Pioneer Natural Resources (PXD) Tops Q2 EPS by 3c, Revenues Beat

Pioneer Natural Resources (NYSE: PXD) reported Q2 EPS of ($0.32), $0.03 better than the analyst estimate of ($0.35). Revenue for the quarter came in at $859 million versus the consensus estimate of $691.14 million.

Highlights

• Delivered strong second quarter free cash flow1 of $165 million
• Averaged second quarter oil production of 215 thousand barrels of oil per day (MBOPD)
• Averaged second quarter production of 375 thousand barrels of oil equivalent per day (MBOEPD)
• Reported capital expenditures2 of $235 million during the second quarter, underspending revised capital budget
• Reduced second quarter lease operating expense (LOE) per barrel oil equivalent (BOE) by 16% from the first quarter
• Maintained 2020 capital expenditure guidance, while increasing 2020 oil production guidance by approximately 2.5%; continuing the trend of improved capital efficiency

President and CEO Scott D. Sheffield stated, "Although the macroeconomic environment presented challenges, Pioneer delivered another excellent quarter, with continued strong operational execution. The Company generated $165 million of free cash flow1 through significant cost reductions and operational efficiency improvements. The improvements in capital efficiency during the second quarter led to a 2.5% increase in our full-year oil production guidance, while maintaining our previous capital spending range.

Pioneer is also initiating a long-term investment framework that is underpinned by a cash flow reinvestment rate between 70% to 80%, prioritizing free cash flow generation and return of capital, while maintaining a strong balance sheet. Based on current strip pricing, this framework targets a total return to shareholders of 10% or greater, consisting of a competitive and growing base dividend, a variable dividend and oil growth of five percent plus. I am confident this framework will allow us to return a significant amount of capital to shareholders, while providing the flexibility to manage through commodity price cycles, strengthening Pioneer's investment proposition."

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

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