Pioneer Natural (PXD) Misses On Q4 Earnings, Reserves Grow
Zacks Investment Research | Feb 13, 2019 08:25PM ET
Pioneer Natural Resources Company (NYSE:PXD) reported fourth-quarter 2018 earnings of $1.18 per share, excluding one-time items, which failed to beat the Zacks Consensus Estimate of $1.40 and fell from the year-ago quarter’s $1.22. Lower realized prices from oil and natural gas led to the underperformance, owing to which the stock fell roughly 3% in after-hour trading.
Revenues and other income surged 75.4% year over year to $2,677 million from $1,526 million a year ago. The top line exceeded the consensus mark of $2,331 million, thanks to higher activities in the prolific Permian Basin.
Dividend Hike
In a separate release, the company announced approvals from board of directors to double its semi-annual dividend to 32 cents per share from 16 cents. Pioneer Natural expects the dividend to be paid on Apr 12, to the stockholders of record as of Mar 29.
Production
Total production in the reported quarter averaged 319.6 thousand barrels of oil equivalent per day (MBOE/d), which improved 4.8% year over year and was in line with the Zacks Consensus Estimate. The upside can be attributed to higher activities in the Permian Basin.
Oil production averaged 199.2 thousand barrels per day (MBbl/d), up 10.8% year over year and was in line with the Zacks Consensus Estimate. Natural gas liquids (NGLs) production was almost flat with both the Zacks Consensus Estimate and the year-ago quarter figure. Natural gas production amounted to 351.2 million cubic feet per day (MMcf/d) but was down from the year-ago quarter’s 377.1 MMcf/d. The figure was flat with the Zacks Consensus Estimate.
Price Realization
On an oil equivalent basis, average realized price was $38.16 per barrel in the reported quarter compared with $38.68 a year ago. The company reported its average realized crude price at $49.80 a barrel, down from $52.81 in the December quarter of 2018.
Average natural gas price dropped 30.8% year over year to $1.75 per thousand cubic feet (Mcf). Natural gas liquids were sold at $26.88 a barrel, up from $21.64 in the year-ago quarter.
Cash, Debt and Capex
At the end of the quarter under review, cash balance totaled $825 million. Long-term debt summed $2,284 million, reflecting a debt-to-capitalization ratio of 15.9%.
Proved Reserves Grow
As of Dec 31, 2018, Pioneer Natural’s total proved reserves were reported at 1.1 billion barrels of oil equivalent (BBOE), up from 985.4 million barrels of oil equivalent (MMBOE) as of Jan 1, 2018.
Guidance
Pioneer Natural expects production in the Permian Basin in the range of 320-335 MBOE/D through 2019. This reflects a year-over-year increase of 12% to 17%.
For the first quarter, the company projects production from the prolific play in the band of 302-317 MBOE/D.
Through 2019, the upstream energy player intends to invest capital in the range of $3.1 billion to $3.4 billion.
Zacks Rank and Key Picks
Currently, Pioneer Natural carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Jones Energy Inc. (OTC:JONE) , Golar LNG Partners LP (NASDAQ:GMLP) and Sunoco LP (NYSE:SUN) . Jones and Sunoco carry a Zacks Rank #2 (Buy), while Golar LNG sports a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.