On Monday, Susquehanna maintained a Neutral rating on Pioneer Natural Resources (NYSE:PXD) and increased the price target to $246 from the previous $237. This adjustment comes in the wake of the company's fourth-quarter production results, which surpassed expectations.
Pioneer Natural reported a production of 746 thousand barrels of oil equivalent per day (Mboe/d), which was 2% higher than forecasted. Despite this, the company's adjusted earnings per share (EPS) of $5.26 fell short of the analyst's projection by $0.13.
Looking ahead, Susquehanna forecasts Pioneer Natural's production and adjusted EPS for the years 2024 and 2025 to reach 758/788 Mboe/d and $20.84/$22.32, respectively. The company's guidance for 2024 outlines an anticipated increase in oil and equivalent production, targeting 384-392 Mboe/d and 750-766 Mboe/d. These figures suggest year-over-year gains of 4% and 6% at the midpoint.
However, the capital expenditure (capex) guidance for 2024 indicates a slight decrease. The company expects capex to be between $4.2 billion and $4.6 billion, marking a 3% decline from the previous year at the midpoint.
The revised price target of $246 aligns with the conversion ratio of Exxon Mobil (NYSE:XOM) shares to Pioneer Natural Resources shares. The analyst's decision to raise the price target reflects the latest production and financial guidance provided by the company, despite the mixed fourth-quarter performance.
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