Leading oil producers Pioneer Natural Resources Company PXD and Parsley Energy, Inc. PE are planning layoffs, per Reuters.
Per the report, Parsley Energy intends to lower its employee base of 496 by roughly 10%. Moreover, as part of its restructuring program, Pioneer Natural will reportedly reduce headcounts by late-2020, but the exact figure has not been disclosed. Notably, in June, Pioneer Natural laid off roughly 50 employees from its well services business.
Pioneer Natural Resources Company Price
Pioneer Natural Resources Company price | Pioneer Natural Resources Company Quote
The cost-cut initiatives have been taken by the companies to survive the pandemic since the crude pricing scenario has been weak and global fuel demand has been substantially lowered. Notably, although crude prices have recovered partially in the past few months, the commodity’s price has declined significantly since early 2020, when the commodity was trading above $60 per barrel mark.
Low oil prices hurt Pioneer Natural and Parsley in the June quarter of 2020. Pioneer Natural Resources reported second-quarter 2020 loss per share of 32 cents, excluding one-time items, as compared to a profit of $2.01 per share in the year-ago quarter. Moreover, Parsley Energy reported second-quarter 2020 adjusted net earnings per share of 3 cents, down from the year-ago quarter’s earnings of 32 cents.
Both Pioneer Natural and Parsley Energy, having strong footprints in the prolific Permian Basin, carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Other prospective players in the energy space include Concho Resources Inc. CXO and EOG Resources, Inc. EOG, each holding a Zacks Rank #2.
Concho is likely to see earnings growth of 21.6% in 2020.
EOG Resources’ 2020 bottom-line estimates have risen more than 200% over the past 30 days.
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Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
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