On November 2, 2023, Pioneer Natural Resources Co (PXD, Financial) released its financial and operating results for the quarter ended September 30, 2023. The company reported a net income attributable to common shareholders of $1.3 billion, or $5.41 per diluted share. Excluding noncash mark-to-market adjustments and certain other unusual items, the non-GAAP adjusted income for the third quarter was $1.4 billion, or $5.83 per diluted share. The cash flow from operating activities for the third quarter was $2.1 billion.
Financial Highlights
Pioneer Natural Resources Co (PXD, Financial) maintains a strong balance sheet, with net debt of $4.8 billion as of September 30, 2023. The company had $2.1 billion of liquidity, comprised of $98 million of cash on hand and a $2.0 billion unsecured credit facility (undrawn) as of September 30, 2023. During the third quarter, the company's total capital expenditures totaled $1.1 billion. Cash flow from operating activities during the third quarter was $2.1 billion, leading to free cash flow of $1.2 billion when adjusted for changes in operating assets and liabilities and deducting capital expenditures.
Operational Highlights
Pioneer's operational excellence in the Midland Basin enabled the company to place 95 horizontal wells on production during the third quarter of 2023. More than 100 wells with lateral lengths of 15,000 feet or greater were placed on production during the first three quarters of 2023. These longer-lateral wells have contributed to Pioneer’s strong results. The development of wells with lateral lengths in excess of 15,000 feet provides significant capital savings on a per foot basis and is expected to generate an internal rate of return (IRR) that is on average 35% higher than a comparable 10,000-foot lateral well.
Dividend Announcement
For the fourth quarter of 2023, the company's Board of Directors has declared a quarterly base-plus-variable dividend of $3.20 per share, comprised of a $1.25 base dividend and $1.95 variable dividend. This represents a total annualized dividend yield of 5.4%. As outlined in the recently announced merger agreement with ExxonMobil, the fourth quarter variable dividend component represents 75% of the variable dividend as calculated under Pioneer's dividend policy.
Updated Full-Year 2023 Guidance
Pioneer increased the midpoints of full-year 2023 oil and total production guidance with ranges of 370 to 373 MBOPD and 708 to 713 MBOEPD, respectively. The company also decreased full-year 2023 drilling, completions, facilities, and water infrastructure capital guidance to $4.375 billion to $4.475 billion and lowered full-year 2023 capital guidance for exploration, environmental, and other capital to $150 million.
Environmental, Social & Governance (ESG)
Pioneer views sustainability as a multidisciplinary effort that balances economic growth, environmental stewardship, and social responsibility. The company emphasizes developing natural resources in a manner that protects surrounding communities and preserves the environment.
Explore the complete 8-K earnings release (here) from Pioneer Natural Resources Co for further details.
