ExxonMobil Merger-Bound Pioneer Natural Resources' Q4 Performance: Earnings Miss, Dividend Bliss

Pioneer Natural Resources Company PXD reported fourth-quarter FY23 oil & gas revenue of $3.386 billion, missing the consensus of $4.04 billion.

Production came in at 746 thousand barrels of oil equivalent per day (MBOEPD) vs. 662 MBOEPD a year ago, with oil production of 381 MBOEPD compared to 351 MBOEPD the prior year.

For the fourth quarter of 2023, the company recorded the average realized price for oil of $78.47 per barrel, average realized price for natural gas liquids (NGLs) of $23.25 per barrel, and the average realized price for gas of $2.35 per thousand cubic feet. 

Production costs, including taxes, averaged $10.54 per barrel of oil equivalent (BOE) and, depreciation, depletion and amortization expense averaged $11.30 per BOE.

Adjusted EPS of $5.26 missed the consensus of $5.48.

The company’s total capital expenditures totaled $1.1 billion and operating cash flow was $2.3 billion. As of December 31, 2023, the company had net debt of $4.6 billion.

The company added proved reserves totaling 397 million barrels of oil equivalent (MMBOE) in 2023. As of December 31, 2023, Pioneer Natural Resources’ total proved reserves were estimated at 2,471 MMBOE, of which 90% are proved developed.

Dividend: For the first quarter of 2024, the company’s Board of Directors has declared a quarterly base-plus-variable dividend of $2.56 per share, comprised of a $1.25 base dividend and a $1.31 variable dividend. 

Pursuant to the merger agreement with Exxon Mobil Corporation XOM, any quarterly dividends declared subsequent to the first quarter of 2024 are expected to be comprised solely of the $1.25 per share base dividend component.

Outlook: Pioneer Natural Resources expects FY24 capital budget of $4.2 billion-$4.6 billion and oil production of 384 to 392 MBOPD.

Price Action: PXD shares are trading higher by 0.05% at $233.85 on the last check Thursday.

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