Pioneer Natural Resources (NYSE:PXD) should grow by double-digits for some time, says Barclays (NYSE:BCS), citing their exposure to Eagle ford shale and Spraberry Trend Field.
Barclays said, "Strong growth in the Spraberry Trend Field and from the emerging Eagle ford shale play should drive double-digit volume growth as well as margin expansion in 2011 and beyond. PXD trades at a premium to historical multiples of forward cash flow estimates but we feel the premium is justified by the prospects of accelerated cash flow growth.
"Higher projected 2011 cash flow (+$60mm) and an increased target multiple (to 7.5x 2011E PICF) each account for about half of the target price increase. PXD trades at a debt-adjusted multiple of 7.2 x mid-cycle estimates; a 13% premium to peer averages."
Barclays maintains an "Equalweight" oil and gas company. Pioneer closed Thursday at $69.18, losing $0.72, or 1.03 percent. Barclays has a price target of $72 on them, raising it from $65.
Showing posts with label Spraberry Field. Show all posts
Showing posts with label Spraberry Field. Show all posts
Friday, October 29, 2010
Thursday, October 7, 2010
KeyBanc Launches Coverage on Pioneer (NYSE:PXD) with "Buy" Rating
Pioneer Natural Resources (NYSE:PXD) has had coverage initiated on them by KeyBanc, and there were started off with a "Buy," citing Spraberry and Eagle Ford.
"Manufacturing strong returns in the Spraberry...more to come. PXD has significant running room in the Spraberry with a huge inventory of more than 20,000 drilling locations in the play (- 800,000 net acres)...Eagle Ford operations just getting started...expecting a strong ramp. With a joint venture executed in mid-2010, we expect a significant increase in the drilling and completion of wells headed into 2011 and beyond ... Visible double-digit production growth, while spending within cash flow over the next three years (at least)," said KeyBanc.
Pioneer ended Wednesday's trading session at $69.54, adding $0.21, or 0.30 percent. KeyBanc started them off with a price target of $90, affording them a large amount of potential growth.
"Manufacturing strong returns in the Spraberry...more to come. PXD has significant running room in the Spraberry with a huge inventory of more than 20,000 drilling locations in the play (- 800,000 net acres)...Eagle Ford operations just getting started...expecting a strong ramp. With a joint venture executed in mid-2010, we expect a significant increase in the drilling and completion of wells headed into 2011 and beyond ... Visible double-digit production growth, while spending within cash flow over the next three years (at least)," said KeyBanc.
Pioneer ended Wednesday's trading session at $69.54, adding $0.21, or 0.30 percent. KeyBanc started them off with a price target of $90, affording them a large amount of potential growth.
Wednesday, September 8, 2010
Pioneer Natural Resources (NYSE:PXD) Upgraded by FBR Capital (Nasdaq:FBCM)
Citing the asset of Spraberry field, FBR Capital (Nasdaq:FBCM) upgraded Pioneer Natural Resources (NYSE:PXD) from "Market Perform" to "Outperform."
About the Spraberry field, an FBR analyst said, "...With a dominant 900,000 acre position (53% of total acreage available) in the Spraberry field, 20,000+ identified locations, and $1.1M to $1.2M per well, this asset base has the capacity to absorb a tremendous amount of capital and should allow the company to earn substantial above-average returns on it for decades to come."
FBR also increased the price target for Pioneer in a big way, moving it from $60 to $85.
Pioneer closed Tuesday at $61.83, losing $0.67, or 1.07 percent.
About the Spraberry field, an FBR analyst said, "...With a dominant 900,000 acre position (53% of total acreage available) in the Spraberry field, 20,000+ identified locations, and $1.1M to $1.2M per well, this asset base has the capacity to absorb a tremendous amount of capital and should allow the company to earn substantial above-average returns on it for decades to come."
FBR also increased the price target for Pioneer in a big way, moving it from $60 to $85.
Pioneer closed Tuesday at $61.83, losing $0.67, or 1.07 percent.
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