Pioneer Natural Resources Company
) reported first quarter 2013 adjusted earnings of $1.02 per
share, surpassing the Zacks Consensus Estimate of 97 cents. The
quarterly earnings plunged from the year-earlier adjusted income
of $1.23 per share. The decline was mainly due to lower price
Revenues and other income in the quarter increased 6% year over
year to $831.6 million from $784.5 million in the prior-year
quarter, and comfortably surpassed the Zacks Consensus Estimate
of $821.0 million.
Total production in the reported quarter averaged approximately
170.9 thousand barrels of oil equivalent per day (MBOE/d), up
16.5% year over year. The growth was attributable to robust yield
in core growth assets - Spraberry field, Wolfcamp shale and Eagle
Oil production averaged 73.9 thousand barrels per day (MBbl/d),
showing a significant improvement of 28.2% year over year.
Natural gas liquids (NGLs) production surged 20.0% year over year
to 33.0 MBbl/d. Natural gas production increased to 383.8 million
cubic feet per day (MMcf/d) from the year-ago level of
approximately 369.4 MMcf/d.
On an oil equivalent basis, the average realized price was $51.22
per barrel in the reported quarter versus $53.85 in the year-ago
quarter. The average realized price for oil was $88.57 per
barrel, compared with $100.97 in first quarter 2012.
Average natural gas price grew 25.1% to $3.14 per Mcf from the
year-earlier level. Natural gas liquids were sold at $30.36 per
barrel, down from $41.81 in the year-ago quarter.
Cash, Debt & Capex
At the end of the quarter, the cash balance was $430.3 million.
Long-term debt was $3,017.3 million, representing a
debt-to-capitalization ratio of 29.3% (versus 38.8% in the
In 2013, Pioneer plans to spend $3.0 billion in total. Of this,
the company has planned drilling capex of $2.75 billion and
capital for vertical integration of $0.25 billion.
An amount of $70 million has been allocated for the expansion of
the Brady, Texas sandmine and $145 million has been set aside for
the company's several new field buildings, including the Midland
office. However, the budget excludes acquisitions, asset
retirement obligations, capitalized interest and geological and
During the quarter, an amount of $759 million was spent on
Second Quarter Guidance
Pioneer expects its production to average between 174 MBOE/d and
179 MBOE/d for the second quarter of 2013.
Production costs are expected between $14.00 and $16.00 per BOE,
and depletion, depreciation and amortization expense is expected
to average $14.00 to $16.00 per BOE. The exploration expense
guidance is $25-$35 million and the tax rate is expected at
Pioneer carries a Zacks Rank #3 (short-term Hold rating).
However, there are other Zacks Ranked #1 (Strong Buy) stocks in
the oil and gas industry like
Harvest Natural Resources Inc.
Newpark Resources Inc.
EPL Oil & Gas, Inc.
) that appear more attractive in the short term.
EPL OIL&GAS INC (EPL): Free Stock Analysis
HARVEST NATURAL (HNR): Free Stock Analysis
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PIONEER NAT RES (PXD): Free Stock Analysis
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