Enterprise Value to FCFF (EV/FCFF)
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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
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Free Cash Flow to The Firm (FCFF)
Pioneer Natural Resources Co., FCFF calculation
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).
1, 2 See details »
- Operating Cash Flow
- The net cash provided by operating activities exhibits considerable variability over the five-year span. Beginning at $3,115 million in 2019, there was a notable decline to $2,083 million in 2020. This was followed by a substantial increase in 2021, with operating cash flow nearly tripling to $6,059 million. The upward trend continued into 2022, reaching a peak of $11,348 million, before decreasing to $8,448 million in 2023. Overall, the data shows a recovery and growth in operating cash flow after 2020, with a slight contraction in the final year observed.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm mirrors the trajectory of operating cash flow but displays even more pronounced growth after 2019. Starting from $141 million in 2019, FCFF more than tripled in 2020 to $511 million. This growth accelerated significantly in 2021, surging to $6,122 million, followed by a further rise to $7,791 million in 2022. However, in 2023, FCFF saw a sharp decline to $3,834 million, which, while still substantially higher than the levels prior to 2021, indicates a noteworthy reduction compared to the previous two years. The data suggests that free cash flow experienced strong expansion between 2020 and 2022 before contracting in the most recent period.
- Overall Trends and Insights
- The financial indicators display a general pattern of recovery and substantial growth following a downturn in 2020. This aligns with potential challenging conditions during that year, followed by improved operational performance or market conditions. Both operating cash flow and free cash flow to the firm peaked in 2022 before retreating in 2023, indicating possible emerging constraints or strategic adjustments that affected cash generation. Despite the decline in 2023, cash flow levels remain significantly higher than those recorded in 2019 and 2020, suggesting an overall strengthening in financial performance over the analyzed period.
Interest Paid, Net of Tax
Pioneer Natural Resources Co., interest paid, net of tax calculation
US$ 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).
2 2023 Calculation
Cash payments for interest, tax = Cash payments for interest × EITR
= × =
3 2023 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= × =
The analysis of the financial metrics over the five-year period reveals consistent trends and minor fluctuations in key areas.
- Effective Income Tax Rate (EITR)
- The effective income tax rate remained stable at 23% from 2019 through 2021. In 2022, it decreased slightly to 21%, before increasing again to 22% in 2023. This indicates a relatively consistent tax environment, with only minor adjustments in tax burden over the period.
- Cash Payments for Interest, Net of Tax
- Cash payments for interest showed a gradual increasing trend from 2019 to 2022, rising from $93 million to $109 million. However, in 2023, there was a noticeable decrease to $99 million. This pattern suggests growing interest expenses during the earlier years, possibly due to higher borrowings or interest rates, followed by some reduction in the most recent year.
- Capitalized Interest, Net of Tax
- Capitalized interest remained steady at $4 million in both 2019 and 2020, then decreased to $2 million in 2021. There is no data available for 2022 and 2023. The earlier decline might indicate reduced amounts of interest being added to the cost of long-term assets, while missing data for the later years prevents further trend analysis.
Enterprise Value to FCFF Ratio, Current
Pioneer Natural Resources Co., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Chevron Corp. | |
| ConocoPhillips | |
| Exxon Mobil Corp. | |
| Occidental Petroleum Corp. | |
| EV/FCFF, Sector | |
| Oil, Gas & Consumable Fuels | |
| EV/FCFF, Industry | |
| Energy | |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Pioneer Natural Resources Co., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| EV/FCFF, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| EV/FCFF, Industry | ||||||
| Energy | ||||||
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).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV) Trends
- The enterprise value showed a significant upward trend from 2019 through 2021, increasing from 24,501 million US dollars to 57,606 million US dollars, which represents a more than doubling over this period. However, in 2022, the enterprise value declined to 52,411 million US dollars before rising again to 59,607 million US dollars in 2023. This pattern suggests an overall growth trajectory with some volatility during the recent years.
- Free Cash Flow to the Firm (FCFF) Trends
- The free cash flow to the firm displayed a strong and consistent increase from 2019 to 2022. Starting at 141 million US dollars in 2019, it rose substantially to 5,791 million US dollars by 2022. In 2023, the FCFF decreased to 3,834 million US dollars, representing a notable reduction from the previous year's peak. Despite this decline, FCFF remains significantly higher than the initial value in 2019, indicating improved cash generation capacity overall.
- EV to FCFF Ratio Analysis
- The ratio of enterprise value to free cash flow to the firm showed a marked decrease from 173.74 in 2019 to a low of 6.73 in 2022, reflecting enhanced valuation metrics relative to cash generation capacity. This decline suggests that the company's market value grew at a slower pace compared to its free cash flow, indicative of improved operational efficiency or cash flow generation relative to enterprise value. However, in 2023, the ratio increased to 15.55, which may indicate a relatively higher valuation or reduced cash flow generation efficiency in that year compared to 2022.