Pioneer Natural Resources’ stock price action
Declining crude oil (USO) (UWTI) (DWTI) and natural gas (UNG) (UGAZ) (DGAZ) prices over the last two years are dragging the entire upstream sector into a downtrend. However, in April 2016, Pioneer Natural Resources’ (PXD) stock price made a higher high for the first time in almost two years, as seen in the below chart.
PXD’s stock price performance before 1Q16 earnings
In the last three months, Pioneer Natural Resources’ (PXD) stock price has increased by ~39%. Despite this, PXD has lagged other crude oil and natural gas producers. The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) was up by ~48% during the same period. XOP generally invests at least 80% of its total assets in oil and gas exploration companies.
However, in 2016, Pioneer Natural Resources has been outperforming bigger upstream companies from the S&P 500 (SPY). In 2016, PXD is up by ~21%, whereas larger oil and gas producers Anadarko Petroleum (APC), Noble Energy (NBL), and EOG Resources (EOG) are up by ~4%, ~5%, and ~12%, respectively.
PXD’s stock price behavior after past earnings
Pioneer Natural Resources (PXD) reported its 4Q15 earnings after the market closed on February 10, 2016. In 4Q15, excluding the one-time items, PXD reported a loss of $0.18 per share, $0.15 better than the consensus of a loss of $0.33 per share. Following the earnings release, better-than-expected earnings saw PXD’s stock price increase by ~16% in seven sessions.
In its 3Q15 earnings, Pioneer Natural Resources reported a loss of $0.01 per share, $0.04 better than the consensus of a loss of $0.05 per share. 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 release, 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, Pioneer Natural Resources’ 1Q15 and 4Q14 post-earnings reactions were negative, mainly due to the worse-than-consensus earnings reports.