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Pioneer Natural (PXD) Q1 Earnings & Revenues Beat Estimates

Zacks Equity Research

Leading upstream energy company Pioneer Natural Resources Company PXD reported first-quarter 2017 earnings of 25 cents per share, excluding one-time items. The bottom line surpassed the Zacks Consensus Estimate of 16 cents per share. Notably, the company had incurred adjusted loss of 64 cents per share in the year-earlier quarter.

Revenues and other income in the quarter surged 114.3% year over year to $1,468 million from $685 million. The top line also beat the Zacks Consensus Estimate of $998 million.

Significantly high commodity price realizations, along with Spraberry/Wolfcamp horizontal drilling program, resulted in the strong first-quarter results.  

Production

Total production in the reported quarter averaged approximately 249 thousand barrels of oil equivalent per day (MBOE/d), up 12.2% year over year. The Spraberry/Wolfcamp horizontal drilling program of the company led to the outperformance.

Oil production averaged 145.6 thousand barrels per day (MBbl/d), up 18.6% year over year. Natural gas liquids (NGLs) production jumped 19.4% year over year to 46.8 MBbl/d. Natural gas productions, however, decreased to 338.6 million cubic feet per day (MMcf/d) from the year-ago level of 358.6 MMcf/d.    

Price Realization

On an oil equivalent basis, average realized price was $36.14 per barrel in the reported quarter as against $20.28 a year ago. The average realized price for oil was $49.05 per barrel compared with $28.09 in first-quarter 2016.  

Average natural gas price surged 55.9% year over year to $2.79 per thousand cubic feet (Mcf). Natural gas liquids were sold at $19.33 per barrel as against $10.33 in the year-ago quarter.

Cash, Debt and Capex

At the end of the quarter, cash balance was $663 million. Long-term debt was $2,729 million, which represents debt-to-capitalization ratio of 20.9%.     

Guidance

For 2017, Pioneer intends to spend $2.8 billion in total. Of this, it has planned drilling and completion capex of $2.5 billion and capital for water infrastructure, vertical integration and field facilities of $275 million.

Pioneer expects production to average between 254 MBOE/d and 259 MBOE/d in the second quarter of 2017.

Pioneer Natural Resources Company Price, Consensus and EPS Surprise

 

 

Pioneer Natural Resources Company Price, Consensus and EPS Surprise | Pioneer Natural Resources Company Quote

Share Performance

Year to date, Pioneer Natural outperformed the Zacks categorized Oil & Gas-U.S Exploration & Production industry. During the aforesaid period, the company’s shares lost 8.9% compared with 17.9% improvement for the broader industry.

Zacks Rank

Pioneer Natural Resources currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are SunCoke Energy, Inc. SXC, Enerplus Corporation ERF and Bellatrix Exploration Ltd. BXE. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SunCoke Energy posted a positive earnings surprise of 120.0% in the preceding quarter. The company beat estimates in two of the four trailing quarters with an average negative earnings surprise of 35.78%.

Enerplus Corporation posted a positive earnings surprise of 66.67% in the preceding year quarter.

Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It surpassed estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.

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