| Pioneer Natural Resources’ Operating Profit Improves in 1Q15 | |
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Analyzing Pioneer Natural Resources' 1Q15 Earnings (Continued from Prior Part) EBITDAX cuts a positive figure in 1Q15
We learned earlier in this series that Pioneer Natural Resources’ (PXD) recorded a $78 million net loss in 1Q15, in contrast to $123 million in net income in 1Q14. However, Pioneer Natural Resources’ operating profit shows a much better figure than its net income suggests.
Pioneer Natural Resources’ (PXD) EBITDAX was $402 million in 1Q15, 33% down from $601 million recorded in 1Q14. EBITDAX stands for earnings before interest expense, income taxes, depreciation, depletion and amortization, exploration costs, impairments, net gain/loss on the disposition of assets, and non-cash derivative-related activity.
What affected Pioneer Natural’s 1Q15 earnings?
In 1Q15, Pioneer Natural Resources (PXD) recorded $87 million in after-tax impairment charges related to the company’s proved properties in Pioneer’s West Panhandle field, the result of lower commodity prices. It also recorded $4 million in excess vertical well pipe inventory impairment charges.
In 1Q15, falling crude oil prices led to a sharp decline in many of the upstream companies’ income, including Pioneer Natural Resources (PXD), Whiting Petroleum (WLL), EQT Corporation (EQT), and Concho Resources (CXO). Concho Resources accounts for 1.4% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
Mark-to-market gains boosted earnings
In 1Q15, Pioneer Natural Resources recorded $35 million in mark-to-market gains on derivatives as opposed to a $86 million loss from mark-to-market hedging activities in 1Q14. Upstream companies hedge commodity prices to protect their cash flows from fluctuations in commodity prices.
Continue to Prior Part Browse this series on Market Realist:
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Concho Resources Inc.
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CODE : CXO |
ISIN : US20605P1012 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Concho Resources is a exploration company based in United states of america. Concho Resources is listed in United States of America. Its market capitalisation is US$ 9.6 billions as of today (€ 7.9 billions). Its stock quote reached its highest recent level on July 05, 2019 at US$ 99.97, and its lowest recent point on January 15, 2021 at US$ 65.60. Concho Resources has 146 059 000 shares outstanding. |