Pioneer Natural Resources (PXD) Update - July 21

[dan_s]

Since July 1st, seven Wall Street firms have submitted updated valuation / price targets to Reuters for PXD. Their price targets range from $211 to $315 by Raymond James on 7/20.

PXD closed at $180.95 on July 20.

I have updated my forecast model for PXD. My valuation is now $252.00.

> ~83% of PXD's production comes from the Permian Basin
> Less than 10% of their production is exposed to the pipeline takeaway issue
> They get a high percentage of the oil and gas to market where they are getting premium prices
> Very strong balance sheet and plenty of liquidity to fund plans for 20% annual production growth
> PXD is on-track to reach their goal of 1,000,000 Boepd of production by 2026.

CXO's merger with RSPP (that closed July 19) puts it slightly ahead of PXD as the largest upstream independent in the Permian Basin.