PSE  Pioneer Southwest Energy Partn...

Exchange

NYSE

Sector

Energy

Industry

Oil & Gas Production

Market Cap.

1.518B

Vuru Grade

22.62/100

Current Price

$2,075.53
-5.528 (-0.27%)

Growth Price

$0.03
Overvalued by 100.00%

Stability Price

$0.43
Overvalued by 99.98%

Company Metrics

  • P/E 17.7
  • P/S 7.23
  • P/B 5.64
  • EPS 0
  • Cash ROIC -40.41%
  • Cash Ratio -
  • Dividend 2.08 / 0%
  • Avg. Vol. 13.37M
  • Shares 10.00M
  • Market Cap. 1.518B

Company Description

Pioneer Southwest Energy Partners L.P. engages in the ownership and acquisition of oil and natural gas properties in the United States. As of December 31, 2009, it had non-operated working interests in approximately 1,155 producing wells located in the Spraberry field in the Permian Basin of west Texas. Pioneer Natural Resources GP LLC serves as the general partner of the company. The company was ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

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Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for PSE to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate PSE's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$2,075.53 Current Price

$0.03 Growth Price (DCF)

Overvalued by 100.00%


Growth Rate Assumed by Market: 371.48%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$0.43 Stability Price (EPV)

Overvalued by 99.98%


Discount Rate: 15.0%

$- NCA Price

Overvalued by 100.00%


Very Poor Cash Return on Invested Capital over the past 5 years

PSE has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

PSE has lost $40.41 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 44.98M -18.28M -1.16M -1.64M 43,796.00
divided by
Invested Capital 51.97M 397.94M 684,760.00 1.43M -
Cash ROIC 86.54% -4.59% -169.24% -114.74% -

Very Poor Return on Equity over the past 5 years

PSE has shown an inability to deliver results for shareholders. This could be due to poor management, PSE operating in a highly competitive industry, or having a weak business in general.

PSE has generated a $37.24 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 122.82M 107.56M -1.10M -1.50M -
divided by
Stockholders' Equity - 261.63M 827,036.00 1.60M -
Return on Equity - 41.11% -133.47% -93.83% -

Good Business Performance over the past 10 years

It's likely PSE has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is PSE has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

PSE has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 55.86M 60.39M 99.26M 78.76M 51.58M 44.98M -18.28M -1.16M -1.64M 43,796.00

Very Weak Balance Sheet

PSE is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of PSE's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash - - 29.94M 625,000.00 18.86M 6.80M 1.60M 142,276.00 167,612.00 -
Current Assets 10.09M 13.44M 93.93M 31.94M 35.83M 26.23M 23.51M 197,335.00 620,162.00 -
Total Assets 148.25M 148.87M 302.53M 256.64M 280.06M 326.73M 430.89M 1.11M 1.78M -
Current Liabilities 4.49M 3.62M 11.74M 11.56M 20.84M 40.75M 31.35M 279,045.00 184,582.00 -
Total Liabilities 6.28M 5.60M 17.43M 115.37M 145.32M 99.52M 169.26M 279,045.00 184,582.00 -
Stockholder' Equity 141.97M 143.27M - - - - 261.63M 827,036.00 1.60M -
Current Ratio 2.25 3.71 8.00 2.76 1.72 0.64 0.75 0.71 3.36 -
TL-to-TA 0.04 0.04 0.06 0.45 0.52 0.30 0.39 0.25 0.10 -

Low or No Reinvestment of Profits over the past 10 years

PSE has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to PSE operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings - - - - - - - - - -
Retained Earnings Growth - - - - - - - - - -

Varying Competitive Advantage over the past 10 years

PSE likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$36.43 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income 61.78M 61.69M 94.78M 26.32M 105.83M 122.82M 107.56M -1.10M -1.50M -
divided by
Revenue 101.26M 104.56M 153.02M 168.93M 183.76M 213.36M 208.29M - - 2.06M
Net Profit Margin 61.01% 58.99% 61.94% 15.58% 57.59% 57.56% 51.64% - - -

Varying Pricing Power over the past 10 years

PSE has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$56.51 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 101.26M 74.20M 109.82M 124.63M 133.31M 213.36M 158.38M - - -
divided by
Revenue 101.26M 104.56M 153.02M 168.93M 183.76M 213.36M 208.29M - - 2.06M
Gross Margin 100.00% 70.96% 71.77% 73.78% 72.54% 100.00% 76.04% - - -

Medium Capital Intensity over the past 10 years

PSE has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

37.61% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 14.64M 7.43M 1.92M 3.76M 45.28M 72.67M 117.51M 388,179.00 445,158.00 6,615.00
divided by
Net Income 61.78M 61.69M 94.78M 26.32M 105.83M 122.82M 107.56M -1.10M -1.50M -
Capital Expenditure Ratio 23.69% 12.05% 2.03% 14.29% 42.79% 59.17% 109.24% -35.17% -29.71% -

Inconsistent Dividend History over the past 10 years

PSE has started distributing dividends in the past couple years or has recently suspended their dividend distribution. The reliability of future distributions is unclear.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - 67.89M 66.29M 67.29M 74.00M - - -
divided by
Shares Outstanding - 28.77M 30.01M 30.40M 33.11M 33.25M 35.71M 54.16M 69.94M 10.00M
Dividend Paid Per Share - - - 2.23 2.00 2.02 2.07 - - -
Price at Year End - - 9.47 19.02 27.67 25.67 22.13 42.50 42.50 13,700.00
Dividend Yield - - - 11.74% 7.24% 7.88% 9.36% - - -

History of Stock Buybacks over the past 10 years

PSE has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding - 28.77M 30.01M 30.40M 33.11M 33.25M 35.71M 54.16M 69.94M 10.00M
Stock Bought Back - -100.00% -4.12% -1.28% -8.20% -0.41% -6.90% -34.05% -22.57% 599.38%
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