Pioneer Natural Resources CompanyPXD reported first-quarter 2015 adjusted loss of 3 cents per share, which compared unfavorably with the Zacks Consensus Estimate of earnings of 6 cents as well as the year-earlier adjusted income of $1.28. The decline was mainly due to lower price realization.
Revenues and other income in the quarter decreased about 42% year over year to $517 million from $890 million. The top line also fell short of the Zacks Consensus Estimate of $727 million.
Total production in the reported quarter averaged approximately 193.8 thousand barrels of oil equivalent per day (MBOE/d), up 17% year over year. The growth was attributable to robust yield from core growth assets - Spraberry field, Wolfcamp Shale and Eagle Ford Shale.
Oil production averaged 98.6 thousand barrels per day (MBbl/d) - an improvement of 25.4% year over year. Natural gas liquids (NGLs) production rose 5.6% year over year to 35.4 MBbl/d. Natural gas production increased to 359.4 million cubic feet per day (MMcf/d) from the year-ago level of 321.4 MMcf/d.
On an oil equivalent basis, the average realized price was $29.63 per barrel in the reported quarter compared with $59.68 in the year-ago quarter. The average realized price for oil was $43.02 per barrel as against $92.38 in first-quarter 2014.
Average natural gas price decreased 43.2% year over year to $2.70 per thousand cubic feet (Mcf). Natural gas liquids were sold at $15.00 per barrel, down from $32.82 in the year-ago quarter.
Cash and Debt
At the end of the quarter, cash balance was $383 million. Long-term debt was $2,668 million representing a debt-to-capitalization ratio of 23.9% (as against 23.7% in the preceding quarter).
For 2015, Pioneer reiterated capital spending projections of $1.85 billion. Of this, the company has planned drilling capex of $1.6 billion and capital for development of the Spraberry/Wolfcamp water infrastructure and vertical integration of $0.25 billion.
An amount of $1,050 million has been allocated for the northern Spraberry/Wolfcamp area and $120 million has been set aside for the southern Wolfcamp joint venture area. The company has also allocated $390 million for Eagle Ford Shale and $40 million for other assets.
Pioneer expects production to average between 198 MBOE/d and 203 MBOE/d for the second quarter of 2015. The company expects over 10% year-over-year production growth.
Production costs are expected between $13 and $15 per BOE. Depletion, depreciation and amortization expenses are expected to average between $16.00 and $18.00 per BOE.
The projected range is $80-$85 million for general and administrative expenses, $45-$50 million for interest expenses and $50-$60 million for other expenses. The expected tax rate is 35-40%.
Currently, Pioneer carries a Zacks Rank #3 (Hold).
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