Pioneer Natural Resources Announces Inaugural Variable Dividend on Common Shares
Pioneer Natural Resources Company (NYSE:PXD) has declared a quarterly cash variable dividend of $1.51 per share, totaling approximately $370 million returned to shareholders. This dividend is payable on September 17, 2021, to stockholders of record by September 3, 2021. The acceleration of this payment into Q3 2021, based on strong second quarter results, represents about 75% of free cash flow after the base dividend. CEO Scott D. Sheffield emphasized this milestone reflects Pioneer’s commitment to shareholder returns, with total dividends reaching $490 million.
- Quarterly cash variable dividend of $1.51 per share.
- Total capital returned to shareholders approximately $370 million.
- Dividend payment accelerated to Q3 2021 based on strong Q2 performance.
- Dividend payout represents 75% of Q2 free cash flow after base dividend.
- Total dividends for the year estimated at $490 million.
- None.
Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) announced today that its Board of Directors declared a quarterly cash variable dividend of
The rebound in global oil demand has led to higher commodity prices, further strengthening Pioneer’s balance sheet and enabling the Company to accelerate its first variable dividend payment into the third quarter of 2021 based on second quarter financial results. The payment of Pioneer’s variable dividend during the third quarter represents an acceleration and increase when compared to the Company’s previously announced variable dividend distribution plan that was to begin in the first quarter of 2022. The third quarter payout represents approximately
CEO Scott D. Sheffield stated, “Pioneer’s first variable dividend marks a significant milestone in our investment framework and demonstrates our commitment to returning meaningful capital to shareholders through our base and variable dividend payments totaling approximately
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States. For more information, visit Pioneer’s website at www.pxd.com.
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer are subject to a number of risks and uncertainties that may cause Pioneer’s actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of commodity prices; product supply and demand; the impact of a widespread outbreak of an illness, such as the COVID-19 pandemic, on global and U.S. economic activity; the effect of future regulatory or legislative actions on Pioneer or the industry in which it operates, including the risk of new restrictions with respect to development activities; and the assumptions underlying forecasts. These and other risks are described in Pioneer's Annual Report on Form 10-K for the year ended December 31, 2020, Quarterly Reports on Form 10-Q filed thereafter and other filings with the United States Securities and Exchange Commission. In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse effect on it. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Pioneer undertakes no duty to publicly update these statements except as required by law.
Footnote 1: Free cash flow is a non-GAAP financial measure. As used by the Company, free cash flow is defined as net cash provided by operating activities, adjusted for changes in operating assets and liabilities and cash acquisition transaction costs, less capital expenditures.
Note: Future dividends, whether variable or base, are authorized and determined by the Company's board of directors in its sole discretion. Decisions regarding the payment of dividends are subject to a number of considerations at the time, including without limitation the Company's liquidity and capital resources, the Company's results of operations and anticipated future results of operations, the level of cash reserves the Company may establish to fund future capital expenditures or other needs, and other factors the board of directors deems relevant. The Company can provide no assurance that dividends will be authorized or declared in the future or the amount of any future dividends. Any future variable dividends, if declared and paid, will by their nature fluctuate based on the Company’s free cash flow, which will depend on a number of factors beyond the Company’s control, including commodities prices.
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