Buckingham Research Reiterates 'Accumulate' Rating on Pioneer Natural (PXD)

August 21, 2008 1:35 PM EDT

Buckingham Research reiterates an 'Accumulate' rating on Pioneer Natural Resources (NYSE: PXD). Price target $91.

Buckingham analyst says, "We see PXD as a “back to basics� oil and gas development story that can create substantial value from its core assets that are largely geared to crude oil today (our preferred commodity as to strong price outlook) but with great future exposure and growth coming later in the decade from natural gas derived from several unconventional resource plays. We characterize PXD as a “back to basics� story as within the past three years ago the company shed most of its early diversifications, e.g., Canada, West Africa, Argentina, and deep-water Gulf of Mexico. It also shifted its drilling emphasis to development drilling and away from and high impact, high-risk exploration. It is now largely focused on developmental U.S. onshore plays in which it is highly experienced, e.g., the Spraberry trend of West Texas, which represents 50% of the company’s reserves."

Pioneer Natural Resources Company (Pioneer) is an independent oil and gas exploration and production company with operations in the United States, South Africa and Tunisia.

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