Sterne Agee CRT Maintains Neutral After Pioneer Natural Resources (PXD) Announces Sale of Interest in Eagle Ford Shale Midstream

Sterne Agee CRT maintains a Neutral rating on Pioneer Natural Resources (NYSE: PXD) following its announcement that it is selling its interest in Eagle Ford Shale Midstream assets for $1.08B. Analyst Tim Rezvan believes that this will provide financial power to restart its Permian Basin rig ramp.

Rezvan commented, "Pioneer's long-awaited announcement that it is selling its interests in Eagle Ford Shale Midstream assets for $1.08 billion provides the financial firepower to restart its Permian Basin rig ramp. We believe the modestly positive price action is appropriate because 1) the sale was expected, and 2) the 10.8x multiple to CF may trail some expectations. We remain Neutral on PXD shares for valuation reasons, but acknowledge that a return to growth from a further-strengthened balance sheet emboldens the bull camp that believes PXD is still a growth stock. Updated '15 spending guidance (+$350 million in spending, no increase to production) makes previous '15 guidance that concerned some investors largely irrelevant."

For an analyst ratings summary and ratings history on Pioneer Natural Resources click here. For more ratings news on Pioneer Natural Resources click here.

Shares of Pioneer Natural Resources closed at $147.83 yesterday.

You May Also Be Interested In

• Morgan Stanley Upgrades Macquarie Group Ltd. (MQG:AU) (MQBKY) to Overweight
• Stifel Downgrades Komax Holding AG (KOMN:SW) to Sell
• Loop Capital Starts Samsara Inc (IOT) at Buy, 'Play on AI, ML, & IoT Tech Themes in Asset Intensive Industries'