We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pioneer Natural (PXD) Touches 52-Week High as Oil Rallies
Read MoreHide Full Article
Shares of Pioneer Natural Resources Co. (PXD - Free Report) hit a 52-week high of $180.45 on Aug 17, 2016. Shares closed at $180.30, reflecting a solid return of 43.8% year to date. The average trading volume for the last three months aggregated 2,135,546 shares. Over the past 52 weeks, the company’s shares ranged from a low of $103.50 to a high of $180.45.
The improvement on the crude front followed Russia’s plans of meeting OPEC members in October for a possible output cut. This brought a ray of hope for upstream energy players like Pioneer Natural Resources.
Moreover, Pioneer Natural Resources’ oil-weighted reserves base and large drilling inventory (over 20,000 liquids-rich drilling locations in low-risk resource plays) with significant resource potential are catalysts to unlock value for shareholders. The company offers a deep inventory of high-return, liquids-leveraged drilling opportunities.
Turning to cost efficiency, Pioneer continues to bring down its drilling and completion expenses, while its production cost is also on a downswing – a huge achievement in the low commodity price scenario.
Owing to all those positives, the company was able to report second-quarter 2016 adjusted loss of 22 cents per share, substantially narrower than the Zacks Consensus Estimate of a loss of 34 cents.
Moreover, the company expects production to average between 232 thousand barrels of oil equivalent (MBOE/d) and 237 MBOE/d in the third quarter of 2016, better than 232.7 MBOE/d in the prior quarter. On top of that, Pioneer Natural Resources has increased its production growth projection for 2016 by 1%, reflecting successive quarters of outperformance from its wells. Despite a weak pricing environment, the company maintained its decision of adding rigs for the development of its key growth areas – the Spraberry and Wolfcamp acreage. The company has also increased its capital spending projection for the same.
However, as is the case with other independent exploration and production companies, results for Pioneer Natural too are directly exposed to oil and gas prices, which are inherently volatile and subject to complex market forces.
As a result, Pioneer Natural carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Better-ranked players in the energy sector include North Atlantic Drilling Limited , Murphy USA Inc. (MUSA - Free Report) and Devon Energy Corporation (DVN - Free Report) . Each of these players sports a Zacks Rank #1 (Strong Buy).
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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Pioneer Natural (PXD) Touches 52-Week High as Oil Rallies
Shares of Pioneer Natural Resources Co. (PXD - Free Report) hit a 52-week high of $180.45 on Aug 17, 2016. Shares closed at $180.30, reflecting a solid return of 43.8% year to date. The average trading volume for the last three months aggregated 2,135,546 shares. Over the past 52 weeks, the company’s shares ranged from a low of $103.50 to a high of $180.45.
The improvement on the crude front followed Russia’s plans of meeting OPEC members in October for a possible output cut. This brought a ray of hope for upstream energy players like Pioneer Natural Resources.
Moreover, Pioneer Natural Resources’ oil-weighted reserves base and large drilling inventory (over 20,000 liquids-rich drilling locations in low-risk resource plays) with significant resource potential are catalysts to unlock value for shareholders. The company offers a deep inventory of high-return, liquids-leveraged drilling opportunities.
Turning to cost efficiency, Pioneer continues to bring down its drilling and completion expenses, while its production cost is also on a downswing – a huge achievement in the low commodity price scenario.
Owing to all those positives, the company was able to report second-quarter 2016 adjusted loss of 22 cents per share, substantially narrower than the Zacks Consensus Estimate of a loss of 34 cents.
Moreover, the company expects production to average between 232 thousand barrels of oil equivalent (MBOE/d) and 237 MBOE/d in the third quarter of 2016, better than 232.7 MBOE/d in the prior quarter. On top of that, Pioneer Natural Resources has increased its production growth projection for 2016 by 1%, reflecting successive quarters of outperformance from its wells. Despite a weak pricing environment, the company maintained its decision of adding rigs for the development of its key growth areas – the Spraberry and Wolfcamp acreage. The company has also increased its capital spending projection for the same.
However, as is the case with other independent exploration and production companies, results for Pioneer Natural too are directly exposed to oil and gas prices, which are inherently volatile and subject to complex market forces.
As a result, Pioneer Natural carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
PIONEER NAT RES Price and Consensus
PIONEER NAT RES Price and Consensus | PIONEER NAT RES Quote
Stocks to Consider
Better-ranked players in the energy sector include North Atlantic Drilling Limited , Murphy USA Inc. (MUSA - Free Report) and Devon Energy Corporation (DVN - Free Report) . Each of these players sports a Zacks Rank #1 (Strong Buy).
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 >>