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What to Expect from Pioneer Natural Resources’ 1Q16 Earnings

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Pioneer Natural Resources’ 1Q16 earnings and revenue estimates

Pioneer Natural Resources (PXD) is set to report its 1Q16 earnings on April 25, 2016, after the markets close. For 1Q16, Wall Street analysts expect PXD to report an adjusted loss of $0.73 per share, which is lower by $0.70 per share when compared with its 1Q15 loss of $0.03 per share. Even when compared sequentially with 4Q15, PXD’s 1Q16 earnings expectations are lower by $0.55 per share.

For 1Q16, Wall Street analysts expect Pioneer Natural Resources to report revenue of ~$649 million, which is higher by ~26% when compared with 1Q15 revenue of ~$517 million. But when compared sequentially with 4Q15, PXD’s 1Q16 revenue expectations are lower by ~18%.

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PXD’s earnings trend

As seen in the above chart, PXD reported much lower earnings in 2015 due to lower realized crude oil and natural gas prices. In 1Q15, PXD saw its adjusted earnings turn negative for the first time since 2009.

In 4Q15, excluding the one-time items, PXD reported a loss of $0.18 per share, $0.15 better than the consensus for a loss of $0.33 per share. Its revenues fell by ~2% year-over-year to ~$790 million. Since 1Q13, PXD beat the earnings expectations ~66% of the time.

Due to the steep downward trend in energy prices, almost all S&P 500 (SPY) upstream companies have seen declines in their 4Q15 adjusted revenues. For example, Murphy Oil (MUR), Marathon Oil (MRO), ConocoPhillips (COP), and Newfield Exploration (NFX) have reported ~53%, ~41%, ~40%, and ~27% year-over-year declines in their 4Q15 adjusted revenues, respectively.

In this series

Having analyzed Pioneer Natural Resources’ 1Q16 earnings expectations, in the course of this series, we will also look at PXD’s production guidance, what Wall Street analysts are saying about Pioneer Natural Resources ahead of its earnings, and how PXD’s stock price reacted to past earnings.

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