Pioneer Natural Resources (PXD) Q4 Results - Feb 18

[dan_s]

DALLAS, February 16, 2022--(BUSINESS WIRE)--Pioneer Natural Resources Company (NYSE:PXD) ("Pioneer" or "the Company") today reported financial and operating results for the quarter and year ended December 31, 2021.
> Pioneer reported fourth quarter net income attributable to common stockholders of $763 million, or $2.97 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 $1.2 billion, or $4.58 per diluted share. < Compares to my Q4 forecast of $1,167 million net income.
> Cash flow from operating activities for the fourth quarter was $2.2 billion. < Compares to my forecast of $2.262 billion operating cash flow.
> For the full year 2021, the Company reported net income attributable to common stockholders of $2.1 billion, or $8.61 per diluted share. Cash flow from operating activities for the full year 2021 was $6.1 billion.

I will update my PXD forecast/valuation model over the weekend.

[Fraser921]

Wow they are hitting on all cylinders.

Highlights
- 17 % return on investment in 2021
- 4 billion buyback
- 10 % in dividends (outlook for 2022 need 85 oil)
- minimal debt, best in business
- No oil hedges!!

From the conf call

You also got rid of your hedges. So I'm curious, why not preserve some downside protection? It's a financial case -- investment case that you're highlighting. So why get rid of hedges?

I think you've seen enough articles, oil could easily go to $150. Demand is stronger than it ever has been in the world and OPEC and OPEC Plus is going to run out of capacity by the end of '22. That's even been stated by several OPEC and OPEC plus countries.

So that's ignoring the Iran and the Ukraine situation. Both of them, obviously, there's no reason putting on a hedge when it's obvious that things could easily move up north. Secondly, the hedges are -- the oil strip is totally in backwardation. So right now, we're in the low 90s. It drops about $20 a barrel when you go out five years.

So if you could buy a $100 put for five years, that's a different question, you can't. And so you can only buy a $70 or $60 put. That's probably the bottom end of where oil prices are going to bottom out over the next several years. So it doesn't make sense to put on a put at $60.


Hello, that's what I've been saying

The REPX guy said buying puts at 5 is expensive ,well settling 50 dollar costless hedges is expensive too at (90-50= 40) . So 5 in front end or 40 in back end

I'm very happy that PXD actions are following their believes.

[dan_s]

For those who don't like hedging, check out our profile on Magnolia Oil & Gas (MGY). NONE of its production is hedged. It also pays a dividend, is buying back stock and funding 5% to 10% annual production growth all with free cash flow from operations.