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Pioneer Announces Sale of Canadian Operations for $540 Million
DALLAS--(BUSINESS WIRE)--Aug. 23, 2007--Pioneer Natural Resources Company (NYSE:PXD) announced today that it has entered into a share purchase agreement for the sale of all of Pioneer's common stock in its Canadian subsidiary, Pioneer Natural Resources Canada Inc., to Abu Dhabi National Energy Company PJSC for cash proceeds of $540 million, subject to normal closing adjustments. The transaction is expected to close during the fourth quarter of 2007 and is subject to regulatory approval and other customary closing conditions.
Pioneer expects to utilize the proceeds from the divestiture for general corporate purposes, including share repurchases, debt reduction and possibly additional bolt-on acquisitions in existing operating areas. The transaction is not expected to have a significant impact on fourth quarter after-tax earnings.
"We thank all of our Canadian employees for the value they have created for our shareholders since we acquired these assets ten years ago. The sale of these assets now will allow us to effectively redeploy capital and enhance our financial flexibility," said Scott D. Sheffield, Chairman and CEO.
Pioneer was advised by TD Securities, Inc.
Pioneer Natural Resources Company is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States, South Africa and Tunisia. For more information, visit Pioneer's website at www.pxd.com.
Except for historical information contained herein, the statements in this News Release about Pioneer Natural Resources Company are forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements and the business prospects of Pioneer Natural Resources Company are subject to a number of risks and uncertainties that may cause Pioneer's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, government regulation or action and Pioneer's ability to implement its business plans (including its plan to repurchase shares). These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
CONTACT: Pioneer Natural Resources Company
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