Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Pioneer Natural Resources Co., FCFE 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).
The financial trajectory between 2019 and 2023 is characterized by significant volatility in cash generation, featuring a rapid expansion phase that peaked in 2022 followed by a moderate contraction in 2023. There is a notable divergence in the relationship between operating cash flows and equity-available cash during the early part of the period, which transitioned into a more synchronized movement in later years.
- Net Cash Provided by Operating Activities
- Operating cash flows experienced a decline from 3,115 million US$ in 2019 to 2,083 million US$ in 2020. This was followed by an aggressive growth phase, with values rising to 6,059 million US$ in 2021 and reaching a peak of 11,348 million US$ in 2022. By the end of 2023, a downward correction occurred, with operating cash flows decreasing to 8,448 million US$.
- Free Cash Flow to Equity (FCFE)
- FCFE demonstrated a dramatic increase from a near-zero baseline of 44 million US$ in 2019 to 1,483 million US$ in 2020, and further surged to 5,223 million US$ in 2021. This level of cash flow remained relatively stable through 2022 at 5,209 million US$ before contracting to 3,219 million US$ in 2023. The growth from 2019 to 2021 represents a substantial increase in the cash available for distribution to shareholders or debt reduction.
- Operating Cash Flow to FCFE Correlation
- A significant disparity is observed in 2019, where high operating cash flows did not translate into FCFE, suggesting heavy capital expenditures or substantial debt repayments during that period. Starting in 2020, the correlation strengthened, with FCFE capturing a larger proportion of operating cash. However, while operating cash flow peaked in 2022, FCFE plateaued, indicating that the incremental gains in operating cash during that year were likely absorbed by capital investments or financing activities. Both metrics declined in tandem in 2023, signaling a broader reduction in available liquidity.
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Price to FCFE Ratio, Current
Pioneer Natural Resources Co., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 233,623,121 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 3,219) |
| FCFE per share | 13.78 |
| Current share price (P) | 233.92 |
| Valuation Ratio | |
| P/FCFE | 16.98 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Chevron Corp. | 18.73 |
| ConocoPhillips | 25.71 |
| ExxonMobil Holdings Corp. | 28.49 |
| P/FCFE, Sector | |
| Oil, Gas & Consumable Fuels | 20.94 |
| P/FCFE, Industry | |
| Energy | 20.96 |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Pioneer Natural Resources Co., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 233,623,121 | 235,004,153 | 242,884,015 | 216,580,280 | 165,714,771 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 3,219) | 5,209) | 5,223) | 1,483) | 44) | |
| FCFE per share3 | 13.78 | 22.17 | 21.50 | 6.85 | 0.27 | |
| Share price1, 4 | 233.92 | 205.06 | 223.20 | 148.47 | 135.97 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 16.98 | 9.25 | 10.38 | 21.68 | 512.10 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Chevron Corp. | 18.24 | 10.59 | 32.05 | — | — | |
| ConocoPhillips | 11.74 | 8.93 | 10.61 | — | — | |
| ExxonMobil Holdings Corp. | 12.46 | 8.73 | 19.82 | — | — | |
| P/FCFE, Sector | ||||||
| Oil, Gas & Consumable Fuels | 13.84 | 9.33 | 19.75 | — | — | |
| P/FCFE, Industry | ||||||
| Energy | 14.25 | 10.19 | 20.81 | — | — | |
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 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,219,000,000 ÷ 233,623,121 = 13.78
4 Closing price as at the filing date of Pioneer Natural Resources Co. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 233.92 ÷ 13.78 = 16.98
6 Click competitor name to see calculations.
The financial trajectory from 2019 to 2023 exhibits a significant shift in valuation metrics, characterized by a transition from an extreme valuation outlier to a more normalized range, followed by a recent upward adjustment in the valuation multiple.
- Share Price Movement
- A general upward trend is observed in the share price, which climbed from 135.97 in 2019 to 233.92 by 2023. While the progression was largely positive, a moderate retraction occurred in 2022, with the price descending to 205.06 before reaching its five-year peak in 2023.
- FCFE per Share Dynamics
- Free Cash Flow to Equity (FCFE) per share experienced exponential growth between 2019 and 2022, rising from a nominal 0.27 to a peak of 22.17. This indicates a substantial increase in the cash available to equity holders over this period. However, this trend reversed in 2023, as FCFE per share declined to 13.78.
- P/FCFE Ratio Analysis
- The P/FCFE ratio underwent a drastic compression, falling from 512.10 in 2019 to a low of 9.25 in 2022. This collapse in the ratio was driven by the rapid expansion of FCFE per share, which far outpaced the growth in share price. In 2023, the ratio expanded to 16.98, a result of the concurrent increase in share price and the reduction in FCFE per share, indicating a relative increase in the valuation multiple.
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