Pioneer Natural Resources (PXD) Misses Q4 EPS by 50c, Revenues Miss

Pioneer Natural Resources (NYSE: PXD) reported Q4 EPS of $1.18, $0.50 worse than the analyst estimate of $1.68. Revenue for the quarter came in at $1.12 billion versus the consensus estimate of $1.26 billion.

• Achieved corporate return on capital employed (ROCE)1 of 9% during 2018
• Increased dividend by 300% and repurchased $150 million, or 1.1 million shares, under authorized share repurchase plans in 2018
• Averaged fourth quarter Permian oil production of 194 thousand barrels of oil per day (MBOPD), toward the top end of guidance
• Averaged fourth quarter Permian production of 302 thousand barrels of oil equivalent per day (MBOEPD), at the top end of guidance
• Delivered 2018 Permian oil production of 181 MBOPD (23% growth) and 2018 Permian production of 283 MBOEPD (26% growth)
• Streamlined portfolio with divestments of non-core assets, increasing focus on Permian position and driving down cost structure
• Added $458 million of incremental cash flow from firm transportation (FT) agreements

President and CEO Timothy L. Dove stated, “The Company delivered an excellent fourth quarter, serving to cap a strong year where we sharpened our focus on our peer-leading Permian asset. Pioneer delivered oil production at the top end of guidance, maintained our trajectory of lowering operating costs and continued our momentum of strong operational execution.

“In 2018, we again demonstrated a year-over-year increase in well productivity, while delivering best-in-class Permian cumulative oil production and oil composition. Our unique, low-cost basis Permian acreage, unencumbered by high cost acquisitions, generated a highly competitive return on capital employed of 9%.

“We embarked on many initiatives during 2018 to permanently streamline the portfolio and increase corporate level returns. Throughout the year, the Company diligently worked to divest non-core acreage and focused our efforts on drilling high-return horizontal Permian wells. For 2019, the substantial cost savings related to the strategic divestiture of our pressure pumping assets and transition to West Texas sand will significantly decrease our cost structure and improve capital efficiencies. These actions drive an 11% decrease in drilling, completions and facilities capital, while delivering a robust 12% to 17% increase in production when compared to 2018.”

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

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