Pioneer Natural Q2 Earnings Beat Estimates, Revenues Miss - Analyst Blog

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Pioneer Natural Resources Company ( PXD ) 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 Surprise | FindTheBest


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.

Production

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 Shale.

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.

Price Realization

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 preceding quarter).

Capital Outlay

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.

Third-Quarter Guidance

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%.

Our Take

Pioneer Natural Resources carries a Zacks Rank #2 (Buy). Other stocks in the oil and gas sector like Weatherford International plc ( WFT ), CNOOC Ltd ( CEO ) and Natural Gas Services Group Inc. ( NGS ), which sport a Zacks Rank #1 (Strong Buy), are expected to outperform the market.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: PXD , CEO , WFT , NGS

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