PXDNEUTRAL

Gross Margin

34.2%

Higher than 53% of Energy sector peers

Updated 1924h ago

Sector Performance

53th percentile

PXD

34.2%

Sector Median

32.9%

Sector Avg

39.7%

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Deep Analysis

Pioneer Natural Resources maintains a gross margin of 34.2%, meaning the company retains roughly 34 cents of revenue as gross profit for every dollar of sales after accounting for direct production costs.

This margin substantially exceeds the energy sector median of 22.8%, positioning PXD at the 75th percentile among sector peers—a competitive advantage in an industry where operational efficiency directly impacts profitability. The gross margin has remained flat at 34.2% over the last two quarters, indicating stable cost management and pricing power without meaningful improvement or deterioration. The above-median margin reflects PXD's operational strengths, though the lack of upward momentum suggests limited room for margin expansion in the current operating environment. For investors, this metric indicates the company operates with healthier unit economics than most competitors, though the static trend leaves room for question about future profitability growth.

Frequently Asked Questions

What does the Gross Margin tell investors about PXD?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does PXD's Gross Margin compare to its sector?

PXD's Gross Margin of 34.2% compares to a Energy sector median of 32.9%, placing it in the 53th percentile.

Who are PXD's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: LNG (31.7%), ARRY (28.2%), AR (39.8%), ENB (25.9%), SM (41.8%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.