Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Pioneer Natural (PXD) Tops Q3 Earnings and Revenue Estimates

Pioneer Natural Resources Company PXD reported third-quarter 2017 adjusted earnings of 48 cents per share, beating the Zacks Consensus Estimate of 30 cents. Notably, it also increased from the year-earlier quarter’s adjusted earnings of 13 cents. Higher price realizations along with higher production aided the growth.

Revenues and other income in the quarter increased over 23% year over year to $1,460 million from $1,186 million. The top line also beat the Zacks Consensus Estimate of $1,193 million.

 

Pioneer Natural Resources Company Price, Consensus and EPS Surprise

 

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

Production

Total production in the reported quarter averaged approximately 276 thousand barrels of oil equivalent per day (MBOE/d), up 15.5% year over year. Robust yield from core growth assets —  particularly Spraberry field and Wolfcamp Shale — boosted growth.

Oil production averaged 162 thousand barrels per day (MBbl/d), up 21% year over year. Natural gas liquids (NGLs) production jumped 15.9% year over year to 57 MBbl/d.

Natural gas production increased to 340 million cubic feet per day (MMcf/d) from the year-ago level of 332.4 MMcf/d but lagged the Zacks Consensus Estimate of 374 MMcf/d.

Price Realization

On an oil equivalent basis, average realized price was $33.72 per barrel in the reported quarter compared with $29.24 a year ago. The average realized price for oil was $45.35 per barrel compared with $41.44 in the year-ago quarter.

Average natural gas price increased 6.2% year over year to $2.58 per thousand cubic feet (Mcf). Natural gas liquids were sold at $18.96 per barrel as against $12.46 in the year-ago quarter.

Cash, Debt and Capex

At the end of the quarter, cash balance was $636 million. Long-term debt was $2,282 million, which represents a debt-to-capitalization ratio of 17.7% as against 20.7% in the year-ago quarter.

Capital Outlay

For 2017, Pioneer Natural increased total capital expenditure outlay to $2.75 billion from $2.7 billion. Of this, the company has planned drilling capex of $2.475 billion and capital for vertical integration worth $275 million.

An amount of $2,350 million has been allocated for the northern Spraberry/Wolfcamp area, $105 million for Eagle Ford Shale and $20 million for other assets.

Guidance

Pioneer expects production in the range of 292 MBOE/d to 302 MBOE/d for fourth-quarter 2017. For fourth quarter, the company expects production costs to average $7.50 per BOE to $9.50, while general and administrative expenses are expected in the range of $80 million to $85 million.

Q3 Price Performance

The pricing chart shows that the company’s shares have underperformed the industry in the last three months. During this period, the company’s shares have declined 7.5% as against the industry’s rally of 5.1%.

Zacks Rank

Pioneer Natural Resources currently has a Zacks Rank #3 (Hold). A few other top-ranked players in the energy sector include Braskem SA BAK, ConocoPhillips COP and Noble Midstream Partners LP NBLX. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The largest petrochemical operator in Latin America, Braskem, delivered positive earnings surprise of 68.54% in the preceding quarter.

ConocoPhillips, based in Houston, TX, is a major global exploration and production (E&P) company. It delivered an average positive earnings surprise of 152.34% in the last four quarters.

Noble Midstream Partners, headquartered in Houston, TX, has diversified energy infrastructure properties. The company delivered positive earnings surprise of 30.67% in the preceding quarter.

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.

Click here for Zacks' private trades >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Braskem S.A. (BAK): Free Stock Analysis Report
 
Pioneer Natural Resources Company (PXD): Free Stock Analysis Report
 
Noble Midstream Partners LP (NBLX): Free Stock Analysis Report
 
ConocoPhillips (COP): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research