Pioneer Natural Resources (PXD) Update - Aug 26

[dan_s]

I have finished my review of the updated profile for PXD and I have "tweaked" my forecast/valuation model.

Since mid-August six Wall Street firms have published updated reports on PXD with price targets that range from $111 to $215 per share.

PXD is trading at around $106 today. My valuation increases to $121.

PXD has
> A Super Strong Balance Sheet
> Will generate over $600 million of FCF from operations in 2020 and over $1Billion in 2021 if WTI averages $50/bbl.
> It has an extremely valuable undeveloped leasehold position in the Permian Basin.
> If WTI does go over $60/bbl in 2021, Stifel's $215 price target is reasonable.