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Pioneer Provides Production Update Including Impacts from Recent Hurricanes
DALLAS--(BUSINESS WIRE)--Sept. 18, 2008--Pioneer Natural Resources Company (NYSE:PXD) today announced that it has completed a preliminary assessment of the impact of hurricanes Gustav and Ike on its operations. The following areas of Louisiana and Texas were adversely impacted:
-- Spraberry - Pioneer's Spraberry facilities in West Texas were not directly impacted by either hurricane. This field produces oil and associated liquid-rich gas. The gas includes natural gas liquids (NGLs) which are separated at various Permian Basin plants. These NGLs are then transported to a third-party facility in Mont Belvieu, Texas for fractionation. This facility sustained power interruptions and physical damage from Hurricane Ike. As a result, at least 10% to 15% of Pioneer's Spraberry and other Permian area total net production of approximately 34,000 barrels of oil equivalent per day (BOEPD) has been curtailed or shut in since September 12. -- Barnett Shale - Pioneer's Barnett Shale facilities were not directly impacted by the recent hurricanes. However, as in the Spraberry field, Pioneer's Barnett Shale gas includes NGLs that are processed at the damaged Mont Belvieu fractionation facilities. Therefore, most of Pioneer's net Barnett Shale production of approximately 15 million cubic feet equivalent per day (MMCFEPD) has been shut in since September 12. -- Edwards Trend - No significant damage was incurred by Pioneer's facilities in the Edwards Trend area of South Texas. However, power interruptions to third-party pipelines which transport natural gas production from the field have resulted in the curtailment of 10% to 15% of Pioneer's total Edwards Trend net production of approximately 80 MMCFEPD since September 12. -- Gulf of Mexico Shelf - Pioneer's remaining shallow-water offshore platforms did not experience any significant damage as a result of the hurricanes. However, production of approximately 2,000 BOEPD has been shut in since August 31 due to the significant damage that has been incurred by the third-party pipeline facilities utilized to transport production to shore. No estimates are currently available as to when these facilities will be operational.
In addition to the aforementioned hurricane impacts, Pioneer's third quarter production has also been impacted by the following third-party maintenance activities:
-- Scheduled maintenance at the third-party onshore production facilities on the North Slope of Alaska where Pioneer's Oooguruk oil production is processed has taken longer than expected. Assuming that the production facilities are back on line by the end of this week, estimated net production of 2,000 barrels of oil per day will have been delayed by approximately 20 days. -- Compression facilities on the third-party pipeline serving the Raton gas field in southeastern Colorado required unexpected maintenance. Pioneer expected net production in the third quarter of 2008 to average approximately 200 MMCFPD, but the expectation is now for production to be closer to 195 MMCFPD.
As a result of the curtailed production from the hurricanes and third-party maintenance activities, Pioneer is reducing its estimated third quarter 2008 production guidance from 114,000 to 119,000 BOEPD to a range of 112,000 to 114,000 BOEPD.
Due to the reduced third quarter guidance, Pioneer expects full-year 2008 production growth to be at the lower end of its target range of 18% to 20% compared to 2007, assuming the production curtailed as a result of the hurricanes is restored by the end of the third quarter.
Pioneer also reported that the Company has no counterparty exposure with Lehman Brothers.
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, 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, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, the costs and results of drilling and operations, access to and availability of drilling equipment and transportation, processing and refining facilities, Pioneer's ability to implement its business plans or complete its development projects as scheduled, access to and cost of capital, uncertainties about estimates of reserves and resource potential, the assumptions underlying production forecasts, quality of technical data, environmental and weather risks and 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 ("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
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