Pioneer Natural Resources Co., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (loss) attributable to common stockholders	4,894)	7,845)	2,118)	(200)	756)
Net noncash charges	3,723)	4,356)	3,978)	2,387)	2,737)
Changes in operating assets and liabilities, net of effects of acquisitions	(169)	(853)	(37)	(104)	(378)
Net cash provided by operating activities	8,448)	11,348)	6,059)	2,083)	3,115)
Proceeds from disposition of assets	35)	367)	3,244)	60)	149)
Additions to oil and gas properties	(4,571)	(3,920)	(3,169)	(1,602)	(2,988)
Additions to other assets and other property and equipment	(177)	(113)	(118)	(125)	(232)
Proceeds from issuance of debt, net of discount	2,649)	—)	3,897)	1,891)	—)
Proceeds from issuance of convertible senior notes	—)	—)	—)	1,323)	—)
Purchase of derivatives related to issuance of convertible senior notes	—)	—)	—)	(113)	—)
Repayment of debt	(3,290)	(2,576)	(4,658)	(1,998)	—)
Proceeds from capped call on convertible notes	132)	103)	—)	—)	—)
Payments of financing fees	(7)	—)	(32)	(36)	—)
Free cash flow to equity (FCFE)	3,219)	5,209)	5,223)	1,483)	44)

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).

Net Cash Provided by Operating Activities: The net cash provided by operating activities experienced notable fluctuations over the five-year period. Starting at 3,115 million US dollars in 2019, there was a significant decline to 2,083 million in 2020. This was followed by a substantial recovery and growth, reaching 6,059 million in 2021 and further increasing to a peak of 11,348 million in 2022. However, in 2023, the figure declined to 8,448 million, which, while lower than the previous year, remained considerably higher than the initial years in the series.
Free Cash Flow to Equity (FCFE): Free cash flow to equity exhibited an overall upward trend from 2019 to 2021. Beginning at a modest 44 million US dollars in 2019, it rose sharply to 1,483 million in 2020 and further increased to 5,223 million in 2021. In 2022, the FCFE remained relatively stable at 5,209 million, indicating a plateau. In 2023, FCFE decreased to 3,219 million, marking a notable reduction but maintaining levels well above those at the start of the period.
Summary of Trends: Both key cash flow measures showed growth from 2019 through 2022, with the exception of an initial dip in operating cash flow in 2020, potentially reflecting external challenges affecting that year. Operating cash flow peaked in 2022 before contracting in 2023, while FCFE similarly peaked in 2021 and 2022 before declining in 2023. The contraction in 2023 for both metrics suggests a reduction in internal cash generation and cash available to equity holders compared to the two preceding years, although values remain substantially higher than at the beginning of the period. These patterns may reflect changing operational performance, investment activity, or market conditions impacting cash flows.

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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.	14.59
ConocoPhillips	13.40
Exxon Mobil Corp.	18.60
P/FCFE, Sector
Oil, Gas & Consumable Fuels	14.40
P/FCFE, Industry
Energy	14.38

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.

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 price^1, 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	21.61	—
ConocoPhillips	11.74	8.93	10.61	497.58	—
Exxon Mobil Corp.	12.46	8.73	19.82	13.70	—
P/FCFE, Sector
Oil, Gas & Consumable Fuels	13.84	9.33	19.75	18.79	—
P/FCFE, Industry
Energy	14.25	10.19	20.81	18.38	—

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.

² See details »

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.

Share Price Trend: The share price exhibited an overall upward trend from 2019 to 2023. It increased from $135.97 in 2019 to $233.92 in 2023, peaking in 2023 after a slight decline in 2022. This indicates a general appreciation in market valuation over the period.
Free Cash Flow to Equity (FCFE) per Share: FCFE per share demonstrated significant growth from 2019 to 2022, rising from $0.27 to $22.17. However, in 2023, there was a notable decrease to $13.78. This pattern suggests that the company's cash flow generation available to shareholders improved substantially during the period but faced a decline in the most recent year reported.
Price to FCFE (P/FCFE) Ratio: The P/FCFE ratio reflected a dramatic decline from a very high valuation of 512.1 in 2019 to single digits by 2022, reaching 9.25. This decline implies that the market price became more aligned with the company’s free cash flow generation over these years, possibly indicating improved earnings quality or market correction. However, the ratio increased to 16.98 in 2023, which correlates with the reduced FCFE per share despite the continued rise in share price.
Overall Insights: The data reveals a strong improvement in free cash flow generation until 2022, which contributed to a reduction in the P/FCFE multiple, suggesting increased market confidence in cash flow sustainability. The share price generally trended upwards, reflecting positive sentiment, although the drop in FCFE in 2023 led to a higher valuation multiple, potentially signaling market optimism or a lag in cash flow performance adjustment. The trends highlight the importance of monitoring both market valuation and underlying cash flow metrics to understand the company’s financial health and market perception.

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Pioneer Natural Resources Co. (NYSE:PXD)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical