Pioneer Natural Resources (PXD) Q3 Results - Nov 4

[dan_s]

My comments in blue.

Pioneer Natural Resources Company (PXD) (“Pioneer” or “the Company”) today reported financial and operating results for the quarter ended September 30, 2019. Pioneer reported third quarter net income attributable to common stockholders of $231 million, or $1.38 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 third quarter was $333 million, or $1.99 per diluted share. Cash flow from operating activities for the third quarter was $895 million. < Compares to my forecast of net income of $321 million or $1.92 per share and operating cash flow of $891 million or $5.33 per share. Solid results for the quarter.

Highlights

Third quarter oil production averaged 215 thousand barrels of oil per day (MBOPD), near the top end of guidance
Third quarter production averaged 351 thousand barrels of oil equivalent per day (MBOEPD), above the top end of guidance

Reduced the top end of the forecasted 2019 capital program1 by an additional $150 million, or approximately 5%, while increasing the midpoint of 2019 production guidance by approximately 3%
Delivered strong third quarter free cash flow of approximately $250 million < Better than my forecast.
Realized further drilling and completion efficiencies, leading to lower well costs and a more capital efficient long-term drilling program
Repurchased $200 million of common stock during the third quarter under the Company’s $2 billion repurchase authorization; $728 million executed to-date

President and CEO Scott D. Sheffield stated, "Pioneer reported another outstanding quarter where we executed at a high level, under spent our capital budget and delivered strong production growth. We continue to drive down costs as demonstrated by a further reduction in our 2019 capital budget, including achieving our goal to reduce facilities spending earlier than we had expected, and realizing our first full quarter of reduced G&A spending.

“The unique combination of our peer-leading asset base and increased efficiencies resulted in strong free cash flow generation of approximately $250 million during the third quarter. We remain committed to returning capital to shareholders as evidenced by our additional share repurchases during the quarter and announcing our first quarterly dividend of $0.44 per share, or $1.76 per share on an annualized basis. Pioneer’s unmatched inventory of highly economic Midland Basin horizontal wells underpins a resilient program that maximizes shareholder value, generates top-tier margins and is being executed in a manner that demonstrates our commitment to sustainable practices."