Pioneer Natural Resources (NYSE: PXD) has reported the adjusted earnings per share of $0.49 in the fourth quarter 2016 ended 31st December, beating the analysts’ estimates for the adjusted earnings per share of $0.35 by $0.14. The company had reported the adjusted revenue of $1.17 billion in the fourth quarter 2016, beating the analysts’ estimates for revenue of $1.07 billion. Pioneer Natural Resources stock rose over 3.8% on February 8th, 2017 (as of 10:52AM EST; Source: Google finance)
On the other hand, Pioneer Natural Resources has added proved reserves totaling 205 million barrels oil equivalent (MMBOE) during 2016 from discoveries, extensions and technical revisions of previous estimates. This excludes negative price revisions of 58 MMBOE and net proved reserves added of 3 MMBOE from acquisitions and divestitures. Further, in 2016 Pioneer Natural Resources has added 213 million barrels of proved developed reserves from the discoveries and extensions placed on production during 2016, transfers from proved undeveloped reserves at year-end 2015 and the technical revisions of previous estimates for proved developed reserves during 2016.
In addition, as of December 31st, 2016, all of Pioneer Natural Resources proved reserves were in the United States, and 93% were proved developed reserves. Approximately 52% of the Pioneer Natural Resources proved reserves are oil, 19% are NGLs and 29% are gas. PXD’s proved reserves are long-lived with a total reserves-to-production ratio of eight years and a proved developed reserves-to-production ratio of eight years.
Additionally, for 2017, Pioneer Natural Resources has planned capital expenditures for 2017 of $2.8 billion and expected to be funded from forecasted operating cash flow of $2.2 billion and cash on hand. PXD expects to place approximately 260 gross horizontal wells on production in spraberry/wolfcamp during 2017. The company expects the 2017 production growth rate for spraberry/wolfcamp ranges from 30% to 34%, and oil production increasing 33% to 37%. The company has assumed that it will continue to reject ethane throughout in 2017 based on continuing weak market conditions. Moreover, the Q1 2017 production is projected to average 243 mboepd to 248 mboepd. The Q1 2017 production costs are expected to average $7.75 per boe to $9.75 per boe and the Q1 2017 total exploration and abandonment expense is expected to be $20 million to $30 million.
Pioneer Natural Resources stock has an average price target of $213.78, which is a further upside of 22.19%.