Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Pioneer Natural Resources Co., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Accounts payable, trade	2,414)	2,487)	2,380)	928)	1,221)
Accounts payable, due to affiliates	35)	150)	179)	102)	190)
Interest payable	48)	33)	53)	35)	53)
Income taxes payable	40)	63)	45)	4)	3)
Current portion of debt	28)	779)	244)	140)	450)
Derivatives	53)	44)	538)	234)	12)
Operating lease liability, current	175)	125)	121)	100)	136)
Finance lease liability, current	21)	20)	18)	17)	16)
Other	160)	186)	495)	346)	415)
Current liabilities	2,974)	3,887)	4,073)	1,906)	2,496)
Long-term debt, excluding current portion	4,807)	4,125)	6,688)	3,160)	1,839)
Derivatives	76)	96)	25)	66)	8)
Deferred income taxes	4,402)	3,867)	2,038)	1,366)	1,389)
Operating lease liability, noncurrent	248)	236)	243)	110)	170)
Finance lease liability, noncurrent	481)	501)	521)	539)	556)
Other liabilities	454)	487)	386)	513)	490)
Noncurrent liabilities	10,468)	9,312)	9,901)	5,754)	4,452)
Total liabilities	13,442)	13,199)	13,974)	7,660)	6,948)
Common stock, $.01 par value	2)	2)	2)	2)	2)
Additional paid-in capital	18,506)	18,779)	19,123)	9,323)	9,161)
Treasury stock, at cost	(2,617)	(1,925)	(248)	(1,234)	(1,069)
Retained earnings	7,280)	5,685)	3,960)	3,478)	4,025)
Accumulated other comprehensive income (loss), net of tax	—)	—)	—)	—)	—)
Equity	23,171)	22,541)	22,837)	11,569)	12,119)
Total liabilities and equity	36,613)	35,740)	36,811)	19,229)	19,067)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

The analysis of the financial data reveals several notable trends and shifts in the company's liabilities and equity structure over the five-year period.

Current Liabilities: There is considerable volatility in current liabilities, which peaked at 4,073 million USD on December 31, 2021, before decreasing to 2,974 million USD by the end of 2023. The substantial increase in accounts payable (trade) from 928 million USD in 2020 to 2,380 million USD in 2021 largely drove the sharp rise in current liabilities. However, a decline subsequently occurred, with accounts payable stabilizing just above 2,400 million USD.; Current portion of debt exhibited fluctuations, dropping from 450 million USD in 2019 to 140 million USD in 2020, rising sharply to 779 million USD in 2022, and then markedly decreasing to 28 million USD by the close of 2023. Accounts payable due to affiliates and interest payable remained relatively low in comparison and showed declining or stable patterns.
Noncurrent Liabilities: Noncurrent liabilities nearly doubled from 4,452 million USD in 2019 to over 10,468 million USD in 2023, despite some variations. Long-term debt excluding the current portion surged from 1,839 million USD in 2019, reaching a peak of 6,688 million USD in 2021, before retreating and then increasing again to 4,807 million USD by 2023. This suggests active management of long-term financing obligations.; Deferred income taxes increased steadily, more than tripling from 1,389 million USD in 2019 to 4,402 million USD in 2023, indicating growing deferred tax liabilities, possibly due to timing differences in tax reporting or asset revaluations. Lease liabilities, both operating and finance, showed moderate decreases over time, suggesting lease obligation reductions or renegotiations.
Total Liabilities: Total liabilities doubled from 6,948 million USD in 2019 to approximately 13,442 million USD in 2023, with a significant spike in 2021. This growth largely reflects expansions in both current and long-term liabilities, particularly the dramatic rise in accounts payable and long-term debt during 2021.
Equity: Equity experienced a substantial increase from 12,119 million USD in 2019 to over 23,000 million USD by 2023. Additional paid-in capital nearly doubled from 9,161 million USD to a peak of 19,123 million USD in 2021, before slightly decreasing but remaining high. Retained earnings also showed a consistent upward trend, increasing from 4,025 million USD in 2019 to 7,280 million USD in 2023, reflecting improved profitability or retained profits reinvested in the business.; Treasury stock values fluctuated markedly, decreasing significantly in 2021 but then increasing the cost basis again by 2023, which may indicate periods of substantial share repurchases or sales.
Overall Financial Position: The total of liabilities and equity rose from around 19,067 million USD in 2019 to 36,613 million USD in 2023, showing expansion in the scale of the balance sheet, with liabilities and equity both increasing significantly. The spike in liabilities in 2021 suggests increased financing or operational demands during that year, which was accompanied by an increase in equity, maintaining a balanced capital structure.

In summary, the data indicate a period of significant financial expansion, with increased leverage and equity growth. The fluctuations in current liabilities and long-term debt reflect active financial management and changing operational needs. The steady rise in deferred taxes and retained earnings suggests ongoing profitable operations and complex tax accounting dynamics. The company's balance sheet evolution points to growth and potentially increased risk exposure balanced by strengthening equity.

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Pioneer Natural Resources Co. (NYSE:PXD)

Balance Sheet: Liabilities and Stockholders’ Equity