Cara Community Oilers: Pioneer

Pioneer Natural Resources (NASDAQ: PXD) reviewed 10-15-2020

Market Cap: $16.17 Billion (USD)              Share Price: $92.22 (USD)

Stock chart: https://www.investing.com/equities/pioneer-natural-resources-chart

Shares outstanding: 175,378,954

Cash & cash equivalents: $180 Million as of 30 Jun 2020

Debt:  $2.05 Billion as of 30 Jun 2020

Insiders: Low                      Institutional: 1017 holders hold approx. 95%

Website: pxd.com

Investor Presentations: https://investors.pxd.com/static-files/c9c11c9d-fb27-41c1-8bbb-964b92788ce6

CEO: Scott D. Sheffield                  HQs: Irving, TX, USA

Pioneer is a large shale drilling operation with most and best assets and resources in the Permian Basin

One of the largest Permian players with 680,000 net acres (zero Federal land exposure)

Maintains a CAPEX budget of $1.4-$1.6 Billion for 2020

2020 Oil production 203-213 MBOPD, Total production of 356-371MBOEPD, which is double that of next largest producers

2020 estimated Free Cash Flow is ~$600 Million

Reported a net loss of $439 M (USD) or ($2.66) per share for Q2 2020, and a net loss of $150 M, or ($0.97) USD per share, for the 1H2020. Compares to net earnings of $181 M, or $1.07 per share in the 1H 2019

Q2 oil sales were $600 Million compared to almost $1.2 Billion in 2019, representing a 50% reduction in revenue due to the pandemic and upheavals in the global supply-demand schedule for oil

Debt-to-cash ratio is approximately (slightly higher than) 11:1

Pays $2.20 per share, or a 2.4% dividend

Bottom Line:

  • Shares are down approx. 30% year-over-year, yet this top-tier company has inherent strengths
  • No position, but will definitely consider it in 2021 if and when vaccines and therapies begin to soften the pandemic impact including the energy demand destruction of 2020

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