A complicated but very positive quarter for Pioneer Natural Resources (PXD.) The stock, a member of my long-term 50 Best Stocks Portfolio, climbed 3.92% today to $153.77.
First, after the close on May 6, the company announced earnings of $1.83 a share, 20 cents a share better than Wall Street projections. Revenue climbed 12.2% year over year to $2.41 billion against Wall Street expectations of $2.19 billion. Permian production of oil and oil equivalents averaged 320,000 barrels of oil equivalent a day. That was above the top end of the company’s guidance.
Second, the company guided Wall Street analysts to expect second quarter Permian production of 313,000 to 328,000 barrels of oil equivalent a day. Permian production costs will average, the company said, $8.50 to $10.50 per barrel. Pioneer said it intends to keep its capital budget in the range of $2.8 billion to $3.1 billion and that it expects to be fully funded from cash flow of $3,75 billion in 2019.
And, third, the company announced the sale of its Eagle Ford and other south Texas assets to Ensign Natural Resources for $475 million. The sale solidifies Pioneer’s position as a pure play on the low cost, high production Permian Basin geologies.Shares of Pioneer Natural Resources are up 57.5% since I added them to my 50 Best Stocks portfolio on January 13, 2012.