Pioneer Natural Res (PXD) Update - July 4

[dan_s]

PXD is a large-cap upstream company that is now a pure play on the Permian Basin. This year's drilling program should push their production over 705,000 barrels per day by year-end; up from 661,573 Boepd in Q4 2022.

The Company's balance sheet is in great shape and it continues to generate a lot of free cash flow. < Over $3 billion FCF this year.

PXD closed at $207.30 on July 3rd. Based on my updated forecast, their "Base + Variable" dividends should total close to $20/share over the next four quarters.

Except for some insignificant basis hedges, PXD is unhedged. My forecasts assume WTI moves to $90/bbl in Q4 2023. If WTI averages $70/bbl, PXD should still pay total dividends of approximately $16/share over the next four quarters.

We will be publishing an updated profile on PXD tomorrow.