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Chart in Focus: Pioneer Natural Resources’s Cash Flow Estimates

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Pioneer Natural Resources’s 3Q16 cash flow estimates

For 3Q16, Wall Street analysts expect Pioneer Natural Resources (PXD) to report cash flow of $2.98 per share, which is ~24% higher than 3Q15.

As seen in the above chart, Pioneer Natural Resources has reported declining cash flows from 3Q14 to 1Q15, mainly due to the lower energy prices. From 3Q15 to 4Q15, PXD reported improved cash flows, mainly due to the favorable hedges.

In 1Q16, Pioneer Natural Resources reported its cash flow of $0.69 per share, its lowest reading since 2009. In 2Q16, Pioneer Natural Resources reported sequentially higher cash flow due to the improved crude oil (USO) and Natural Gas (UNG) realized prices.

For 3Q16, Wall Street analysts expect Pioneer Natural Resources to report negative free cash flow of about -$0.33 per share.

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Other upstream players

Due to the steep downward trend in energy prices, most S&P 500 (SPY) energy companies have reported lower year-over-year cash flows. Marathon Oil (MRO), EOG Resources (EOG), and Southwestern Energy (SWN) reported cash flows of $0.21 per share, $0.92 per share, and $0.19 per share, respectively, in 2Q16.

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