Analysis of Debt
Paying user area
Try for free
Pioneer Natural Resources Co. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Current Ratio since 2005
- Debt to Equity since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Pioneer Natural Resources Co. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Total Debt (Carrying Amount)
Pioneer Natural Resources Co., balance sheet: debt
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Current Portion of Debt
- The current portion of debt experienced a significant decline from 450 million USD in 2019 to 140 million USD in 2020. It then increased to 244 million USD in 2021, surged sharply to 779 million USD in 2022, and finally decreased drastically to 28 million USD in 2023. This pattern indicates substantial fluctuations with no clear linear trend, suggesting changes in short-term debt obligations over the period.
- Finance Lease Liability, Current
- The current finance lease liability showed a steady but moderate increase year over year, rising from 16 million USD in 2019 to 21 million USD in 2023. This indicates a gradual growth in short-term lease obligations.
- Long-Term Debt, Excluding Current Portion
- Long-term debt, excluding the current portion, more than doubled from 1,839 million USD in 2019 to 3,160 million USD in 2020. It then more than doubled again in 2021, reaching 6,688 million USD, representing a peak in the observed period. This was followed by a notable reduction to 4,125 million USD in 2022 and a moderate increase to 4,807 million USD in 2023. The trend suggests aggressive debt accumulation until 2021, followed by deleveraging efforts in subsequent years.
- Finance Lease Liability, Noncurrent
- The noncurrent finance lease liability exhibited a gradual decrease throughout the period, moving from 556 million USD in 2019 to 481 million USD in 2023. This steady decline reflects a reduction of long-term lease obligations.
- Total Long-Term Debt and Finance Lease Liability, Including Current Portion
- The total combined long-term debt and finance lease liability increased from 2,861 million USD in 2019 to a peak of 7,471 million USD in 2021. Subsequently, it declined substantially to 5,425 million USD in 2022 and remained relatively stable with a slight decrease to 5,337 million USD in 2023. This overall pattern highlights a period of considerable debt growth up to 2021 followed by a phase of consolidation and partial debt reduction.
Total Debt (Fair Value)
| Dec 31, 2023 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Convertible senior notes | |
| Senior notes | |
| Total current portion of long-term debt (fair value) | |
| Convertible senior notes | |
| Senior notes | |
| Total long-term debt (fair value) | |
| Finance lease liability | |
| Total long-term debt and finance lease liability, including current portion (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2023-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt and finance leases:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Weighted-average interest rate = 100 × ÷ =
Interest Costs Incurred
Pioneer Natural Resources Co., interest costs incurred
US$ in millions
| 12 months ended: | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest expense | |||||||||||
| Capitalized interest | |||||||||||
| Interest incurred |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Interest Expense
- The interest expense exhibited some variability over the analyzed periods. Starting at 121 million US dollars at the end of 2019, it increased to 129 million in 2020. There was a more substantial rise in 2021, reaching 161 million. However, in 2022, the interest expense decreased to 128 million, before increasing again to 153 million in 2023. This indicates a fluctuating pattern with a peak in 2021, followed by a decrease and then a partial rebound.
- Capitalized Interest
- Capitalized interest was relatively steady at 5 million US dollars in 2019 and 2020, then declined sharply to 2 million in 2021. For 2022 and 2023, no data is available, suggesting either a discontinuation of capitalizing interest costs or unreported figures during these periods. This trend reflects a reduction in capitalized interest over the visible timeline.
- Interest Incurred
- Interest incurred, which represents the total of interest expense and capitalized interest, followed a pattern similar to interest expense, starting at 126 million US dollars in 2019 and increasing to 134 million in 2020. It then peaked at 163 million in 2021, followed by a decline to 128 million in 2022 and a subsequent increase to 153 million in 2023. The increase and decrease pattern mirrors the fluctuations seen in interest expense, with the effect of declining capitalized interest contributing to the movement from 2020 to 2022.
- Overall Trend and Insights
- The overall interest costs show a dynamic behavior with a notable peak in 2021, driven primarily by the increase in interest expense. The reduction of capitalized interest starting in 2021 appears to contribute to a slight moderation of total interest incurred in subsequent years. The absence of capitalized interest data in the last two periods might imply changes in accounting practices or project investments. Nearly all years exhibit fluctuations rather than steady growth or reduction, reflecting possible fluctuations in borrowing levels, interest rates, or capital expenditure policies during these periods.
Adjusted Interest Coverage Ratio
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
2023 Calculations
1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= ÷ =
2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest incurred
= ÷ =
- Interest coverage ratio (without capitalized interest)
- The interest coverage ratio demonstrates significant volatility over the examined period. Initially, the ratio stood at 9.16 in 2019, indicating a solid ability to cover interest expenses. However, in 2020, there was a pronounced decline, with the ratio dropping to a negative value of -1.02, reflecting a challenging financial environment or increased interest obligations surpassing earnings before interest and taxes. Subsequently, the ratio rebounded markedly in 2021 to 18.06, suggesting strong earnings recovery relative to interest expenses. The upward trend accelerated in 2022, reaching an elevated level of 78.74, implying an exceptional capacity to service debt obligations. Although there was a decline in 2023 to 41.83, it remained substantially higher than the initial pre-decline value in 2019, signaling sustained robust interest coverage.
- Adjusted interest coverage ratio (with capitalized interest)
- The adjusted interest coverage ratio, which accounts for capitalized interest, mirrors the trend observed in the unadjusted ratio, indicating consistency in the underlying financial performance. Starting at 8.79 in 2019, the adjusted ratio experienced a similar negative dip to -0.99 in 2020, suggesting that the capitalization of interest expenses did not materially mitigate the downturn. The recovery in 2021 brought the ratio up to 17.83, closely aligning with the unadjusted figure. The peak in 2022 again reached 78.74, with the ratio decreasing in 2023 to 41.83. This parallel movement signifies that capitalizing interest had minimal impact on the overall interest coverage trend, reinforcing the observation of a sharp decline in 2020 followed by a strong recovery and sustained elevated coverage in subsequent years.