Advertisement
U.S. markets open in 13 minutes
  • S&P Futures

    5,309.00
    +0.75 (+0.01%)
     
  • Dow Futures

    40,185.00
    +41.00 (+0.10%)
     
  • Nasdaq Futures

    18,502.00
    -1.75 (-0.01%)
     
  • Russell 2000 Futures

    2,141.90
    +3.50 (+0.16%)
     
  • Crude Oil

    82.63
    +1.28 (+1.57%)
     
  • Gold

    2,234.40
    +21.70 (+0.98%)
     
  • Silver

    24.83
    +0.08 (+0.34%)
     
  • EUR/USD

    1.0812
    -0.0018 (-0.16%)
     
  • 10-Yr Bond

    4.2100
    +0.0140 (+0.33%)
     
  • Vix

    12.95
    +0.17 (+1.33%)
     
  • GBP/USD

    1.2636
    -0.0002 (-0.02%)
     
  • USD/JPY

    151.3200
    +0.0740 (+0.05%)
     
  • Bitcoin USD

    70,705.47
    -502.84 (-0.71%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,954.69
    +22.71 (+0.29%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Pioneer Natural to Dispose Entire Raton Stake: Here's Why

Pioneer Natural Resources Company PXD announced plans to sell its entire stake in Colorado’s Raton Basin.  

The divestment to Evergreen Natural Resources LLC is expected to fetch $79 million. The transaction, which needs to meet customary closing conditions, will likely conclude in July 2018. Through the January-to-March quarter of 2018, the to-be-divested properties produced 84 million cubic feet of natural gas every day.  

The sale is in line with Pioneer Natural’s focus to operate only in the Permian Basin. To become a pure play firm in the Permian, Pioneer Natural also divested certain Eagle Ford assets – spreading across 10,200 net acres. The company believes that operating on the low-cost and prospective drilling locations in the Permian Basin will help generate high cashflow for shareholders.

Headquartered in Irving, TX, Pioneer Natural is an oil and gas explorer with operations in U.S. resources. Although constraint in pipeline capacity, labor shortage and higher production cost are hindering activities in the Permian Basin, these problems will be resolved once expanded pipeline capacity in the Basin commence operations starting 2019.

Overall, the company’s plan to operate exclusively in the Permian seems profitable. Over the past year, Pioneer Natural has rallied 22.1%, outperforming the17.9% cumulative gain of all the stocks belonging to the industry.

Currently, Pioneer Natural carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the energy space are Anadarko Petroleum Corporation APC, Eclipse Resources Corporation ECR and Wildhorse Resource Development Corporation WRD. While Anadarko carries a Zacks Rank #2 (Buy), Eclipse and Wildhorse sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

We expect Anadarko Petroleum to witness year-over-year earnings growth of 229.6% in 2018.

Eclipse is expected to record revenue growth of 13.5% through 2018.

Wildhorse will likely see year-over-year earnings growth of 309.3% in 2018.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
 
Anadarko Petroleum Corporation (APC) : Free Stock Analysis Report
 
Eclipse Resources Corporation (ECR) : Free Stock Analysis Report
 
Wildhorse Resource Development Corporation (WRD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Advertisement