$PXD - One of BP Capital's latest major position in support of the oil bull market.
Pioneer Natural Resources is a large independent exploration and production company focused on the delivery of competitive and sustainable results, based in Irving, Texas. PXD has a market capitalization of $12.14 billion.
Analysts expect PXD to trade near $121.19 this year. BP Capital owns 101,485 shares, or 6.85 percent, of PXD stock in its portfolio. This is a new major position for BP Capital this quarter.
For this quarter, Pioneer has a cash dividend of 0.08 and a dividend yield of 0.08 percent. However, earnings next year are set to pick up to 36.32 percent, while an annualized growth rate of 15.28 percent is expected over the next five years.
For the quarter in question, the company reported a net loss attributable to common stockholders of $70 million or $0.57 per diluted share.
Regardless of the yield, PXD is a good stock mainly because of its potential for price appreciation. PXD is particularly invested in Wolfcamp Shale. Spanning numerous counties across West Texas, the Wolfcamp formation is located below the long-plied Spraberry field, which helped to make Midland, Texas a center of oil exploration the early 1950s.
PXD is increasing the efficiency and quantity of their operations and research activities, which has contributed to higher overall productivity this quarter. It is also notable that this stock is backed by a large capital oil fund, which balances out its cash flow and stock valuation numbers.
I am therefore going long on Pioneer Natural Resources Co.
