PXD Intrinsic Stock Value – Pioneer Natural Resources Exec Predicts Higher Oil Prices Due to Limited Supply Growth
June 16, 2023
☀️Trending News
Pioneer Natural Resources ($NYSE:PXD) is a leading independent exploration and production company in the United States. Headquartered in Irving, Texas, the company has operations in some of the most prolific oil and gas plays in the United States, including the Permian Basin, Eagle Ford Shale, and Wolfcamp Shale. Recently, one of Pioneer Natural Resources’ executives made a prediction that oil prices will be going up due to limited supply growth. This prediction is rooted in the fact that the demand for oil has been increasing globally. Many countries are focusing heavily on economic development, and they are relying heavily on oil and petroleum products to support those efforts.
At the same time, the increase in supply has been difficult to keep up with. Production levels have remained stagnant or decreased for many countries, which has caused an imbalance in supply and demand. The executive at Pioneer Natural Resources believes that this situation will cause prices to increase as demand continues to outstrip the increase in supply. As more and more countries rely on oil and petroleum products to fuel their economies, this trend is likely to continue.
Stock Price
On Thursday, Pioneer Natural Resources (PIONEER NATURAL RESOURCES) stock opened at $207.0 and closed at $207.0, up by 0.1% from last closing price of 206.8. Sheffield cited several factors such as increased global demand, as well as supply-side disruptions and OPEC’s actions to curb production as contributing factors to his prediction. With global demand rising, it is likely that consumers and businesses will be forced to pay more for oil, leading to an increase in Pioneer Natural Resources’ profits. 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 |
| 22.83k | 7.04k | 31.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PXD. More…
| Operations | Investing | Financing |
| 11.08k | -3.48k | -8.8k |
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 |
| 36.11k | 14.27k | 96.44 |
Key Ratios Snapshot
Some of the financial key ratios for PXD are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 34.3% | 78.4% | 39.9% |
| FCF Margin | ROE | ROA |
| 35.4% | 25.3% | 15.8% |
Analysis – PXD Intrinsic Stock Value
At GoodWhale, we’ve analyzed the fundamentals of PIONEER NATURAL RESOURCES using our proprietary methodology. Our Valuation Line estimates the intrinsic value of PIONEER NATURAL RESOURCES’ share to be around $219.8. However, as of right now, PIONEER NATURAL RESOURCES stock is trading at $207.0, implying a 5.8% undervaluation. This gives investors an opportunity to purchase the stock at a price that’s lower than its intrinsic value. More…
Peers
Pioneer Natural Resources Co is an oil and gas exploration and production company with operations in the United States, South Africa, and Tunisia. The Company’s competitors include APA Corp, Continental Resources Inc, Murphy Oil Corp.
– APA Corp ($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
Pioneer Natural Resources is of the opinion that rising oil demand combined with limited supply growth will lead to higher oil prices in the long run. The executive from the company reiterates that investing in the company is a sound financial decision, as it is well-positioned to take advantage of increasing prices. With its expansive portfolio of assets and resources, Pioneer Natural Resources is a great choice for investors looking for lucrative options in the energy sector.
