Sterne Agee CRT maintains a Neutral rating on Pioneer Natural Resources (NYSE: PXD) following its announcement that it is selling its interest in Eagle Ford Shale Midstream assets for $1.08B. Analyst Tim Rezvan believes that this will provide financial power to restart its Permian Basin rig ramp.

Rezvan commented, "Pioneer's long-awaited announcement that it is selling its interests in Eagle Ford Shale Midstream assets for $1.08 billion provides the financial firepower to restart its Permian Basin rig ramp. We believe the modestly positive price action is appropriate because 1) the sale was expected, and 2) the 10.8x multiple to CF may trail some expectations. We remain Neutral on PXD shares for valuation reasons, but acknowledge that a return to growth from a further-strengthened balance sheet emboldens the bull camp that believes PXD is still a growth stock. Updated '15 spending guidance (+$350 million in spending, no increase to production) makes previous '15 guidance that concerned some investors largely irrelevant."

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Shares of Pioneer Natural Resources closed at $147.83 yesterday.