Tue, Nov. 10, 4:42 PM
- Pioneer Natural Resources (NYSE:PXD) Chairman/CEO Scott Sheffield says the company will not add any new oil rigs in 2015 and is reconsidering the timing of its previously announced 2016 rig expansion program.
- PXD had planned to add two rigs per month in the Permian Basin from July 2015 through year-end but has stopped after adding just eight rigs; also, PXD had expected to add six rigs in the Permian and two rigs in the Eagle Ford during Q1 2016, but now says it is reconsidering the timing of those projects.
- The CEO says PXD expects to focus more heavily on its assets in the Permian Basin, calling it the "the only place to grow oil long-term in this country."
Mon, Nov. 2, 6:28 PM
- Pioneer Natural Resources (NYSE:PXD) -0.6% AH despite reporting a smaller than expected Q3 loss, boosted by the sale of its Eagle Ford Shale pipeline joint venture with Reliance Industries to Enterprise Products Partners.
- PXD, which has said it would continue to add an average of two rigs a month through the end of the year in the northern Spraberry/Wolfcamp area despite sharply lower crude oil prices, says it does not plan to add more rigs this year, citing efficiency gains.
- However, PXD raises its production target for the year by one percentage point to 11%, as it ups its Spraberry/Wolfcamp target to a 25%-26% increase from its previous view of 22%-24%.
- PXD says it produced 211K boe/day in Q3 (52% oil), up 7% Q/Q and above the top end of its guidance range of 205K-210K boe/day, again driven by Spraberry/Wolfcamp, where production rose 13% Q/Q.
- Says its 2015 capital budget remains at $2.2B.
Mon, Nov. 2, 4:20 PM
Sun, Nov. 1, 5:35 PM
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Fri, Aug. 28, 5:39 AM
Tue, Aug. 25, 10:43 AM
- Goldman Sachs analysts say the U.S. stock market correction has many more parallels with 1998 than 2008, which “suggest[s] a rebound ahead,” while predicting the S&P 500 will rise by 11% from current levels to reach 2,100 by year's end.
- The S&P fell 19% between July and August 1998, but "ultimately, the U.S. economy was relatively unaffected by overseas financial market gyrations in 1998, and we believe a similar situation will occur in 2015," Goldman says.
- The correlation between U.S. economic growth and Chinese growth is relatively low, Goldman says, estimating that a one percentage point drop in Chinese growth would translate into a 0.06 pp reduction in U.S. GDP.
- The best strategy for U.S. consumers, the bank advises, is to hold companies with high domestic revenues and avoid companies with high foreign sales.
- Goldman's list of the 25 most oversold stocks with high U.S. sales exposure: KMX, M, WFM, CHK, SWN, RRC, COG, PXD, OKE, MPC, NAVI, ETFC, LNC, BXP, KEY, RF, DFS, ANTM, CSX, NSC, UNP, JBHT, FSLR, ADS, PAYX
Fri, Aug. 14, 12:47 PM
- The Obama administration will allow limited sales of crude oil to Mexico for the first time, Reuters reports, citing a senior administration official who says the U.S. Commerce Department is "acting favorably on a number of applications" to export U.S. crude in exchange for imported Mexican oil.
- The shipments, likely to be lighter, high-quality shale oil, would help Mexico's aging refineries produce more premium fuels, while U.S. refiners would continue to get Mexican heavy oil, a better match for them than the light oil coming from Texas and North Dakota.
- Although limited in scope, the move toward freeing up trade will please U.S. oil producers such as Pioneer Natural Resources (NYSE:PXD) and ConocoPhillips (NYSE:COP), which say the restrictions force them to sell oil at below global market rates, and may add momentum to efforts mostly to repeal what advocates see as a relic of the 1970s.
- Among relevant oil stocks: XOM, CVX, BP, RDS.A, RDS.B, OAS, NOG, CLR, WLL, EOX, SM, SFY, PVA, GST, SN, CRK, BBG, CWEI
- Relevant refining stocks: VLO, HFC, MPC, TSO, WNR, ALJ, PSX, PBF, DK, NTI, ALDW
- ETFs: XLE, XOP, XES, IEO, IEZ, PXE, NDP
Wed, Aug. 5, 3:54 PM
- Pioneer Natural Resources (PXD +0.9%) closes in on a solid gain after Q2 earnings beat expectations and saying it still expects crude oil production to increase even in the face of the oil market downturn.
- PXD says it is maintaining a 10%-plus production growth forecast for 2015, reflecting an expected increase in Spraberry/Wolfcamp production growth from 20%-plus to 22%-24% offset by a reduction in the full-year growth rate for the Eagle Ford Shale.
- Q2 production totaled 197K boe/day (51% oil), reflecting strong Spraberry/Wolfcamp production growth the company says was driven by its successful horizontal drilling program.
- PXD says it put two additional rigs in Spraberry/Wolfcamp in July and will continue to add an average of two rigs a month and bring 100 new wells into production during the rest of the year, and then add eight more rigs in Q1 2016.
- Topeka Capital reiterates its Buy rating and $180 price target, saying PXD remains one of its top picks given a strong balance sheet, solid hedge book and position in the Permian Basin ahead of re-acceleration in what the firm believes will be an improved environment (Briefing.com).
Tue, Aug. 4, 4:41 PM
Fri, Jul. 31, 7:46 PM
- Giants Exxon Mobil (XOM -4.5%) and Chevron (CVX -4.9%) finished significantly lower at the close after each attempted a midday rally, in the wake of earnings misses marked by the continuing crude supply glut and price pressure.
- Oil ETFs fared not much better today: USO -3.2%, OIL -3.7%.
- Producers have key differences that make for advantages and disadvantages, like Chevron's downstream cushion. Exxon's edge over Chevron, Liam Denning notes: M&A. Its stock is down just 19% over the past year while the sector has tumbled 47%.
- As oil's selling point -- big cash distribution -- gets squeezed, Exxon is in relatively good shape. It's still raising its dividend, and it's cut its projected Q3 buybacks to just $500M (vs. zero for Chevron, Shell and BP).
- Exxon says it shops worldwide, but the U.S. may be a more natural hunting ground. Possible targets? According to Wolfe Research's Paul Sankey, Pioneer Natural Resources (PXD -2.4%) and Hess (HES -2.2%).
- ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
- Previously: ConocoPhillips -3.3% as dividend gets scrutiny out of earnings (Jul. 31 2015)
- Previously: Chevron -1.8% as earnings tumble, paced by $2.2B upstream loss (Jul. 31 2015)
- Previously: Exxon Mobil off 1.8% premarket after lowest profit since 2009 (Jul. 31 2015)
Wed, Jul. 22, 5:29 PM
- Pioneer Natural Resources (NYSE:PXD) reports Q2 production figures that fall short of its guidance due to lower than expected output in the Eagle Ford shale, but it maintains its FY 2015 outlook thanks to strong results from the Spraberry/Wolfcamp play.
- PXD says Q2 production averaged 197K boe/day (51% oil), below guidance of 198K-203K boe/day, and forecasts 2015 Eagle Ford production growth to be "nominal," primarily due to the delays in placing wells on production and performance issues during H1.
- However, PXD maintains its full-year production growth forecast at 10%-plus, as output from Spraberry/Wolfcamp is expected to grow by 22%-24% vs. its prior forecast of 20%-plus, reflects the continued strong performance of the horizontal drilling program.
Wed, Jul. 22, 2:37 PM
- A reduction in non-OPEC production eventually will provide an opportunity for U.S. producers to get back in the game, Credit Suisse analyst Mark Lear says as he upgrades the oil and gas E&P sector to Overweight and changes ratings for several individual stocks.
- Lear sees a handful of names with limited downside at WTI prices of ~$60/bbl and “decent” upside with prices in the $70’s, and expects a better year for natural gas in 2016 as dropoffs in production and higher demand could lead to higher winter prices.
- "We may be early,” but Credit Suisse assumes coverage at Outperform on some E&P stocks: EOG, EPE, PXD, DNR, APC, DVN.
- Upgraded to Outperform from Neutral: HES, CXO, CRZO, NBL
- Upgraded to Neutral from Underperform: MUR.
- Assumed coverage at Neutral: APA, DNR
- Assumed at Underperform: SD, SWN
- Downgraded to Underperform from Neutral: REXX, CRK
Thu, Jul. 16, 2:57 PM
- Global oil majors have $150B of firepower than can be used for M&A and have the ability to defer another $325B in capex on marginal projects; with so much cash available for potential deals and up to 15M bbl/day of production potentially available for purchase, Goldman Sachs analyst Ruth Brooker sees a pickup in M&A activity in the oil and gas space coming soon.
- The firm thinks shale production has the potential to double by 2025, and Brooker argues majors likely will take the current opportunity to increase their exposure to U.S. shale at historically low prices.
- Goldman sees seven companies as most likely to draw buyout attention from the majors: EOG, PXD, CLR, COG, NBL, APC, RRC.
Mon, Jul. 13, 5:38 PM
- Weakness in oil stocks should not be used as a buying opportunity, Barclays analysts say, viewing shares as significantly overvalued and appearing to discount an average oil price of $85-$90/bbl based on group average historical multiples.
- The firm removes Newfield Exploration (NYSE:NFX) and Cabot Oil & Gas (NYSE:COG) from its list of top oil and gas stocks, leaving only Canadian Natural Resource (NYSE:CNQ), EOG Resources (NYSE:EOG), Southwestern Energy (NYSE:SWN), Noble Energy (NYSE:NBL) and Concho Resources (NYSE:CXO).
- Barclays' bottom group consists of five Underweight rated stocks - CHK, OTCQX:COSWF, PXD, OXY and UPL - while WPX Energy (NYSE:WPX) is bumped off the bottom list to reflect an improved outlook as well as a 20%-plus share price decline.
Mon, Jul. 13, 11:32 AM
- Pioneer Natural Resources (PXD +1.1%) is upgraded to Overweight from Equal Weight with a $190 price target at Morgan Stanley on valuation after the stock has lagged Permian and large-cap peers, driven by macro and hedge-fund criticism despite offering best-in-class reserve upside, drilling inventory and growth potential.
- PXD's "inventory depth" will enable it to grow production more than peers and cause the market to assign the stock a consolidation multiple, Stanley says, adding that the Spraberry play could significantly add to PXD's inventory and future growth potential.
- PXD has shed 18% since early May, vs. a 7% decline in Permian peers and a 12% drop in E&Ps with Permian exposure, thus the firm believes the stock and sector pullback now provide a suitable entry point.
Wed, Jul. 8, 3:28 PM
- Pioneer Natural Resources (PXD -1.3%) says it plans to increase drilling activity in Texas following closing the sale of its Eagle Ford shale pipeline and processing business, despite the ~15% drop in crude prices since late June.
- PXD says it already has added two drilling rigs in the Permian Basin this month and plans to add an average of two per month during the balance of the year as long as the crude oil price "remains constructive."
- PXD plans to add eight horizontal rigs in Texas shale basins early next year, bringing the total rig count to 36, or the same number it had before the price of oil collapsed by more than half.
- PXD does not expect the increased drilling to have a big impact on 2015 production, which had been forecast to grow more than 10%, but it will push capital spending up $350M to $2.2B.
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