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Pioneer Natural (PXD) Tops Q1 Earnings Estimates, Ups Dividend

·5 min read

Pioneer Natural Resources Company PXD reported first-quarter 2022 earnings of $7.74 per share (excluding one-time items), beating the Zacks Consensus Estimate of $7.32. The bottom line surged from the year-ago quarter’s profit of $1.77 per share.

Total quarterly revenues of $6,172 million surpassed the Zacks Consensus Estimate of $5,775 million. The top line also improved from the year-ago quarter’s $2,444 million.

The strong quarterly earnings can be attributed to higher oil-equivalent production volumes and commodity price realizations.

Pioneer Natural Resources Company Price, Consensus and EPS Surprise

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

Pioneer Natural Resources Company price-consensus-eps-surprise-chart | Pioneer Natural Resources Company Quote

Dividend Hike

For the second quarter, Pioneer Natural announced a dividend payment of $7.38 per share of common stock, which includes a variable dividend of $6.60 per share and a base dividend of 78 cents. This suggests a 95.2% increase from the prior dividend of $3.78 per share. The dividend is payable on Jun 14, 2022, to its stockholders of record at the close of business on May 31, 2022.

Moreover, the company repurchased $250 million of common stock in the first quarter.

Production

For first-quarter 2022, total production was 637.8 thousand barrels of oil-equivalent per day (MBoe/d), up from the year-ago figure of 473.9 MBoe/d.

Oil production was 355.3 thousand barrels per day (MBbls/d), up from the year-ago quarter’s 281 MBbls/d. NGLs production was 152.9 MBbls/d compared with the prior-year quarter’s 105.7 MBbls/d. Natural gas production amounted to 777.3 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 523.5 MMcf/d.

Price Realization

On an oil-equivalent basis, the average realized price was $68.48 per barrel for the reported quarter compared with $42.75 a year ago. The company reported an average realized crude price of $94.60 a barrel, up from $56.71 reported in the March-end quarter of 2021.

Average natural gas price improved to $4.81 per thousand cubic feet from $3.04 in the prior-year quarter. Natural gas liquids were sold at $41.37 a barrel, up from $25.90 a year ago.

Operating Costs

Pioneer Natural’s expenses for oil and gas production were $416 million, up from $252 million in the year-ago quarter. Total costs and expenses increased to $3,611 million in the first quarter from $2,525 million in the year-ago period.

Cash, Debt and Capex

As of Mar 31, 2022, Pioneer Natural’s cash and cash equivalents totaled $2,385 million, while long-term debt summed at $5,446 million. It had a debt to capitalization of 19.4%.

In the March-end quarter, the company spent $852 million.

Outlook

For 2022, Pioneer Natural reiterated its oil production guidance of 350-365 thousand barrels of oil per day (MBo/d). It projects a total production of 623-648 MBoe/d.

For second-quarter 2022, the company expects oil production of 342-357 MBo/d and a total production of 623-648 MBoe/d.

Pioneer Natural anticipates a total capital budget of $3.3-$3.6 billion for the year. It boasted that the capital spending would be fully funded by its $12.5-billion projected cash flow for this year.

In 2022, the Zacks Rank #1 (Strong Buy) company plans to operate 22-24 horizontal drilling rigs in the Midland Basin, which includes a three-rig average program in the southern Midland Basin joint venture area. The capital budget for 2022 is expected to place 475 to 505 wells online.

You can see the complete list of today's Zacks #1 Rank stocks here.

Other Players' Q1 Results

ConocoPhillips COP reported first-quarter 2022 adjusted earnings per share of $3.27, beating the Zacks Consensus Estimate of $3.24. The strong quarterly results were aided by increased oil-equivalent production volumes and realized commodity prices.

ConocoPhillips revised higher its expected 2022 return of capital to shareholders. The new guidance is pegged at $10 billion, reflecting an increase from the aforementioned $8 billion. The incremental returns to stockholders will get distributed through share repurchases and VROC tiers.

TotalEnergies SE TTE reported first-quarter 2022 operating earnings of $3.40 (€3.03) per share, beating the Zacks Consensus Estimate of $2.79. The improvement was due to an increase in commodity prices.

As of Mar 31, 2022, TotalEnergies’ cash and cash equivalents were $31.3 billion. Net debt to capital was 12.5% at the end of first-quarter 2022, down from 23.7% at the end of first-quarter 2021. TotalEnergies expects to invest $15 billion in 2022, out of which 25% will be allocated to further strengthen renewable operation and electricity.

The Williams Companies, Inc. WMB reported first-quarter 2022 adjusted earnings per share of 41 cents, beating the Zacks Consensus Estimate of 36 cents. The outperformance was due to higher-than-expected contributions from one major segment.

As of Mar 31, 2022, Williams had cash and cash equivalents of $604 million, and long-term debt of $20.8 billion, with a debt-to-capitalization of 59.8%. The dividend guidance increased 3.7% on an annualized basis to $1.70 in 2022 from $1.64 in 2021.


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