Pioneer Natural Resources Company
) reported second-quarter 2014 adjusted earnings of $1.35 per
share, beating the Zacks Consensus Estimate of $1.26. The results
also marked an increase from the year-earlier adjusted income of
$1.10 per share.
Pioneer Natural Resources Company - Earnings
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Revenues and other income in the quarter decreased 17.8% year
over year to $953.0 million from $1,159.0 million and missed the
Zacks Consensus Estimate of $960.0 million.
Total production in the reported quarter averaged approximately
182.7 thousand barrels of oil equivalent per day (MBOE/d), up 11.8%
year over year. The growth was attributable to robust yield in core
growth assets - Spraberry field, Wolfcamp Shale and Eagle Ford
Oil production averaged 79.8 thousand barrels per day (MBbl/d),
improving 14.8% year over year. Natural gas liquids (NGLs)
production surged 32.2% year over year to 41.3 MBbl/d. Natural gas
production decreased to 370.0 million cubic feet per day (MMcf/d)
from the year-ago level of approximately 376.3 MMcf/d.
On an oil equivalent basis, the average realized price was $57.64
per barrel in the reported quarter versus $52.52 in the year-ago
quarter. The average realized price for oil was $95.87 per barrel
compared with $90.35 in second-quarter 2013.
Average natural gas price jumped 16.5% year over year to $4.38 per
Mcf. Natural gas liquids were sold at $30.65 per barrel, up from
$28.54 in the year-ago quarter.
Cash, Debt & Capex
At the end of the reported quarter, cash balance was $445.0
million. Long-term debt was $2,659.0 million, representing a
debt-to-capitalization ratio of 28.3% (versus 27.0% in the
The full-year budget is $3.3 billion. Of this, the planned drilling
budget is $3.0 billion and allotted capital for vertical
integration is $0.3 billion.
Pioneer expects production to average 181-186 MBOE/d for the third
quarter of 2014.
Production costs are expected between $13.50 and $15.50 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 projected to be 35-40%.
Pioneer Natural Resources carries a Zacks Rank #2 (Buy). Other
stocks in the oil and gas sector like Weatherford International plc
), CNOOC Ltd (
) and Natural Gas Services Group Inc. (
), which sport a Zacks Rank #1 (Strong Buy), are expected to
outperform the market.
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