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Why Is Pioneer Natural Resources (PXD) Down 1.7% Since Last Earnings Report?

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It has been about a month since the last earnings report for Pioneer Natural Resources (PXD - Free Report) . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Pioneer Natural Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Pioneer Beats Q2 Earnings Estimates, Revenues Miss

Pioneer Natural Resources reported second-quarter 2020 loss per share of 32 cents, excluding one-time items, narrower than the Zacks Consensus Estimate of a loss of 35 cents. In the year-ago quarter, the company reported a profit of $2.01 per share.

Revenues and other income declined 55.3% year over year to $859 million from $1,923 million a year ago. Also, the top line missed the consensus mark of $1,501 million.

The company reported narrower-than-expected loss, thanks to higher oil equivalent production volumes. This was partially offset by lower realized prices of crude.

Production

Total production in the reported quarter was 374.6 thousand barrels of oil equivalent per day (MBOE/D), up 12.1% year over year.

Oil production was 214.9 thousand barrels per day (MBbl/D), up 3.6% year over year. Natural gas liquids (NGLs) production of 90.2 MBbl/D compared with the year-ago quarter’s 67.1 MBbl/D. Moreover, natural gas production amounted to 416.5 million cubic feet per day (MMcf/D), up from the year-ago quarter’s 357.9 MMcf/D.

Price Realization

On an oil-equivalent basis, average realized price was $17.61 per barrel in the reported quarter compared with $39.35 a year ago. The company reported average realized crude price of $23.16 a barrel, down from $55.50 in the June quarter of 2019.  

Average natural gas price improved 29.2% year over year to $1.15 per thousand cubic feet (Mcf). However, natural gas liquids were sold at $12.65 a barrel, down from $19.63 a year ago.

Cash, Debt and Capex

At the end of the quarter under review, cash balance totaled $180 million. Long-term debt summed $2,054 million, reflecting a debt-to-capitalization of 15.7%.

During the June quarter of 2020, the company spent $235 million.

Guidance

For the third quarter of 2020, the company expects daily oil equivalent production in the range of 341 to 356 (MBOE/D). For 2020, Pioneer Natural revised its oil equivalent production volumes guidance higher to 356 MBoE/D to 371 MBoE/D.

For shareholders, the company has planned a total of 10% or more annual return.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 85.63% due to these changes.

VGM Scores

Currently, Pioneer Natural Resources has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Pioneer Natural Resources has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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