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PDC Energy (PDCE) Moves Up Since Q3 Earnings Beat: Here's Why
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The stock of upstream energy operator PDC Energy has gained 12.1% since its third-quarter earnings announcement on Nov 2. The positive response, despite an earnings miss, could be attributed to the company’s strong free cash flow performance.
What Did PDC Energy’s Earnings Unveil?
PDC Energy reported adjusted earnings per share of $3.77, missing the Zacks Consensus Estimate of $4.13. The underperformance reflects lower-than-expected production numbers.
However, PDCEs bottom line was above the year-earlier quarter’s adjusted profit of $2.33 per share, backed by higher commodity prices.
Meanwhile, PDC Energy recorded total revenues of 1.5 billion, soaring from the year-ago level of $486.4 million and exceeding the consensus mark by 42.1%.
The company is using the excess cash from a supportive environment to reward investors with dividends and buybacks. As part of that, PDCE’s board of directors declared a quarterly cash dividend of 35 cents per share to its common shareholders. In fact, PDC Energy returned $295 million to its shareholders during the third quarter through dividends and buybacks.
PDC Energy, Inc. Price, Consensus and EPS Surprise
For the third quarter of 2022, PDC Energy’s production totaled 22,980 thousand barrels of oil equivalent/MBoe (62% liquids), reflecting an increase of 22.5% from 18,764 MBoe a year ago. However, the Colorado-focused company’s quarterly average daily production of 250,000 Boe came in below the Zacks Consensus Estimate of 251,540 Boe due to certain operational issues. Of the aggregate output, 20,153 MBoe (or some 88%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price more than doubled from $3 per thousand cubic feet (Mcf) in the year-ago quarter to $6.03. PDC Energy sold NGLs at an average price of $29.75 per barrel (Bbls) compared to $28.33 a year ago. Meanwhile, the average oil price realization came in at $91.88 per barrel, 32.8% higher than $69.17 in the year-ago period. Overall, PDC Energy fetched $52.25 per MBoe compared with $37.47 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $240.2 million in the form of oil and gas capital investments, while it raked in $440 million in adjusted free cash flow. As of Sep 30, PDC Energy had approximately $45.6 million in cash and cash equivalents, and $1.4 billion in long-term debt, representing a debt-to-capitalization of 25.9%.
Guidance
For 2022, PDC Energy still expects to pump 230,000-240,000 Boe per day of hydrocarbon. It also reaffirmed its average oil production expectation of 73,000-77,000 barrels per day. The Zacks Rank #3 (Hold) company forecast capital spending of approximately $1.075 billion.
While we have discussed PDCE’s third-quarter results in detail, let’s see how some other exploration and production companies have fared this earnings season.
ConocoPhillips (COP - Free Report) reported third-quarter adjusted earnings per share of $3.60, beating the Zacks Consensus Estimate of $3.41. Further, COP’s bottom line significantly improved from the prior-year quarter’s $1.77 per share. One of the world’s largest independent oil and gas producers based in Houston, TX, ConocoPhillips’ strong quarterly results have been aided by increased oil-equivalent production volumes and realized commodity prices.
ConocoPhillips also announced a quarterly ordinary dividend of 51 cents per share, indicating a 10.9% increase from the last paid 46 cents. Additionally, COP declared a variable return of cash payment of 70 cents per share, while the company’s board of directors approved a $20-billion increase in the existing share repurchase program to $45 billion.
Another upstream giant, EOG Resources (EOG - Free Report) , reported third-quarter adjusted earnings per share of $3.71, missing the Zacks Consensus Estimate of $3.75. EOG’s weaker-than-expected earnings were attributed to higher lease and well expenses, as well as transportation costs. However, the bottom line jumped from the year-ago quarter’s earnings of $2.16 due to increased volumes and prices.
For the quarter under review, EOG Resources’ production increased around 9% year over year, while it generated $2.3 billion in free cash flow. Committed to shareholder returns, EOG announced a regular dividend of 82.5 cents per share, indicating a 10% increase from the last paid dividend.
Finally, we have Pioneer Natural Resources Company (PXD - Free Report) , which reported third-quarter earnings of $7.48 per share (excluding one-time items), beating the Zacks Consensus Estimate of $7.43. The bottom line surged from the year-ago quarter’s profit of $4.13 per share. PXD’s robust bottom line can be attributed to higher natural gas production volumes and commodity price realizations.
Pioneer Natural announced a dividend payment of $5.71 per share of common stock, which includes a variable dividend of $4.61 per share and a base dividend of $1.10. This suggests a 33.4% decline from the last paid $8.57 per share.
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PDC Energy (PDCE) Moves Up Since Q3 Earnings Beat: Here's Why
The stock of upstream energy operator PDC Energy has gained 12.1% since its third-quarter earnings announcement on Nov 2. The positive response, despite an earnings miss, could be attributed to the company’s strong free cash flow performance.
What Did PDC Energy’s Earnings Unveil?
PDC Energy reported adjusted earnings per share of $3.77, missing the Zacks Consensus Estimate of $4.13. The underperformance reflects lower-than-expected production numbers.
However, PDCEs bottom line was above the year-earlier quarter’s adjusted profit of $2.33 per share, backed by higher commodity prices.
Meanwhile, PDC Energy recorded total revenues of 1.5 billion, soaring from the year-ago level of $486.4 million and exceeding the consensus mark by 42.1%.
The company is using the excess cash from a supportive environment to reward investors with dividends and buybacks. As part of that, PDCE’s board of directors declared a quarterly cash dividend of 35 cents per share to its common shareholders. In fact, PDC Energy returned $295 million to its shareholders during the third quarter through dividends and buybacks.
PDC Energy, Inc. Price, Consensus and EPS Surprise
PDC Energy, Inc. price-consensus-eps-surprise-chart | PDC Energy, Inc. Quote
Production & Prices
For the third quarter of 2022, PDC Energy’s production totaled 22,980 thousand barrels of oil equivalent/MBoe (62% liquids), reflecting an increase of 22.5% from 18,764 MBoe a year ago. However, the Colorado-focused company’s quarterly average daily production of 250,000 Boe came in below the Zacks Consensus Estimate of 251,540 Boe due to certain operational issues. Of the aggregate output, 20,153 MBoe (or some 88%) came from Wattenberg Field and the rest from Delaware Basin.
The average realized natural gas price more than doubled from $3 per thousand cubic feet (Mcf) in the year-ago quarter to $6.03. PDC Energy sold NGLs at an average price of $29.75 per barrel (Bbls) compared to $28.33 a year ago. Meanwhile, the average oil price realization came in at $91.88 per barrel, 32.8% higher than $69.17 in the year-ago period. Overall, PDC Energy fetched $52.25 per MBoe compared with $37.47 a year ago.
Capital Expenditure & Balance Sheet
The energy explorer shelled out $240.2 million in the form of oil and gas capital investments, while it raked in $440 million in adjusted free cash flow. As of Sep 30, PDC Energy had approximately $45.6 million in cash and cash equivalents, and $1.4 billion in long-term debt, representing a debt-to-capitalization of 25.9%.
Guidance
For 2022, PDC Energy still expects to pump 230,000-240,000 Boe per day of hydrocarbon. It also reaffirmed its average oil production expectation of 73,000-77,000 barrels per day. The Zacks Rank #3 (Hold) company forecast capital spending of approximately $1.075 billion.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Some Key E&P Earnings
While we have discussed PDCE’s third-quarter results in detail, let’s see how some other exploration and production companies have fared this earnings season.
ConocoPhillips (COP - Free Report) reported third-quarter adjusted earnings per share of $3.60, beating the Zacks Consensus Estimate of $3.41. Further, COP’s bottom line significantly improved from the prior-year quarter’s $1.77 per share. One of the world’s largest independent oil and gas producers based in Houston, TX, ConocoPhillips’ strong quarterly results have been aided by increased oil-equivalent production volumes and realized commodity prices.
ConocoPhillips also announced a quarterly ordinary dividend of 51 cents per share, indicating a 10.9% increase from the last paid 46 cents. Additionally, COP declared a variable return of cash payment of 70 cents per share, while the company’s board of directors approved a $20-billion increase in the existing share repurchase program to $45 billion.
Another upstream giant, EOG Resources (EOG - Free Report) , reported third-quarter adjusted earnings per share of $3.71, missing the Zacks Consensus Estimate of $3.75. EOG’s weaker-than-expected earnings were attributed to higher lease and well expenses, as well as transportation costs. However, the bottom line jumped from the year-ago quarter’s earnings of $2.16 due to increased volumes and prices.
For the quarter under review, EOG Resources’ production increased around 9% year over year, while it generated $2.3 billion in free cash flow. Committed to shareholder returns, EOG announced a regular dividend of 82.5 cents per share, indicating a 10% increase from the last paid dividend.
Finally, we have Pioneer Natural Resources Company (PXD - Free Report) , which reported third-quarter earnings of $7.48 per share (excluding one-time items), beating the Zacks Consensus Estimate of $7.43. The bottom line surged from the year-ago quarter’s profit of $4.13 per share. PXD’s robust bottom line can be attributed to higher natural gas production volumes and commodity price realizations.
Pioneer Natural announced a dividend payment of $5.71 per share of common stock, which includes a variable dividend of $4.61 per share and a base dividend of $1.10. This suggests a 33.4% decline from the last paid $8.57 per share.