May. 6, 2014, 6:59 PM
- Pioneer Natural Resources (PXD) +2.7% AH after posting better than expected Q1 earnings and revenues thanks to continued success at tight-oil fields in Texas.
- Q1 production rose 5% Y/Y to 172K boe/day, primarily driven by successful Spraberry/Wolfcamp and Eagle Ford Shale horizontal drilling programs and the full recovery of weather-related production curtailments during Q4; continues to forecast 2014 production growth of 14%-19% based on $3B planned drilling capex.
- Increased its drilling rig program in the northern Spraberry/Wolfcamp to 16 horizontal rigs from five at year-end 2013; total horizontal wells placed on production in the Spraberry/Wolfcamp and Eagle Ford Shale are expected to increase to 175 in H2 from 125 in H1.
May. 6, 2014, 4:11 PM| 2 Comments
Apr. 8, 2014, 5:36 PM
- Failure to allow U.S. crude oil exports could result in a big drop in the U.S. drilling rig market, Pioneer Natural Resources (PXD) CEO Scott Sheffield says.
- The CEO also says a predicted oversupply of crude oil from the sharp and continuing production rise from prolific shale and unconventional basins could also result in a more than $30/bbl price differential for U.S. crudes to Brent.
- The rig count would drop quickly if WTI, which now hovers near $100/bbl, were to drop to $70, Sheffield says; a rig drop might start with marginal plays, but "eventually every play" would shut.
Mar. 10, 2014, 11:30 AM
- Pioneer Natural Resources (PXD -1%) is expanding its fleet of drilling rigs in the northern part of Texas’ Spraberry field to 16 from five this quarter, bucking the trend among bigger explorers such as Shell that are writing down U.S. shale assets and shrinking their footprints after drilling money-losing wells.
- Escalating costs are creating a squeeze on the biggest oil producers that is eroding profitability, Chevron CEO John Watson says, but PXD's lack of exposure to the costliest and riskiest international projects, such as liquefied natural gas complexes and ultra-deepwater oil platforms, shields it from some of the pressures impacting larger peers.
- PXD’s cost to extract the equivalent of a barrel of crude declined 4.8% to $13.36 during Q4 2013.
- PXD is spending ~$8M per well to drill sideways through the Spraberry field, and some of those wells probably will gush 1M barrels or more before they peter out decades from now, according to a presentation published on the company’s website March 7.
Mar. 7, 2014, 6:25 PM
- A drilling surge in the Permian Basin appears to account for this week's increase in the U.S. oil rig count, which jumped by 13 to a record high 1,443 in the latest tally by Baker Hughes (BHI).
- “While it’s one of the oldest fields in the U.S., there are multiple producing formations there, and companies are learning how to optimize horizontal drilling in them," WTRG Economics' James Williams says. "The growth is evidence that they’re figuring it out."
- Indeed, as Permian crude production per rig is expected to climb to 98K bbl/day this month, up from 83K a year ago, according to the U.S. Energy Department.
- While Pioneer Natural Resources (PXD), for example, is drilling in a 300-ft. thick shale shale formation in Texas' Eagle Ford play, the Permian offers shale depths of 3,500 ft., “so this is why this area has really substantial running room going forward,” COO Timothy Dove says.
- Other top Permian producers: CXO, APA, COG, CVX, OXY, EGN, END.
Feb. 19, 2014, 5:09 PM
Feb. 11, 2014, 9:57 AM
- Pioneer Natural Resources (PXD -2.4%) opens sharply lower after Q4 earnings beat estimates but said production would grow 14%-19% in 2014.
- Nevertheless, Goldman Sachs maintains its Buy rating on the shares, noting PXD's 2014 growth is expected to be back-end loaded due to horizontal pads ramping up in the Permian during H2; the firm believe PXD should exceed its 18.5% guidance midpoint through 2016 and maintains its outlook for 20% 2015-17 growth.
Feb. 10, 2014, 5:09 PM
- Pioneer Natural Resources (PXD) -2.1% AH after reporting an unadjusted Q4 loss of $1.37B, or $9.82/share, including of $1.5B loss related to discontinued operations and assets held for sale, vs. a year-ago profit of $28M, or $0.22/share, a year earlier.
- Forecasts 14%-19% production growth from continuing operations in 2014 based on planned drilling capital expenditures of $3B; growth will be second-half weighted as PXD ramps up its drilling program in the northern Spraberry/Wolfcamp from five rigs at year-end 2013 to 16 rigs by the end of Q1.
- Added proved reserves of 141M boe during 2013, equating replacement of 211% of PXD's FY 2013 production of 67M boe.
Feb. 10, 2014, 4:09 PM| 2 Comments
Feb. 10, 2014, 12:10 AM
Feb. 9, 2014, 5:35 PM
Jan. 21, 2014, 3:49 PM
- Pioneer Natural Resources (PXD +2.8%) says its Q4 production averaged 173K boe/day, missing earlier estimates of 179K-184K boe/day following winter storms stretching from November through January that knocked out power across much of west Texas.
- PXD says more than 50% of its wells were shut in during the period, and some wells were without power for weeks, but all wells are now operational.
Jan. 17, 2014, 3:53 PM
- Pioneer Natural Resources (PXD -0.4%) is upgraded to Buy from Hold with a $210 target price at Stifel, which sees the correction in the stock since October providing an attractive entry point ahead of a likely favorable Feb. 10 operational update that could include better than expected 2014 guidance, new Spraberry shale well results, and an increase in recoverable resources.
- As drilling picks up in the Permian, the firm thinks PXD is well positioned for NAV expansion, and the risk in the name should come down given the strong production growth expected from PXD’s drilling activity.
Jan. 13, 2014, 3:32 PM
- "Options markets suggest this will be one of the most important earnings seasons in 10 years for stock pickers given low expected correlation and limited pre-positioning," says Goldman analyst John Marshall.
- "We expect outsized profitability for call buying strategies on single stocks this quarter," he adds, noting options markets are actually pricing in a lower earnings-day move than any time on record for the average stock. "We expect earnings surprises to spark unexpectedly large stock moves."
- The average earnings-day move last quarter was 3.5x as large as the average daily move, he says, greater than any other time in the past 17 years.
- Goldman analysts see above-consensus reports from KORS, RYL, TIF, EOG, PXD, WNR, BBT, BX, LAZ, STI, BMY, THC, CMI, DOW, STZ, ARUN, OLED, QCOM, and XLNX.
- Goldman's below the Street on ANN, IGT, MAT, COL, JOY, and MSFT.
Dec. 24, 2013, 2:12 PM
- Energy stocks have underperformed this year, but Merrill Lynch analysts are reasonably positive on the sector for 2014, pointing to some key themes:
- With the price of gas likely to remain in a narrow range next year, the firm says investors should buy high-quality, large resource-based stocks such as COG and RRC.
- The net asset value race is over, and the coming year is about execution, ML says, seeing PXD and WLL as winners here.
- Following 2013's wave of activism, the firm sees gains in HES and OXY.
- Favorable outlooks for E&P budgets could lift oilfield services stocks focused on North America, such as HAL and SLB.
- The ML team sees crude production rising to the highest level since 1989, and pinpoints TSO and VLO as the refiners to benefit the most in 2014 because they're crude-advantaged and have stock-specific catalysts.
- Finally, the firm suggests investors with significant gains in CVX may want to take those and buy XOM for 2014.
Dec. 10, 2013, 11:18 AM
- Pioneer Natural Resources (PXD +2.4%) and its Pioneer Southwest Energy Partners (PSE +3.2%) unit say their Q4 results could fall short of expectations after severe weather in Texas hurt production, but shares are higher as the impact may be less than investors had feared.
- PXD had forecast average production of 179K-184K boe/day for Q4, and PSE had forecast output of 8.7K-9.2K boe/day.
- The Spraberry/Wolfcamp area was "especially hard hit" in late November, but another bout of severe weather that began Dec. 4 "did not cause a significant amount of incremental damage."
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