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Pioneer Natural Resources’ Stock after Its 1Q16 Earnings Release

Pioneer Natural Resources Beats 1Q16 Earnings—What's Its Secret?

(Continued from Prior Part)

Pioneer Natural Resources’ stock price reaction

Pioneer Natural Resources (PXD) announced its 1Q16 earnings on April 25, 2016, after the market closed. On the day of the earnings release, PXD’s stock price increased by 0.23% to close at $153.50.

After-hours, PXD’s stock price traded as high as $159.85 before trading closed. It must be noted that in the three months leading up to the earnings release, Pioneer Natural Resources’ stock price increased by a whopping ~41%, mainly due to the ~52% bounce in crude oil (USO) (SCO) (DWTI) prices during the same period.

Pioneer Natural Resources’ stock price trend

Over the last two years, declining crude oil (OIL) and natural gas (UNG) (UGAZ) (DGAZ) prices have been dragging the entire upstream sector into a downtrend. However, as seen in the above chart, Pioneer Natural Resources’ stock price reached a high for the first time in almost two years in April 2016.

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PXD’s 2016 relative performance

In 2016, PXD has been outperforming other upstream companies. Whereas PXD is up by ~22%, oil and gas producers Carrizo Oil & Gas (CRZO), EP Energy (EPE), and Gulfport Energy (GPOR) are up by ~15%, ~3%, and ~21%, respectively.

Stock prices after past earnings beats

In the last six quarters, PXD has beaten earnings expectations three times: in 4Q15, 3Q15, and 2Q15. PXD reported its 4Q15 earnings after the market closed on February 10, 2016. In 4Q15, excluding one-time items, PXD reported a loss of $0.18 per share, $0.15 better than the consensus for loss of $0.33 per share. Following the earnings release, better-than-expected earnings saw PXD’s stock price rise by ~16% in seven sessions.

In its 3Q15 earnings release, PXD reported a loss of $0.01 per share, $0.04 better than the consensus for loss of $0.05 per share. Following the earnings release, better- than-expected earnings saw PXD’s stock price rise by ~6% in the next session. A similar upward reaction was observed after the 2Q15 earnings release, when PXD’s stock price rose by ~5% in seven sessions after beating the consensus earnings estimates by $0.07 per share.

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