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Pioneer Natural (PXD) Misses Q2 Earnings & Revenue Estimates

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Pioneer Natural Resources Company (PXD - Free Report) reported second-quarter 2018 earnings of $1.41 per share, excluding one-time items, which missed the Zacks Consensus Estimate of $1.54. The bottom line improved from 21 cents in the year-ago quarter.  
 

Pioneer Natural Resources Company Price, Consensus and EPS Surprise

 

Pioneer Natural Resources Company Price, Consensus and EPS Surprise | Pioneer Natural Resources Company Quote

Revenues and other income in the quarter surged 29.5% year over year to $2,111 million from $1,630 million. However, the top line missed the Zacks Consensus Estimate of $2,233 million.

Higher oil and liquids price realizations as well as increased production supported second-quarter results. This was partially offset by higher expenses.

Production

Total production in the reported quarter averaged 327.7 thousand barrels of oil equivalent per day (MBOE/d), which improved 26.5% year over year and beat the Zacks Consensus Estimate of 320 MBOE/d. The upside can be attributed to the Permian Basin drilling program.

Oil production averaged 185.5 thousand barrels per day (MBbl/d), up 26.3% year over year but below the Zacks Consensus Estimate of 189 MBbl/d. Natural gas liquids (NGLs) production jumped 21% year over year to 64.5MBbl/d, but lagged the Zacks Consensus Estimate of 66 MBbl/d. Natural gas productions amounted to 466.4 million cubic feet per day (MMcf/d), up from the year-ago quarter’s level of 353.6MMcf/d. The figure beat the Zacks Consensus Estimate of 388 MMcf/d.   

Price Realization

On an oil equivalent basis, average realized price was $43.12 per barrel in the reported quarter compared with $32.56 a year ago. The figure missed the Zacks Consensus Estimate of $46.15. The average realized price for oil was $61.20 a barrel compared with $45 in second-quarter 2017.    

Average natural gas price dropped 24.8% year over year to $1.97 per thousand cubic feet (Mcf). Natural gas liquids were sold at $28.83 a barrel, up from $16.91 in the year-ago quarter.

Cash, Debt and Capex

At the end of the quarter under review, cash balance was $792 million. Long-term debt totaled $2,285 million, reflecting a debt-to-capitalization ratio of 16.6%.      

Guidance

Pioneer Natural expects Permian basin production between 278 MBOE/d and 288 MBOE/d in the third quarter of 2018. Moreover, the company expects 2018 production from the prolific Permian Basin to surge 19-24% from the year-ago level. For the third quarter, the company expects production costs in the range of $9.50-$11.50 per BOE. General and administrative expenses are expected in the range of $95-$100 million.

For 2018, Pioneer intends to spend $3.3-$3.4 billion.

Price Performance

Pioneer Natural’s shares gained 12.5% during the April-to-June quarter of 2018 compared with 10.2% rise of the industry.



 

Zacks Rank & Stocks to Consider

Currently, Pioneer Natural carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Canadian Natural Resources Limited (CNQ - Free Report) , China Petroleum and Chemical Corporation (SNP - Free Report) , also known as Sinopec, and Sunrun Inc (RUN - Free Report) . Canadian Natural Resources carries a Zacks Rank #2 (Buy), while Sinopec and Sunrun flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Canadian Natural Resources, based in Calgary, Alberta, is an exploration and production (E&P) company. It pulled off an average positive earnings surprise of 4.7% in the last four quarters.

Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.

Sunrun is engaged in offering solar services through various channels. The company delivered an average positive earnings surprise of 16.3% in the last four quarters.

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