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Pioneer Natural (PXD) to Report Q2 Earnings: What to Expect

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Pioneer Natural Resources Company (PXD - Free Report) is scheduled to report second-quarter 2020 results on Aug 4, after the closing bell.

In the last reported quarter, the company came up with earnings of $1.15 per share that beat the Zacks Consensus Estimate of $1.03, supported by higher oil equivalent production volumes. This was partially offset by lower realized prices of commodities.

Pioneer Natural beat earnings estimates thrice and missed once in the last four quarters, with the average positive surprise being 7.1%, as shown in the chart below.

Let’s see how things have shaped up prior to the announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for second-quarter loss of 35 cents per share has seen two upward and eight downward revisions in the past 60 days. The figure suggests a year-over-year decline of 117.4%.

Further, the Zacks Consensus Estimate for revenues is pegged at $1.5 billion for the quarter, indicating a decline of 21.9% from the year-ago reported figure.

Q2 Expectations

Exploration and production company Pioneer Natural's second-quarter production is expected to have received a boost from operations in the Permian, the most prolific basin in the United States. The Zacks Consensus Estimate for second-quarter average overall production is pegged at 352 thousand barrels of oil equivalent per day (MBoe/d), indicating a rise from the year-ago level of 334.2 MBoe/d.

Crude accounts for the majority of the company’s production volumes. The Zacks Consensus Estimate for average crude oil production volumes is pegged at 207 thousand barrels per day (MBbls/d), indicating no change from the year-ago level. Moreover, natural gas production is expected at 389 thousand cubic feet per day (Mcf/d), indicating a rise from the year-ago level of 357.9 Mcf/d.

However, the consensus estimate for average price realizations for crude oil is $26.42 per barrel, indicating a steep fall from the year-ago period’s $56. The same for overall price realization for the quarter is pegged at $18.70 per barrel of oil equivalent, signaling a significant decline from the year-ago level of $39.35. However, natural gas price is expected at $1.37 per Mcf for second-quarter 2020, indicating a rise from the year-ago period’s 89 cents.

Although increased overall productions are likely to reflect on the company’s second-quarter results, declining average crude price realizations are expected to have offset the positives.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Pioneer Natural this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: Earnings ESP for the company is -7.06%. This is because the Most Accurate Estimate of a loss of 38 cents is wider than the Zacks Consensus Estimate of a loss of 35 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.  

Zacks Rank: Pioneer Natural currently carries a Zacks Rank #5 (Strong Sell).

Energy Stocks With Favorable Combination

Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Canadian Natural Resources Limited (CNQ - Free Report) has an Earnings ESP of +6.48% and is a Zacks #3 Ranked player. The company is scheduled to release second-quarter results on Aug 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cimarex Energy Co. has an Earnings ESP of +1.90% and a Zacks Rank of 2. It is scheduled to report second-quarter results on Aug 5.

Bonanza Creek Energy, Inc. has an Earnings ESP of +13.66% and holds a Zacks Rank #1. It is set to report second-quarter results on Aug 6.

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