Investors

Printer Friendly Version  View printer-friendly version
<< Back
Pioneer Closes $540 Million Sale of Canadian Operations

DALLAS--(BUSINESS WIRE)--Nov. 27, 2007--Pioneer Natural Resources Company (NYSE:PXD) announced today that it has closed the sale of 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.

For the fourth quarter of 2007, Pioneer expects to record a gain on the sale in excess of $85 million and to pay little to no income taxes related to the sale. As previously disclosed, net results related to Pioneer's Canadian operations prior to its sale will be reflected in Income from Discontinued Operations. Fourth quarter financial guidance and estimated 2007 all-in finding and development costs, provided by Pioneer in its press release and conference call presentation on November 6, 2007, remain unchanged.

As of December 31, 2006, Pioneer reported net proved reserves from its Canadian operations of 31.1 million barrels of oil equivalent. Net production from Canadian operations averaged approximately 8,600 barrels of oil equivalent per day during the third quarter of 2007.

Proceeds from the divestiture along with amounts that Pioneer expects to receive in connection with the initial public offering of limited partnership interests by its subsidiary, Pioneer Southwest Energy Partners L.P., will be used (i) to fund three recently announced acquisitions of oil and gas properties in its onshore U.S. growth areas - a $205 million acquisition of Raton Basin coal bed methane properties, a $90 million acquisition of Spraberry oil properties and a $150 million acquisition of gas properties in the Barnett Shale play and (ii) to reduce outstanding indebtedness.

"This divestiture allows us to enhance our financial flexibility, high grade our asset mix and redeploy capital into higher-return opportunities," stated Scott Sheffield, Chairman and CEO. "The Raton, Spraberry and Barnett Shale acquisitions increase our inventory of proved drilling locations to fuel future production growth and provide many additional low-risk step-out drilling opportunities with the potential to significantly increase proved reserves."

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.

A registration statement relating to the common units of Pioneer Southwest Energy Partners L.P. has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This communication does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering of common units will be made only by means of a prospectus. A copy of the prospectus, when available, may be obtained by submitting requests to Citigroup Global Markets Inc., Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220, phone: 718-765-6732, fax: 718-765-6734; Deutsche Bank Securities Inc., Attention: Prospectus Department, 100 Plaza One, Jersey City, New Jersey 07311, phone: 800-503-4611, or email: prospectusrequest@list.db.com; or UBS Securities LLC, Attention: Prospectus Department, 299 Park Avenue, New York, New York 10171, phone: 212-821-3000.

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, volatility of commodity prices, product supply and demand, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, third party approvals, international operations and associated international political and economic instability, litigation, the costs and results of drilling and operations, availability of drilling equipment, Pioneer's ability to replace reserves, implement its business plans (including its plan to form Pioneer Southwest Energy Partners L.P. and offer securities representing interests therein) or complete its development projects as scheduled, access to and cost of capital, the assumptions underlying production forecasts, uncertainties about estimates of reserves, quality of technical data, environmental and weather risks, acts of war or terrorism. 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
             Investors:
             Frank Hopkins or Scott Rice, 972-444-9001
             or
             Media and Public Affairs:
             Susan Spratlen, 972-444-9001

    SOURCE: Pioneer Natural Resources Company

Copyright West LLC. Minimum 15 minutes delayed.

Copyright © 2012 MarketWatch, Inc. All rights reserved. Please see our Terms of Use. MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc. Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. All quotes are in local exchange time. Intraday data provided by Comstock, a division of Interactive Data Corp. and subject to terms of use. Historical, current end-of-day data, and splits data provided by FT Interactive Data.