Pioneer Natural Resources Company has announced that its board of directors has named Richard P. Dealy as the company’s next CEO.
The change will take effect Jan. 1, 2024, and Dealy will replace current CEO Scott D. Sheffield, who will retire at the end of 2023, Pioneer said in a statement posted on its website. Sheffield is expected to continue serving on the board after his retirement, Pioneer noted, adding that during the transition period, Dealy will continue to work closely with Sheffield to execute the company’s strategy.
Dealy is currently President and Chief Operating Officer of Pioneer, a position to which he was appointed in January 2021. He brings more than 30 years of industry experience in roles spanning nearly all of Pioneer’s operations and business functions. Pioneer and its predecessor company, Pioneer said. In his role as president and chief operating officer, he has been “a key element in securing Pioneer’s leading operational and financial position,” the company said. Prior to his role as president and chief operating officer, Dealy served as executive vice president and chief financial officer from November 2004 to December 2020.
Sheffield is described on the company’s website as “an energy industry leader who played a major role in America’s shale revolution and the lifting of the US crude export ban.” He began his career as a reservoir engineer at Amoco Production Co. and in 1979 became Parker & Parsley Petroleum Co.’s fifth employee. in Midland, Texas. In 1985, he became CEO of Parker & Parsley and became its president in 1991. The company merged with MESA, Inc. in 1997 to form Pioneer Natural Resources Co. Sheffield retired from the company in 2016, but returned as chairman and CEO in 2019 and began serving as CEO in 2021.
‘The right leader’
“Rich is the right leader to build on the strong foundation that Scott has established,” Pioneer President Ken Thompson said in a company statement.
“He embodies the Pioneer culture, and now is the right time to implement the strong succession plan we have put in place. Scott has been a pioneer in this industry and has guided Pioneer through multiple commodities and market cycles, as well as recent macroeconomic challenges, including the pandemic,” he added.
“The board is deeply grateful to Scott for his leadership over the years and respects his decision to retire to spend more time on his personal and philanthropic interests,” Thompson continued.
Commenting on the appointment, Sheffield said “Rich is a disciplined and focused leader.”
“His three-decade track record of operational and financial contributions, industry knowledge and inspirational leadership have prepared him to take the helm of Pioneer with a sure hand and a clear strategic vision,” added Sheffield.
Incoming CEO Dealy said, “I am honored to succeed Scott as CEO and look forward to working with him on the board.”
“For more than 30 years, Pioneer and its amazing people, along with this exciting and vitally important industry, have defined my professional life,” he added.
“I’m excited about the opportunity to lead our world-class company: delivering on the strategy we’ve laid out, creating value for our shareholders and continuing to cultivate a culture that makes Pioneer one of the best and most rewarding places in our industry work,” Dealy continued.
“Excellent” Q1
On April 26, Pioneer reported first quarter net income attributable to common stockholders of $1.2 billion, or $5.00 per diluted share. The company emphasized that these results include the effects of non-effective market value adjustments and certain other unusual items and noted that, excluding these items, non-GAAP adjusted revenue for the first quarter was $1.3 billion , or $5.21 per diluted share.
Cash flow from operating activities in the first quarter was $2.3 billion, resulting in free cash flow of $948 million, Pioneer said in the earnings statement, adding which had $3.2 billion in liquidity as of March 31, 2023, consisting of $1.2 billion in cash. and a $2 billion unsecured line of credit.
Pioneer noted in its first-quarter results that for the second quarter of 2023, the company’s board had declared a quarterly basic plus variable dividend of $3.34 per share, made up of a basic dividend of 1, $25 and a variable dividend of $2.09. That represents an annualized total dividend yield of six percent, the company noted. Pioneer also noted in the results that it repurchased $500 million of common stock at an average share price of $206 in the first quarter.
The company noted that first-quarter oil production averaged 361,000 barrels of oil per day, which it said was near the high end of guidance.
“Pioneer reported an exceptional first quarter, achieving strong production growth and returning significant capital to shareholders,” Sheffield said in the earnings statement.
“Our continued focus on efficient operations and development of our best high-yielding assets delivered production near the high end of guidance and generated approximately $950 million of free cash flow,” added.
“Pioneer’s strong operating results and unmatched high-yielding contiguous acreage position support our top-tier margins and enable Pioneer to continue to deliver significant value to our shareholders,” Sheffield continued.
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