Pioneer Natural Resources (PXD) Tops Q3 EPS by 40c, Revenues Beat

Pioneer Natural Resources (NYSE: PXD) reported Q3 EPS of $2.07, $0.40 better than the analyst estimate of $1.67. Revenue for the quarter came in at $1.32 billion versus the consensus estimate of $1.26 billion.

President and CEO Timothy L. Dove stated, “The third quarter was another very strong quarter for Pioneer and resulted in production being above guidance, healthy earnings and solid execution. The Permian Basin continues to be the best place to be in the shale oil business, providing unmatched resource potential and opportunity, and delivers highly productive wells, strong cash margins and robust returns. We see this in our financial results as our return on capital employed is expected to be greater than 10% for 2018, benefiting from a low cost basis in our Permian Basin acreage.

“The Company realized $200 million of incremental cash flow in the third quarter as we successfully navigated the wider oil differentials witnessed in Midland, displaying the benefits of our long-term planning approach. We also brought online our first successful multi-zone pad in the Stackberry appraisal program in western Martin County, demonstrating the impact of combining our extensive subsurface dataset and the utilization of peer-leading technology and science.

“Pioneer remains firmly committed to our 1,000,000 in 10 plan, which is underpinned by high-margin Permian wells that are expected to generate increasing levels of organic cash flow and improve corporate rates of return. We continue the transition to a Permian Basin ‘pure play’ and expect to have it completed by year end. We recently signed a purchase and sale agreement to sell our South Texas Sinor Nest oil assets for net proceeds of $132 million and continue to progress our Eagle Ford divestiture. Additionally, as evidenced by our recently announced West Texas sand agreement, we are focused on reducing our cost structure and expect this to continue as we move into 2019.”

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

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