Pioneer Natural Resources: Recent Stock Offering Makes Sense In Light Of 3-Way Collars On 2016 Production
Michael Fitzsimmons • 59 Comments
Michael Fitzsimmons • 59 Comments
Pioneer (Huge) Resources
Dec. 28, 2015, 11:45 AM
- WTI crude is down 3.2% to $36.90/barrel, and Brent crude down 2.5% to $36.95/barrel, leaving prices close to 11-year lows. Energy industry firms are among the biggest decliners on a day the S&P is down 0.6%.
- Fears about excess supply appear to be weighing once more. OPEC figures point to a global oil supply glut of more than 2M barrels (over 2% of global demand); a smaller glut is expected next year. Meanwhile, Japanese government data indicates the country's oil product sales fell to a 46-year low in November, and European data suggests the continent's oil product demand growth turned negative in October.
- The biggest casualties include Whiting Petroleum (WLL -9.9%), Oasis Petroleum (OAS -8.2%), Vanguard Natural Resources (VNR -12.5%), Denbury Resources (DNR -8%), SandRidge Energy (SD -8.1%), SandRidge Permian Trust (PER -10.9%), SandRidge Mississippian Trust (SDT -7.5%), U.S. Silica (SLCA -6.2%), Marathon Oil (MRO -6.7%), C&J Energy Services (CJES -8.1%), MV Oil Trust (MVO -9.2%), Bonanza Creek (BCEI -6.4%), Parker Drilling (PKD -7.9%), and Continental Resources (CLR -5.9%).
- Other notable decliners include Kinder Morgan (KMI -5%), Williams Partners (WPZ -4.4%), EOG Resources (EOG -3.4%), Cheniere Energy (CQP -3.6%), SeaDrill (SDRL -3.5%), Encana (ECA -2.8%), Devon Energy (DVN -2.7%), Ensco (ESV -3.8%), Hercules Offshore (HERO -4.7%), Atwood Oceanics (ATW -4.9%), Helmerich & Payne (HP -3.8%), and Pioneer Natural (PXD -2.6%).
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
Dec. 16, 2015, 2:31 PM
- Moody's says it is reviewing 29 E&P companies from the U.S. and seven from Canada for a potential downgrade, saying the companies "will be stressed for a longer period with much lower cash flows, difficulty selling assets and limited capital markets access."
- Based on the severity and potential duration of the industry challenges, Moody's expects many companies will be downgraded one notch and others could be lowered by more than one notch.
- Yesterday, the ratings agency cut its oil and gas price assumptions in light of continuing oversupply in the global oil markets and the U.S. natural gas market.
- Among the U.S. companies: APC, AR, APA, XEC, CXO, COP, CLR, DNR, EGN, EOG, EPE, EQT, HES, MRO, MUR, NFG, NFX, NBL, OXY, PXD, QEP, RRC, SM, SWN, UNT, WLL, WPX
- From Canada: BTE, CNQ, OTCQX:COSWF, CVE, ECA, OTCPK:HUSKF, SU
Dec. 9, 2015, 10:36 AM
- Concho Resources (CXO +2.3%) and Pioneer Natural Resources (PXD +4.3%) are named J.P. Morgan's top large-cap picks among E&P companies focused on the Permian Basin, which the firm says is positioned at the low end of the U.S. tight oil cost curve and thus poised to benefit from efficiency and productivity gains.
- CXO boasts a deep inventory of high rate of return locations in the Delaware Basin; given the company's success there, the firm sees the potential for a "positive rate of change" in the Midland Basin.
- Even though PXD has lagged its Permian peers over the past 12-18 months on a weaker capital efficiency metric, the firm expects the company to realize a positive turn in capital efficiency along with differential oil growth to drive outperformance.
- Parsley Energy (PE +4.2%) and Diamondback Energy (FANG +4.4%) are JPM's top small- and mid-cap picks; Cimarex (XEC +1.7%), Energen (EGN +1.8%) and RSP Permian (RSPP +2.6%) are rated Neutral, while Laredo Petroleum (LPI +4.7%) is tagged with an Underweight rating.
Dec. 7, 2015, 10:35 AM
- The energy sector (-4.5%) paces the opening decline, as WTI crude oil prices -4% at $38.35/bbl following a 2.7% slide on Friday after OPEC's failure to agree on a production target to reduce the oil glut.
- Investors are betting on oil prices staying lower for even longer after OPEC's non-decision, pushing U.S. crude futures for delivery nearly 10 years away below $60/bbl, Reuters reports.
- But the oil glut is set to continue as much because of the U.S. as of OPEC, as U.S. shale drillers have only trimmed their pumping a little, and rising oil flows from the Gulf of Mexico are propping up U.S. production; the overall output of U.S. crude fell just 0.2% in September, the most recent monthly federal data available, and is down less than 3%, to 9.3M bbl/day, from the peak in April.
- Goldman Sachs says it expects oil prices to remain "lower for longer," with a risk that prices could fall as low as $20/bbl.
- In early trading: XOM -2.9%, CVX -4.1%, BP -3.2%, RDS.A -4.2%, COP -4.6%, MPC -3.2%, MRO -7.4%, PSX -2.8%, HES -4.9%, APC -6.1%, OXY -3.1%, EOG -5.8%, DVN -9.3%, PXD -7.2%, APA -3.9%, CHK -8%, CLR -9.1%.
- ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
Dec. 2, 2015, 3:21 PM
- WTI crude oil settled below $40/bbl for the first time in more than three months, tumbling 4.6% to $39.94 as U.S. government data showed a 10th straight weekly increase in crude supplies.
- Meanwhile, Brent crude sank 4.4% to $42.49 on London’s ICE futures exchange, the lowest settlement since March 2009.
- The dollar's surge to 12-year highs after pro-rate hike comments by Janet Yellen also weighed on oil and other dollar-denominated commodities.
- Energy stocks suffered severe selling pressure: XOM -2.5%, CVX -2.2%, DVN -5.6%, CLR -5.5%, MRO -5.1%, HES -4.8%, TSO -3.8%, COP -3.7%, EOG -3.7%, APA -3.2%, PXD -3%, APC -2.8%.
- ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, DIG, DTO, DUG, BGR, USL, IYE, IEO, DNO, FENY, PXE, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
Nov. 10, 2015, 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."
Nov. 2, 2015, 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.
Nov. 2, 2015, 4:20 PM
- Pioneer Natural Resources (NYSE:PXD): Q3 EPS of -$0.01 beats by $0.02.
- Revenue of $2.22B (+47.0% Y/Y)
Nov. 1, 2015, 5:35 PM
- ADUS, AEIS, AHL, AIG, ALDW, ALJ, ALL, AMC, AMCC, ANH, ARE, AVD, CAR, CBT, CDE, CGNX, CHGG, CUTR, CYH, DNB, DWRE, ELNK, ENH, ENS, ES, FN, GGP, GPRE, ININ, INN, KONA, LMNX, MCEP, MDAS, MDU, MIC, NLS, NPTN, NSTG, OHI, OLN, ONDK, OTTR, PLOW, PPS, PQ, PXD, QLYS, RAIL, RNG, RSPP, RTEC, RYN, SANM, SGY, SNHY, SSNC, SSW, TDOC, THC, TNET, TXRH, UIL, UNXL, VGR, VIAV, VNO, WSTC
Aug. 28, 2015, 5:39 AM
- Pioneer Natural Resources (NYSE:PXD) declares $0.04/share semi-annual dividend, in line with previous.
- Forward yield 0.07%
- Payable Oct. 9; for shareholders of record Sept. 30; ex-div Sept. 28.
Aug. 25, 2015, 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
Aug. 14, 2015, 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
Aug. 5, 2015, 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).
Aug. 4, 2015, 4:41 PM
- Pioneer Natural Resources (NYSE:PXD): Q2 EPS of $0.10 beats by $0.05.
- Revenue of $648M (-30.5% Y/Y) misses by $111.8M.
Jul. 31, 2015, 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)
Jul. 22, 2015, 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.
Pioneer Natural Resources Co. operates as an independent oil and gas exploration and production company. It is a holding company whose assets consist of direct and indirect ownership interests in, and whose business is conducted substantially through, its subsidiaries. The company is one of the... More
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
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