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Pioneer (PXD) Reports Q1 Loss, Down Y/Y on Low Realization - Analyst Blog

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.

Pioneer Natural Resources Company - Earnings Surprise | FindTheCompany

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.

Production

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.

Price Realization

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).

Capital Outlay

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.

Guidance

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%.

Zacks Rank

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

Better-ranked players from the industry include Midstates Petroleum Company, Inc. MPO , Penn Virginia Corporation PVA and Sanchez Energy Corporation SN . All these stocks hold a Zacks Rank #2 (Buy).

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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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