PXD: Data gave hints of a strong quarter.

PXD shares jumped 6.5% following positive comments about its Wolfcamp well performance and upward production guidance in its 3Q15 earnings release on November 3.  

Data visible on DISCERN Energy could have pointed users to this improvement prior to the company's earnings release. The company's well performance (measured by a 50 well trailing average of test rates) had notably improved since the end of 2Q15.  Other than the early days of this play from late 2013/early 2014 when results were dramatically improving, the acceleration in well results in the most recent quarter has been the strongest the company has witnessed to date.

Figure 1: Well results for PXD's Wolfcamp play have dramatically improved in 3Q15 consistent with positive comments on guidance and well performance by management.

Figure 1: Well results for PXD's Wolfcamp play have dramatically improved in 3Q15 consistent with positive comments on guidance and well performance by management.

This improvement is consistent with the company's 3Q wells (both Wolfcamp A and B) exceeding the high end of the play's 1 mmboe type curve. Management reported that most 3Q wells were performing 15% above the high end of its type curve for the play (ie 15% above a 1 mmboe type curve). Completion optimization appears to have a played a role in this improvement (19 out of 30 wells) suggesting that the better results are likely to be sustainable. 

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