Pioneer Natural Resources’ stock price in downtrend
Declining crude oil and natural gas prices over the last one year are dragging the entire upstream sector in a downtrend. As the graph below shows, Pioneer Natural Resources’ (PXD) stock price has been in a downtrend, making a clear pattern of lower highs and lower lows.
PXD’s stock price performance before 4Q15 results
PXD has shown a good relative strength compared with other upstream stocks. Over the past two months, PXD’s stock price has declined by about 19%. But the SPDR S&P Oil and Gas Exploration & Production ETF (XOP) has been down ~27% during same period.
In 2015, PXD outperformed S&P 500 (SPY) upstream companies because PXD lost only about 16%, whereas other oil and gas producers like EOG Resources (EOG), Murphy Oil (MUR), and Consol Energy (CNX) were down by ~23%, ~56%, and ~77%, respectively, during the year.
PXD’s stock price performance following 3Q15 results
PXD reported its 3Q15 earnings, after the market close, on November 2, 2015. In 3Q15, excluding the one-time items, PXD reported a loss of $0.01 per share, which was still $0.04 better than the consensus estimate of $0.05 per share loss. Following the earnings release, better-than-expected earnings saw PXD’s stock price increase by ~6% in the next session.
A similar upward reaction was observed after the company’s 2Q15 earnings, when PXD’s stock price increased by ~5% in seven sessions after beating the consensus earnings estimates by $0.07 per share. Contrary to the above two occasions, PXD’s 1Q15 and 4Q14 result reactions were negative, mainly due to the worse-than-consensus earnings reports.
For related analysis, check out Market Realist’s Energy and Power page.