They reported $809M "Oil & Gas Revenues" in Q4 VERSUS $908M revenues last quarter.
That's $99M LESS quarter over quarter!
Then they "pad" this quarter's income with a strange new line item called "Sales of purchased oil and gas" for $139M.... What's that about? Since when is PXD in the business of PURCHASING oil and gas??
And then they have a HUGE $1.5B writedown for "Impairment of Oil & Gas Properties" that wasn't on the Q3 report either.
My sense is Analysts will issue downgrades based on the recent run-up and the fact that production decreased substantially. Have to wait another quarter for the company to prove itself.
Maybe an analyst will ask a probing question in the CONFERENCE CALL about the strange new line item called "SALES OF PURCHASED OIL & GAS" which added $139M to "revenue."
Without that $139M of "revenue," the company would have missed EPS estimates by a longshot (EPS WOULD BE ONLY BREAKEVEN rather than non-GAAP stated $1.00/share EPS). This is because their Non-GAAP income was $140M, same as the "SALES OF PURCHASED OIL & GAS" revenue.
But now I see, they had $139M of "PURCHASED OIL & GAS" on the expense side too!! So buying & selling oil & gas was a wash, but it deceptively makes it look like the company's revenue didn't have a sequential decline -- when in fact it did!!
On the expense side for Q4 as compared to Q3:
--"General & Administrative" ballooned 30% from Q3 to Q4 (increase of $23M)
--"Other Expense" almost TRIPLED from Q3 to Q4 up $47M from $25M in Q3
In other words, EXPENSES INCREASED DRAMATICALLY in Q4, while revenues declined significantly.
I hope analysts drill down and find out what's going on, especially with the "SALES OF PURCHASED OIL & GAS" line item.