Pioneer Natural Resources (PXD) Update - July 2

[dan_s]

At the time of this post PXD is trading at $167.

I have updated my PXD forecast/valuation model for my updated oil & gas price assumptions. My CURRENT valuation increases by $15 to $240.

PXD is the 2nd largest company in the Sweet 16, behind EOG.
> It is a pure play on the Permian Basin
> It has a very strong balance sheet and could pay off all of its debt within 18 months if it decided to.
> If WTI averages $70/bbl for the next six quarters, PXD will generate close to $3 Billion of free cash flow in 2021 and another $5 Billion in 2022.
> Based on their new flexible dividend policy, PXD's dividends could go from $2.24 this year to over $10.00/share in 2022.

On 6/30/2021 UBS analyst Lloyd Byrne (rated 5-Star by TipRanks) raised his price target on Pioneer Natural Resources (NYSE: PXD) to $259.00 (from $238.00) while maintaining a Buy rating.

All of my stock valuations are as of the date that I post them here. They are the prices that I think each company would sell for today if sold in an arms length bidding process. What analysts submit to Reuters for the First Call price targets you see are 12-month price target. If the future does match up with my model, my valuation 12-month from now should be approximately $295.