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Pioneer Natural Resources: How Did It Perform in 1Q16?

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Pioneer Natural Resources’ 1Q16 earnings beat estimates

Pioneer Natural Resources (PXD) announced its 1Q16 earnings on April 25, 2016, after the market closed. PXD reported an adjusted loss of $0.64 per share, $0.12 better than the Wall Street analyst consensus for a loss of $0.76 per share. Pioneer Natural Resources’ 1Q16 earnings are $0.61 per share lower than the 1Q15 loss of $0.03 per share. Even when compared sequentially with 4Q15, Pioneer Natural Resources’ 1Q16 earnings are lower by $0.46 per share.

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Pioneer Natural Resources’ 1Q16 revenues miss estimates

For 1Q16, PXD reported adjusted revenues of ~$627 million, ~2% lower than the Wall Street analyst consensus for revenues of ~$642 million. PXD’s 1Q16 revenues are ~21% higher than its 1Q15 revenues of ~$517 million. However, when compared sequentially with 4Q15, PXD’s 1Q16 revenues are lower by ~21%.

Pioneer Natural Resources’ earnings trend

As seen in the above chart, Pioneer Natural Resources reported much lower earnings in 2015 due to lower realized crude oil (USO) (UWTI) (SCO) and natural gas (UNG) (BOIL) prices. In 1Q15, PXD saw its adjusted earnings turn negative for the first time since 2009. Since 1Q13, Pioneer Natural Resources has beaten the earnings expectations ~75% of the time.

Due to the steep downward trend in energy prices, upstream companies Memorial Resource Development (MRD), WPX Energy (WPX), ConocoPhillips (COP), and EV Energy Partners (EVEP) reported ~7%, ~19%, ~40%, and ~32% year-over-year declines in their 4Q15 adjusted revenues, respectively. Whereas the SPDR S&P Oil and Gas Exploration & Production ETF (XOP) generally invests at least 80% of its total assets in oil and gas exploration companies, the Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas companies.

In this series

Having analyzed Pioneer Natural Resources’ 1Q16 earnings performance, in the course of this series, we’ll also look at PXD’s operational performance, Wall Street analyst ratings, and how Pioneer Natural Resources’ stock price reacted to past earnings beats. Let’s take a look at PXD’s operational performance for 1Q16.

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