Pioneer Natural Resources Company ( PXD Quick Quote 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.
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.
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.
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.
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 Quick Quote MUSA - Free Report) , Key Energy Services, Inc. ( KEGX Quick Quote KEGX - Free Report) and CNX Resources Corporation ( CNX Quick Quote 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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