Pioneer Natural Resources(PXD) - 2021 Q3 - Quarterly Report

Financial Performance - Net income attributable to common stockholders for Q3 2021 was $1.0 billion ($4.07 per diluted share), a significant increase from a net loss of $85 million ($0.52 per diluted share) in Q3 2020 [184]. - Cash provided by operating activities surged to $2.0 billion in Q3 2021 from $391 million in Q3 2020, driven by increased oil and gas revenues [193]. - The company reported a total commodity derivative loss of $496 million for Q3 2021, compared to a loss of $56 million in Q3 2020, and a total loss of $1,996 million for the nine months ended September 30, 2021, compared to a loss of $41 million in the same period in 2020 [212]. - The income tax provision for the three months ended September 30, 2021 was $(291) million, a decrease of $306 million compared to $15 million in 2020, with an effective tax rate of 22% compared to 15% in 2020 [241][242]. - For the nine months ended September 30, 2021, net cash provided by operating activities was $3,835 million, an increase of $2,289 million compared to $1,546 million in the same period of 2020 [250]. Revenue and Sales - Oil and gas revenues increased by $2.4 billion due to an 87% rise in average realized commodity prices per BOE and a 90% increase in daily sales volumes to 675,793 BOEPD, compared to 354,968 BOEPD in Q3 2020 [184]. - Sales of purchased commodities for Q3 2021 were $1,679 million, an increase of $744 million compared to Q3 2020, while for the nine months ended September 30, 2021, sales reached $4,507 million, up $2,116 million from the same period in 2020 [207]. Acquisitions and Investments - The company completed the acquisition of DoublePoint for $4.2 billion in stock, $1.0 billion in cash, and $890 million in assumed debt, with results included in financial statements from May 2021 [182]. - The acquisition of Parsley Energy involved issuing 52 million shares valued at $6.9 billion and assuming $3.2 billion in debt, with results included from January 2021 [183]. - The company incurred $943 million in net cash used for the DoublePoint Acquisition and $894 million in additions to oil and gas properties for the nine months ended September 30, 2021 [251]. Production and Costs - Average oil prices rose to $69.24 per Bbl in Q3 2021, up 77% from $39.22 per Bbl in Q3 2020, while NGL and gas prices increased by 111% and 133%, respectively [203]. - Oil and gas production costs for Q3 2021 were $323 million, significantly higher than $163 million in Q3 2020, with production costs per BOE increasing to $5.18 from $4.99 year-over-year [218]. - Production and ad valorem taxes for the three months ended September 30, 2021, were $179 million, compared to $63 million in 2020, representing a 184% increase [222]. - Lease operating expense per BOE decreased by 17% to $2.49 in Q3 2021 compared to $3.00 in Q3 2020, while gathering, processing, and transportation expense per BOE increased by 24% to $3.15 [218]. Debt and Liquidity - As of September 30, 2021, the company had $581 million in unrestricted cash and $2.0 billion of unused borrowing capacity under its Credit Facility [248]. - The Company had $6.9 billion of fixed rate long-term debt outstanding with a weighted average cash interest rate of 1.9 percent as of September 30, 2021 [270]. - The annual weighted average cash interest rate on the company's indebtedness decreased to 1.9% as of September 30, 2021, from 2.2% in 2020 [236]. Dividends - The company paid base dividends of $350 million, or $1.67 per share, during the nine months ended September 30, 2021, and initiated a variable dividend strategy, paying $370 million, or $1.51 per share [254][255]. - Future base and variable dividends are at the discretion of the company's board of directors and may fluctuate based on commodity prices and free cash flow [257]. Exploration and Development - The company successfully completed 318 horizontal wells in the Midland Basin during the nine months ended September 30, 2021 [201]. - The company drilled and evaluated 378 exploration/extension wells in the nine months ended September 30, 2021, with a 100% success rate [229]. Market Outlook - Average forward Brent oil price for the fourth quarter of 2021 is projected at $77.53, while the average forward WTI Midland oil price is $74.59 [275]. - The average forward NYMEX gas price for the fourth quarter of 2021 is projected at $5.93 [275]. - The Company utilizes derivative financial instruments to mitigate commodity price risk and secure funds for capital programs and other obligations [271].