Pioneer Natural Resources (PXD)
Posted: Wed Aug 24, 2016 3:44 pm
We will publish an updated profile on PXD later today. I am raising my valuation by $9.00 to $205.00 per share, compared to First Call's price target of $202.40.
PXD deserves to trade at a very high multiple:
> It has a VERY STRONG balance sheet and more than enough liquidity to fund an aggressive growth play.
> It has over 20,000 low-risk / high-IRR horizontal drilling locations in the Permian Basin
> ~15% annual production growth is locked in
If you want to know why frac sand demand is expected to go up, read what PXD is saying about their well results when completing them with a heck of a lot more sand. We will be discussing this at tomorrow's luncheon at the Hess Club.
PXD deserves to trade at a very high multiple:
> It has a VERY STRONG balance sheet and more than enough liquidity to fund an aggressive growth play.
> It has over 20,000 low-risk / high-IRR horizontal drilling locations in the Permian Basin
> ~15% annual production growth is locked in
If you want to know why frac sand demand is expected to go up, read what PXD is saying about their well results when completing them with a heck of a lot more sand. We will be discussing this at tomorrow's luncheon at the Hess Club.