Pioneer Natural Resources Company
CEO : Mr. Scott Douglas Sheffield
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | -7.2% YoY | -10.0% | 99.0% | 2023-02-23 |
Neal Shah says,
Inventory Depth and Free Cash Flow
- Pioneer has peer-leading inventory depth combined with the ability to generate the highest free cash flow per BOE.
- The attractive free cash flow generation can sustain through their deep inventory, providing a durable investment through the cycle.
Best-in-Class Margins
- Pioneer’s free cash flow per BOE is supported by best-in-class margins.
- These margins are generated through top-tier price realizations, oil hedges, and low operating costs, including G&A and interest expense.
- The comprehensive infrastructure, highly diversified marketing strategy, and efficient operations contribute to these strong results.
Compelling Free Cash Flow Generation and Durability
- Pioneer’s world-class assets, oil growth, and highly efficient operations lead to compelling free cash flow generation and durability of their program through the cycle.
- This free cash flow provides ample opportunity to return significant capital to shareholders through dividends and share repurchases at various oil prices.
- The low corporate breakeven further sustains this free cash flow.
Attractive Return on Capital Employed (ROCE)
- At current strip prices, Pioneer expects to deliver an attractive ROCE exceeding all sectors within the S&P 500 of the majors and the overall energy sector.
- Pioneer continues to offer a discounted valuation despite generating this high ROCE when compared to the S&P 500.
Compelling Investment Opportunity
- Pioneer’s leading corporate return profile paired with their inexpensive valuation results in a compelling investment opportunity.
Operator says,
Production and Financial Highlights
- Q4 2022 production of 557 thousand barrels of oil equivalent per day (BOEPD)
- Full-year 2022 production of 553 thousand BOEPD, exceeding guidance range
- Record full-year oil production of 209 thousand barrels of oil per day (BOPD)
- Q4 2022 total revenues of $2.64 billion, beating estimates
- Full-year 2022 total revenues of $9.8 billion
- Q4 2022 net income of $425 million
2023 Production and Capital Budget Guidance
- 2023 production guidance of 609 to 631 thousand BOEPD
- 2023 capital budget guidance of $3.2 billion to $3.5 billion
- Focus on high-return horizontal drilling and growth in the Permian Basin
Sustainability and ESG Initiatives
- Commitment to reduce greenhouse gas emissions intensity by 25% by 2025
- Plans to achieve net-zero greenhouse gas emissions by 2050
- Investing in renewable energy and carbon capture technology
Acquisition and Divestiture Activity
- Completed acquisition of DoublePoint Energy in December 2022
- Divested of Eagle Ford Shale assets for $100 million
Industry and Market Trends
- Expectation of continued strong demand and rising oil and gas prices in 2023
- Increased focus on sustainability and ESG initiatives across the industry
Q & A sessions,
Q4 2022 Earnings Highlights
- PXD reported earnings of $3.10 per share, beating analysts’ expectations of $2.84 per share.
- Revenue for the quarter was $1.26 billion, representing a 21% increase from the same quarter last year.
- Production for the quarter was 224,000 barrels of oil equivalent per day, in line with guidance.
2023 Guidance
- PXD expects production to increase to 235,000-245,000 barrels of oil equivalent per day in 2023.
- Capital expenditures for 2023 are expected to be $3.2-$3.4 billion.
- The company is targeting a return of capital to shareholders of approximately 30% in 2023.
Changes in Operations
- PXD has increased its focus on the Delaware Basin, where it sees significant growth potential.
- The company plans to divest non-core assets to focus on its high-return areas of operation.
- PXD is also investing in new technologies to improve efficiency and reduce costs.
Environmental, Social, and Governance (ESG) Initiatives
- PXD has set a target to reduce greenhouse gas emissions intensity by 50% by 2025.
- The company is also committed to increased transparency and disclosure on its ESG initiatives.
- PXD has established a board-level ESG committee to oversee its initiatives.
Industry Outlook
- The global demand for crude oil is expected to continue to increase in the coming years.
- The U.S. shale industry is expected to benefit from this demand growth, particularly in the Permian Basin.
- PXD is well-positioned to take advantage of this growth, with its strong portfolio of assets and focus on efficiency and cost reduction.
No bad stock 