Category: PXD

PXD – Pioneer Natural (PXD) Q2 Earnings & Revenues Miss Estimates

Pioneer Natural Resources Company (PXD Free Report) reported second-quarter 2021 earnings of $2.55 per share (excluding one-time items), missing the Zacks Consensus Estimate of $2.62 per share. The bottom line increased from the year-ago quarter’s loss of 32 cents per share.

Total quarterly revenues of $3,419 million lagged the Zacks Consensus Estimate of $3,524 million. The top line improved from the year-ago quarter’s $859 million.

The lower-than-expected results can be attributed to the company’s higher operating expenses.

Pioneer Natural Resources Company Price, Consensus and EPS Surprise

Dividend

Pioneer Natural’s board of directors declared its inaugural quarterly variable dividend payment of $1.51 per share of common stock. The third-quarter payment represents nearly 75% of the company’s second-quarter free cash flow after payment of the base dividend in April 2021.

The dividend is payable Sep 17, 2021, to all its stockholders of record at the close of business on Sep 3, 2021.

Production

For second-quarter 2021, total production was 629.5 thousand barrels of oil equivalent per day (MBoe/d), up from the year-ago figure of 374.6 MBoe/d.

Oil production was 363 thousand barrels per day (MBbls/d), up from the year-ago quarter’s 215 MBbls/d. NGLs production was 147.1 MBbls/d compared with the prior-year quarter’s 90.2 MBbls/d. Moreover, natural gas production amounted to 715.7 million cubic feet per day (MMcf/d), up from the year-ago quarter’s 416.5 MMcf/d.

Price Realization

On an oil-equivalent basis, the average realized price was $46.82 per barrel for the reported quarter compared with $17.61 a year ago. The company reported an average realized crude price of $64.55 a barrel, up from $23.16 reported in the June-end quarter of 2020.

Average natural gas price improved to $2.69 per thousand cubic feet from $1.15 in the prior-year quarter. Natural gas liquids were sold at $27.95 a barrel, up from $12.65 a year ago.

Operating Costs

The company’s expenses for oil and gas production were $316 million, up from $167 million in the year-ago quarter. Total costs and expenses increased to $2,919 million for the second quarter from $1,397 million in the year-ago period.

Cash, Debt and Capex

As of Jun 30, 2021, the cash balance totaled $93 million, while long-term debt summed $6,926 million. It had a debt to capitalization of 23.4%.

In the June-end quarter, the company spent $900 million.

Outlook

For 2021, Pioneer Natural expects oil production of 351-366 thousand barrels of oil per day (MBo/d). It projects a total production of 605-631 MBoe/d.

For third-quarter 2021, the company expects oil production of 380-395 MBo/d and a total production of 660-685 MBoe/d.

The company anticipates a total capital budget of $3.1-$3.4 billion for 2021. Notably, it believes that the capital spending will be fully funded by its $6.5-billion projected cash flow.

Pioneer Natural included greenhouse gas (GHG) and methane emission intensity reduction goals into its ESG strategy. It aims to reduce GHG emission intensity by 25% and methane emission intensity by 40% by 2030.

Zacks Rank & Other Stocks to Consider

Pioneer Natural currently carries a Zacks Rank #2 (Buy).

Some other top-ranked players in the energy space are Earthstone Energy, Inc. (ESTE Free Report) , Repsol SA (REPYY Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and W&T Offshore, Inc. (WTI Free Report) , carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earthstone’s earnings for 2021 are expected to surge 62.1% year over year.

Repsol’s earnings for 2021 are expected to increase 8.2% year over year.

W&T Offshore’s bottom line for 2021 is expected to jump 104.8% year over year.

PXD – This Oil Stock Plans to Sextuple Its Dividend Over The Next 2 Years

Despite being one of the strongest sectors in the market this year, the energy sector is still out of fashion with investors. Zooming out and taking a longer-term view, it’s clear that the energy sector has been a huge laggard even after its recent bounce to start 2021.

SPY 10 Year Total Returns (Daily) Chart

SPY 10 Year Total Returns (Daily) data by YCharts

Yet could things be changing? In the wake of the pandemic, and amid the rise of electric vehicles, U.S. shale producers appear to have have widely adopted a new operating and capital allocation paradigm. Major producers have consolidated, cut costs, and plan on limiting their production growth, milking assets for cash flows, and paying most of it out as dividends. As a result, U.S. oil companies’ dividends could soar as the economy recovers.

Pioneer Natural Resources (NYSE:PXD), with the lowest costs per barrel in the Permian basin, has announced its adoption of this new paradigm and stands a great chance of generating tremendous cash flow at current oil prices. As a result, management predicts its current 1.4% dividend could climb sixfold over the next two years, should oil prices stay near current levels.

Shale rig with tanker in foreground.

Image source: Getty Images.

Pioneer follows others to limit production and pay a variable dividend

Like some of its U.S. peers, Pioneer is adopting a new operational paradigm of limiting production growth to 0-5% per year, which will lower capital expenditures and generate free cash flow. Also like others, Pioneer has announced a “fixed-plus-variable” dividend beginning in 2022.

Pioneer currently pays a fixed $2.24 per share dividend, or about 1.4% at the current stock price, and plans to pay out 75% of its free cash flow above that figure over the long-term. In its own wrinkle, the company will pay out the variable dividend based on the prior year’s free cash flow, not the current year. So 2021 free cash flow will dictate variable 2022 dividends, 2022 results will dictate 2023’s dividend, and so on, as long as the company realizes WTI prices above $42.

That assures investors should know what to expect, and the company will be able to keep ample liquidity on its balance sheet. The dividend structure will partially kick in next year, when the company intends to pay out 50% of excess free cash flow while paying down debt to 0.75 times EBITDAX, then ramping up to up to 75% thereafter.

On the recent conference call with analysts, CEO Scott Sheffield said that at current strip prices — which were in the low $60s at the time of the early May conference call, but are over $70 right now — Pioneer would be able to raise its dividend yield to about more than 4% next year, and potentially over 8% in 2023, when the full variable dividend kicks in.

Pioneer’s low-cost producer status should lead to hefty cash flow

If oil producers stay disciplined and keep supply in check — and that is a big if, if history is any guide — Pioneer should be able to generate high margins. Pioneer has the lowest costs per barrel of any U.S. shale producer, with breakevens in the high $20 range. Additionally, the company just bought out two sizable oil companies, Parsley Energy and DoublePoint Energy, with land directly adjacent to Pioneer’s in the Midland basin of the Permian.

These high-quality adjacent assets should yield Pioneer an additional $525 million in operational synergies by the end of this year, further boosting margins. Pioneer used mostly stock to fund these deals, which will keep its leverage low. It’s also encouraging that both target company shareholders were willing to take equity in the “new” Pioneer entity, rather than cash.

A new beginning for oil stocks, or more of the same?

Disciplined by the shale revolution’s oversupply, it appears oil executives now realize their industry isn’t a growth industry anymore. Ironically, that could actually be a much better thing for their stocks, provided that U.S. shale producers and OPEC+ continue with their current supply discipline. By limiting growth, milking assets for cash, and returning it to shareholders, oil stocks may be able to attract yield-seeking value investors in the 2020s.

Investors will have to keep an eye out for other producers that ramp up production and disrupt this dynamic, but assuming oil demand picks up with economic reopening, the biggest dividends in the 2020s stock market could come from oil drillers, just as banks became low-growth but highly profitable dividend growth stocks last decade following the financial crisis.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

PXD – SHAREHOLDER ALERT: Levi & Korsinsky, LLP Notifies Shareholders of an Investigation Concerning Possible Breaches of Fiduciary Duty by Certain Officers and Directors of Pioneer Natural Resources Company- PXD

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PXD – This Oil Stock Doubles Up on a Deal that Could Fuel a Bigger Dividend

Pioneer Natural Resources (NYSE:PXD) has agreed to acquire privately held DoublePoint Energy for $6.4 billion. The DoublePoint deal is the company’s second significant transaction over the last five months as it further consolidates acreage across the oil-rich Permian Basin. It will enhance the oil company‘s capability to generate cash flow, bolstering its ability to pay a gusher of dividends in the coming years via its variable dividend program

Drilling down into the deal

Pioneer Natural Resources has agreed to pay 27.2 million shares of stock, $1 billion in cash, and assume roughly $900 million of debt and liabilities to acquire DoublePoint from a group of private equity funds.

DoublePoint currently holds a contiguous land position consisting of about 97,000 high-quality net acres in the Permian Basin, directly offsetting and overlapping Pioneer’s existing footprint. That makes it highly complementary and an excellent strategic fit. The primarily undrilled acreage will increase Pioneer’s land position to more than 1 million net acres. And DoublePoint’s assets will add about 100,000 barrels of oil equivalent per day to Pioneer’s output.

A row of oil pumps with cash in the background.

Image source: Getty Images.

On top of being an excellent strategic fit, DoublePoint will enhance all of Pioneer’s financial metrics from day one. It will be accretive to the company’s cash flow and free cash flow per share, earnings per share, and corporate returns this year and beyond. Furthermore, Pioneer expects that the combination will yield about $175 million in annual cost savings. As a result, the company anticipates that the combination’s accretive nature should increase the per-share variable dividend that Pioneer intends to start paying next year.

Transitioning from growth to income

Pioneer plans to convert DoublePoint Energy’s assets from a growth driver to an income producer. DoublePoint currently operates seven drilling rigs across its acreage, and that’s fueling growth in oil and gas production at a 30% clip. But Pioneer plans to reduce the activity on DoublePoint’s acreage by 30% once it takes control by dropping down to five drilling rigs. That will decrease the capital spending on this acreage so that it should generate significant free cash flow at current oil prices.

Producing excess cash is the key to Pioneer’s variable dividend program. The framework would see the company pay out up to 75% of its annual free cash flow after its base dividend. Thus, the more excess cash it produces, the higher the potential variable dividend payments. The company plans to make these payments in arrears, with variable dividends earned based on 2021’s free cash flow (which the company will cap at 50% this year) paid out quarterly beginning in 2022. With DoublePoint on track to boost the combined company’s free cash flow per share this year, that variable payout will be higher than it would have been without the deal. Furthermore, it will provide an additional boost to 2022’s free cash given the timing of the expected $175 million in cost savings.

A potentially monster dividend stock in the making

Pioneer Natural Resources was already on track to be a big-time dividend stock before agreeing to acquire DoublePoint. At $55 a barrel for oil, the company was on pace to produce more than $2 billion in free cash flow this year. With crude oil currently in the $60s and the accretive DoublePoint deal secured, that number appears poised to head even higher.

That should give Pioneer the fuel to pay a potentially monster variable dividend that should dwarf its quarterly base payout of $0.56 per share, which already offers investors a competitive 1.4% yield. That upside potential makes Pioneer Natural Resources a stock that dividend investors won’t want to overlook.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

PXD – Pioneer Natural Resources (PXD) Buying Assets From DoublePoint Energy For $6.4 Billion: Details

  • Pioneer Natural Resources Company (NYSE:PXD) recently announced that it has entered into a definitive purchase agreement to buy the leasehold interests and related assets of DoublePoint Energy for $6.4 billion. These are the details.

Pioneer Natural Resources Company (NYSE:PXD) recently announced that it has entered into a definitive purchase agreement to buy the leasehold interests and related assets of DoublePoint Energy in a deal valued at approximately $6.4 billion as of April 1, 2021, comprised of approximately 27.2 million shares of Pioneer common stock, $1 billion of cash and the assumption of approximately $0.9 billion of debt and liabilities.

These are how the transactions enhance the investment framework:

1.) Accretive to Key Financial Metrics – Pioneer is expecting the deal to be accretive on key financial metrics including cash flow and free cash flow per share, earnings per share, and corporate returns during 2021 and beyond.

2.) Increases Variable Dividend Outlook – The deal is consistent with Pioneer’s priority of returning capital to shareholders, the accretive nature of this transaction to free cash flow leads to an increase in the expected per-share variable dividend beginning in 2022 and beyond.

3.) Unmatched Permian Scale – This deal represents a contiguous position of about 97,000 high quality net acres directly offsetting and overlapping Pioneer’s existing footprint. And the acquired acreage is primarily undrilled and augments Pioneer’s premium asset base, increasing the company’s acreage position to greater than 1 million net acres with no exposure to federal lands. Plus the company expects production from the acquired assets to reach approximately 100,000 barrels of oil equivalent per day by late in the second quarter.

4.) Significant Synergies – The deal is expected to result in annual cost savings of approximately $175 million through operational efficiencies and reductions in general and administrative (G&A) and interest expenses. And the expected present value of these cost savings totals approximately $1 billion over a 10-year period.

5.) Top-Tier Balance Sheet Maintained – Pioneer’s pro forma leverage metrics are going to remain relatively unchanged, among the lowest in the industry, thus preserving the company’s financial and operational flexibility and allowing for a significant return of capital to shareholders.

Pioneer is going to issue approximately 27.2 million shares of common stock in the transaction with an additional $1 billion of cash. And after closing, existing Pioneer shareholders will own approximately 89% of the combined company and existing DoublePoint owners will own approximately 11% of the combined company. Plus Pioneer plans to finance the cash portion of the purchase price through a combination of cash on-hand and existing borrowing capacity under its revolving credit facility.

The deal has been unanimously approved Pioneer’s Board of Directors and is expected to close in the second quarter of 2021, subject to customary closing conditions and regulatory approvals. And the deal is structured as the acquisition by a Pioneer subsidiary of 100% of the limited liability company interests of DoublePoint’s wholly owned subsidiary, Double Eagle III Midco 1 LLC.

KEY QUOTES:

“DoublePoint has amassed an impressive, high-quality footprint in the Midland Basin, comprised of tier-one acreage adjacent to Pioneer’s leading position. We are pleased with their decision to become long-term partners with Pioneer in a transaction that will complement our unmatched position in the core of the Permian Basin. Pioneer will incorporate these assets into our investment model, migrating the assets from significant production growth to a free cash flow model, moderating growth for the U.S. shale industry and generating significant value for our shareholders.”

— Pioneer’s CEO Scott D. Sheffield

“The combination of Pioneer and DoublePoint is compelling from both a financial and operational standpoint and a natural fit for DoublePoint. This acquisition continues the trend of consolidation in the prolific Permian Basin, combining two complementary footprints in a transaction with both top- and bottom-line synergies.” Dheeraj Verma, President of Quantum Energy Partners added, “we are firm believers in Pioneer’s strategy of free cash flow generation, which enables a competitive base and strong variable dividend.”

— Geoffrey Strong, Senior Partner and Co-Head of Infrastructure and Natural Resources at Apollo

“We are proud and appreciative of the work that our team has done to build a company and an asset base that is unparalleled in quality and truly cannot be replicated. We are honored to have the opportunity to combine our business with Pioneer, who we have long admired and regard as the premier operator in the Midland Basin. The fit and the synergies are clear, and we look forward to working with Pioneer to continue creating value.”

— Cody Campbell and John Sellers, Co-CEO’s of DoublePoint Energy

PXD – Pioneer Natural Resources Announces Bolt-On Acquisition of DoublePoint Energy in the Midland Basin

DALLAS–()–Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today announced that it has entered into a definitive purchase agreement to acquire the leasehold interests and related assets of DoublePoint Energy (DoublePoint) in a transaction valued at approximately $6.4 billion as of April 1, 2021, comprised of approximately 27.2 million shares of Pioneer common stock, $1 billion of cash and the assumption of approximately $0.9 billion of debt and liabilities.

Scott D. Sheffield, Pioneer’s CEO stated, “DoublePoint has amassed an impressive, high quality footprint in the Midland Basin, comprised of tier one acreage adjacent to Pioneer’s leading position. We are pleased with their decision to become long-term partners with Pioneer in a transaction that will complement our unmatched position in the core of the Permian Basin. Pioneer will incorporate these assets into our investment model, migrating the assets from significant production growth to a free cash flow model, moderating growth for the U.S. shale industry and generating significant value for our shareholders.”

Transaction Enhances Investment Framework

  • Accretive to Key Financial Metrics – Pioneer expects the transaction to be accretive on key financial metrics including cash flow and free cash flow per share, earnings per share and corporate returns during 2021 and beyond.
  • Increases Variable Dividend Outlook – Consistent with Pioneer’s priority of returning capital to shareholders, the accretive nature of this transaction to free cash flow leads to an increase in the expected per share variable dividend beginning in 2022 and beyond.
  • Unmatched Permian Scale – This transaction represents a contiguous position of approximately 97,000 high quality net acres directly offsetting and overlapping Pioneer’s existing footprint. The acquired acreage is primarily undrilled and augments Pioneer’s premium asset base, increasing the Company’s acreage position to greater than 1 million net acres with no exposure to federal lands. The Company expects production from the acquired assets to reach approximately 100,000 barrels of oil equivalent per day by late in the second quarter.
  • Significant Synergies – The acquisition is expected to result in annual cost savings of approximately $175 million through operational efficiencies and reductions in general and administrative (G&A) and interest expenses. The expected present value of these cost savings totals approximately $1 billion over a 10-year period.
  • Top-Tier Balance Sheet Maintained – Pioneer’s pro forma leverage metrics will remain relatively unchanged, among the lowest in the industry, preserving the Company’s financial and operational flexibility and allowing for significant return of capital to shareholders.

Geoffrey Strong, Senior Partner and Co-Head of Infrastructure and Natural Resources at Apollo, commented, “The combination of Pioneer and DoublePoint is compelling from both a financial and operational standpoint and a natural fit for DoublePoint. This acquisition continues the trend of consolidation in the prolific Permian Basin, combining two complementary footprints in a transaction with both top- and bottom-line synergies.” Dheeraj Verma, President of Quantum Energy Partners added, “we are firm believers in Pioneer’s strategy of free cash flow generation, which enables a competitive base and strong variable dividend.”

Cody Campbell and John Sellers, Co-CEO’s of DoublePoint Energy said, “We are proud and appreciative of the work that our team has done to build a company and an asset base that is unparalleled in quality and truly cannot be replicated. We are honored to have the opportunity to combine our business with Pioneer, who we have long admired and regard as the premiere operator in the Midland Basin. The fit and the synergies are clear, and we look forward to working with Pioneer to continue creating value.”

Transaction Details

Pioneer will issue approximately 27.2 million shares of common stock in the transaction with an additional $1 billion of cash. After closing, existing Pioneer shareholders will own approximately 89% of the combined company and existing DoublePoint owners will own approximately 11% of the combined company. Pioneer plans to finance the cash portion of the purchase price through a combination of cash on-hand and existing borrowing capacity under its revolving credit facility.

The transaction has been unanimously approved Pioneer’s Board of Directors and is expected to close in the second quarter of 2021, subject to customary closing conditions and regulatory approvals.

The transaction is structured as the acquisition by a Pioneer subsidiary of 100% of the limited liability company interests of DoublePoint’s wholly owned subsidiary, Double Eagle III Midco 1 LLC.

Webcast Discussion

In conjunction with this release, the Company posted a pre-recorded webcast and associated investor presentation to its website.

To view the webcast and associated presentation, visit www.pxd.com > Investors > Earnings & Webcasts.

To access the presentation slides, visit www.pxd.com > Investors > Investor Presentations.

The webcast will be archived on Pioneer’s website and can be accessed here. This replay will be available through April 27, 2021.

Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States. For more information, visit Pioneer’s website at www.pxd.com.

DoublePoint Energy is a Fort Worth, Texas based upstream oil and gas company, led by the Double Eagle management team in partnership with FourPoint Energy. DoublePoint is backed by equity commitments from Apollo Global Management, Inc. (NYSE: APO), Quantum Energy Partners, Magnetar Capital, and GSO Capital Partners, LP.

Cautionary Statement Regarding Forward-Looking Information

Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer are subject to a number of risks and uncertainties that may cause Pioneer’s actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, the risk that the companies’ businesses will not be integrated successfully; the risk that the cost savings, synergies and growth from the proposed transaction may not be fully realized or may take longer to realize than expected; the diversion of management time on transaction-related issues; the effect of future regulatory or legislative actions on the companies or the industries in which they operate, including the risk of new restrictions with respect to development activities on the companies’ assets; the risk that Pioneer’s credit ratings may be different from what the Company expects; the risk that a party to the transaction may be unable to obtain governmental and regulatory approvals required for the proposed transaction, or that required governmental and regulatory approvals may delay the proposed transaction or result in the imposition of conditions that could reduce the anticipated benefits from the proposed transaction or cause the parties to abandon the proposed transaction; the risk that a condition to closing of the proposed transaction may not be satisfied; the length of time necessary to consummate the proposed transaction, which may be longer than anticipated for various reasons; potential liability resulting from pending or future litigation; changes in the general economic environment, or social or political conditions, that could affect the businesses; the potential impact of the announcement or consummation of the proposed transaction on relationships with customers, suppliers, competitors, management and other employees; the effect of this communication on Pioneer stock price; transaction costs; volatility of commodity prices; product supply and demand; the impact of a widespread outbreak of an illness, such as the COVID-19 pandemic, on global and U.S. economic activity; competition; the ability to obtain environmental and other permits and the timing thereof; the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms; potential liability resulting from pending or future litigation; the costs and results of drilling and operations; availability of equipment, services, resources and personnel required to perform the companies’ drilling and operating activities; access to and availability of transportation, processing, fractionation, refining, storage and export facilities; Pioneer’s ability to replace reserves; implement its business plans or complete its development activities as scheduled; access to and cost of capital; the financial strength of counterparties to Pioneer’s credit facility, investment instruments and derivative contracts and purchasers of the companies’ oil, natural gas liquids and gas production; uncertainties about estimates of reserves; identification of drilling locations and the ability to add proved reserves in the future; the assumptions underlying forecasts, including forecasts of production, cash flow, well costs, capital expenditures, rates of return, expenses, cash flow and cash flow from purchases and sales of oil and gas, net of firm transportation commitments; sources of funding; tax rates; quality of technical data; environmental and weather risks, including the possible impacts of climate change; cybersecurity risks; the risks associated with the ownership and operation of the Company’s oilfield services businesses and acts of war or terrorism. These and other risks are described in Pioneer’s Annual Report on Form 10-K for the year ended December 31, 2020, Quarterly Reports on Form 10-Q filed thereafter and other filings with the United States Securities and Exchange Commission. In addition, the companies may be subject to currently unforeseen risks that may have a materially adverse effect on the combined company. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Pioneer undertakes no duty to publicly update these statements except as required by law.

PXD – Why Pioneer Natural Resources (PXD) Might be Well Poised for a Surge

Pioneer Natural Resources (PXD Free Report) could be a solid addition to your portfolio given a notable revision in the company’s earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

Analysts’ growing optimism on the earnings prospects of this independent oil and gas company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool — the Zacks Rank — is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Pioneer Natural Resources, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $1.75 per share, which is a change of +52.17% from the year-ago reported number.

Over the last 30 days, four estimates have moved higher for Pioneer Natural Resources while two have gone lower. As a result, the Zacks Consensus Estimate has increased 7.86%.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $8.67 per share, representing a year-over-year change of +428.66%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Pioneer Natural Resources. Over the past month, eight estimates have moved higher compared to one negative revision, helping the consensus estimate increase 23.95%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Pioneer Natural Resources currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Pioneer Natural Resources shares have added 25.2% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

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