
CEO: Coterra ‘Deeply Curious’ on M&A Amid E&P Consolidation Wave
2024-02-26 - Coterra Energy has yet to get in on the large-scale M&A wave sweeping across the Lower 48—but CEO Tom Jorden said Coterra is keeping an eye on acquisition opportunities.
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
BP Restructures, Reduces Executive Team to 10
2024-04-18 - BP said the organizational changes will reduce duplication and reporting line complexity.