Pioneer Natural Resources Company (PXD) will raise its quarterly dividend by another 169.6 percent to $1.51 per share in Q3 of 2021. This follows a dividend hike of  1.8 percent to $0.56 per share in 2021. 

The quarterly cash variable dividend of $1.51 per share on Pioneer’s outstanding common stock, representing approximately $370 million of capital returned to shareholders. The dividend is payable September 17, 2021, to stockholders of record at the close of business on September 3, 2021.

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 75% of the Company’s second quarter free cash flow1 after payment of the base dividend in April 2021.

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 $490 million that is being funded from second quarter free cash flow1. This acceleration and increase to our variable dividend payout, coupled with our differentiated high-return asset base, drives a compelling investment proposition as we continue to execute on our plan.”

Pioneer Natural Resources Company is an oil and gas exploration and production company. Pioneer explores for, develops and produces oil, natural gas liquids (NGLs) and gas within the United States, with operations primarily in the Permian Basin in West Texas. Operations include well stimulation and completion activities, such as hydraulic fracturing, and water distribution and disposal activities. Pioneer has been paying a dividend to shareholders every year since at least 2004.