Imperial Capital Starts Pioneer Natural Resources (PXD) at Outperform

Imperial Capital initiates coverage on Pioneer Natural Resources (NYSE: PXD) with a Outperform rating and a price target of $270.00.

Analyst Bob Christensen said, "In our view, PXD has largely proved the effectiveness of horizontal oil well drilling and the commerciality of most of the prospective oil bearing formations in the crude oil-laden Midland Basin of West Texas. We believe PXD is ready to shift from its exploration phase to a development phase and rapidly ramp its crude oil production. Depending on world oil prices. PXD believes it could add 5 to 10 rigs a year for 10 years – potentially reaching an 80 or even a 120 rig campaign by 2024 from the current 16 rig program. Correspondingly, PXD’s crude oil output could rise 40% to 60% per year. Operationally, PXD is at an inflection point between exploration and large scale development, and execution in the latter is now paramount. That said, PXD has successfully run very large development campaigns in the past. Moreover, it has recently sold many non-core assets, redeployed its employees, and built up its finances to concentrate on this major growth opportunity."

For an analyst ratings summary and ratings history on Pioneer Natural Resources click here. For more ratings news on Pioneer Natural Resources click here.

Shares of Pioneer Natural Resources closed at $178.00 yesterday.

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