PXD Forecast

dan_s · Post by **dan_s** » Fri May 05, 2017 3:24 pm

I have updated my forecast model for Pioneer Natural Resources (PXD) and it will be posted to the EPG website this afternoon.

I am lowering my valuation by $10 to $230.00, which compares to First Call's price target of $230.41.

It is still a "Screaming Buy" at today's share price. I just lowered the oil price for Q2 and Q3 and tweaked a few line items.

PXD does not have the "Aggressive Growth" of some of the other Permian Basin companies in the Sweet 16, but it holds some of the most valuable real estate on this planet. Cash on hand + cash flow from operations should cover this year's capital program. Approximately 85% of their 2017 production is now hedged, so daily swings in oil and gas prices have almost no impact on their cash flow.