Pioneer (PXD) Q4 Earnings Miss Estimates, Revenues Rise Y/Y
Pioneer Natural Resources Company PXD reported fourth-quarter 2023 earnings of $5.26 per share (excluding one-time items), which missed the Zacks Consensus Estimate of $5.41. The bottom line declined from the year-ago quarter’s level of $5.91.
Total quarterly revenues of $5,217 million beat the Zacks Consensus Estimate of $5,180 million. The top line also increased from the year-ago quarter’s figure of $5,108 million.
Weak quarterly earnings were primarily due to lower realizations of commodity prices and rising expenses.
Pioneer Natural Resources Company Price, Consensus and EPS Surprise
Pioneer Natural Resources Company price-consensus-eps-surprise-chart | Pioneer Natural Resources Company Quote
Dividend
For the first quarter of 2024, Pioneer announced a dividend of $2.56 per share of common stock, which includes a variable dividend of $1.31 per share and a base dividend of $1.25. This indicates a 4.4% of annualized dividend yield. The new dividend will likely be paid out on Mar 22, 2024.
Production
For fourth-quarter 2023, the total production was 745.5 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 661.5 MBoe/d. The reported figure also surpassed our estimate of 722 Mboe/d.
Oil production was 380.5 thousand barrels per day (MBbls/d), up from the year-ago quarter’s 350.6 MBbls/d. The figure also beat our estimate of 379.9 MBbls/d.
Natural Gas Liquid (NGL) production was 196.3 MBbls/d compared with the prior-year quarter’s 165.5 MBbls/d. The figure topped our estimate of 180.9 MBbls/d.
Natural gas production amounted to 1011.9 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 872.5 MMcf/d. The figure also surpassed our estimate of 967.1 MMcf/d.
Price Realization
On an oil-equivalent basis, the average realized price was $49.37 per barrel for the reported quarter compared with $57.76 a year ago. Our estimate for the same was pinned at $51.69.
The company reported an average realized crude price of $78.47 a barrel, down from $83.53 in the December-end quarter of 2022. Our estimate for the same was pinned at $77.98 per barrel.
The average natural gas price declined to $2.35 per thousand cubic feet from $4.98 in the prior-year quarter. It was also lower than our estimate of $2.57 per thousand cubic feet.
NGLs were sold at $23.25 a barrel, down from $27.67 a year ago. The figure lagged our estimate of $28.84.
Operating Costs
Pioneer’s expenses for oil and gas production totaled $536 million, up from $463 million in the year-ago quarter. Total costs and expenses increased to $3,600 million in the fourth quarter from $3,240 million in the year-ago period. The reported figure was also higher than our estimate of $3236.7 million.
Cash, Debt and Capex
As of Dec 31, 2023, Pioneer’s cash and cash equivalents totaled $240 million, while long-term debt was $4,807 million. In the December-end quarter, the company spent $1.1 billion.
Outlook
For 2024, Pioneer expects oil production in the range of 384-392 thousand barrels of oil per day (MBo/d). The company projects a total production of 750-766 MBoe/d. It gave a capital budget of $4.2-$4.6 billion for the year.
Zacks Rank & Stocks to Consider
Pioneer currently carries a Zacks Rank #4 (Sell).
Some better-ranked players in the energy sector are Equitrans Midstream ETRN, Energy Transfer ET and Subsea 7 S.A. SUBCY, which currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Equitrans Midstream owns, operates, acquires and develops midstream assets, primarily in the Appalachian Basin. It manages natural gas transmission, storage and gathering systems, and high and low-pressure gathering lines.
The Zacks Consensus Estimate for ETRN’s 2024 EPS is pegged at 90 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ETRN’s 2024 earnings are expected to rise 34.3% year over year.
Energy Transfer is a publicly traded limited partnership, focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.45. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 12.4% year over year.
Subsea 7 S.A. helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.
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