Pioneer Natural Resources posts earnings, revenue miss

Pioneer Natural Resources (NYSE:) reported fourth-quarter earnings and revenue that fell short of Wall Street expectations. The Dallas-based energy company disclosed a quarterly EPS of $5.26, which was $0.12 below the consensus of $5.38. Revenue for the quarter was also lower than expected, coming in at $5.22 billion against the consensus estimate of $5.28 billion.

Despite the miss, Pioneer maintained a robust balance sheet, with net debt standing at $4.6 billion as of December 31, 2023. The company’s liquidity was reported at $2.2 billion, including $240 million in cash and a $2.0 billion undrawn unsecured credit facility. Total capital expenditures for the quarter amounted to $1.1 billion, contributing to the full year’s total of $4.6 billion. Operating cash flow for the fourth quarter reached $2.3 billion, leading to a free cash flow of $1.2 billion.

The company’s average realized prices for the quarter were $78.47 per barrel for oil, $23.25 per barrel for natural gas liquids, and $2.35 per thousand cubic feet for gas, excluding derivatives effects. Production costs averaged $10.54 per BOE, with depreciation, depletion, and amortization expenses averaging $11.30 per BOE.

Pioneer announced a first-quarter 2024 dividend of $2.56 per share, which includes a $1.25 base dividend and a $1.31 variable dividend, translating to an annualized yield of 4.4%. Following the merger agreement with Exxon Mobil, dividends after the first quarter of 2024 are expected to consist only of the base dividend component.

The company’s stock saw a marginal decline of 0.4% following the earnings release, indicating a tempered reaction from investors to the earnings and revenue miss. Management attributed the quarter’s performance to various factors, including merger-related costs, with ExxonMobil totaling $102 million, and a net cash flow impact related to oil and gas purchases and sales, resulting in a loss of $105 million.

Pioneer’s CEO stated, “Our strong balance sheet and disciplined capital investment have positioned us well for sustainable growth. We remain focused on delivering value to our shareholders through our robust dividend program, even as we navigate the complexities of our merger activities.”

Investors will be watching closely to see how the company’s financials and strategic initiatives unfold in the coming quarters, particularly in light of the anticipated merger with ExxonMobil.