Pioneer Natural Resources(US:PXD)2021-05-07 22:57Financial Performance - The Company reported a net loss of $70 million ($0.33 per diluted share) for Q1 2021, a decrease of $361 million compared to a net income of $291 million ($1.75 per diluted share) in Q1 2020[160]. - Cash provided by operating activities decreased to $377 million in Q1 2021 from $825 million in Q1 2020, primarily due to increased cash used in derivative activities and one-time transaction costs[166]. - Net cash provided by operating activities decreased to $377 million in Q1 2021 from $825 million in Q1 2020, a decline of 54%[210]. - The effective tax rate decreased to 14% in Q1 2021 from 21% in Q1 2020, reflecting an $88 million change in income tax provision[203]. - Interest and other income (loss), net, improved significantly to $60 million in Q1 2021 from a loss of $206 million in Q1 2020, a change of $266 million[179]. Revenue and Sales - Oil and gas revenues increased by $729 million due to a 33% rise in average realized commodity prices per BOE and a 26% increase in daily sales volumes[160]. - Average daily sales volumes increased by 26% to 473,937 BOEPD in Q1 2021, compared to 375,163 BOEPD in Q1 2020, driven by the Parsley Acquisition and successful horizontal drilling[166]. - For the three months ended March 31, 2021, sales of purchased commodities increased to $1,240 million from $915 million in 2020, a change of $325 million[177]. Production and Costs - Oil and gas production costs rose to $252 million in Q1 2021 from $176 million in Q1 2020, an increase of $76 million[187]. - Production and ad valorem taxes increased to $113 million in Q1 2021 from $75 million in Q1 2020, a change of $38 million[188]. - Depletion, depreciation, and amortization expense increased to $474 million in Q1 2021 from $434 million in Q1 2020, a change of $40 million[191]. - Lease operating expense per BOE increased by 5% to $3.47, while gathering, processing, and transportation expense per BOE rose by 21% to $3.05[187]. Capital Expenditures and Budget - The 2021 capital budget has been revised to a range of $3.1 billion to $3.4 billion, with $2.9 billion to $3.1 billion allocated for drilling and completion activities[168]. - The company funded the DoublePoint Acquisition with $1 billion in cash and 27.2 million shares of common stock, repaying $241 million of DoublePoint's credit facility[207]. Debt and Liquidity - As of March 31, 2021, the Company's net debt to book capitalization was 23%, up from 14% as of December 31, 2020[166]. - The company had unrestricted cash of $668 million and $2.0 billion of unused borrowing capacity as of March 31, 2021[209]. - The company has $6.2 billion of fixed-rate long-term debt outstanding with a weighted average effective interest rate of 2.0 percent as of March 31, 2021[221]. Derivative and Commodity Risk Management - The company mitigates commodity price risk through derivative financial instruments and had entered into contracts for a portion of forecasted 2021 and 2022 production[226]. - The company has established credit risk policies to mitigate exposure to counterparties, ensuring that credit losses on commodities receivables have historically not been material[234]. - The company utilizes ISDA Agreements with derivative counterparties to manage credit risk and ensure rights of set-off in case of default[236]. Exploration and Development - The company successfully completed 77 horizontal wells in the northern Midland Basin and 25 in the southern Midland Basin during Q1 2021[173]. - The company drilled and evaluated 106 exploration/extension wells in Q1 2021, achieving a 100% success rate, compared to 83 wells in Q1 2020, also with a 100% success rate[193]. Other Expenses - Other expenses rose significantly to $304 million in Q1 2021 from $85 million in Q1 2020, an increase of $219 million, primarily due to $197 million in one-time costs related to the Parsley Acquisition[200]. - Cash interest expense increased to $33 million in Q1 2021 from $22 million in Q1 2020, a change of $11 million[198]. Future Outlook - The Company expects average daily production for Q2 2021 to be between 606 - 632 MBOE, with average daily oil production projected at 352 - 367 MBO[167]. - Average forward Brent oil price for the third quarter of 2021 was $62.32, while for the fourth quarter it was $61.06, indicating a downward trend[227].