Leading upstream energy company Pioneer Natural Resources Company (PXD - Free Report) reported second-quarter 2017 earnings of 21 cents per share, excluding one-time items. The bottom line surpassed the Zacks Consensus Estimate of 11 cents per share. Notably, the company had incurred adjusted loss of 22 cents per share in the year-earlier quarter.
Revenues and other income in the quarter surged 107.4% year over year to $1,630 million from $786 million. The top line also beat the Zacks Consensus Estimate of $1,309 million.
Significantly high commodity price realizations along with the Spraberry/Wolfcamp horizontal drilling program resulted in the strong quarterly performance.
Production
Total production in the reported quarter averaged 259.1 thousand barrels of oil equivalent per day (MBOE/d), up 12% year over year. The Spraberry/Wolfcamp horizontal drilling program of the company led to the outperformance.
Oil production averaged 146.9 thousand barrels per day (MBbl/d), up 9% year over year. Natural gas liquids (NGLs) production jumped 29.4% year over year to 53.3 MBbl/d. Natural gas productions increased to 353.6 million cubic feet per day (MMcf/d) from the year-ago level of 340.5 MMcf/d.
Price Realization
On an oil equivalent basis, average realized price was $32.56 per barrel in the reported quarter as compared with $28.95 a year ago. The average realized price for oil was $45 a barrel compared with $41.43 in second-quarter 2016.
Average natural gas price surged 56.8% year over year to $2.62 per thousand cubic feet (Mcf). Natural gas liquids were sold at $16.91 a barrel versus $14.21 in the year-ago quarter.
Cash, Debt and Capex
At the end of the quarter under review, cash balance was $660 million. Long-term debt totaled $2,281 million, reflecting a debt-to-capitalization ratio of 20.5%.
Guidance
For 2017, Pioneer intends to spend $2.7 billion, lower than the prior projection of $2.8 billion. Of this, it has planned drilling and completion capex of $2.4 billion and spending budget for water infrastructure, vertical integration and field facilities of $275 million.
Pioneer expects production in the range of 274 MBOE/d to 279 MBOE/d for the third quarter of 2017.
Share Performance
Pioneer Natural has lost 14.3% during the April-to-June quarter of this year versus the 16.9% decline of its industry.
Zacks Rank & Stocks to Consider
Currently, Pioneer Natural carries a Zacks Rank #4 (Sell). A few better-ranked players in the energy sector are TransCanada Corporation (TRP - Free Report) , Range Resources Corporation (RRC - Free Report) and Pembina Pipeline Corporation (PBA - Free Report) . TransCanada and Range Resources sport a Zacks Rank #1 (Strong Buy), while Pembina Pipeline carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TransCanada posted average positive earnings surprise of 4.06% over the last four quarters.
Range Resources’ 2017 earnings are projected to grow almost 116%.
Pembina Pipeline’s 2017 earnings are estimated to grow more than 90%.
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Leading upstream energy company Pioneer Natural Resources Company (PXD - Free Report) reported second-quarter 2017 earnings of 21 cents per share, excluding one-time items. The bottom line surpassed the Zacks Consensus Estimate of 11 cents per share. Notably, the company had incurred adjusted loss of 22 cents per share in the year-earlier quarter.
Revenues and other income in the quarter surged 107.4% year over year to $1,630 million from $786 million. The top line also beat the Zacks Consensus Estimate of $1,309 million.
Significantly high commodity price realizations along with the Spraberry/Wolfcamp horizontal drilling program resulted in the strong quarterly performance.
Production
Total production in the reported quarter averaged 259.1 thousand barrels of oil equivalent per day (MBOE/d), up 12% year over year. The Spraberry/Wolfcamp horizontal drilling program of the company led to the outperformance.
Oil production averaged 146.9 thousand barrels per day (MBbl/d), up 9% year over year. Natural gas liquids (NGLs) production jumped 29.4% year over year to 53.3 MBbl/d. Natural gas productions increased to 353.6 million cubic feet per day (MMcf/d) from the year-ago level of 340.5 MMcf/d.
Price Realization
On an oil equivalent basis, average realized price was $32.56 per barrel in the reported quarter as compared with $28.95 a year ago. The average realized price for oil was $45 a barrel compared with $41.43 in second-quarter 2016.
Average natural gas price surged 56.8% year over year to $2.62 per thousand cubic feet (Mcf). Natural gas liquids were sold at $16.91 a barrel versus $14.21 in the year-ago quarter.
Cash, Debt and Capex
At the end of the quarter under review, cash balance was $660 million. Long-term debt totaled $2,281 million, reflecting a debt-to-capitalization ratio of 20.5%.
Guidance
For 2017, Pioneer intends to spend $2.7 billion, lower than the prior projection of $2.8 billion. Of this, it has planned drilling and completion capex of $2.4 billion and spending budget for water infrastructure, vertical integration and field facilities of $275 million.
Pioneer expects production in the range of 274 MBOE/d to 279 MBOE/d for the third quarter of 2017.
Share Performance
Pioneer Natural has lost 14.3% during the April-to-June quarter of this year versus the 16.9% decline of its industry.
Zacks Rank & Stocks to Consider
Currently, Pioneer Natural carries a Zacks Rank #4 (Sell). A few better-ranked players in the energy sector are TransCanada Corporation (TRP - Free Report) , Range Resources Corporation (RRC - Free Report) and Pembina Pipeline Corporation (PBA - Free Report) . TransCanada and Range Resources sport a Zacks Rank #1 (Strong Buy), while Pembina Pipeline carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TransCanada posted average positive earnings surprise of 4.06% over the last four quarters.
Range Resources’ 2017 earnings are projected to grow almost 116%.
Pembina Pipeline’s 2017 earnings are estimated to grow more than 90%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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