Pioneer Natural Resources (NYSE:PXD) Driven by Lower Wolfcamp, Spraberry wells

Even though Pioneer Natural Resources (NYSE:PXD) has soared since the beginning of November, there is still upside for them says FBR, citing Lower Wolfcamp and Spraberry wells as main catalysts.

FBR says, "Despite recent material outperformance, we remain bullish about the outlook. The revaluation drivers include continued improvement in performance from deepening of vertical Spraberry wells and successful results from lower Wolfcamp horizontal wells. We believe that improvements in EURs from deeper vertical drilling in the Spraberry field will ultimately increase to 50% from 30% currently (with material positive implications for IRRs) with the inclusion of data from the Strawn formation and production history. Also, we are optimistic about results from horizontal drilling currently being conducted in the Spraberry field."

FBR Capital maintains an "Outperform/Top Pick" rating on Pioneer Natural Resources, which closed Friday at $93.41, up $0.77, or 0.83 percent. FBR raised their price target on Pioneer from $105 to $115.