|View printer-friendly version|
Pioneer Describes Exposure in SemGroup Bankruptcy
DALLAS--(BUSINESS WIRE)--July 28, 2008--Pioneer Natural Resources Company (NYSE:PXD) today announced that it has approximately $30 million of unpaid pre-bankruptcy claims for condensate sold to certain subsidiaries of SemGroup, L.P. Last week, SemGroup, L.P. announced that it and certain of its subsidiaries (collectively SemGroup) filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Pioneer is seeking payment of its pre-bankruptcy claim as a critical supplier under a Supplier Protection Program created by SemGroup and approved by the Bankruptcy Court on July 23. The intent of this program is for SemGroup to pay certain critical suppliers their pre-bankruptcy claims in full and continue paying such suppliers in exchange for their willingness to continue performance. It is premature at this time to predict the timing of payments under this program.
The condensate supplied to SemGroup is produced from Pioneer's West Panhandle gas field and is processed at Pioneer's Fain plant in the Texas Panhandle. Pioneer continues to supply condensate to SemGroup. However, the Company is monitoring SemGroup's situation closely and will sell its condensate to alternate purchasers should it become necessary to do so.
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, 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 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 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, the ability to obtain court approvals and the timing thereof, other government regulation or action, and the ability to obtain approvals or transportation arrangements from third parties and negotiate agreements with third parties on mutually acceptable terms. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission ("SEC"). In addition, Pioneer may be subject to currently unforeseen risks that may have a materially adverse impact on it. Pioneer undertakes no duty to publicly update these statements except as required by law.
CONTACT: Pioneer Natural Resources Company
Copyright West LLC. Minimum 15 minutes delayed.