It has been about a month since the last earnings report for Pioneer Natural Resources (
PXD Quick Quote PXD - Free Report) . Shares have added about 1.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pioneer Natural Resources due for a pullback? 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 catalysts.
Pioneer Natural Q1 Earnings and Revenues Top Estimates
Pioneer Natural reported first-quarter 2021 earnings of $1.77 per share (excluding one-time items), beating the Zacks Consensus Estimate of $1.50 per share. Moreover, the bottom line increased from the year-ago quarter’s $1.15 per share.
The company’s total quarterly revenues of $2,444 million outpaced the Zacks Consensus Estimate of $2,375 million. Also, the top line improved 8.3% from the year-ago quarter’s $2,257 million.
The strong quarterly results can be attributed to increased oil equivalent production volumes and higher realizations of crude prices.
Total production for the reported quarter was 473.9 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago figure of 375.2 MBoe/d.
Oil production was 281 thousand barrels per day (MBbls/d), up from the year-ago quarter’s 222.7 MBbls/d. NGLs production was 105.7 MBbls/d compared with the year-ago quarter’s 84.4 MBbls/d. Moreover, natural gas production amounted to 523.5 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 408.9 MMcf/d.
On an oil-equivalent basis, average realized price was $42.75 per barrel for the reported quarter compared with $32.08 a year ago. The company reported average realized crude price of $56.71 a barrel, up from $45.60 reported in the March-end quarter of 2020.
Average natural gas price improved to $3.04 per thousand cubic feet (Mcf) from $1.61 in the prior-year quarter. Moreover, natural gas liquids were sold at $25.90 a barrel, up from $14.52 a year ago.
The company’s expenses for oil and gas production were $252 million, up from $176 million in the year-ago quarter. Moreover, total costs and expenses increased to $2,525 million for the first quarter from $1,892 million in the year-ago period.
Cash, Debt and Capex
As of Mar 31, 2021, the cash balance totaled $668 million, while long-term debt summed $6,177 million. It had a debt to capitalization of 25.4%.
In the March-end quarter, the company spent $605 million.
For 2021, Pioneer Natural expects oil production of 351 to 366 thousand barrels of oil per day (MBo/d). Also, the company projects a total production of 605-631 MBoe/d.
For the second quarter, it expects total production of 606-632 MBoe/d and oil production of 352-367 MBo/d.
Pioneer Natural anticipates its total capital budget for 2021 to be between 3.1 billion and $3.4 billion. Notably, it believes that the capital spending will be fully funded by its $5.9 billion projected cash flow.
Moreover, the company is planning to start distributing quarterly variable dividends from 2022.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 7.52% due to these changes.
At this time, Pioneer Natural Resources has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Pioneer Natural Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.