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Pioneer Natural (PXD) Q1 Earnings Top Estimates, Fall Y/Y

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Pioneer Natural Resources Company (PXD - Free Report) reported first-quarter 2020 earnings per share of $1.15, excluding one-time items, beating the Zacks Consensus Estimate of $1.03. However, the bottom line declined from the year-ago quarter’s $1.83.

Revenues and other income declined 6.5% year over year to $2,257 million from $2,413 million a year ago. Also, the top line missed the consensus mark of $2,298 million.

The company reported better-than-expected earnings, thanks to higher oil equivalent production volumes. This offset partially offset by lower realized prices of commodities.

Pioneer Natural Resources Company Price, Consensus and EPS Surprise

 

Pioneer Natural Resources Company Price, Consensus and EPS Surprise

Pioneer Natural Resources Company price-consensus-eps-surprise-chart | Pioneer Natural Resources Company Quote

Share Buyback

During the March quarter of 2020, the explorer bought back $110 million of shares as part of its $2-billion repurchase program. As of May 6, the upstream firm repurchased $859 million worth of shares under its authorized buyback plan.

Production

Total production in the reported quarter was 375.2 thousand barrels of oil equivalent per day (MBOE/D), up 12.5% year over year. The upstream energy added that the production number came in at the top end of its guidance.

Oil production was 222.7 thousand barrels per day (MBbl/D), up 8% year over year. Natural gas liquids (NGLs) production of 84.4 MBbl/D compared with the year-ago quarter’s 67.1 MBbl/D. Moreover, natural gas production amounted to 408.9 million cubic feet per day (MMcf/D), up from the year-ago quarter’s 360.6 MMcf/D.

Price Realization

On an oil-equivalent basis, average realized price was $32.08 per barrel in the reported quarter compared with $37.84 a year ago. The company reported average realized crude price of $45.60 a barrel, down from $49.38 in the March-end quarter of 2019.  

Average natural gas price dropped 35.6% year over year to $1.61 per thousand cubic feet (Mcf). Moreover, natural gas liquids were sold at $14.52 a barrel, down from $22.79 a year ago.

Cash, Debt and Capex

At the end of the quarter under review, cash balance totaled $784 million. Long-term debt summed $2,140 million, reflecting a debt-to-capitalization of 17.8%.

During the March-end quarter, the company spent $620 million.

Guidance

The company has revised its 2020 capital budget to the band of $1.4 billion to $1.6 billion, representing a decline of roughly 55% from its initial spending budget.

For 2020, Pioneer Natural’s revised oil equivalent production volumes guidance is pegged at 341 MBoE/D to 359 MBoE/D. The company’s revised oil production volumes range for 2020 is 198 to 208 MBbl/D.

Zacks Rank & Stocks to Consider

Pioneer Natural currently carries a Zacks Rank #5 (Strong Sell). Meanwhile, some better-ranked stocks in the energy sector includeMurphy USA Inc (MUSA - Free Report) , Key Energy Services, Inc. (KEGX - Free Report) and CNX Resources Corporation (CNX - Free Report) . While Murphy USA and Key Energy sport a Zacks Rank #1 (Strong Buy), CNX Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA is likely to see earnings growth of 7% in the next five years.

Key Energy is likely to see bottom-line growth of 97.2% in 2020.

CNX Resources has witnessed upward estimate revisions for 2020 bottom line in the past 60 days.

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