DALLAS, August 02, 2022–(BUSINESS WIRE)–Pioneer Pure Sources Firm (NYSE:PXD) (“Pioneer” or “the Firm”) at this time reported monetary and working outcomes for the quarter ended June 30, 2022. Pioneer reported second quarter internet earnings attributable to widespread stockholders of $2.Four billion, or $9.30 per diluted share. These outcomes embrace the consequences of noncash mark-to-market changes and sure different uncommon gadgets. Excluding this stuff, non-GAAP adjusted earnings for the second quarter was $2.Four billion, or $9.36 per diluted share. Money move from working actions for the second quarter was $3.2 billion.

Highlights

Chief Government Officer Scott D. Sheffield said, “Pioneer is targeted on growing our top-tier belongings, driving best-in-class margins and delivering the very best free money move per barrel oil equal produced. Our differentiated funding framework technique generated $2.7 billion of free money move through the second quarter, with better than 95% of the free money move being returned to shareholders via our base-plus-variable dividend and opportunistic share repurchases.

“Pioneer’s willingness to aggressively repurchase shares throughout market dislocations resulted in $750 million of shares being repurchased because the finish of the primary quarter. Of this, $250 million was bought in July at a median worth of $213 per share.

“Pioneer’s robust steadiness sheet offers the monetary flexibility to return important free money move to buyers, whereas nonetheless rising annual oil volumes. This sturdy program, underpinned by our high-quality Permian drilling stock, coupled with our peer-leading ESG technique outlined in our not too long ago revealed 2022 Sustainability Report, demonstrates why Pioneer is effectively positioned to create worth for our shareholders for many years to return.”

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Monetary Highlights

Pioneer maintains a robust steadiness sheet, with money available on the finish of the second quarter of $2.6 billion and internet debt of $3.1 billion. The Firm had $5.1 billion of liquidity as of June 30, 2022, comprised of $2.6 billion of money, $506 million of short-term business paper investments and a $2.Zero billion unsecured credit score facility (undrawn as of June 30, 2022).

Money move from working actions through the second quarter was $3.2 billion, resulting in free money move¹ of $2.7 billion.

In the course of the second quarter, the Firm’s drilling, completion and amenities capital expenditures totaled $881 million, with complete capital expenditures², together with water infrastructure, totaling $895 million.

For the third quarter of 2022, the Firm’s Board of Administrators (Board) has declared a quarterly base-plus-variable dividend of $8.57 per share, comprised of a $1.10 base dividend and $7.47 variable dividend. The dividend features a better than 40% enhance to the bottom dividend and represents a complete annualized dividend yield of roughly 15%³.

Along with a robust dividend program, the Firm continues to execute opportunistic share repurchases. In the course of the second quarter of 2022, the Firm repurchased $500 million of widespread inventory at a median share worth of $235. Throughout July, the Firm repurchased a further $250 million of widespread inventory at a median share worth of $213. Pioneer believes this peer-leading return of capital technique, which mixes a robust base dividend, a considerable variable dividend and opportunistic share repurchases, creates important worth for shareholders⁴. The mix of third quarter dividends and second quarter share repurchases, on an annualized foundation, represents a complete stockholder return yield of roughly 19%⁵.

Monetary Outcomes

For the second quarter of 2022, the typical realized worth for oil was $110.56 per barrel. The common realized worth for pure gasoline liquids (NGLs) was $44.21 per barrel, and the typical realized worth for gasoline was $6.72 per thousand cubic toes. These costs exclude the consequences of derivatives.

Manufacturing prices, together with taxes, averaged $12.81 per barrel of oil equal (BOE). Depreciation, depletion and amortization (DD&A) expense averaged $10.60 per BOE. Exploration and abandonment prices have been $11 million. Normal and administrative (G&A) expense was $88 million, or $78 million when excluding $10 million in humanitarian assist to Ukraine. Curiosity expense was $33 million. The web money move affect associated to purchases and gross sales of oil and gasoline, together with agency transportation, was a lack of $16 million. Different expense was $5 million. Money taxes totaled $144 million, and the Firm’s efficient tax price was 22% for the quarter.

Operations Replace

Pioneer continues to ship robust operational efficiency within the Midland Basin. The Firm has elevated forecasted drilled lateral size per effectively in 2022, with an anticipated common size of roughly 10,500 toes, representing a 4% enhance when in comparison with 2021. This enhance contains including roughly fifty 15,000-foot laterals to the 2022 program. Moreover, Pioneer has constantly elevated accomplished toes per day for each simulfrac and zipper fleets. In 2021, the Firm’s accomplished toes per day elevated over 20%, when in comparison with 2020, with additional will increase anticipated in 2022.

Drilling longer laterals, lowering drilling days per effectively and finishing extra toes per day, amongst different operational effectivity enhancements, proceed to learn capital effectivity and dampen inflationary pressures.

These robust operational efficiencies enabled Pioneer to position 133 horizontal wells on manufacturing through the second quarter.

2022 Outlook

Primarily based on the inflationary pressures seen in metal, diesel and chemical prices, amongst different gadgets, the Firm now expects its 2022 complete capital funds² to vary between $3.6 billion to $3.Eight billion. Pioneer expects its capital program to be absolutely funded from 2022 money move⁶ of better than $13 billion.

Throughout 2022, the Firm plans to function a median of 22 to 24 horizontal drilling rigs within the Midland Basin, together with a three-rig common program within the southern Midland Basin three way partnership space. The 2022 capital program is predicted to position 475 to 505 wells on manufacturing. Pioneer expects 2022 oil manufacturing of 350 to 365 thousand barrels of oil per day (MBOPD) and complete manufacturing of 623 to 648 thousand barrels of oil equal per day (MBOEPD).

Third Quarter 2022 Steering

Third quarter 2022 oil manufacturing is forecasted to common between 345 to 360 MBOPD and complete manufacturing is predicted to common between 635 to 660 MBOEPD. Manufacturing prices are anticipated to common $12.00 per BOE to $13.50 per BOE. DD&A expense is predicted to common $10.50 per BOE to $12.00 per BOE. Whole exploration and abandonment expense is forecasted to be $10 million to $20 million. G&A expense is predicted to be $75 million to $85 million. Curiosity expense is predicted to be $30 million to $35 million. Different expense is forecasted to be $20 million to $40 million. Accretion of low cost on asset retirement obligations is predicted to be $Three million to $6 million. The money move affect associated to purchases and gross sales of oil and gasoline, together with agency transportation, is predicted to be a lack of $60 million to a lack of $100 million, primarily based on ahead oil worth estimates for the quarter. The Firm’s efficient earnings tax price is predicted to be between 22% to 27%, with money taxes anticipated to be $300 million to $350 million, representing estimated federal and state tax funds that can be paid primarily based on forecasted 2022 taxable earnings.

Environmental, Social & Governance (ESG)

Pioneer views sustainability as a multidisciplinary effort that balances financial progress, environmental stewardship and social duty. The Firm emphasizes growing pure assets in a fashion that protects surrounding communities and preserves the setting.

Pioneer not too long ago revealed its 2022 Sustainability Report highlighting the Firm’s focus and important progress on ESG initiatives. The great report particulars the Firm’s management place on ESG metrics and targets throughout 2021, together with enhanced disclosures on air emissions; water administration practices; range, fairness and inclusion (DEI); board of director governance and neighborhood engagement.

The Firm has a number of initiatives underway which are anticipated to lead to tangible progress in direction of Pioneer’s internet zero emissions ambition. Pioneer has made important progress in direction of the Firm’s 2030 emissions depth targets by attaining a 22% discount in greenhouse gasoline emission depth and a 50% discount in methane emission depth, when in comparison with a 2019 baseline. Moreover, Pioneer achieved a flaring depth of 0.41% in 2021, effectively under the Firm’s aim to restrict flaring to 1% of pure gasoline produced. Pioneer continues to prioritize environmental stewardship and accelerated the Firm’s goal to finish routine flaring by 2025, 5 years sooner than the Firm’s earlier 2030 goal.

Moreover, Pioneer has joined the Oil and Gasoline Methane Partnership (OGMP) 2.Zero Initiative, which is taken into account the gold commonplace on methane emission measurement and reporting for the upstream power business. This determination demonstrates the Firm’s concentrate on rising transparency in methane reporting and measurement.

Pioneer has additionally strengthened the Firm’s goal to scale back the freshwater utilized in completions to 20% or much less by 2026. The improved goal displays Pioneer’s dedication to increasing using different water sources, together with recycled water and reclaimed water from the cities of Midland and Odessa.

Throughout the previous yr, Pioneer has appointed three new administrators to the Firm’s Board, with mixed experience in DEI, ESG and different power, along with excellent enterprise expertise. The appointments of Lori George Billingsley, Maria Jelescu Dreyfus and Jacinto Hernandez have expanded the various backgrounds of the Firm’s Board.

For extra particulars, see Pioneer’s 2022 Sustainability Report and 2021 Local weather Threat Report at pxd.com/sustainability.

Earnings Convention Name

On Wednesday, August 3, 2022, at 9:00 a.m. Central Time, Pioneer will talk about its monetary and working outcomes for the quarter ended June 30, 2022, with an accompanying presentation. Directions for listening to the decision and viewing the accompanying presentation are proven under.

Web: www.pxd.com
Choose “Traders,” then “Earnings & Webcasts” to hearken to the dialogue, view the presentation and see different associated materials.
Phone: Dial (800) 263-0877 and enter affirmation code 8010753 5 minutes earlier than the decision.

A replay of the webcast can be archived on Pioneer’s web site. This replay can be obtainable via August 28, 2022. Click on right here to register for the call-in audio replay and you’ll obtain the dial-in data.

Pioneer is a big impartial oil and gasoline exploration and manufacturing firm, headquartered in Dallas, Texas, with operations in the USA. For extra data, go to www.pxd.com.

Apart from historic data contained herein, the statements on this information launch are forward-looking statements which are made pursuant to the Secure Harbor Provisions of the Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements and the enterprise prospects of the Firm are topic to a variety of dangers and uncertainties that will trigger the Firm’s precise ends in future intervals to vary materially from the forward-looking statements. These dangers and uncertainties embrace, amongst different issues, volatility of commodity costs; product provide and demand; the affect of a widespread outbreak of an sickness, such because the COVID-19 pandemic, on world and U.S. financial exercise and oil and gasoline demand; the affect of armed battle and political instability on financial exercise and oil and gasoline provide and demand; competitors; the power to acquire drilling, environmental and different permits and the timing thereof; the impact of future regulatory or legislative actions on Pioneer or the business through which it operates, together with potential adjustments to tax legal guidelines; the power to acquire approvals from third events and negotiate agreements with third events on mutually acceptable phrases; potential legal responsibility ensuing from pending or future litigation; the prices, together with the potential affect of will increase because of provide chain disruptions and inflation, and outcomes of drilling and working actions; the chance of recent restrictions with respect to improvement actions, together with potential adjustments to rules leading to limitations on the Firm’s potential to get rid of produced water; availability of kit, companies, assets and personnel required to carry out the Firm’s drilling and working actions; entry to and availability of transportation, processing, fractionation, refining, storage and export amenities; Pioneer’s potential to switch reserves, implement its enterprise plans or full its improvement actions as scheduled; the Firm’s potential to realize its emissions reductions, flaring and different ESG targets; entry to and value of capital; the monetary energy of (i) counterparties to Pioneer’s credit score facility and by-product contracts, (ii) issuers of Pioneer’s funding securities and (iii) purchasers of Pioneer’s oil, NGL and gasoline manufacturing and downstream gross sales of bought oil and gasoline; uncertainties about estimates of reserves, identification of drilling places and the power so as to add proved reserves sooner or later; the assumptions underlying forecasts, together with forecasts of manufacturing, working money move, effectively prices, capital expenditures, charges of return, bills, and money move from downstream purchases and gross sales of oil and gasoline, internet of agency transportation commitments; tax charges; high quality of technical knowledge; environmental and climate dangers, together with the attainable impacts of local weather change on the Firm’s operations and demand for its merchandise; cybersecurity dangers; the dangers related to the possession and operation of the Firm’s water companies enterprise and acts of conflict or terrorism. These and different dangers are described within the Firm’s Annual Report on Kind 10-Okay for the yr ended December 31, 2021, and different filings with the USA Securities and Alternate Fee. As well as, the Firm could also be topic to presently unexpected dangers that will have a materially hostile impact on it. Accordingly, no assurances might be provided that the precise occasions and outcomes won’t be materially totally different than the anticipated outcomes described within the forward-looking statements. The Firm undertakes no responsibility to publicly replace these statements besides as required by legislation.

Footnote 1: Free money move is a non-GAAP monetary measure. As utilized by the Firm, free money move is outlined as internet money supplied by working actions, adjusted for adjustments in working belongings and liabilities, much less capital expenditures. See the supplemental schedules for a reconciliation of second quarter free money move to the comparable GAAP quantity. Forecasted free money move numbers are non-GAAP monetary measures. As a result of their forward-looking nature, administration can’t reliably predict sure of the mandatory parts of essentially the most straight comparable forward-looking GAAP measures, akin to working capital adjustments. Accordingly, Pioneer is unable to current a quantitative reconciliation of such forward-looking non-GAAP monetary measures to their most straight comparable forward-looking GAAP monetary measures. Quantities excluded from this non-GAAP measure in future intervals may very well be important.

Footnote 2: Excludes acquisitions, asset retirement obligations, capitalized curiosity, geological and geophysical G&A, data expertise and company amenities.

Footnote 3: Calculated by dividing the Firm’s annualized third quarter complete dividend per share by the Firm’s closing inventory worth on July 27, 2022.

Footnote 4: Future dividends, whether or not base or variable, are licensed and decided by the Firm’s Board in its sole discretion. Selections relating to the cost of dividends are topic to a variety of concerns on the time, together with with out limitation the Firm’s liquidity and capital assets, the Firm’s outcomes of operations and anticipated future outcomes of operations, the extent of money reserves the Firm maintains to fund future capital expenditures or different wants, and different elements that the Board deems related. The Firm can present no assurance that dividends can be licensed or declared sooner or later or the quantity of any future dividends. Any future variable dividends, if declared and paid, will by their nature fluctuate primarily based on the Firm’s free money move, which is able to rely upon a variety of elements past the Firm’s management, together with commodities costs.

Footnote 5: Calculated by dividing the Firm’s annualized third quarter complete dividend per share plus annualized second quarter share repurchases per share by the Firm’s closing inventory worth on July 27, 2022.

Footnote 6: Forecasted working money move is a non-GAAP monetary measure. The 2022 estimated working money move quantity represents January via June 2022 money move (earlier than working capital adjustments) plus July via December forecasted money move (earlier than working capital adjustments) primarily based on strip pricing and inner forecasts of 2022 manufacturing. As a result of their forward-looking nature, administration can’t reliably predict sure of the mandatory parts of essentially the most straight comparable forward-looking GAAP measures, akin to working capital adjustments. Accordingly, Pioneer is unable to current a quantitative reconciliation of such forward-looking non-GAAP monetary measures to their most straight comparable forward-looking GAAP monetary measures. Quantities excluded from this non-GAAP measure in future intervals may very well be important.

Word: Estimates of future outcomes, together with money move and free money move, are primarily based on the Firm’s inner monetary mannequin ready by administration and used to help within the administration of its enterprise. Pioneer’s monetary fashions will not be ready with a view to public disclosure or compliance with GAAP, any tips of the SEC or every other physique. The monetary fashions mirror quite a few assumptions, along with these famous on this information launch, with respect to basic enterprise, financial, market and monetary situations and different issues. These assumptions relating to future occasions are tough, if not unattainable to foretell, and plenty of are past Pioneer’s management. Accordingly, there might be no assurance that the assumptions made by administration in getting ready the monetary fashions will show correct. It’s anticipated that there can be variations between precise and estimated or modeled outcomes, and precise outcomes could also be materially better or lower than these contained within the Firm’s monetary fashions.