Pioneer reported second quarter net income attributable to common stockholders of $233 million, or $1.36 per diluted share. Without the effect of noncash mark-to-market derivative gains and the gain from the sale of acreage in Martin County, Texas, adjusted results for the second quarter were earnings of $38 million after tax, or $0.21 per diluted share.
Adjusted EPS compares to my forecast of $0.24 EPS.
Pioneer Natural Resources (PXD) Q2 Results
Pioneer Natural Resources (PXD) Q2 Results
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Pioneer Natural Resources (PXD) Q2 Results
This is why PXD is down today:
"expecting 2017 production growth for the Company to be 15% to 16%, the low end of the Company’s forecasted 15% to 18% targeted growth range; reflects the lost production from the deferral of 30 Spraberry/Wolfcamp completions to 2018, offset by the benefit of increased gas and NGL production from higher GORs; the Company’s oil growth rate is also being reduced to a range of 17% to 18% as a result of the completion deferrals; oil content for 2017 is expected to average approximately 58%."
President and CEO Timothy L. Dove stated, “The Company delivered another strong quarter, with solid earnings, production at the top end of our second quarter guidance range, continued impressive horizontal well performance in the Spraberry/Wolfcamp and reduced production costs. We are drilling high-return and highly productive wells primarily as a result of our successful completion optimization program. In particular, we are seeing encouraging results from the larger Version 3.0+ completions in the Midland Basin.”
“Operationally, we fell behind on our completions due to unforeseen drilling delays. To maintain efficient operations, we have chosen not to accelerate activity in order to catch up in the second half, especially in light of the current commodity price environment. Our current rig count remains the same, but we are deferring 30 Spraberry/Wolfcamp completions that were planned for this year into 2018. This will result in a reduction in 2017 capital spending of approximately $100 million and production growth closer to the low end of our guidance range of 15% to 18% for 2017. This decision is consistent with our longer-term objective to grow production efficiently by maintaining a steady pace of activity, spending within cash flow, maintaining a strong balance sheet and improving corporate returns.”
"expecting 2017 production growth for the Company to be 15% to 16%, the low end of the Company’s forecasted 15% to 18% targeted growth range; reflects the lost production from the deferral of 30 Spraberry/Wolfcamp completions to 2018, offset by the benefit of increased gas and NGL production from higher GORs; the Company’s oil growth rate is also being reduced to a range of 17% to 18% as a result of the completion deferrals; oil content for 2017 is expected to average approximately 58%."
President and CEO Timothy L. Dove stated, “The Company delivered another strong quarter, with solid earnings, production at the top end of our second quarter guidance range, continued impressive horizontal well performance in the Spraberry/Wolfcamp and reduced production costs. We are drilling high-return and highly productive wells primarily as a result of our successful completion optimization program. In particular, we are seeing encouraging results from the larger Version 3.0+ completions in the Midland Basin.”
“Operationally, we fell behind on our completions due to unforeseen drilling delays. To maintain efficient operations, we have chosen not to accelerate activity in order to catch up in the second half, especially in light of the current commodity price environment. Our current rig count remains the same, but we are deferring 30 Spraberry/Wolfcamp completions that were planned for this year into 2018. This will result in a reduction in 2017 capital spending of approximately $100 million and production growth closer to the low end of our guidance range of 15% to 18% for 2017. This decision is consistent with our longer-term objective to grow production efficiently by maintaining a steady pace of activity, spending within cash flow, maintaining a strong balance sheet and improving corporate returns.”
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Pioneer Natural Resources (PXD) Q2 Results
I have updated my forecast model for PXD. I am lowering my valuation by $14/share to $200. This compares to First Call's price target of $209.21.
Here is why my valuation has gone down:
> PXD's production is getting "gassy". Q2 production came in above my forecast, but the mix was higher natural gas and NGL production with only a slight increase in oil production.
> PXD lowered the top end of their production forecast, which also brings down my 2018 production forecast.
> Completions fell behind schedule and they have no intention of picking up the pace.
PXD does hold a lot of leasehold and has many options on were to drill. They can adjust their drilling program to focus on areas that produce more oil next year.
Here is why my valuation has gone down:
> PXD's production is getting "gassy". Q2 production came in above my forecast, but the mix was higher natural gas and NGL production with only a slight increase in oil production.
> PXD lowered the top end of their production forecast, which also brings down my 2018 production forecast.
> Completions fell behind schedule and they have no intention of picking up the pace.
PXD does hold a lot of leasehold and has many options on were to drill. They can adjust their drilling program to focus on areas that produce more oil next year.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group