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Pioneer (PXD) Q3 Earnings Miss on Lower Crude Production

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Zacks Equity Research
·4 min read
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Pioneer Natural Resources Company’s PXD third-quarter 2020 earnings per share of 17 cents, excluding one-time items, missed the Zacks Consensus Estimate of 18 cents. In the year-ago quarter, the company reported a profit of $1.99 per share.

Revenues and other income declined year over year to $1,815 million from $2,325 million a year ago. However, the top line beat the consensus mark of $1,495 million.

The company reported lower-than-expected earnings due to reduced crude oil production volumes and realized prices. This was partially offset by higher natural gas and natural gas liquids (NGLs) production, and their respective realized prices. Decreased oil and gas production expenses also boosted the profit levels.

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

Production

Total production for the reported quarter was 355 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago figure of 350.7 MBoe/d.

Oil production was 200.7 thousand barrels per day (MBbls/d), down from the year-ago quarter’s 215.2 MBbls/d. NGLs production was 82.6 MBbls/d compared with the year-ago quarter’s 74.8 MBbls/d. Moreover, natural gas production amounted to 430.1 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 364.2 MMcf/d.

The company is likely to permanently stop the majority of its 5.5 MBbls/d of oil output from vertical wells as the weak crude price environment makes the assets uneconomical.

Price Realization

On an oil-equivalent basis, average realized price was $28.22 per barrel for the reported quarter compared with $38.28 a year ago. The company reported average realized crude price of $39.22 a barrel, down from $53.93 in the September quarter of 2019.  

Average natural gas price improved to $1.74 per thousand cubic feet (Mcf) from $1.54 in the prior-year quarter. Moreover, natural gas liquids were sold at $16.93 a barrel, marginally up from $16.81 a year ago.

Operating Costs

The company’s expenses for oil and gas production were $163 million, down from $227 million in the year-ago quarter. As such, total costs and expenses decreased to $1,831 million for the third quarter from $2,022 million in the year-ago period.

Cash, Debt and Capex

At the end of the quarter under review, cash balance totaled $1,325 million, up from $180 million at second quarter-end. Long-term debt summed $3,148 million, up from $2,054 million at the end of the second-quarter. It had a debt to capitalization of 22%. The current portion of the long-term debt was $140 million.

During the September quarter of 2020, the company spent $291 million.

Guidance

Pioneer maintained its 2020 capital budget in the range of $1.4-$1.6 billion.

For fourth-quarter 2020, the company expects daily oil equivalent production in the range of 355-370 MBoe/d. For 2020, Pioneer Natural upwardly revised its oil equivalent production volumes guidance to 365-369 MBoe/d.

For shareholders, the company has planned a total of 10% annual return.

Zacks Rank & Stocks to Consider

The company currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Matador Resources Company MTDR, Antero Resources Corporation AR and NuStar Energy L.P. NS, each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Matador Resources’ bottom line for 2021 is expected to surge 187% year over year.

Antero Resources’ bottom line for 2021 is expected to rise 28.2% year over year.

NuStar Energy’s bottom line for 2021 is expected to rise 177.5% year over year.

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NuStar Energy L.P. (NS) : Free Stock Analysis Report
 
Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
 
Matador Resources Company (MTDR) : Free Stock Analysis Report
 
Antero Resources Corporation (AR) : Free Stock Analysis Report
 
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