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Stockchase Opinions

David BurrowsPioneer Natural ResourcesPXDBUYNov 06, 2013

The groups in energy that have been doing well, are those exploration/development companies that are in very specific geographic regions where there are very low finding costs and, with technology, are growing reserves aggressively. This one is in the Permian Basin in Texas, one of the oldest US oil fields. They believe they have 8 Bakken zones stacked one on top of the other and have about 1200 drilling targets. A high growth company. His one concern is that WTI prices have been backing off in the last few weeks. While it has less impact on these companies that are finding oil, ultimately, if it gets tough enough, it will impact all oil stocks.

$198.55

Stock price when the opinion was issued

$269.62

As of May 02, 2024. Market Open.

oilgas
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SELL

If you're already up, then take the gain and sell. Oil is uncertainty these days.

COMMENT

Exxon Mobil is offering 2.3 of its own shares for Pioneer, valuing PXD at $253 per share in a $60 billion all stock deal. Exxon is down somewhat. The energy space is looking good.

BUY

Exxon announced it will buy PXD, a mega deal, and he believes the deal will happen. PXD is a long-time favourite of his.

PARTIAL SELL

He just trimmed Pioneer, which topped out on Sept. 5, its ex-dividend date, but didn't like how it reversed after that. He still owns some Pioneer shares.

BUY

They've done a great job extending resource life. He's bullish oil.

BUY

It reports next week. The Permian is increasing production this year.

BUY

Pays a good dividend and has good costs at a time when the oil price is down.

BUY

She owns it only for the dividend, and doesn't need the stock to grow

SELL

Loves the company but he just sold it because it is a prime M&A takeover target. He is overweight energy despite paring this and other energy holdings.

BUY

Their report later today will be straightforward. This year, they already said that if oil is around $80 they will pay out $20 in dividends and at $60, will pay $10. Likely, they will pay the former which amounts to about a 10% yield. Not complex. She owns it for the dividend, not the upside.

HOLD

There's a floor on the crude oil price, so hold on.

BUY

They pay a variable dividend that they will cut if oil keeps going down. He feels oil will rise. He added shares the other day.

BUY

Pays a 10% yield that keeps rising, and it's back up by cash.

BUY
In a non-taxable account, she sold Chevron to buy Pioneer, which pays a higher dividend.
BUY
Good cash flow and balance sheet. Oil prices will hold here for the next 18 months, and won't rise much.