Pioneer Natural Resources(US:PXD)2023-04-27 20:50Financial Performance - Net income attributable to common stockholders for Q1 2023 was $1.2 billion ($5.00 per diluted share), down from $2.0 billion ($7.85 per diluted share) in Q1 2022, primarily due to a $764 million decrease in oil and gas revenues[137]. - Total oil and gas revenues for Q1 2023 were $3.166 billion, down from $3.930 billion in Q1 2022, reflecting a $764 million decrease[148]. - Net cash provided by operating activities decreased to $2,314 million in Q1 2023 from $2,581 million in Q1 2022, a change of $(267) million, attributed to a 25% decrease in average realized commodity prices per BOE[190]. - The income tax provision for Q1 2023 was $(552) million, an increase of $217 million compared to $(335) million in Q1 2022, primarily due to a decrease of $1.0 billion in income before income taxes[181]. - The company's effective tax rate for Q1 2023 was 22%, consistent with the rate for Q1 2022[181]. Production and Sales - Average daily sales volumes increased by 7% to 680,440 BOEPD in Q1 2023, compared to 637,756 BOEPD in Q1 2022, driven by the successful Spraberry/Wolfcamp horizontal drilling program[137]. - The company expects average daily production for Q2 2023 to be between 674 - 702 MBOE, with average daily oil production projected at 357 - 372 MBbls[140]. - Oil and gas production costs increased to $455 million for the three months ended March 31, 2023, from $416 million in 2022, representing a change of $39 million[166]. - Oil and gas production costs for Q1 2023 totaled $455 million, up from $416 million in Q1 2022, with total production costs per BOE increasing by 3%[166]. Dividends and Shareholder Returns - The company declared a base dividend of $1.10 per share and a variable dividend of $4.48 per share in Q1 2023, totaling $1.3 billion in dividend payments, compared to $1.1 billion in Q1 2022[139]. - The company declared base dividends of $260 million, or $1.10 per share, in Q1 2023, compared to $191 million, or $0.78 per share, in Q1 2022[191]. - Variable dividends declared in Q1 2023 amounted to $1.1 billion, or $4.48 per share, up from $731 million, or $3.00 per share, in Q1 2022[192]. - The company repurchased 2.4 million shares for $500 million in Q1 2023, compared to 1.1 million shares for $250 million in Q1 2022[142]. Costs and Expenses - Exploration and extension costs for Q1 2023 totaled $1.026 billion, with development costs at $168 million[144]. - The Company's depletion, depreciation, and amortization expense increased to $664 million in Q1 2023, up from $614 million in Q1 2022, a change of $50 million[171]. - Cash general and administrative expenses increased to $71 million in Q1 2023 from $66 million in Q1 2022, reflecting a change of $5 million[175]. - Cash interest expense decreased to $25 million in Q1 2023 from $34 million in Q1 2022, a reduction of $9 million[176]. - Other expenses decreased significantly to $41 million in Q1 2023 from $77 million in Q1 2022, a change of $36 million[178]. Debt and Liquidity - The company's net debt to book capitalization increased to 18% as of March 31, 2023, compared to 15% at the end of 2022[142]. - As of March 31, 2023, the company had $1.2 billion in unrestricted cash and $2.0 billion of unused borrowing capacity under its Credit Facility[188]. - The company had no outstanding borrowings under its Credit Facility as of March 31, 2023, and was in compliance with all debt covenants[188]. - The company’s outstanding debt includes senior notes and convertible senior notes, with total liabilities of $175 million from derivative obligations[207][209]. Future Outlook and Capital Expenditure - The company's capital budget for 2023 is projected to be between $4.45 billion and $4.75 billion for development-related capital and $150 million to $200 million for exploration and other capital[186]. - The company expects to fund its 2023 capital budget primarily from operating cash flow and, if necessary, from cash and cash equivalents or borrowings[187]. - The company plans to purchase third-party volumes to meet firm transportation commitments if economically viable, otherwise, it will incur demand fees for shortfalls[206]. Operational Highlights - The company successfully completed 114 horizontal wells in the non-JV portion of the Midland Basin during Q1 2023[146]. - The company drilled and evaluated 123 exploratory/extension wells in Q1 2023, achieving a 100% success rate[173]. - The company has outstanding oil derivative contracts for 3,000 Bbls per day with a weighted average differential of $4.33 between WTI and Brent prices[157].