PXD's Q1 Results - May 6

[dan_s]

Pioneer Natural Resources Company Reports First Quarter 2019 Financial and Operating Results

DALLAS--(BUSINESS WIRE)--May 6, 2019-- Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today reported
financial and operating results for the quarter ended March 31, 2019. Pioneer reported first quarter net income attributable to common
stockholders of $350 million, or $2.06 per diluted share. These results include the effects of a net noncash mark-to-market (MTM) derivative loss,
a noncash MTM gain on shares received on the sale of the Company’s pressure pumping business in December 2018 and certain other unusual
items. Excluding these items, non-GAAP adjusted income for the first quarter was $310 million, or $1.83 per diluted share. < Adjusted Net Income compares to my forecast of $228 million, $1.34 per share.

Highlights

First quarter Permian oil production averaged 203 thousand barrels of oil per day (MBOPD), near the top end of guidance

First quarter Permian production averaged 320 thousand barrels of oil equivalent per day (MBOEPD), above the top end of guidance < My forecast was 322,500 Boepd.

Corporate restructuring efforts are expected to save up to $100 million annually in general and administrative (G&A) costs and create a flatter organization, facilitating greater transparency and accountability

Opening data room to divest gas processing midstream assets, resulting in reduced annual capital requirements and increased annual free cash flow

First quarter Permian oil firm transportation (FT) agreements added $151 million of incremental cash flow

Planning to increase dividend yield to approximately 1% per share on an annual basis (range of $1.50 to $1.75 per share)

President and CEO Scott D. Sheffield stated, “Pioneer had an outstanding first quarter, delivering robust production growth while
underspending our budgeted capital. Our results were highlighted by continued strong well performance and improving capital efficiency that
led to production being above the top end of guidance.

“As a leader in the Permian Basin, we continue to take steps to reduce our cost structure. We ended last year by executing on strategic
initiatives to materially reduce our drilling, completion and facilities capital. We are now taking action to reduce our corporate general and
administrative costs. The net result is expected to save up to $100 million per year and create a leaner reporting structure that facilitates
greater transparency, accountability and strong, consistent execution.

“Further strengthening our value proposition for shareholders remains a top priority. We plan to divest our gas processing midstream assets
during the year, resulting in capital savings and increased free cash flow. With the Eagle Ford divestiture closed, Pioneer is now a ‘pure-play’
Permian company, with decades of high-margin drilling inventory.

“The actions we are undertaking position us for success now and into the future, delivering strong results and increasing shareholder value. We
plan to increase our dividend to approximately a 1% yield , underscoring our commitment to returning capital and continuing our journey of
enhancing shareholder value.”
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MY TAKE: If OXY ends up getting Anadarko, Chevron will take a hard look at PXD and CXO.