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Pioneer Natural Resources Company reported third-quarter 2023 earnings of $5.83 per share (excluding one-time items), which beat the Zacks Consensus Estimate of $5.53. However, the bottom line declined from the year-ago quarter’s $7.48.
Total quarterly revenues of $5,004 million missed the Zacks Consensus Estimate of $5,229 million. The top line declined from the year-ago quarter’s $6,093 million.
Better-than-expected quarterly earnings were primarily driven by higher oil-equivalent production volumes and lower expenses. The positives were partially offset by lower realizations of commodity prices.
Pioneer Natural Resources Company Price, Consensus and EPS Surprise
For the fourth quarter, Pioneer announced a dividend payment of $3.20 per share of common stock, which includes a variable dividend of $1.95 per share and a base dividend of $1.25. This indicates a 73.9% increase from the last paid-out dividend. While the base dividend remained the same, the variable dividend increased.
The new dividend will likely be paid out on Dec 22, 2023, to stockholders of record at the close of business on Nov 30, 2023.
Production
For third-quarter 2023, the total production was 721.5 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 656.6 MBoe/d. The reported figure also surpassed our estimate of 710 Mboe/d.
Oil production was 377.3 thousand barrels per day (MBbls/d), up from the year-ago quarter’s 354 MBbls/d and beating our estimate of 371.4 MBbls/d.
Natural Gas Liquid (NGL) production was 182.2 MBbls/d compared with the prior-year quarter’s 162.4 MBbls/d. The figure topped our estimate of 179.9 MBbls/d.
Natural gas production amounted to 971.7 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 841 MMcf/d and surpassing our estimate of 954.8 MMcf/d.
Price Realization
On an oil-equivalent basis, the average realized price was $52.13 per barrel for the reported quarter compared with $69.93 a year ago. Our estimate for the same was pinned at $55.69.
The company reported an average realized crude price of $81.33 a barrel, down from $94.23 in the September-end quarter of 2022. The figure was also lower than our estimate of $82.90.
The average natural gas price declined to $2.48 per thousand cubic feet from $7.58 in the prior-year quarter. It was also lower than our estimate of $2.53.
NGLs were sold at $24.79 a barrel, down from $38.09 a year ago and lagging our estimate of $35.29.
Operating Costs
Pioneer’s expenses for oil and gas production totaled $564 million, marginally up from $562 million in the year-ago quarter.
Yet, total costs and expenses declined to $3,337 million in the third quarter from $3,599 million in the year-ago period. The reported figure missed our estimate of $3428.4 million.
Cash, Debt and Capex
As of Sept 30, 2023, Pioneer’s cash and cash equivalents totaled $98 million, while long-term debt was $4,880 million. In the September-end quarter, the company spent $1.1 billion.
Outlook
For 2023, Pioneer raised its oil production guidance to 370-373 thousand barrels of oil per day (MBo/d). The company projects a total production of 708-713 MBoe/d, indicating an increase from the 649.8 MBoe/d reported in 2022.
The company gave a reduced drilling, completions, facilities and water infrastructure capital budget of $4.375-$4.475 billion for the year. Additionally, it allotted a capital budget of $150 million for exploration, environmental and other capital.
Liberty Energy Inc. (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
Antero Midstream Corporation (AM - Free Report) reported third-quarter 2023 adjusted earnings per share of 23 cents, which beat the Zacks Consensus Estimate of 21 cents. Such strong quarterly results were primarily driven by higher compression, gathering and freshwater delivery volumes, and increased average freshwater distribution fees.
For 2023, Antero Midstream increased its adjusted EBITDA projection to $970-$990 million, indicating an increase of $10 million at the mid-point of the prior guidance.
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Pioneer (PXD) Beats Q3 Earnings Estimates, Hikes Dividend
Pioneer Natural Resources Company reported third-quarter 2023 earnings of $5.83 per share (excluding one-time items), which beat the Zacks Consensus Estimate of $5.53. However, the bottom line declined from the year-ago quarter’s $7.48.
Total quarterly revenues of $5,004 million missed the Zacks Consensus Estimate of $5,229 million. The top line declined from the year-ago quarter’s $6,093 million.
Better-than-expected quarterly earnings were primarily driven by higher oil-equivalent production volumes and lower expenses. The positives were partially offset by lower realizations of commodity prices.
Pioneer Natural Resources Company Price, Consensus and EPS Surprise
Pioneer Natural Resources Company price-consensus-eps-surprise-chart | Pioneer Natural Resources Company Quote
Dividend Hike
For the fourth quarter, Pioneer announced a dividend payment of $3.20 per share of common stock, which includes a variable dividend of $1.95 per share and a base dividend of $1.25. This indicates a 73.9% increase from the last paid-out dividend. While the base dividend remained the same, the variable dividend increased.
The new dividend will likely be paid out on Dec 22, 2023, to stockholders of record at the close of business on Nov 30, 2023.
Production
For third-quarter 2023, the total production was 721.5 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago quarter’s 656.6 MBoe/d. The reported figure also surpassed our estimate of 710 Mboe/d.
Oil production was 377.3 thousand barrels per day (MBbls/d), up from the year-ago quarter’s 354 MBbls/d and beating our estimate of 371.4 MBbls/d.
Natural Gas Liquid (NGL) production was 182.2 MBbls/d compared with the prior-year quarter’s 162.4 MBbls/d. The figure topped our estimate of 179.9 MBbls/d.
Natural gas production amounted to 971.7 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 841 MMcf/d and surpassing our estimate of 954.8 MMcf/d.
Price Realization
On an oil-equivalent basis, the average realized price was $52.13 per barrel for the reported quarter compared with $69.93 a year ago. Our estimate for the same was pinned at $55.69.
The company reported an average realized crude price of $81.33 a barrel, down from $94.23 in the September-end quarter of 2022. The figure was also lower than our estimate of $82.90.
The average natural gas price declined to $2.48 per thousand cubic feet from $7.58 in the prior-year quarter. It was also lower than our estimate of $2.53.
NGLs were sold at $24.79 a barrel, down from $38.09 a year ago and lagging our estimate of $35.29.
Operating Costs
Pioneer’s expenses for oil and gas production totaled $564 million, marginally up from $562 million in the year-ago quarter.
Yet, total costs and expenses declined to $3,337 million in the third quarter from $3,599 million in the year-ago period. The reported figure missed our estimate of $3428.4 million.
Cash, Debt and Capex
As of Sept 30, 2023, Pioneer’s cash and cash equivalents totaled $98 million, while long-term debt was $4,880 million. In the September-end quarter, the company spent $1.1 billion.
Outlook
For 2023, Pioneer raised its oil production guidance to 370-373 thousand barrels of oil per day (MBo/d). The company projects a total production of 708-713 MBoe/d, indicating an increase from the 649.8 MBoe/d reported in 2022.
The company gave a reduced drilling, completions, facilities and water infrastructure capital budget of $4.375-$4.475 billion for the year. Additionally, it allotted a capital budget of $150 million for exploration, environmental and other capital.
Zacks Rank & Stocks to Consider
Pioneer currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Liberty Energy Inc. (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
Antero Midstream Corporation (AM - Free Report) reported third-quarter 2023 adjusted earnings per share of 23 cents, which beat the Zacks Consensus Estimate of 21 cents. Such strong quarterly results were primarily driven by higher compression, gathering and freshwater delivery volumes, and increased average freshwater distribution fees.
For 2023, Antero Midstream increased its adjusted EBITDA projection to $970-$990 million, indicating an increase of $10 million at the mid-point of the prior guidance.