It has been about a month since the last earnings report for Pioneer Natural Resources (PXD). Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pioneer Natural Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pioneer Q1 Earnings Beat Estimates, Declines Y/Y
Pioneer reported first-quarter 2023 earnings of $5.21 per share (excluding one-time items), beating the Zacks Consensus Estimate of $4.90. However, the bottom line declined from the year-ago quarter’s earnings of $7.74 per share.
Total quarterly revenues of $4,541 million missed the Zacks Consensus Estimate of $5,299 million. The top line improved from the year-ago quarter’s $6,172 million.
Better-than-expected quarterly earnings were primarily driven by higher oil-equivalent production volumes. The positives were partially offset by lower realizations of commodity prices.
Dividend Cut & Share Repurchase
For the first quarter, Pioneer announced a dividend payment of $3.34 per share of common stock, which includes a variable dividend of $2.09 per share and a base dividend of $1.25. This suggests a 40% decline from the last paid-out dividend of $5.58 per share. The new dividend is payable Jun 21, 2023, to its stockholders of record at the close of business on Jun 1, 2023.
PXD also authorized a new $4-billion share repurchase program, replacing the existing common stock repurchase program.
For first-quarter 2023, the total production was 680.4 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago figure of 637.8 MBoe/d.
Oil production was 361.3 thousand barrels per day (MBbls/d), up from the year-ago quarter’s 355.3 MBbls/d. NGLs production was 167.5 MBbls/d compared with the prior-year quarter’s 152.9 MBbls/d. Natural gas production amounted to 909.8 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 777.3 MMcf/d.
On an oil-equivalent basis, the average realized price was $51.69 per barrel for the reported quarter compared with $68.48 a year ago. The company reported an average realized crude price of $75.15 a barrel, down from $94.60 reported in the March-end quarter of 2022.
The average natural gas price declined to $3.79 per thousand cubic feet from $4.81 in the prior-year quarter. Natural gas liquids were sold at $27.30 a barrel, down from $41.37 a year ago.
Pioneer’s expenses for oil and gas production were $455 million, up from $416 million in the year-ago quarter. Yet, total costs and expenses declined to $2,984 million in the first quarter from $3,611 million in the year-ago period.
Cash, Debt and Capex
As of Mar 31, 2023, Pioneer’s cash and cash equivalents totaled $1,192 million, while long-term debt was $5,094 million. It had a debt-to-capitalization of 21%.
In the March-end quarter, the company spent $1.2 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
At this time, Pioneer Natural Resources has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Pioneer Natural Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Pioneer Natural Resources belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Range Resources (RRC), has gained 17.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Range Resources reported revenues of $853 million in the last reported quarter, representing a year-over-year change of -13.6%. EPS of $0.99 for the same period compares with $1.18 a year ago.
For the current quarter, Range Resources is expected to post earnings of $0.38 per share, indicating a change of -70.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -10.9% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Range Resources. Also, the stock has a VGM Score of B.
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