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Pioneer Natural Resources Company (PXD - Free Report) reported third-quarter 2016 adjusted earnings of 13 cents per share that missed the Zacks Consensus Estimate of 17 cents. Notably, the company had posted adjusted loss of 1 cent per share in the year-earlier quarter.
Revenues and other income in the quarter plunged 47% year over year to $1,186 million from $2,237 million. The top line, however, beat the Zacks Consensus Estimate of $1,022 million.
Production
Total production in the reported quarter averaged approximately 239 thousand barrels of oil equivalent per day (MBOE/d), up 13.3% year over year. Robust yield from core growth assets – particularly Spraberry field and Wolfcamp Shale – boosted growth.
Oil production averaged 133.8 thousand barrels per day (MBbl/d), up 22% year over year. Natural gas liquids (NGLs) production jumped 18.3% year over year to 49.2 MBbl/d. Natural gas production decreased to 332.4 million cubic feet per day (MMcf/d) from the year-ago level of 360 MMcf/d.
Price Realization
On an oil equivalent basis, average realized price was $29.24 per barrel in the reported quarter as against $28.75 a year ago. The average realized price for oil was $41.44 per barrel compared with $42.46 in third-quarter 2015.
Average natural gas price slipped 4% year over year to $2.43 per thousand cubic feet (Mcf). Natural gas liquids were sold at $12.46 per barrel as against $12.39 in the year-ago quarter.
At the end of the quarter, cash balance was $891 million. Long-term debt was $2,726 million, which represents a debt-to-capitalization ratio of 20.7% as against 26.1% in the preceding quarter.
Capital Outlay
For 2016, Pioneer plans to spend $2.1 billion in total. The estimation has been raised from the preliminary forecast in first-quarter 2016. Of this, the company has planned drilling capex of $1.95 billion and capital for vertical integration of $150 million.
An amount of $1,810 million has been allocated for the northern Spraberry/Wolfcamp area and $60 million has been set aside for the southern Wolfcamp joint venture. The company will also spend $60 million for Eagle Ford Shale and $20 million for other assets.
Guidance
Pioneer expects production to average between 237 MBOE/d and 242 MBOE/d in the fourth quarter of 2016. The company has increased its 2016 production growth forecast to 14% from 13%.
Production costs are anticipated between $7.75 per BOE and $9.75 per BOE. Depletion, depreciation and amortization expenses are expected to average between $17.50 per BOE and $19.50 per BOE. The projected range for general and administrative expenses is $78–$83 million, for interest expenses is $45–$50 million and for other expenses is $65–$75 million. The company estimates exploration and abandonment expenses in the range of $20–$30 million, while the expected tax rate is estimated in the 35–40% band.
Zacks Rank
Pioneer Natural Resources currently has a Zacks Rank #3 (Hold).
Enbridge Energy Partners has an impressive earnings surprise history. The partnership posted positive earnings surprise in three of the last four quarters. It reported a positive earnings surprise of 69.23% in the preceding quarter.
Braskem SA posted a positive earnings surprise of 105.45% in the year-ago quarter.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprises in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
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Pioneer Natural (PXD) Q3 Earnings Miss, Revenues Beat
Pioneer Natural Resources Company (PXD - Free Report) reported third-quarter 2016 adjusted earnings of 13 cents per share that missed the Zacks Consensus Estimate of 17 cents. Notably, the company had posted adjusted loss of 1 cent per share in the year-earlier quarter.
Revenues and other income in the quarter plunged 47% year over year to $1,186 million from $2,237 million. The top line, however, beat the Zacks Consensus Estimate of $1,022 million.
Production
Total production in the reported quarter averaged approximately 239 thousand barrels of oil equivalent per day (MBOE/d), up 13.3% year over year. Robust yield from core growth assets – particularly Spraberry field and Wolfcamp Shale – boosted growth.
Oil production averaged 133.8 thousand barrels per day (MBbl/d), up 22% year over year. Natural gas liquids (NGLs) production jumped 18.3% year over year to 49.2 MBbl/d. Natural gas production decreased to 332.4 million cubic feet per day (MMcf/d) from the year-ago level of 360 MMcf/d.
Price Realization
On an oil equivalent basis, average realized price was $29.24 per barrel in the reported quarter as against $28.75 a year ago. The average realized price for oil was $41.44 per barrel compared with $42.46 in third-quarter 2015.
Average natural gas price slipped 4% year over year to $2.43 per thousand cubic feet (Mcf). Natural gas liquids were sold at $12.46 per barrel as against $12.39 in the year-ago quarter.
PIONEER NAT RES Price, Consensus and EPS Surprise
PIONEER NAT RES Price, Consensus and EPS Surprise | PIONEER NAT RES Quote
Cash, Debt and Capex
At the end of the quarter, cash balance was $891 million. Long-term debt was $2,726 million, which represents a debt-to-capitalization ratio of 20.7% as against 26.1% in the preceding quarter.
Capital Outlay
For 2016, Pioneer plans to spend $2.1 billion in total. The estimation has been raised from the preliminary forecast in first-quarter 2016. Of this, the company has planned drilling capex of $1.95 billion and capital for vertical integration of $150 million.
An amount of $1,810 million has been allocated for the northern Spraberry/Wolfcamp area and $60 million has been set aside for the southern Wolfcamp joint venture. The company will also spend $60 million for Eagle Ford Shale and $20 million for other assets.
Guidance
Pioneer expects production to average between 237 MBOE/d and 242 MBOE/d in the fourth quarter of 2016. The company has increased its 2016 production growth forecast to 14% from 13%.
Production costs are anticipated between $7.75 per BOE and $9.75 per BOE. Depletion, depreciation and amortization expenses are expected to average between $17.50 per BOE and $19.50 per BOE. The projected range for general and administrative expenses is $78–$83 million, for interest expenses is $45–$50 million and for other expenses is $65–$75 million. The company estimates exploration and abandonment expenses in the range of $20–$30 million, while the expected tax rate is estimated in the 35–40% band.
Zacks Rank
Pioneer Natural Resources currently has a Zacks Rank #3 (Hold).
Some better-ranked players from the same sector are Enbridge Energy Partners, LP , Braskem SA (BAK - Free Report) and Enviva Partners, LP (EVA - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge Energy Partners has an impressive earnings surprise history. The partnership posted positive earnings surprise in three of the last four quarters. It reported a positive earnings surprise of 69.23% in the preceding quarter.
Braskem SA posted a positive earnings surprise of 105.45% in the year-ago quarter.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprises in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>