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Is This Company Sitting on the Best Oil Field in America?

By Joel South and Taylor Muckerman – Feb 12, 2014 at 3:00PM

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Pioneer Natural Resources turned in a respectable fourth quarter, but the company's potential has analysts' mouths watering.

Pioneer Natural Resources (PXD -3.51%) released fourth-quarter earnings this week, with most outcomes  falling in line with management's forecast. While the company experienced higher general and administrative costs that cut into cash flow, the future has never looked better. Pioneer added 141 million barrels of oil equivalent, or BOE, of proven reserves which it plans on exploring while fulfilling the company's 16%-21% compounded annual growth rate through 2016. With Pioneer's nearly 10 billion BOE in potential resources and capital expenditures geared toward the tremendous Spraberry-Wolfcamp oil play, investors need to pay close attention to the first half of 2014 and see how prolific the company's new wells are. If the numbers are as good as management expects, this oil and gas company's share price could move much higher. 

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This segment is from Tuesday's edition of Digging for Value, in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.

Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Pioneer Natural Resources Stock Quote
Pioneer Natural Resources
PXD
$239.50 (-3.51%) $-8.72

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