Pioneer Natural Resources Earnings Higher With Permian Production

Pioneer Natural Resources reported better than expected first quarter earnings after the close Wednesday. $PXD moves towards a pure plaay with strong production from the Permian basin.

Pioneer Natural Resources reported better than expected first quarter earnings after the close Wednesday. $PXD moved towards a ‘Pure Play’ with strong production from the Permian basin

Pioneer is one of the largest oil producers in the Permian Basin and was conservative in a low oil price environment. 

Earnings

EPS of $1.66 on revenue of $2.15 billion, beating estimates EPS of $1.51 and 25 cents a year ago with revenue of $1.802 billion.

Pioneer Natural Resources NYSE: $PXD

Market Reaction > After hours 197.96 +1.63 (+0.83%)

Highlights

“Looking forward, our deep, low-risk inventory of high-margin Permian Basin wells allows us to deliver increasing cash flow and corporate returns.  Our balance sheet remains among the strongest in the industry, while our focus on capital discipline supports an economic, steady long-term growth profile. We believe our high Permian ‘return on capital’ will enhance shareholder value by delivering increasing ‘return of capital’ to investors.” CEO Dove said

 Outlook

  • Q2 production of 312,000-322,000 BOE per day.
  • The 2018 capital budget of $2.9 billion is expected to be increased due to additional Version 3.0+ completions, late-year rig additions preparing for 2019 and inflation.
  • Permian Basin growth for 2018 is tracking toward the high end of its 19%-24% forecast. Based on the success of the higher intensity completions to date, the company is evaluating adding more Version 3.0+ completions in the second half of 2018.

Source: Pioneer Natural Resources

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