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Pioneer Natural Resources Posts Net Loss in 1Q15

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Net loss in 1Q15

Pioneer Natural Resources (PXD) released its earnings for 1Q15 on May 5. Let’s look at the company’s quarterly income and revenues.

Pioneer Natural Resources’ net profits depleted in 1Q15 compared with 1Q14. In 1Q15, the company recorded a $78 million net loss compared with a net income of $123 million in 1Q14. The company’s net income margin also deteriorated to -9.0% from 13.0% during the same period.

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Lower crude oil and natural gas price realization accounted for a sharp decline in profit. The fall in income was partially offset by higher liquids production volumes and a reduction in drilling and completion costs. Read Part 3 of this series to understand why Pioneer Natural Resources was profitable at the operating profit level.

Revenues decreased

In 1Q15, Pioneer Natural Resources’ (PXD) net operating revenues decreased 8.1% to ~$868 million from $944 million recorded in 1Q14. Excluding other items, revenues from selling oil and gas amounted to $517 million in 1Q15, or 42% lower than $890 million recorded a year ago. A sharp energy price decline is the primary reason why revenues came down.

In comparison, Whiting Petroleum’s (WLL) revenues decreased 28% in 1Q15 over 1Q14, while EQT Corporation’s (EQT) revenues decreased 1% during the same period. Continental Resources (CLR) recorded a 37% decline in revenues in 1Q15 over 1Q14. Pioneer Natural Resources comprises 3.26% of the Energy Select Sector SPDR ETF (XLE).

Overview of Pioneer Natural Resources

Pioneer Natural Resources (PXD) is an independent oil and gas exploration and production company. The company produces oil and gas in the Spraberry/Wolfcamp in the Permian Shale, the Eagle Ford Shale play in South Texas, the West Panhandle gas and liquids field in Texas, and the Raton Basin gas field in southern Colorado and northern New Mexico.

In the next part of this series, we’ll analyze Pioneer Natural Resources’ historical performance versus analysts’ estimates.

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