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Pioneer (PXD) Tops on Q4 Earnings, Ups 2023 Production Volume

Pioneer Natural Resources Company PXD reported fourth-quarter 2022 earnings of $5.91 per share (excluding one-time items), beating the Zacks Consensus Estimate of $5.83. The bottom line surged from the year-ago quarter’s profit of $4.58 per share.

Total quarterly revenues of $5,108 million missed the Zacks Consensus Estimate of $5,662 million. However, the top line improved from the year-ago quarter’s $4,317 million.

Strong quarterly earnings were primarily driven by higher natural gas production volumes and lower expenses.

Pioneer Natural Resources Company Price, Consensus and EPS Surprise

 

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

Dividend Cut

For the first quarter, Pioneer announced a dividend payment of $5.58 per share of common stock, which includes a variable dividend of $4.48 per share and a base dividend of $1.10. This suggests a 2.3% decline from the last paid $5.71 per share. The new dividend is payable  Mar 17, 2023, to its stockholders of record at the close of business on Mar 6, 2023.

Production

For fourth-quarter 2022, the total production was 661.6 thousand barrels of oil-equivalent per day (MBoe/d), down from the year-ago figure of 687.1 MBoe/d.

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Oil production was 350.6 thousand barrels per day (MBbls/d), down from the year-ago quarter’s 393.5 MBbls/d. NGLs production was 165.5 MBbls/d compared with the prior-year quarter’s 161.7 MBbls/d. Natural gas production amounted to 872.6 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 792.2 MMcf/d.

Price Realization

On an oil-equivalent basis, the average realized price was $57.76 per barrel for the reported quarter compared with $58.78 a year ago. The company reported an average realized crude price of $83.53 a barrel, up from $76.38 reported in the December-end quarter of 2021.

The average natural gas price declined to $4.98 per thousand cubic feet from $5.20 in the prior-year quarter. Natural gas liquids were sold at $27.67 a barrel, up from $38.45 a year ago.

Operating Costs

Pioneer’s expenses for oil and gas production were $463 million, up from $377 million in the year-ago quarter. Yet, total costs and expenses declined to $3,240 million in the fourth quarter from $3,326 million in the year-ago period.

Cash, Debt and Capex

As of Dec 31, 2022, Pioneer’s cash and cash equivalents totaled $1,032 million, while long-term debt was $4,125 million. It had a debt-to-capitalization of 18%.

In the December-end quarter, the company spent $1.1 billion.

Reserves

As of Dec 31, 2022, Pioneer Natural’s proved reserves were 2,377,000 MBoe, up from the year-ago period’s 2,222,000 MBoe. Production averaged 649,773 oil-equivalent barrels per day in 2022, which comprised 54.2% crude oil.

Outlook

For 2023, Pioneer reiterated its oil production guidance of 357-372 thousand barrels of oil per day (MBo/d). The company projects a total production of 670-700 MBoe/d, indicating an increase from the 649.8 MBoe/d reported in 2022.

For the fourth quarter, Pioneer expects oil production of 349-364 MBo/d and a total production of 659-687 MBoe/d.

The company gave a drilling, completions, facilities and water infrastructure capital budget of $4.45-$4.75 billion. Additionally, it gave a capital budget for exploration, environmental and other capital of $150-$200 million.

It boasted that the capital spending would be fully funded by its $9-billion projected cash flow for this year.

Zacks Rank & Stocks to Consider

Pioneer currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco LP’s SUN fourth-quarter 2022 earnings of 42 cents per unit missed the Zacks Consensus Estimate of 77 cents. Weak quarterly earnings resulted from the higher total cost of sales and operating expenses.

Sunoco has witnessed upward estimate revisions for 2023 earnings in the past 30 days. For 2023, Sunoco expects adjusted EBITDA of $850-$900 million.

RPC Inc.’s RES adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.

As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.

Murphy USA Inc.’s MUSA fourth-quarter 2022 earnings per share of $5.21 missed the Zacks Consensus Estimate of $6.16. The underperformance can be attributed to lower-than-expected petroleum product sales.

Murphy USA projects a 2023 fuel volume of 240-245 thousand gallons on an APSM basis. Further, Murphy USA’s 2023 guidance includes up to 45 new stores, up to 30 raze-and-rebuilds, and $795-$815 million in merchandise margin contribution.

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Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report

Sunoco LP (SUN) : Free Stock Analysis Report

Murphy USA Inc. (MUSA) : Free Stock Analysis Report

RPC, Inc. (RES) : Free Stock Analysis Report

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