Pioneer reported first quarter net income attributable to common stockholders of $178 million, or $1.04 per diluted share. Without the effect of noncash mark-to-market (MTM) derivative losses of $106 million after tax, or $0.62 per diluted share, adjusted income for the first quarter was $284 million after tax, or $1.66 per diluted share. < This compares to my forecast of $1.41 EPS.
At the top of my To Do List for today is to update the forecast/valuation models for PXD and DVN.
PXD Q1 Results
PXD Q1 Results
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: PXD Q1 Results
In the last 3 months, 15 ranked analysts set 12-month price targets for PXD. The average price target among the analysts is $232.87. Valuations range from $202 to $308.
If you think WTI is going to stay over $70/bbl, then $308 makes a lot of sense.
I have updated my forecast/valuation model for PXD and my valuation ( based on $65/bbl WTI for all future periods ) is $233.00, an increase of $18/share over what I valued it at in my last newsletter.
PXD does trade at a rather high multiple of cash flow already, but it has a very strong balance sheet and it is generating FREE CASH FLOW from operations today. It has 15% to 20% production growth locked in for several years.
PXD is trying to sell most of their assets outside of the Permian Basin. If they do, my forecast for 2019 may change quite a bit. My "SWAG" is that they will use proceeds from asset sales to acquire another one or maybe two small-cap Permian Basin companies.
My updated forecast/valuation model for PXD will be on the EPG website later today.
If you think WTI is going to stay over $70/bbl, then $308 makes a lot of sense.
I have updated my forecast/valuation model for PXD and my valuation ( based on $65/bbl WTI for all future periods ) is $233.00, an increase of $18/share over what I valued it at in my last newsletter.
PXD does trade at a rather high multiple of cash flow already, but it has a very strong balance sheet and it is generating FREE CASH FLOW from operations today. It has 15% to 20% production growth locked in for several years.
PXD is trying to sell most of their assets outside of the Permian Basin. If they do, my forecast for 2019 may change quite a bit. My "SWAG" is that they will use proceeds from asset sales to acquire another one or maybe two small-cap Permian Basin companies.
My updated forecast/valuation model for PXD will be on the EPG website later today.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group