Scott D. Sheffield
Chief Executive Officer at Pioneer Natural Resources
Thank you, Neal. Good morning. Before we discuss the results of the quarter, I want to acknowledge the terrible situation in Ukraine that is impacting the safety and freedom of millions of people, which is the direct result of Russia's unprovoked invasion. We recognize that a path to peace could take an extended period of time, during which more innocent people will suffer. Pioneer stands with Ukraine. We've committed $20 million to humanitarian relief organizations in Ukraine to help those most in need.
During this time, we stand resolute knowing that we are providing the world a much needed source of affordable energy with one of the lowest emissions per barrel produced and can do so for decades to come. Shifting our focus to Pioneer's quarterly results. I'll begin on slide number three. Pioneer delivered a strong first quarter, generating significant value for our shareholders. Our high-quality assets, top-tier margins, unhedged oil position drove significant free cash flow generation during the first quarter of more than $2.3 billion, of which we are returning $2 billion to the shareholders.
This translates to Pioneer returning $7.38 per share to our stockholders through our second quarter dividend. This peer-leading return of capital framework reflects a 13% annualized dividend yield, which represents a 95% increase from last quarter's base plus variable dividend. That 13% is calculated based on the stock price of April 26. Based on today's stock price, it's about 12% annualized dividend yield.
In addition to the strong dividend payout, Pioneer repurchased $250 million of stock in the first quarter. When you annualize the first quarter share repurchases and second quarter dividends, we delivered a 15% total return yield. Our robust free cash flow is underpinned by our strong corporate returns. We forecast 2022 return on capital employed to be greater than 30%. Going to slide number four. Pioneer's strong execution continued during the first quarter, with total production in the upper half of our guidance range supporting significant free cash flow generation of $2.3 billion.
Additionally, we forecast our top-tier leverage profile will be strengthened further by year-end at approximately 0.15 net debt to EBITDA that's based on the forward strip. Going to slide number five. Pioneer's capital return program is best-in-class. This is underpinned by our strong and growing base dividend, a peer-leading variable dividend payout, which represents up to 75% of post base dividend free cash flow. Resulting base plus variable reflects approximately 80% of our quality free cash flow being returned to shareholders.
This compelling cash return is enhanced by opportunistic share repurchases, which provides additional shareholder returns. Again, our total return yield is approximately 15% when you annualize the first quarter share repurchases and the second quarter dividend. Going to slide number six. Pioneer's capital return framework is resilient through cycle, resulting in significant dividend payouts over a wide range of commodity prices, even when including the impact of cash taxes. As seen on the graph, if oil prices were to average $60 for the remainder of the year, Pioneer's shareholders would receive approximately $17 in dividends per share.
At $120, approximately $31. Shareholders have significant upside on higher oil prices as we have 0 2022 oil hedges. We expect to return dividends in excess of $27 a share, representing a 12% or greater dividend if oil prices remain above $100 a barrel. The depth of Pioneer's high-quality inventory provides durability to this compelling free cash flow generation beyond 2022. For example, Pioneer's five-year cumulative free cash flow, in combination with 5% oil growth, is forecasted to exceed over $30 billion at current strip prices, and current strip prices that are dropping about $35 from the current price over the next five years.
Going to slide number seven. The significant dividend payouts outlined previously resulted in an annualized dividend yield of approximately 13%. As I mentioned, that was the stock price on April 26. This yield exceeds all peers, majors and the average yield of the S&P 500. This top-tier yield demonstrates the cash flow generation power, underlying quality of Pioneer's assets and the strength of our peer-leading return of capital strategy. Going to slide eight.
Pioneer's 13% dividend again surpassed the S&P 500 average by nearly eight times. When looking beyond our peer group to the broader market, Pioneer's dividend yield far surpasses every S&P 500 sector and is higher than any individual company in the S&P 500. With our double-digit dividend yield, complementary share repurchase at 5% oil growth, the case for owning Pioneer stock is compelling. Going to slide number nine.
This third-party data substantiates Pioneer as the premier independent oil and gas company with the longest high-quality inventory of our peers. As gathered from this slide, the Midland Basin, where Pioneer exclusively operates is home some of the highest quality acreage in the world. Represented on the right, the Midland Basin has more than two times the remaining top-tier inventories in the Delaware Basin. As seen on the left, Pioneer has the longest duration of high-quality inventory when compared to peers, resulting from our expansive position within the core of the Midland Basin.
On slide number 10, again, long-term total return outperformance. Pioneer's legacy Midland Basin position has been the foundation of the company since its founding 25 years ago, has been a major contributor to our success. Pioneer has outperformed large cap peers and U.S. majors over the previous three-, 10- and 20-year periods, with returns over the 20-year period exceeding the peer group by nearly 80%. Our deep inventory, decades of development experience and consistent performance positions Pioneer to outperform for years to come.
I'll now turn it over to Rich.