Watchlist: US Oil & Gas: Pioneer Natural Resource (PXD)

August 29, 2022, 12:03 pm EDT

US Oil & Gas: Pioneer Natural Resource (PXD)

If you believe the US needs to explore and produce its own oil and natural gas, then Pioneer Natural Resource (PXD) will be a stock to consider because PDX’s headquarter is located in Irving, Texas. 

The energy sector is up +2% today to show its resilience after last Friday’s sell-off after Fed’s statement about inflation. Also, crude oil and natural gas may rise up again if the warfare continues to drag on. US exploration and production are crucial factors for the US to stay independent from other foreign countries on energy. 

Pioneer Natural Resource (PXD) is a 64 billion market cap US company. PXD has fast growth fundamental: sales +102%, EPS +267% in its earnings report (08/02/2022). Its dividend also reaches 9% which is another big plus for this stock in the long term. Other highlights are shown below:

2022 Q2 Earnings Highlights:

  • Generated strong second quarter free cash flow1 of $2.7 billion
  • Declared quarterly base-plus-variable dividend of $8.57 per share to be paid during the third quarter; includes increasing the quarterly base dividend by greater than 40%
  • Repurchased $750 million of shares since the end of the first quarter (3.3 million shares), including $250 million of shares repurchased during July
  • Returning greater than 95% of second quarter free cash flow to shareholders

Technically, it is a bit extended at 260 level compared to the ideal entry point at 240. However, we can see PXD restarting its rally after the pullback and building its base (200-240) in the past few months. 240 should offer support if the entry point is between 240 and 260 area. 

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