Pioneer Natural Resources (PXD) Q1 Results - May 5

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

Pioneer Natural Resources (PXD) Q1 Results - May 5

Post by dan_s »

Pioneer Natural Resources Company (NYSE:PXD) ("Pioneer" or "the Company") reported financial and operating results for the quarter ended March 31, 2021. Pioneer reported a first quarter net loss attributable to common stockholders of $70 million, or $0.33 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 first quarter was $396 million, or $1.77 per diluted share. < Compares to my forecast of $324 million, $1.49 per share.


Highlights

Delivered first quarter free cash flow of $369 million

Averaged first quarter oil production of 281 thousand barrels of oil per day (MBOPD), above the top end of guidance

Averaged first quarter production of 474 thousand barrels of oil equivalent per day (MBOEPD), above the top end of guidance

Closed the highly accretive acquisition of DoublePoint Energy (DoublePoint) on May 4th < Much earlier than I expected.

CEO Scott D. Sheffield stated, "Pioneer delivered an excellent quarter, successfully integrating Parsley’s assets, while navigating the substantial impacts of winter storm Uri that occurred in February. Our drilling, completions and operations teams continue to exceed expectations, driving a capital and operationally efficient program focused on free cash flow generation.

"In early April, we announced the highly accretive acquisition of DoublePoint, which comprises approximately 97,000 highly contiguous net acres in the core of the Midland Basin. This acquisition adds over 1,200 tier one locations that generate strong returns and are equally competitive with Pioneer’s legacy inventory. Given the hand-in-glove fit of DoublePoint’s acreage with ours, we expect to achieve synergies of approximately $175 million annually, leading to double-digit free cash flow per share and variable dividend per share accretion.

"With an incremental $5 billion in free cash flow expected to be generated from DoublePoint assets through 2026, Pioneer currently anticipates delivering approximately $23 billion of free cash flow during the same period at strip pricing. We expect to return approximately 80% of this free cash flow through our base and variable dividend structure, strengthening our value proposition to shareholders."
---------------------------
I should have my forecast/valuation model updated early this afternoon. Prior to today my valuation of PXD was $202/share. - Dan
Dan Steffens
Energy Prospectus Group
Post Reply