Wednesday, February 22, Pioneer Natural Resources (PXD) reported better-than-expected adjusted earnings for the fourth quarter of 2022 while revenues came up short of Wall Street estimates. Revenue was still up 18% year-over-year to $5.1 billion.
Fourth quarter net income nearly doubled to $1.48 billion or $5.98 a share, from $763 million, or $2.97 a share, in the fourth quarter of 2021.
The company declared a quarterly total dividend of $5.58/share, made up of a $1.10 base dividend and a $4.48 variable dividend. The total annualized dividend yield is approximately 11%.
Which is why I’m adding the shares to my Dividend Portfolio today. (The stock is already in my Jubak Picks Portfolio.) The dividend is payable on Mach 7 to shareholders of record on March 6.
In the fourth quarter Pioneer said oil production fell 11% year over year to 350,600 barrels per day and total output fell 3.7% to 661,500 barrels of oil equivalent a day.
The company’s average realized price in the quarter for oil rose 9.4% year over year to $83.53 per barrel, while its average realized price for natural gas liquids was $27.67 per barrel and its average realized price for gas was $4.98/Mcf.
For fiscal 2023, Pioneer projects a capital budget of $4.45 billion to $4.75 billion for drilling, completions, facilities and water infrastructure, plus a $100 million to $200 million capital budget for exploration, environmental, and other capital.
For the first quarter of 2023, Pioneer forecasts oil production of 349,000 to 364,000 barrels per day and a total output of 659,000 to 687,000 barrels of oil equivalent a day.
It is impossible, of course, to predict the price of oil in the coming quarters but the consensus among oil analysts is that at least in the first half of 2023 oil prices are likely to rise from current levels as demand for oil from China increases as the Chinese economy picks up speed after the latest surge in Covid infections and deaths.