Pioneer Natural Resources Company (NYSE: PXD) ('Pioneer' or 'the Company') today reported financial and operating results for the quarter and year ended December 31, 2019.
Pioneer reported fourth quarter net income attributable to common stockholders of $344 million, or $2.06 per diluted share. These results include the effects of noncash mark-to-market adjustments and certain other unusual items. Excluding these items, non-GAAP adjusted income for the fourth quarter was $395 million, or $2.36 per diluted share. Cash flow from operating activities for the fourth quarter was $828 million. For the full year 2019, the Company reported net income attributable to common stockholders of $756 million, or $4.50 per diluted share. Cash flow from operating activities for the full year 2019 was $3.1 billion.
Highlights
Achieved corporate return on capital employed (ROCE)1 of 11% during 2019
Delivered strong fourth-quarter and full-year 2019 free cash flow2 of $384 million and $540 million, respectively
Returned $780 million of capital to shareholders through dividends and share repurchases during 2019
Averaged fourth quarter oil production of 220 thousand barrels of oil per day (MBOPD), at the top end of guidance
Averaged fourth quarter total production of 363 thousand barrels of oil equivalent per day (MBOEPD), above the top end of guidance
Announced 2020 Capital Budget3 of $3.15 billion to $3.45 billion, with cash flow4 expected to be $3.9 billion
Increased quarterly dividend to $0.55 per share, or $2.20 per share on an annual basis
President and CEO Scott D. Sheffield stated, '2019 was an excellent year for Pioneer, where we delivered strong cash flow, robust free cash flow generation and top tier corporate returns. This was driven by an intense focus on execution that resulted in significant well cost reductions while maintaining peer-leading oil production per well in the Permian Basin. We remain committed to returning capital to shareholders, and in 2019 we delivered $780 million to shareholders through share repurchases and dividends.
Our 2020 plan builds on our strong 2019 performance and is structured to deliver a capitally efficient program that prioritizes free cash flow. Our dividend increase announced today solidifies our commitment to returning capital to shareholders and represents a greater than 185% increase, on an annualized basis, when compared to the dividends paid in 2019. Pioneer continues to offer a compelling value proposition, underpinned by our premier acreage position in the Permian Basin that drives best-in-class margins, increasing corporate returns and is forecasted to generate significant free cash flow.'
Financial Highlights
Pioneer maintains a strong balance sheet, with unrestricted cash on hand as of December 31, 2019 of $631 million and net debt of $1.7 billion. The Company had a $2.1 billion liquidity position at year end 2019, reflecting $631 million of unrestricted cash and a $1.5 billion unsecured credit facility (undrawn as of December 31, 2019).
During the fourth quarter, the Company's Permian drilling, completion and facilities capital expenditures totaled $569 million. The Company's total Permian capital expenditures3 during the fourth quarter, including gas processing and water infrastructure expenditures, totaled $627 million, resulting in $384 million of free cash flow2 before working capital changes. For the full year 2019, the Company's Permian drilling, completion and facilities capital expenditures totaled $2.7 billion. The Company's total Permian capital expenditures3 for the full year, including gas processing and water infrastructure expenditures, totaled $3.0 billion, resulting in $540 million of free cash flow2 before working capital changes.
The Company announced today that its Board of Directors has approved an increase in the Company's quarterly cash dividend to $0.55 per share, representing a current yield of approximately 1.6% (based on the Company's closing stock price as of February 14, 2020). This annualized dividend represents a greater than 185% increase when compared to the dividends paid in 2019. The decision to grow Pioneer's cash dividend, from $0.08 per share on an annualized basis in February 2018 to an annualized rate of $2.20 per share currently, is consistent with the Company's objective of increasing its return of capital to shareholders.
In December 2018, the Board of Directors authorized a $2 billion common stock repurchase program. During the fourth quarter, the Company repurchased $22 million of common stock under this program. To-date, the Company has repurchased a total of 5.5 million shares for $749 million under this authorization. The Company evaluates many factors, including market conditions and corporate considerations, such as asset divestitures, liquidity and capital needs, in assessing the Company's ability to repurchase shares.
Contact:
Neal Shah
Tel: 972-969-3900
PIONEER NATURAL RESOURCES COMPANY 
