Pioneer Natural Resources: Appears Fairly Priced For Long-Term Mid-$70s WTI Oil

Summary

  • Pioneer may be able to generate close to $10 billion in positive cash flow in 2022 at current strip.
  • This would allow it to pay $31 per share in base and variable dividends related to 2022 results.
  • Pioneer would also have over $2 billion to put towards share repurchases and debt reduction.
  • Cash taxes are expected to have a larger impact going forward, with Pioneer expecting $1.3 billion to $1.5 billion in cash taxes in 2023.
  • At long-term $75 WTI oil, it may be able to generate $22 per share in free cash flow.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

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Pioneer Natural Resources (PXD) now looks capable of generating nearly $10 billion in positive cash flow in 2022 based on current strip prices. This would allow it to pay base plus variable dividends of approximately $31 per

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

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