How Pioneer Natural Resources’ EBITDA Normalized to Production

In 1Q16, Pioneer Natural Resources’ (PXD) reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) normalized to total production of ~$12.39 per boe (barrel of oil equivalent). That’s ~38% lower than 1Q15.

As you can see in the above graph, Pioneer Natural Resources’ adjusted EBITDA normalized to total production has declined substantially in the past quarter. This was mainly due to the much lower year-over-year adjusted EBITDA as a direct result of lower realized crude oil prices (UCO) and lower hedging effectiveness.

For 1Q16, other upstream companies such as Murphy Oil (MUR), Devon Energy (DVN), and Denbury Resources (DNR) have also reported much lower year-over-year adjusted EBITDA normalized for total production.

In the next part, we’ll see whether Pioneer Natural Resources can fix its debt.