The shares of independent oil and gas exploration and
production (E&P) company,
Pioneer Natural Resources Company
) soared to a 52-week high of $147.99 on Thursday, Jun 13, 2013,
buoyed by a slew of positive developments. The closing price of
the Irving, Texas-based company on Jun 13, 2013, was $146.95,
representing a solid 1-year return of 66.67% and an impressive
year-to-date return of about 33.90%. Additionally, Pioneer - with
a market cap of $20.07 billion - boasts a long-term expected
earnings growth rate of 15.54%.
Last month, Pioneer reported first quarter 2013 adjusted earnings
per share of $1.02, below the year-ago adjusted earnings of
$1.23. But its revenues improved 6% year over year to $831.6
million. This was aided by strong average natural gas price
realization, which grew 25.1% to $3.14 per Mcf from the
Earlier this month, Pioneers' first horizontal Wolfcamp Shale
well - Mabee K #1H - in Martin County, Texas commenced
production. A 27-stage hybrid fracture stimulation over the
well's perforated lateral length of 6,671 feet was used to
complete the Mabee K #1H. The well had an initial 24-hour peak
natural flow rate of 1,572 barrels of oil equivalent per day,
with 77% oil content.
With the success of this exploration, Pioneer is on an expansion
path. It looks forward to more such opportunistic programs in
2013 to gain significant market share. We believe such
accomplishments will garner profits for Pioneer Natural Resources
in the upcoming quarters.
Pioneer, the third largest driller in the country, focuses on
oil- and liquids-rich drilling, as evidenced by the speeding up
of activities in the horizontal Wolfcamp Shale play, where it
holds the key position occupying more than 400,000 potential
Additionally, Pioneer is gaining investor attention with its
production growth and resource potential. The company is
accelerating its drilling program around key areas with
significant cost control initiatives, which we believe must point
towards better earnings and free cash flow visibility.
Pioneer currently carries a Zacks Rank #3 (Hold). Meanwhile,
certain other U.S. E&P firms like
Anadarko Petroleum Corporation
EOG Resources Inc.
) are expected to outperform the equity market in the next one to
three months. All the three stocks currently hold a Zacks Rank #2
ANADARKO PETROL (APC): Free Stock Analysis
ENCANA CORP (ECA): Free Stock Analysis Report
EOG RES INC (EOG): Free Stock Analysis Report
PIONEER NAT RES (PXD): Free Stock Analysis
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