Pioneer Natural Resources (PXD) Tops Q4 EPS by 12c

Pioneer Natural Resources (NYSE: PXD) reported Q4 EPS of ($0.18), $0.12 better than the analyst estimate of ($0.30). Revenue for the quarter came in at $1.07 billion versus the consensus estimate of $818.49 million.

2016 Capital Program

The Company’s capital budget for 2016 is $2.0 billion (excluding acquisitions, asset retirement obligations, capitalized interest and geological and geophysical G&A), down from the preliminary forecast of $2.4 billion to $2.6 billion and 2015 actual spending of $2.2 billion. The budget includes $1.85 billion for drilling-and-completions-related activities, including tank batteries/saltwater disposal facilities and gas processing facilities, and $150 million for water infrastructure, vertical integration, systems upgrades and field facilities.

The following provides a breakdown of the capital budget by asset:

Northern Spraberry/Wolfcamp – $1,710 million (includes $1,440 million for the horizontal drilling program, $160 million for tank batteries/saltwater disposal facilities, $45 million for gas processing facilities and $65 million for land/science/other);
Southern Wolfcamp joint venture area (net of carry) – $60 million (includes $45 million for the horizontal drilling program, $10 million for tank batteries/saltwater disposal facilities and $5 million for land/other);
Eagle Ford Shale – $60 million (includes $30 million for the horizontal drilling program and $30 million for compression, land and other); and
Other assets – $20 million.

The 2016 capital budget is expected to be funded from forecasted operating cash flow of $1.3 billion (assuming average 2016 estimated prices of $36.00 per barrel for oil and $2.35 per thousand cubic feet (MCF) for gas), cash on hand (excludes proceeds from Pioneer’s December 2015 notes offering) and the remaining $500 million of proceeds from the Eagle Ford Shale midstream business sale that will be received in July 2016.

The Company expects to deliver production growth of 10%+ in 2016 compared to 2015 based on the above capital program. This growth reflects Spraberry/Wolfcamp area production growing by 30%+, partially offset by declines of approximately 25% in the Eagle Ford Shale and 10% across Pioneer’s other assets.

For earnings history and earnings-related data on Pioneer Natural Resources (PXD) click here.

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