Pioneer Natural Resources Company delivered a mixed set of results in the last quarter with revenues falling short of analyst expectations. However, the company managed an earnings beat. It happened to be Texas’s largest oil producer and the most active driller in 2022. The peer-leading free cash flow of Pioneer per BOE is supported by strong margins. These margins are generated through low operating costs, oil hedges, and good price realizations. Return and capital employed and total production was strong in the quarter. The company continues to offer a compelling dividend with one of the largest dividend yields in the S&P 500. Key projects in the quarter include targeting the Woodford and Barnett formations in the Midland Basin, exploration drilling of four wells, and continued appraisal of its enhanced oil recovery projects. Also, it continues to benefit from the continued utilization of the simulfrac operations. Pioneer’s significant water infrastructure provides a diversified reuse and disposal network that spans most of its acreage. In 2022, the company joined OGMP and partnered with NextEra Energy to develop a 140-MW wind generation project. During the first half of the year, they intend to utilize two localized sand mines to provide sand to its wells. We give Pioneer Natural Resources Company a ‘Buy’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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