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Pioneer Natural Resources Company shares have declined 3.5% despite reporting strong third-quarter earnings on Oct 27. The downward price movement can be attributed to the company’s dividend cut concerning investors.
The company reported third-quarter 2022 earnings of $7.48 per share (excluding one-time items), beating the Zacks Consensus Estimate of $7.43. The bottom line surged from the year-ago quarter’s profit of $4.13 per share.
Total quarterly revenues of $6,093 million missed the Zacks Consensus Estimate of $6,552 million. However, the top line improved from the year-ago quarter’s $4,463 million.
The strong quarterly earnings were primarily driven by higher natural gas production volumes and commodity price realizations.
Pioneer Natural Resources Company Price, Consensus and EPS Surprise
For the fourth quarter, Pioneer announced a dividend payment of $5.71 per share of common stock, which includes a variable dividend of $4.61 per share and a base dividend of $1.10. This suggests a 33.4% decline from the last paid $8.57 per share. The new dividend is payable on Dec 15, 2022, to its stockholders of record at the close of business on Nov 30, 2022.
Moreover, the company repurchased $500 million of common stock in the third quarter.
Production
For third-quarter 2022, the total production was 656.6 thousand barrels of oil-equivalent per day (MBoe/d), down from the year-ago figure of 675.8 MBoe/d.
Oil production was 354 thousand barrels per day (MBbls/d), down from the year-ago quarter’s 388.8 MBbls/d. NGLs production was 162.4 MBbls/d compared with the prior-year quarter’s 156.9 MBbls/d. Natural gas production amounted to 841 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 780.5 MMcf/d.
Price Realization
On an oil-equivalent basis, the average realized price was $69.93 per barrel for the reported quarter compared with $52.79 a year ago. The company reported an average realized crude price of $94.23 a barrel, up from $69.24 reported in the September-end quarter of 2021.
The average natural gas price improved to $7.58 per thousand cubic feet from $4.05 in the prior-year quarter. Natural gas liquids were sold at $38.09 a barrel, up from $35.66 a year ago.
Operating Costs
Pioneer’s expenses for oil and gas production were $562 million, up from $323 million in the year-ago quarter. Total costs and expenses increased to $3,599 million in the third quarter from $3,127 million in the year-ago period.
Cash, Debt and Capex
As of Sept 30, 2022, Pioneer’s cash and cash equivalents totaled $1,316 million, while long-term debt was $4,228 million. It had a debt to capitalization of 18.5%.
In the September-end quarter, the company spent $1 billion.
Outlook
For 2022, Pioneer reiterated its oil production guidance of 350-365 thousand barrels of oil per day (MBo/d). The company projects a total production of 623-648 MBoe/d.
For the fourth quarter, Pioneer expects oil production of 346.5-361.5 MBo/d and a total production of 655-680 MBoe/d.
The company gave a total capital budget of $3.6-$3.8 billion for the year. It boasted that the capital spending would be fully funded by its more than $12-billion projected cash flow for this year.
Halliburton Company (HAL - Free Report) reported third-quarter 2022 adjusted net income per share of 60 cents, surpassing the Zacks Consensus Estimate of 56 cents. The outperformance reflected stronger-than-expected profit from its divisions.
Halliburton expects international activity to gain momentum throughout the globe. The company’s state-of-the-art portfolio, selective contract wins and balanced geographic mix will help it maximize profit from this upcycle. As far as North America is concerned, HAL sees continued revenue growth in a tight market.
Oceaneering (OII - Free Report) reported a third-quarter 2022 adjusted profit of 23 cents per share, beating the Zacks Consensus Estimate of a profit of 13 cents. The outperformance was largely due to robust results in certain segments.
For 2022, Oceaneering projects consolidated EBITDA of $215-$240 million and continued significant free cash flow generation of $25-$75 million.
RPC Inc. (RES - Free Report) reported adjusted earnings of 32 cents per share in the third quarter, beating the Zacks Consensus Estimate of 25 cents. The strong quarterly results were backed by higher activity levels in all the service lines and improved pricing.
With no debt load, RPC had cash and cash equivalents of $35.9 million at the third-quarter end. This reflects the company’s strong balance sheet that provides it with massive financial flexibility. It allows RPC to remain afloat during tough times.
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Pioneer (PXD) Beats Q3 Earnings Estimates, Cuts Dividend
Pioneer Natural Resources Company shares have declined 3.5% despite reporting strong third-quarter earnings on Oct 27. The downward price movement can be attributed to the company’s dividend cut concerning investors.
The company reported third-quarter 2022 earnings of $7.48 per share (excluding one-time items), beating the Zacks Consensus Estimate of $7.43. The bottom line surged from the year-ago quarter’s profit of $4.13 per share.
Total quarterly revenues of $6,093 million missed the Zacks Consensus Estimate of $6,552 million. However, the top line improved from the year-ago quarter’s $4,463 million.
The strong quarterly earnings were primarily driven by higher natural gas production volumes and commodity price realizations.
Pioneer Natural Resources Company Price, Consensus and EPS Surprise
Pioneer Natural Resources Company price-consensus-eps-surprise-chart | Pioneer Natural Resources Company Quote
Dividend Cut
For the fourth quarter, Pioneer announced a dividend payment of $5.71 per share of common stock, which includes a variable dividend of $4.61 per share and a base dividend of $1.10. This suggests a 33.4% decline from the last paid $8.57 per share. The new dividend is payable on Dec 15, 2022, to its stockholders of record at the close of business on Nov 30, 2022.
Moreover, the company repurchased $500 million of common stock in the third quarter.
Production
For third-quarter 2022, the total production was 656.6 thousand barrels of oil-equivalent per day (MBoe/d), down from the year-ago figure of 675.8 MBoe/d.
Oil production was 354 thousand barrels per day (MBbls/d), down from the year-ago quarter’s 388.8 MBbls/d. NGLs production was 162.4 MBbls/d compared with the prior-year quarter’s 156.9 MBbls/d. Natural gas production amounted to 841 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 780.5 MMcf/d.
Price Realization
On an oil-equivalent basis, the average realized price was $69.93 per barrel for the reported quarter compared with $52.79 a year ago. The company reported an average realized crude price of $94.23 a barrel, up from $69.24 reported in the September-end quarter of 2021.
The average natural gas price improved to $7.58 per thousand cubic feet from $4.05 in the prior-year quarter. Natural gas liquids were sold at $38.09 a barrel, up from $35.66 a year ago.
Operating Costs
Pioneer’s expenses for oil and gas production were $562 million, up from $323 million in the year-ago quarter. Total costs and expenses increased to $3,599 million in the third quarter from $3,127 million in the year-ago period.
Cash, Debt and Capex
As of Sept 30, 2022, Pioneer’s cash and cash equivalents totaled $1,316 million, while long-term debt was $4,228 million. It had a debt to capitalization of 18.5%.
In the September-end quarter, the company spent $1 billion.
Outlook
For 2022, Pioneer reiterated its oil production guidance of 350-365 thousand barrels of oil per day (MBo/d). The company projects a total production of 623-648 MBoe/d.
For the fourth quarter, Pioneer expects oil production of 346.5-361.5 MBo/d and a total production of 655-680 MBoe/d.
The company gave a total capital budget of $3.6-$3.8 billion for the year. It boasted that the capital spending would be fully funded by its more than $12-billion projected cash flow for this year.
Zacks Rank & Stocks to Consider
Pioneer currently carries a Zacks Rank #4 (Sell).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Halliburton Company (HAL - Free Report) reported third-quarter 2022 adjusted net income per share of 60 cents, surpassing the Zacks Consensus Estimate of 56 cents. The outperformance reflected stronger-than-expected profit from its divisions.
Halliburton expects international activity to gain momentum throughout the globe. The company’s state-of-the-art portfolio, selective contract wins and balanced geographic mix will help it maximize profit from this upcycle. As far as North America is concerned, HAL sees continued revenue growth in a tight market.
Oceaneering (OII - Free Report) reported a third-quarter 2022 adjusted profit of 23 cents per share, beating the Zacks Consensus Estimate of a profit of 13 cents. The outperformance was largely due to robust results in certain segments.
For 2022, Oceaneering projects consolidated EBITDA of $215-$240 million and continued significant free cash flow generation of $25-$75 million.
RPC Inc. (RES - Free Report) reported adjusted earnings of 32 cents per share in the third quarter, beating the Zacks Consensus Estimate of 25 cents. The strong quarterly results were backed by higher activity levels in all the service lines and improved pricing.
With no debt load, RPC had cash and cash equivalents of $35.9 million at the third-quarter end. This reflects the company’s strong balance sheet that provides it with massive financial flexibility. It allows RPC to remain afloat during tough times.