Here’s Why Pioneer Natural (PXD) is an Attractive Investment Bet – May 31, 2022
Pioneer Natural Resources Company (PXD – Free Report) witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. Also, this leading independent oil and gas exploration and production company’s shares have surged 53.9% year to date compared with the sector’s rise of 37%.
Image Source: Zacks Investment Research
What’s Favoring the Stock?
West Texas Intermediate crude price, trading at more than $115 per barrel, has risen drastically in the past year. The significant rise in oil prices can be attributed to analysts’ assumptions that the Ukraine war may be prolonged.
Overall, the massive improvement in oil price is a boon for oil explorers and producers. Pioneer Natural is also well placed to capitalize on the favorable pricing scenario. The company, carrying a Zacks Rank #2 (Buy), has a strong presence in the low-cost oil-rich Midland basin — a sub-basin of the broader Permian. The upstream energy player has a huge inventory of premium wells that will likely generate significant returns for the company.
Pioneer Natural is firmly focused on returning capital to shareholders. This includes a substantial variable dividend along with a strong base dividend. PXD is also employing opportunistic share repurchases to reward shareholders.
Pioneer Natural has considerably lower exposure to debt capital than the composite stocks belonging to the industry. This reflects PXD’s strong balance sheet on which the firm can rely on to sail through the volatile energy businesses.
Other Stocks to Consider
Some other top-ranked players in the energy space are ConocoPhillips (COP – Free Report) , Marathon Oil (MRO – Free Report) and Occidental Petroleum (OXY – Free Report) . While ConocoPhillips carries a Zacks Rank #2, Marathon Oil and Occidental Petroleum sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Considering production and reserves, ConocoPhillips is one of the leading exploration and production players in the global market. COP has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, ConocoPhillips is likely to see an earnings growth of 146.1%.
Marathon Oil is a leading oil and natural gas exploration and production company. MRO has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, Marathon Oil is likely to see an earnings growth of 214.7%.
In the United States, Occidental Petroleum is among the largest oil producers. OXY has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.
In 2022, Occidental Petroleum is likely to see an earnings growth of 289.4%.
