Pioneer Natural Resources (PXD) Misses Q1 EPS by 3c

Pioneer Natural Resources (NYSE: PXD) reported Q1 EPS of $1.15, $0.03 worse than the analyst estimate of $1.18. Revenue for the quarter came in at $2.26 billion versus the consensus estimate of $1.11 billion.

Highlights

• Delivered strong first quarter free cash flow1 of $100 million
• Averaged first quarter oil production of 223 thousand barrels of oil per day (MBOPD), in the upper half of guidance
• Averaged first quarter production of 375 thousand barrels of oil equivalent per day (MBOEPD), at the top end of guidance
• Capital expenditures2 of $620 million during the first quarter, significantly underspending planned capital budget
• Further reducing 2020 capital budget by additional $300 million from March update; total reduction3 of approximately 55% when compared to original 2020 budget
• Decreasing production costs by $60 million to $70 million in 2020
• Reducing corporate overhead related costs by $80 million to $90 million in 2020
• CEO, Officers and Board of Directors electing voluntary compensation reductions, including a greater than 70% reduction for CEO in total cash compensation

President and CEO Scott D. Sheffield stated, "Through these challenging times, Pioneer's primary focus will continue to be the health and safety of our employees and the communities within which we operate. Despite the macroeconomic headwinds during the first quarter, the team executed at a very high level, generating $100 million of free cash flow1.

“Drilling and completions efficiencies continued to improve, exceeding full-year 2020 targets in the first three months of the year, resulting in well cost reductions and greater capital efficiency than expected. This led to materially underspending our first quarter capital budget and underpins our revised full-year program that maintains similar production to 2019 levels while achieving a 55% reduction3 to our original capital budget.

“Pioneer entered this difficult environment with one of the strongest balance sheets in the sector and it is our plan to emerge from this downturn in a similar position. As evidenced by our additional capital reduction and other cost reduction initiatives, our business plan remains flexible and responsive to economic conditions. I am confident that our strong balance sheet, world-class assets and dedicated employees are competitive advantages that will continue to differentiate Pioneer.”

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

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