Pioneer Natural Res (PXD) Valuation Update - Aug 2

[dan_s]

At the time of this post PXD was trading at $229.43

I have updated by forecast/valuation model for Pioneer's strong Q2 results and updated guidance.

My valuation increases by $2 to $252/share.
> Higher production guidance
> Lower capital expenditure budget
> Super strong balance sheet
> Operating cash flow covers an aggressive drilling program, dividends and stock buybacks
> Lots of high quality "running room" in the Permian Basin.

TipRanks: "In the last 3 months, 15 ranked analysts set 12-month price targets for PXD. The average price target among the analysts is $252.43."
Three analysts submitted updated price targets to TipRanks this morning that were $245, $260, and $275.

PXD is what I call a "Core Holding Stock" that pays a nice dividend. Owning PXD is a good way to have exposure to natural gas and NGL prices that should be a lot higher a year from now. None of their production is hedged.