Pioneer Natural Res (PXD) Updated Valuation - Feb 21

[dan_s]

TipRanks: Last week 7 analysts updated their price target for PXD. The price targets range from $234 to $275, with an average PT of $257.

On Feb 18 PXD closed at $233.38
I have updated my forecast/valuation model for PXD. My current valuation is $265.

PXD gained 59.70% in 2021, which compares to the average gain for the Sweet 16 last year of 132.62%.
I moved PXD from the Sweet 16 to our High Yield Income Portfolio because they are shifting from a growth company to low single digit production growth company that will generate a lot of free cash flow and pay big variable dividends.

February 16, 2022--(BUSINESS WIRE)--Pioneer Natural Resources Company (NYSE:PXD) ("Pioneer" or "the Company") announced today that its Board of Directors declared a quarterly base-plus-variable cash dividend of $3.78 per share on Pioneer’s outstanding common stock. The dividend is payable March 14, 2022, to stockholders of record at the close of business on February 28, 2022.

Based on the dividend above, PXD's annualized yield is 6.48%.
Based on my forecast, PXD will be generating a lot more FCF this year, so their dividends will be going up.

The recent asset sale to CLR has PXD's balance sheet in GREAT SHAPE. PXD holds some of the most valuable real estate on Earth and it can generate modest growth while paying out over 60% of operating cash flow. It is one of the safest bets in our High Yield Income Portfolio.

My updated forecast/valuation model has been posted to the EPG Website.