PXD Intrinsic Value Calculation – Argus Research Downgrades Pioneer Natural Resources to ‘Sell’ Rating
November 25, 2023
☀️Trending News
Pioneer Natural Resources ($NYSE:PXD) is an American oil and gas exploration and production company based in Irving, Texas. The company operates in several of the most prolific U.S. shale plays, including the Wolfcamp Shale in Texas and the Marcellus Shale in Pennsylvania.
However, despite their breadth of operations, Argus Research recently downgraded the stock from a Neutral to a Sell rating. Argus Research cited the company’s high leverage ratio as a key concern, as well as their lower than expected cash flows in recent quarters. As a result, the stock is now seen as a riskier investment than it was previously. Furthermore, Argus Research noted that Pioneer Natural Resources’ cash flows have not been able to keep up with its ambitious capital investments and acquisitions over the past couple of years. As such, Argus Research has downgraded Pioneer Natural Resources to a Sell rating. Although the firm acknowledges the potential of the company’s operations, they believe that the stock’s high leverage and weakening cash flow should cause investors to take a more cautious approach when investing in Pioneer Natural Resources.
Market Price
On Friday, the stock of PIONEER NATURAL RESOURCES opened at $236.0 and closed at $237.7, representing an increase of 0.6% from its prior closing price of 236.2. This decision comes in spite of the stock’s recent performance, as well as its strong fundamentals. The firm cited lower oil prices and weak demand for its oil and gas production as the primary reasons for the downgrade.
The company is now expecting fewer profits in the near future, which has caused them to lower their outlook on the stock. Investors should monitor the situation closely in order to make an informed decision regarding PIONEER NATURAL RESOURCES. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PXD. More…
| Total Revenues | Net Income | Net Margin |
| 19.47k | 5.09k | 27.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PXD. More…
| Operations | Investing | Financing |
| 8.7k | -4.21k | -5.71k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PXD. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 36.36k | 13.64k | 97.38 |
Key Ratios Snapshot
Some of the financial key ratios for PXD are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.5% | 114.9% | 34.2% |
| FCF Margin | ROE | ROA |
| 21.3% | 18.6% | 11.4% |
Analysis – PXD Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of PIONEER NATURAL RESOURCES’s financials. Our proprietary Valuation Line has calculated the intrinsic value of PIONEER NATURAL RESOURCES share to be around $201.1. At the moment, PIONEER NATURAL RESOURCES stock is trading at $237.7, which is a fair price but slightly overvalued by 18.2%. More…
Peers
Pioneer Natural Resources Co is an oil and gas exploration and production company with operations in the United States, South Africa, and Tunisia. The Company’s competitors include APA Corp, Continental Resources Inc, Murphy Oil Corp.
– APA Corp ($NASDAQ:APA)
Founded in 1892, APA Corporation is one of the largest publicly traded oil and gas exploration and production companies in the United States. The company has a market capitalization of $13.68 billion and a return on equity of 1079.73%. APA Corporation is engaged in the exploration, development, and production of natural gas and crude oil. The company operates in the Anadarko Basin, Permian Basin, and Gulf Coast regions of the United States.
– Continental Resources Inc ($NYSE:CLR)
Continental Resources is an American petroleum and natural gas exploration and production company with operations in the Bakken formation in North Dakota and Montana. The company is headquartered in Oklahoma City, Oklahoma. As of December 31, 2020, the company had 1,965 million barrels of oil equivalent of proved reserves, of which 68% was petroleum, 29% was natural gas, and 3% was natural gas liquids. Production averaged 467,000 barrels of oil equivalent per day in 2020.
– Murphy Oil Corp ($NYSE:MUR)
Murphy Oil Corporation is an American oil and gas company headquartered in Houston, Texas. The company was founded in 1950 and is engaged in the exploration, production, and marketing of crude oil, natural gas, and natural gas liquids. Murphy Oil Corporation operates in three segments: Exploration and Production, Refining and Marketing, and Corporate. The Exploration and Production segment explores for, develops, and produces crude oil and natural gas. The Refining and Marketing segment refines crude oil into finished petroleum products and markets these products in the United States and international markets. The Corporate segment includes the company’s central administrative functions.
Summary
Argus Research recently downgraded Pioneer Natural Resources from a Hold to a Sell rating. The investment analysis cited concerns about high debt levels relative to the current market capitalization. Argus is worried that Pioneer Natural Resources is carrying too much risk and that the share price may be too high for its current financial situation.
The downgrade suggests investors reevaluate the stock, as it may be too risky in this environment. Other key metrics such as the price-earnings ratio, dividend yield, and operating cash flow are relatively high, so investors should consider these factors when making decisions about Pioneer Natural Resources.
