It has been about a month since the last earnings report for Pioneer Natural Resources . Shares have added about 7.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Pioneer Natural Resources due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Pioneer Natural Q1 Earnings Beat Estimates

Pioneer Natural reported first-quarter 2022 earnings of $7.74 per share (excluding one-time items), beating the Zacks Consensus Estimate of $7.32. The bottom line surged from the year-ago quarter’s profit of $1.77 per share.

Total quarterly revenues of $6,172 million surpassed the Zacks Consensus Estimate of $5,775 million. The top line also improved from the year-ago quarter’s $2,444 million.

The strong quarterly earnings can be attributed to higher oil-equivalent production volumes and commodity price realizations.

Dividend Hike

For the second quarter, Pioneer Natural announced a dividend payment of $7.38 per share of common stock, which includes a variable dividend of $6.60 per share and a base dividend of 78 cents. This suggests a 95.2% increase from the prior dividend of $3.78 per share. The dividend is payable on Jun 14, 2022, to its stockholders of record at the close of business on May 31, 2022.

Moreover, the company repurchased $250 million of common stock in the first quarter.

Production

For first-quarter 2022, total production was 637.8 thousand barrels of oil-equivalent per day (MBoe/d), up from the year-ago figure of 473.9 MBoe/d.

Oil production was 355.3 thousand barrels per day (MBbls/d), up from the year-ago quarter’s 281 MBbls/d. NGLs production was 152.9 MBbls/d compared with the prior-year quarter’s 105.7 MBbls/d. Natural gas production amounted to 777.3 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 523.5 MMcf/d.

Price Realization

On an oil-equivalent basis, the average realized price was $68.48 per barrel for the reported quarter compared with $42.75 a year ago. The company reported an average realized crude price of $94.60 a barrel, up from $56.71 reported in the March-end quarter of 2021.

Average natural gas price improved to $4.81 per thousand cubic feet from $3.04 in the prior-year quarter. Natural gas liquids were sold at $41.37 a barrel, up from $25.90 a year ago.

Operating Costs

Pioneer Natural’s expenses for oil and gas production were $416 million, up from $252 million in the year-ago quarter. Total costs and expenses increased to $3,611 million in the first quarter from $2,525 million in the year-ago period.

Cash, Debt and Capex

As of Mar 31, 2022, Pioneer Natural’s cash and cash equivalents totaled $2,385 million, while long-term debt summed at $5,446 million. It had a debt to capitalization of 19.4%.

In the March-end quarter, the company spent $852 million.

Outlook

For 2022, Pioneer Natural reiterated its oil production guidance of 350-365 thousand barrels of oil per day (MBo/d). It projects a total production of 623-648 MBoe/d.

For second-quarter 2022, the company expects oil production of 342-357 MBo/d and a total production of 623-648 MBoe/d.

Pioneer Natural anticipates a total capital budget of $3.3-$3.6 billion for the year. It boasted that the capital spending would be fully funded by its $12.5-billion projected cash flow for this year.

In 2022, the company plans to operate 22-24 horizontal drilling rigs in the Midland Basin, which includes a three-rig average program in the southern Midland Basin joint venture area. The capital budget for 2022 is expected to place 475 to 505 wells online.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

Currently, Pioneer Natural Resources has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Pioneer Natural Resources has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Pioneer Natural Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Devon Energy (DVN Quick QuoteDVN - Free Report) , a stock from the same industry, has gained 13.6%. The company reported its results for the quarter ended March 2022 more than a month ago.

Devon Energy reported revenues of $3.81 billion in the last reported quarter, representing a year-over-year change of +116.4%. EPS of $1.88 for the same period compares with $0.45 a year ago.

For the current quarter, Devon Energy is expected to post earnings of $2.28 per share, indicating a change of +280% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.9% over the last 30 days.

Devon Energy has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.