Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Pioneer Natural Resources Co., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial leverage ratios indicate a relatively stable capital structure over the observed period, with values fluctuating narrowly around 1.5 to 1.6. This stability suggests consistent use of debt relative to equity in financing the company's operations.
- Debt to Equity Ratios
-
The debt to equity ratio, both including and excluding operating lease liabilities, shows some variability. It initially increased from early 2020 to early 2021, peaking around 0.34 (excluding leases) and 0.36 (including leases), indicating a higher reliance on debt financing during that period. Subsequently, the ratio gradually declined through 2022 and into 2023, reaching approximately 0.21 to 0.23 by the end of 2023. This downward trend reflects a reduction in leverage or an increase in equity base over time.
- Debt to Capital Ratios
-
Debt to capital ratios followed a pattern similar to debt to equity, peaking around early 2021 and then showing a decreasing trend afterwards. The maximum observed was about 0.27 (including leases) and 0.25 (excluding leases) in early 2021. By the end of 2023, these ratios had decreased to roughly 0.17–0.18 (excluding leases) and 0.18–0.19 (including leases), suggesting improved capital structure strength and reduced financial risk.
- Debt to Assets Ratios
-
The debt to assets ratio also exhibited a rise in early 2021, reaching approximately 0.2 to 0.22, followed by a consistent decline through 2022 and into 2023 to values near 0.13 to 0.16. This trend denotes a lower proportion of total assets financed by debt, consistent with the deleveraging observed in other ratios.
- Interest Coverage Ratio
-
The interest coverage ratio experienced notable fluctuations over the periods. It started high at 8.58 in the first quarter of 2020, then declined sharply, turning negative at the end of 2020 and early 2021, indicating periods when operating income was insufficient to cover interest expenses. From mid-2021 onwards, there was a marked and sustained improvement, with the ratio increasing significantly to very high levels exceeding 70 in late 2022 and maintaining strong coverage above 40 through 2023. This improvement reflects enhanced operational profitability or reduced interest burden, signaling a strengthening capacity to meet interest obligations.
In summary, the company's financial leverage and debt-related metrics indicate a phase of increased leverage through early 2021, followed by progressive deleveraging across subsequent periods. Simultaneously, a substantial recovery and strengthening in the ability to cover interest expenses is evident after initial weakness, pointing to improving financial health and operational performance in recent quarters.
Debt Ratios
Coverage Ratios
Debt to Equity
Pioneer Natural Resources Co., debt to equity calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current portion of debt | 28) | 44) | 311) | 814) | 779) | 986) | 1,117) | 244) | 244) | 244) | —) | —) | 140) | 140) | 139) | 499) | |||||
| Long-term debt, excluding current portion | 4,807) | 4,880) | 5,010) | 5,094) | 4,125) | 4,228) | 4,576) | 5,446) | 6,688) | 6,685) | 6,926) | 6,177) | 3,160) | 3,148) | 2,054) | 2,140) | |||||
| Total debt | 4,835) | 4,924) | 5,321) | 5,908) | 4,904) | 5,214) | 5,693) | 5,690) | 6,932) | 6,929) | 6,926) | 6,177) | 3,300) | 3,288) | 2,193) | 2,639) | |||||
| Equity | 23,171) | 22,719) | 22,000) | 21,838) | 22,541) | 22,949) | 23,790) | 23,668) | 22,837) | 23,193) | 22,638) | 18,146) | 11,569) | 11,654) | 11,740) | 12,211) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | 0.21 | 0.22 | 0.24 | 0.27 | 0.22 | 0.23 | 0.24 | 0.24 | 0.30 | 0.30 | 0.31 | 0.34 | 0.29 | 0.28 | 0.19 | 0.22 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 0.13 | 0.12 | 0.14 | 0.15 | 0.15 | 0.15 | 0.17 | 0.20 | 0.23 | 0.27 | 0.32 | 0.34 | — | — | — | — | |||||
| ConocoPhillips | 0.38 | 0.40 | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.38 | 0.44 | 0.45 | 0.45 | 0.46 | — | — | — | — | |||||
| Exxon Mobil Corp. | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.24 | 0.26 | 0.28 | 0.28 | 0.35 | 0.38 | 0.40 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Debt to equity = Total debt ÷ Equity
= 4,835 ÷ 23,171 = 0.21
2 Click competitor name to see calculations.
- Total Debt
-
The total debt exhibited notable fluctuations over the analyzed quarters. In 2020, it started at a moderate level and increased sharply towards the end of the year, doubling by the first quarter of 2021. Debt peaked around mid-2021 and remained relatively stable through the end of that year. Starting in 2022, total debt showed a declining trend, with decreases observed in almost every quarter, reaching its lowest point in the last quarter of 2023 compared to the previous years analyzed.
- Equity
-
Equity demonstrated a general upward trend over the entire period. Beginning at a certain baseline in early 2020, equity remained fairly steady with some slight decreases until the end of 2020. From early 2021 onwards, equity increased significantly, peaking during mid-2021 and maintaining high levels throughout 2022. Although small fluctuations occurred during 2023, equity remained elevated relative to earlier years, suggesting improved net asset levels over time.
- Debt to Equity Ratio
-
The debt to equity ratio reflected the combined changes observed in total debt and equity. In 2020, the ratio rose sharply in the latter part of the year, reaching its highest point at approximately 0.34 during early 2021. Following this peak, the ratio gradually decreased over the subsequent quarters, signaling a reduction in leverage relative to equity. By the end of 2023, the ratio had declined to around 0.21, indicating a more conservative capital structure compared to the peak leverage period.
- Overall Insights
-
The data suggests an initial phase of increased borrowing through 2020 and into early 2021, likely reflecting strategic financing or operational needs. This was accompanied by growing equity levels beginning in early 2021, which may indicate capital inflows or retained earnings accumulation. Subsequently, the company appears to have managed a deleveraging strategy, reducing total debt while maintaining elevated equity, thereby improving its debt-to-equity ratio. This trend suggests strengthening financial stability and a shift towards lower financial risk in recent quarters.
Debt to Equity (including Operating Lease Liability)
Pioneer Natural Resources Co., debt to equity (including operating lease liability) calculation (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Equity
= 5,258 ÷ 23,171 = 0.23
The financial data reveal notable fluctuations in the company's capital structure over the analyzed periods. Total debt, inclusive of operating lease liabilities, exhibited a significant increase from early 2020 through late 2021, peaking in the December 2021 quarter. Specifically, total debt rose from approximately $2.9 billion in March 2020 to around $7.3 billion by December 2021. This upward trend indicates increased leverage during that timeframe.
Following this peak, the debt level showed a downward trajectory beginning in early 2022, declining steadily through to the end of 2023. By December 2023, total debt decreased to about $5.3 billion, reflecting a strategic reduction in indebtedness over the last two years of the period analyzed.
Equity experienced a different pattern. Starting at about $12.2 billion in March 2020, equity increased markedly through 2021, reaching a high of roughly $23.2 billion by September 2021. This growth in equity was followed by a period of relative stability and minor fluctuations, maintaining levels generally in the $22 billion to $23 billion range through the end of 2023.
The debt-to-equity ratio followed the movements of total debt and equity, reflecting the combined impact of both components on financial leverage. The ratio was relatively low in early 2020, near 0.21 to 0.3, then increased to peaks around 0.32 to 0.36 during 2021, coinciding with heightened debt levels. Subsequently, the ratio declined again, reaching approximately 0.23 by the end of 2023, aligning with the reduction in total debt and the stabilization of equity.
- Key Observations:
- The initial increase in total debt and debt-to-equity ratio during 2020-2021 suggests a phase of enhanced financial leverage, possibly to support investment or operational needs.
- The concurrent rise in equity during the same period indicates strengthening shareholder investment or retained earnings growth, which partially offsets leverage risk.
- The marked reduction in debt levels from 2022 onward, together with stable equity, points to a deleveraging strategy that improves the balance sheet's risk profile.
- The overall maintenance of a debt-to-equity ratio around or below 0.3 in later periods demonstrates a relatively conservative capital structure.
In summary, the company's financial structure has undergone notable shifts characterized by an initial leveraging phase followed by deliberate debt reduction while sustaining equity levels. These trends reflect active financial management aimed at balancing growth financing with prudent risk control.
Debt to Capital
Pioneer Natural Resources Co., debt to capital calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current portion of debt | 28) | 44) | 311) | 814) | 779) | 986) | 1,117) | 244) | 244) | 244) | —) | —) | 140) | 140) | 139) | 499) | |||||
| Long-term debt, excluding current portion | 4,807) | 4,880) | 5,010) | 5,094) | 4,125) | 4,228) | 4,576) | 5,446) | 6,688) | 6,685) | 6,926) | 6,177) | 3,160) | 3,148) | 2,054) | 2,140) | |||||
| Total debt | 4,835) | 4,924) | 5,321) | 5,908) | 4,904) | 5,214) | 5,693) | 5,690) | 6,932) | 6,929) | 6,926) | 6,177) | 3,300) | 3,288) | 2,193) | 2,639) | |||||
| Equity | 23,171) | 22,719) | 22,000) | 21,838) | 22,541) | 22,949) | 23,790) | 23,668) | 22,837) | 23,193) | 22,638) | 18,146) | 11,569) | 11,654) | 11,740) | 12,211) | |||||
| Total capital | 28,006) | 27,643) | 27,321) | 27,746) | 27,445) | 28,163) | 29,483) | 29,358) | 29,769) | 30,122) | 29,564) | 24,323) | 14,869) | 14,942) | 13,933) | 14,850) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | 0.17 | 0.18 | 0.19 | 0.21 | 0.18 | 0.19 | 0.19 | 0.19 | 0.23 | 0.23 | 0.23 | 0.25 | 0.22 | 0.22 | 0.16 | 0.18 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.13 | 0.15 | 0.17 | 0.18 | 0.22 | 0.24 | 0.26 | — | — | — | — | |||||
| ConocoPhillips | 0.28 | 0.29 | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | 0.28 | 0.31 | 0.31 | 0.31 | 0.32 | — | — | — | — | |||||
| Exxon Mobil Corp. | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.20 | 0.21 | 0.22 | 0.22 | 0.26 | 0.28 | 0.29 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,835 ÷ 28,006 = 0.17
2 Click competitor name to see calculations.
The analysis of the financial leverage and capital structure reveals several notable trends over the observed periods.
- Total Debt
- Total debt displayed significant fluctuations. Initially, there was a decrease between March and June 2020, followed by a sharp increase reaching a peak in the December 2020 quarter. The subsequent quarters of 2021 saw elevated debt levels, with values stabilizing but remaining relatively high. Starting from 2022, total debt began a downward trajectory that continued through 2023, indicating a focus on deleveraging or debt reduction over this later period.
- Total Capital
- Total capital followed a somewhat similar pattern, initially decreasing slightly in early 2020, then rising substantially through 2021 to reach its highest values. From 2022 onward, total capital showed a mild decreasing trend with some fluctuations, reflecting possible adjustments in the company’s overall funding structure, which could include changes in equity or other capital sources. Despite these changes, capital levels remained relatively high compared to early 2020 figures.
- Debt to Capital Ratio
- The debt to capital ratio increased from 0.16 in June 2020 to a peak around 0.25 in March 2021, indicating higher financial leverage during this period. The ratio then stabilized around the 0.23 mark throughout the rest of 2021, followed by a decline beginning in 2022 that continued into 2023. By the end of 2023, the ratio had decreased to approximately 0.17, reflecting a reduction in leverage intensity relative to total capital. This decline suggests an improved capital structure with comparatively less reliance on debt financing in the most recent quarters.
Overall, the data indicates a period of increased borrowing and capital accumulation in 2020 and 2021, followed by a strategic reduction in debt levels and leverage ratios during 2022 and 2023. This trend points toward a cautious approach in managing debt and strengthening the balance sheet in response to prevailing economic or operational factors.
Debt to Capital (including Operating Lease Liability)
Pioneer Natural Resources Co., debt to capital (including operating lease liability) calculation (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,258 ÷ 28,429 = 0.18
The analysis of the financial data over the indicated quarters reveals notable fluctuations in the company's total debt, total capital, and the resulting debt-to-capital ratio. These metrics provide insight into the company's leverage and capital structure trends during the period under review.
- Total Debt (including operating lease liability)
- The total debt exhibited significant variability. Starting from approximately 2.9 billion US dollars at the end of the first quarter of 2020, it experienced a decline in mid-2020, followed by a substantial increase reaching a peak of around 7.3 billion US dollars in the fourth quarter of 2021. Subsequently, total debt gradually decreased through 2022 and 2023, ending at approximately 5.3 billion US dollars by the end of 2023. This pattern indicates a phase of increased borrowing or lease commitments in 2021, followed by a deleveraging trend during the subsequent two years.
- Total Capital (including operating lease liability)
- Total capital showed an overall upward trajectory across the period. Beginning near 15.1 billion US dollars in early 2020, it surged notably through 2021 to peak at over 30 billion US dollars in the fourth quarter. After reaching this level, total capital declined modestly but remained relatively stable around 27 to 28 billion US dollars throughout 2022 and 2023. The increase in total capital during 2021 aligns with the rise in debt, suggesting significant capital investment or asset growth, while the later stabilization may indicate a period of consolidation.
- Debt to Capital Ratio (including operating lease liability)
- The debt-to-capital ratio reflected the interplay between total debt and total capital. Initially low at approximately 0.19 in early 2020, the ratio further decreased to about 0.17 in mid-2020, suggesting improved capital structure or debt reduction relative to capital. However, during 2021, the ratio increased to a peak of 0.27 in the first quarter, corresponding with the elevated debt levels. From 2022 onward, the ratio trended downward steadily, reaching 0.18 by the end of 2023, indicating a gradual reduction in leverage and a stronger equity or capital base relative to debt.
In summary, the company experienced a significant increase in leverage during 2021, characterized by rising debt and capital levels. This was followed by a period of debt reduction and modest capital stabilization in 2022 and 2023, resulting in a more conservative leverage position by the end of the most recent quarter. The trends suggest strategic financial management aimed at balancing growth initiatives with risk mitigation over the examined periods.
Debt to Assets
Pioneer Natural Resources Co., debt to assets calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Current portion of debt | 28) | 44) | 311) | 814) | 779) | 986) | 1,117) | 244) | 244) | 244) | —) | —) | 140) | 140) | 139) | 499) | |||||
| Long-term debt, excluding current portion | 4,807) | 4,880) | 5,010) | 5,094) | 4,125) | 4,228) | 4,576) | 5,446) | 6,688) | 6,685) | 6,926) | 6,177) | 3,160) | 3,148) | 2,054) | 2,140) | |||||
| Total debt | 4,835) | 4,924) | 5,321) | 5,908) | 4,904) | 5,214) | 5,693) | 5,690) | 6,932) | 6,929) | 6,926) | 6,177) | 3,300) | 3,288) | 2,193) | 2,639) | |||||
| Total assets | 36,613) | 36,360) | 35,494) | 36,109) | 35,740) | 35,746) | 37,301) | 36,860) | 36,811) | 37,549) | 36,784) | 30,351) | 19,229) | 18,977) | 17,906) | 19,051) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | 0.13 | 0.14 | 0.15 | 0.16 | 0.14 | 0.15 | 0.15 | 0.15 | 0.19 | 0.18 | 0.19 | 0.20 | 0.17 | 0.17 | 0.12 | 0.14 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.12 | 0.13 | 0.16 | 0.18 | 0.19 | — | — | — | — | |||||
| ConocoPhillips | 0.20 | 0.20 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.20 | 0.22 | 0.23 | 0.23 | 0.24 | — | — | — | — | |||||
| Exxon Mobil Corp. | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.17 | 0.18 | 0.19 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,835 ÷ 36,613 = 0.13
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company’s debt levels, asset base, and leverage ratios over the period from March 2020 to December 2023.
- Total Debt
-
Total debt exhibited fluctuations throughout the period, starting at approximately $2.6 billion in the first quarter of 2020. There was an initial decrease in mid-2020, followed by a substantial increase through 2021, peaking near $6.9 billion by year-end 2021. Subsequently, debt levels declined steadily throughout 2022 and 2023, falling to about $4.8 billion by the end of 2023.
- Total Assets
-
The total asset base demonstrated significant growth overall. Beginning at around $19 billion in early 2020, assets increased markedly during 2021, reaching over $37 billion by year-end 2021. After peaking, the asset levels showed minor fluctuations, generally maintaining a level slightly above $35 billion through 2022 and 2023, ending near $36.6 billion in the last quarter of 2023.
- Debt to Assets Ratio
-
The leverage ratio, defined as debt to assets, reflected the changes in debt and asset values. Initially low around 0.14 in early 2020, the ratio decreased slightly in mid-2020 but then increased steadily through 2021, peaking around 0.20. Following this peak, the ratio declined gradually during 2022 and 2023, reaching approximately 0.13 by the end of 2023. This trend indicates a moderation of leverage in recent periods, suggesting a conservative approach to debt management relative to the asset base.
In summary, the company increased both its debt and asset base considerably during 2021, resulting in a higher leverage ratio during that period. However, subsequent quarters show a strategic reduction in debt alongside relatively stable assets, leading to a more conservative financial structure by the end of 2023. The trends imply active management of capital structure, focusing on reducing leverage after a period of expansion.
Debt to Assets (including Operating Lease Liability)
Pioneer Natural Resources Co., debt to assets (including operating lease liability) calculation (quarterly data)
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,258 ÷ 36,613 = 0.14
The financial data reveals notable fluctuations in total debt, total assets, and the debt-to-assets ratio over the analyzed periods.
- Total Debt (including operating lease liability)
- This metric exhibited a significant increase beginning in early 2021, rising sharply from 3,510 million USD in December 2020 to a peak of 7,287 million USD in June 2021. Following this peak, total debt remained elevated through the end of 2021 before trending downward steadily throughout 2022 and into 2023, declining from 6,025 million USD in March 2022 to 5,258 million USD in December 2023.
- Total Assets
- Total assets demonstrated a substantial rise starting in the first quarter of 2021, increasing from 19,229 million USD in December 2020 to 36,784 million USD in June 2021. This elevated asset base was generally maintained with minor variations, hovering between approximately 35,700 million USD and 37,000 million USD through the end of 2023. Earlier periods showed relatively stable asset levels in the range of 17,900 million USD to 19,000 million USD.
- Debt to Assets Ratio (including operating lease liability)
- This ratio increased noticeably at the beginning of 2021, rising from 0.18 at the end of 2020 to a peak of 0.22 in March 2021. Subsequently, the ratio decreased incrementally through 2022 and 2023, ultimately reaching a low of 0.14 by the end of 2023. This pattern indicates that while debt levels rose sharply, total asset growth was sufficient to reduce the overall leverage ratio toward the later periods.
In summary, the company experienced a period of increased leverage associated with expanding assets starting in early 2021, followed by a gradual deleveraging phase characterized by declining total debt and relatively stable asset levels. The debt-to-assets ratio reflects these movements, peaking early in the period before steadily improving, suggesting enhanced financial stability and reduced risk exposure over the most recent quarters.
Financial Leverage
Pioneer Natural Resources Co., financial leverage calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Total assets | 36,613) | 36,360) | 35,494) | 36,109) | 35,740) | 35,746) | 37,301) | 36,860) | 36,811) | 37,549) | 36,784) | 30,351) | 19,229) | 18,977) | 17,906) | 19,051) | |||||
| Equity | 23,171) | 22,719) | 22,000) | 21,838) | 22,541) | 22,949) | 23,790) | 23,668) | 22,837) | 23,193) | 22,638) | 18,146) | 11,569) | 11,654) | 11,740) | 12,211) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | 1.58 | 1.60 | 1.61 | 1.65 | 1.59 | 1.56 | 1.57 | 1.56 | 1.61 | 1.62 | 1.62 | 1.67 | 1.66 | 1.63 | 1.53 | 1.56 | |||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 1.63 | 1.60 | 1.59 | 1.60 | 1.62 | 1.64 | 1.68 | 1.70 | 1.72 | 1.77 | 1.82 | 1.83 | — | — | — | — | |||||
| ConocoPhillips | 1.95 | 1.96 | 1.89 | 1.91 | 1.95 | 1.93 | 1.87 | 1.90 | 2.00 | 1.98 | 1.93 | 1.94 | — | — | — | — | |||||
| Exxon Mobil Corp. | 1.84 | 1.86 | 1.82 | 1.86 | 1.89 | 1.99 | 2.07 | 2.10 | 2.01 | 2.10 | 2.13 | 2.13 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Financial leverage = Total assets ÷ Equity
= 36,613 ÷ 23,171 = 1.58
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the analyzed periods regarding the company’s balance sheet composition and leverage profile.
- Total Assets
- Total assets initially declined slightly from US$19,051 million at the end of Q1 2020 to US$17,906 million by mid-2020, followed by a rebound through the end of 2020. A marked increase occurred starting in Q1 2021, with assets rising substantially from US$30,351 million in March 2021 to a peak of US$37,549 million in Q3 2021. Asset levels then slightly decreased but remained generally stable through 2022 and into 2023, fluctuating around the mid-to-high 35,000 to 36,000 million dollar range. This pattern suggests a period of asset growth beginning early 2021, possibly driven by acquisitions, investments, or capital expenditures, with a subsequent stabilization phase.
- Equity
- Shareholders' equity showed a decline from Q1 through Q4 2020, moving from US$12,211 million down to US$11,569 million, mirroring the reduction in total assets during much of 2020. Starting in Q1 2021, equity increased sharply to US$18,146 million and continued this upward trend through the end of 2021, reaching approximately US$22,837 million. In 2022, equity values fluctuated slightly downward overall, settling around US$22,500 million by year-end. During 2023, the equity remained fairly steady around the low to mid-22,000 million range, reflecting relative stability. This growth in equity from 2021 onward likely reflects retained earnings growth, capital injections, or asset revaluations.
- Financial Leverage
- Financial leverage ratios remained moderately stable over the period, ranging between approximately 1.53 and 1.67. A slight increase in leverage was noted during 2020 and early 2021, peaking near 1.67 in Q1 2021, coinciding with the rise in assets and equity. From mid-2021 onwards, leverage gradually decreased and stabilized around 1.58 to 1.61, indicating a relatively consistent balance between debt and equity financing. The leverage fluctuations appear moderate and controlled, suggesting prudent management of financial risk despite asset growth.
In summary, the data indicates a phase of asset and equity expansion beginning in early 2021 following a period of contraction or slow growth through 2020. This expansion was accompanied by a relatively stable financial leverage ratio, highlighting a consistent capital structure management. The company's balance sheet profile transitioned to higher asset and equity levels with moderate leverage, implying potential strategic growth backed by both equity and debt financing, followed by a stabilization phase in recent quarters.
Interest Coverage
Pioneer Natural Resources Co., interest coverage calculation (quarterly data)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income (loss) attributable to common stockholders | 1,269) | 1,301) | 1,102) | 1,222) | 1,481) | 1,984) | 2,371) | 2,009) | 763) | 1,045) | 380) | (70) | 43) | (85) | (449) | 291) | |||||
| Add: Income tax expense | 347) | 366) | 305) | 335) | 387) | 510) | 657) | 552) | 228) | 291) | 120) | (11) | (14) | (15) | (109) | 77) | |||||
| Add: Interest expense | 40) | 44) | 41) | 28) | 28) | 30) | 33) | 37) | 40) | 41) | 41) | 39) | 35) | 34) | 33) | 27) | |||||
| Earnings before interest and tax (EBIT) | 1,656) | 1,711) | 1,448) | 1,585) | 1,896) | 2,524) | 3,061) | 2,598) | 1,031) | 1,377) | 541) | (42) | 64) | (66) | (525) | 395) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Interest coverage1 | 41.83 | 47.09 | 58.69 | 76.18 | 78.74 | 65.81 | 53.42 | 34.89 | 18.06 | 12.44 | 3.34 | -4.04 | -1.02 | 2.23 | 5.55 | 8.58 | |||||
| Benchmarks | |||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||
| Chevron Corp. | 64.08 | 77.06 | 87.36 | 102.29 | 97.27 | 86.49 | 68.50 | 44.87 | 31.39 | 19.12 | 8.50 | -11.85 | — | — | — | — | |||||
| ConocoPhillips | 21.88 | 24.35 | 28.69 | 33.08 | 36.07 | 33.30 | 28.10 | 22.60 | 15.38 | 9.41 | 4.77 | 1.17 | — | — | — | — | |||||
| Exxon Mobil Corp. | 63.17 | 74.98 | 85.62 | 108.93 | 94.68 | 88.00 | 68.10 | 42.27 | 33.98 | -5.84 | -14.48 | -20.45 | — | — | — | — | |||||
Based on: 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q4 2023 Calculation
Interest coverage
= (EBITQ4 2023
+ EBITQ3 2023
+ EBITQ2 2023
+ EBITQ1 2023)
÷ (Interest expenseQ4 2023
+ Interest expenseQ3 2023
+ Interest expenseQ2 2023
+ Interest expenseQ1 2023)
= (1,656 + 1,711 + 1,448 + 1,585)
÷ (40 + 44 + 41 + 28)
= 41.83
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT shows significant volatility in early 2020, starting with a positive value followed by notable negative values in the second and third quarters of that year. From late 2020 onward, it recovers and demonstrates a strong upward trend throughout 2021 and into early 2022, reaching peaks above 3 billion US dollars in mid-2022. Thereafter, a gradual decline occurs through the end of 2022 and into 2023, though EBIT remains at comparatively high levels relative to the initial periods.
- Interest Expense
- Interest expense experiences a gradual increase from early 2020 to the end of 2021, peaking at around 41 million US dollars. Following this, the expense slightly decreases through late 2022 but rises again in 2023, reaching levels comparable to the earlier peak. Overall, interest expense remains relatively stable with mild fluctuations rather than sharp changes.
- Interest Coverage Ratio
- The interest coverage ratio exhibits considerable fluctuations linked to EBIT changes. It starts relatively high in early 2020, decreases sharply to negative values during the mid-2020 quarters, indicating difficulties in covering interest expenses from operational earnings. Starting late 2020, the ratio improves dramatically, reaching very high levels through 2021 and 2022, peaking at nearly 79 times coverage in late 2022. From early 2023, despite EBIT declining somewhat, the ratio remains robust, maintaining substantial coverage above 40 times by the end of 2023.
- Overall Analysis
- The company experienced a challenging period in early to mid-2020, as evidenced by negative EBIT and low or negative interest coverage ratios, signaling operational stress and potential liquidity concerns. However, there was a marked recovery beginning in late 2020, with a strong increase in operating earnings and a corresponding improvement in the ability to cover interest expenses comfortably. Interest expenses remained relatively stable, suggesting well-managed debt levels or refinancing. The improvements have sustained through 2021 and 2022, although EBIT and interest coverage have slightly declined in 2023, they remain at healthy and historically high levels, indicating overall financial resilience and strong operational performance.