Pioneer Natural Resources (PXD) Q4 Results - Feb 20

Post Reply
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Pioneer Natural Resources (PXD) Q4 Results - Feb 20

Post by dan_s »

Pioneer Natural Resources Company Reports Fourth-Quarter and Full-Year 2019 Financial and Operating Results; Provides 2020 Outlook

DALLAS--(BUSINESS WIRE)--Feb. 19, 2020-- Pioneer Natural Resources Company (NYSE:PXD) ("Pioneer" or "the Company") today reported financial and operating results for the quarter and year ended December 31, 2019. Pioneer reported fourth quarter net income attributable to common stockholders of $344 million, or $2.06 per diluted share. These results include the effects of noncash mark-to-market adjustments and certain other unusual items. Excluding these items, non-GAAP adjusted income for the fourth quarter was $395 million, or $2.36 per diluted share.
< Adjusted net income compares to my Q4 forecast of $325 million, or $1.95 per share.

Cash flow from operating activities for the fourth quarter was $828 million. For the full year 2019, the Company reported net income attributable to common stockholders of $756 million, or $4.50 per diluted share. Cash flow from operating activities for the full year 2019 was $3.1 billion.
Adjusted cash flow from operations for Q4 was $1,011 million. < My Q4 forecast was 909 million cash flow from operations.

Realized natural gas and NGL prices in Q4 were much higher than what I used in my forecast.

Highlights

Achieved corporate return on capital employed (ROCE)1 of 11% during 2019

Delivered strong fourth-quarter and full-year 2019 free cash flow of $384 million and $540 million, respectively

Returned $780 million of capital to shareholders through dividends and share repurchases during 2019

Averaged fourth quarter oil production of 220 thousand barrels of oil per day (MBOPD), at the top end of guidance < My forecast was 217,500 BOPD for Q4.

Averaged fourth quarter total production of 363 thousand barrels of oil equivalent per day (MBOEPD), above the top end of guidance

Announced 2020 Capital Budget of $3.15 billion to $3.45 billion, with cash flow expected to be $3.9 billion

Increased quarterly dividend to $0.55 per share, or $2.20 per share on an annual basis

resident and CEO Scott D. Sheffield stated, "2019 was an excellent year for Pioneer, where we delivered strong cash flow, robust free cash flow generation and top tier corporate returns. This was driven by an intense focus on execution that resulted in significant well cost reductions while maintaining peer-leading oil production per well in the Permian Basin. We remain committed to returning capital to shareholders, and in 2019 we delivered $780 million to shareholders through share repurchases and dividends.

Our 2020 plan builds on our strong 2019 performance and is structured to deliver a capital efficient program that prioritizes free cash flow. Our dividend increase announced today solidifies our commitment to returning capital to shareholders and represents a greater than 185% increase, on an annualized basis, when compared to the dividends paid in 2019. Pioneer continues to offer a compelling value proposition, underpinned by our premier acreage position in the Permian Basin that drives best-in-class margins, increasing corporate returns and is forecasted to generate significant free cash flow."

This will increase my valuation of PXD:
Pioneer expects 2020 oil production of 235 to 245 MBOPD and total production of 383 to 403 MBOEPD. Pioneer's efficient, high-margin growth is driven by the Company's top-tier acreage position in the Permian Basin that continues to deliver the most productive oil wells in the Permian Basin, combined with low well costs. Further benefiting margins and cash flow, NGL volumes experienced strong growth during the second half of 2019 due to improved gas processing yields from the start-up of the Hopson and Pembrook gas processing plants. The Company expects this benefit to continue throughout 2020, along with the forecasted addition of the Gateway gas processing plant in the second half of 2020.

Pioneer increased its oil derivative positions to approximately 149 MBOPD for the first quarter of 2020 and 129 MBOPD for full-year 2020 at approximately $62 Brent pricing.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Pioneer Natural Resources (PXD) Q4 Results - Feb 20

Post by dan_s »

Nice article about PXD: https://www.fool.com/investing/2020/02/ ... idend.aspx

Stifel's take on PXD:
Pioneer Natural Resources Company (PXD, $141.17, Buy; Target $246.00)
- Successful cost management and execution in 2019 lay the foundation for a strong 2020 - Derrick Whitfield
- We view the Q4 release as very positive. The positives include: i) a total and oil production beat (2.2% and 0.9% above consensus, respectively) on materially lower capex (16.3% below consensus), ii) a strong EBITDAX beat (8.7% above consensus) driven by higher NGL and gas realizations, iii) a capital-efficient 2020 guide (oil production guidance is 1.0% above consensus, capex guidance is 2.4% below consensus) with likely the lowest implied cashflow break-even price (less than $40/bbl) in the sector, iv) a 25% increase to the dividend (1.6% yield), and v) industry best flaring management practices. The only negative was lower than expected Q120 oil production guidance (1.1% below consensus); however, we would encourage investors to note the implied Q220-Q420 oil guidance is 2.1% above consensus. Net-net, a strong quarter with impressive return of capital and capital efficiency guidance should more than offset lower Q120 volumes.
Dan Steffens
Energy Prospectus Group
Post Reply