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Pioneer Natural (PXD) Misses Q2 Earnings & Revenue Estimates

Pioneer Natural Resources CompanyPXD reported second-quarter 2018 earnings of $1.41 per share, excluding one-time items, which missed the Zacks Consensus Estimate of $1.54. The bottom line improved from 21 cents in the year-ago quarter.

Pioneer Natural Resources Company Price, Consensus and EPS Surprise

Pioneer Natural Resources Company Price, Consensus and EPS Surprise | Pioneer Natural Resources Company Quote

Revenues and other income in the quarter surged 29.5% year over year to $2,111 million from $1,630 million. However, the top line missed the Zacks Consensus Estimate of $2,233 million.

Higher oil and liquids price realizations as well as increased production supported second-quarter results. This was partially offset by higher expenses.

Production

Total production in the reported quarter averaged 327.7 thousand barrels of oil equivalent per day (MBOE/d), which improved 26.5% year over year and beat the Zacks Consensus Estimate of 320 MBOE/d. The upside can be attributed to the Permian Basin drilling program.

Oil production averaged 185.5 thousand barrels per day (MBbl/d), up 26.3% year over year but below the Zacks Consensus Estimate of 189 MBbl/d. Natural gas liquids (NGLs) production jumped 21% year over year to 64.5MBbl/d, but lagged the Zacks Consensus Estimate of 66 MBbl/d. Natural gas productions amounted to 466.4 million cubic feet per day (MMcf/d), up from the year-ago quarter's level of 353.6MMcf/d. The figure beat the Zacks Consensus Estimate of 388 MMcf/d.

Price Realization

On an oil equivalent basis, average realized price was $43.12 per barrel in the reported quarter compared with $32.56 a year ago. The figure missed the Zacks Consensus Estimate of $46.15. The average realized price for oil was $61.20 a barrel compared with $45 in second-quarter 2017.

Average natural gas price dropped 24.8% year over year to $1.97 per thousand cubic feet (Mcf). Natural gas liquids were sold at $28.83 a barrel, up from $16.91 in the year-ago quarter.

Cash, Debt and Capex

At the end of the quarter under review, cash balance was $792 million. Long-term debt totaled $2,285 million, reflecting a debt-to-capitalization ratio of 16.6%.

Guidance

Pioneer Natural expects Permian basin production between 278 MBOE/d and 288 MBOE/d in the third quarter of 2018. Moreover, the company expects 2018 production from the prolific Permian Basin to surge 19-24% from the year-ago level. For the third quarter, the company expects production costs in the range of $9.50-$11.50 per BOE. General and administrative expenses are expected in the range of $95-$100 million.

For 2018, Pioneer intends to spend $3.3-$3.4 billion.

Price Performance

Pioneer Natural's shares gained 12.5% during the April-to-June quarter of 2018 compared with 10.2% rise of the industry .

Zacks Rank & Stocks to Consider

Currently, Pioneer Natural carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Canadian Natural Resources Limited CNQ , China Petroleum and Chemical Corporation SNP , also known as Sinopec, and Sunrun Inc RUN . Canadian Natural Resources carries a Zacks Rank #2 (Buy), while Sinopec and Sunrun flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Canadian Natural Resources, based in Calgary, Alberta, is an exploration and production (E&P) company. It pulled off an average positive earnings surprise of 4.7% in the last four quarters.

Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the trailing four quarters.

Sunrun is engaged in offering solar services through various channels. The company delivered an average positive earnings surprise of 16.3% in the last four quarters.

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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 Nasdaq, Inc.


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

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