Pioneer Natural Resources (PXD) PT Drops To $235 On Increased Cost Inflation - Citi

Citi analyst, Robert Morris, reiterated his Buy rating on shares of Pioneer Natural Resources (NYSE: PXD) but cut his his price target to $235 from $242 noting that the 2018 budget has been increased to $3.3-3.4bn vs. previous guidance of $2.9bn as Pioneer now intends to add four rigs (2 this month and 2 in Q4’18), undertake 60 Version 3.0+ completions in H2’18 (initial budget reflected 0), and indicated that cost inflation has been higher than expected. The additional activity represents 35-40% of the increased budget while higher cost inflation represents the remainder.

The analyst stated "Based on Q2’18 results, initial Q3’18 production and expense guidance, higher capital budget and commentary on the Q2’18 earnings call, we are adjusting our 2018 EPS/CFPS estimates to $6.73/$19.18 from
$7.10/$19.63, and for 2019 to $11.05/$25.65 from $11.13/$25.63. Our full-resource risked NAV declines to ~$262 from ~$272 per share".

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 $186.14 yesterday.

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