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Pioneer Reports Fourth Quarter and Annual 1999 Results
Dallas, Texas, January 27, 2000 -- Pioneer Natural Resources Company (“Pioneer”)(NYSE:PXD) (TSE:PXD) today announced financial and operating results for the fourth quarter and twelve months ended December 31, 1999.
Fourth Quarter 1999, Pioneer's Second Profitable Quarter
Pioneer reported fourth quarter 1999 net income of $8 million or $0.08 per share. Fourth quarter net income included a loss on sale of assets of $3 million or $0.03 per share. For the same period last year, Pioneer reported a net loss of $643 million or $6.41 per share. The prior year loss included non-cash charges for property impairments and a deferred tax asset valuation allowance. Cash flow from operations for the fourth quarter was $69 million compared to $48 million for the fourth quarter of 1998.
Fourth quarter oil sales averaged 34,849 barrels per day (BPD) and natural gas liquid sales averaged 23,537 BPD. Natural gas sales in the fourth quarter averaged 363 million cubic feet per day (MMCFPD). On an oil equivalent basis, sales averaged 118,870 BPD. Realized prices for oil and natural gas liquids for the fourth quarter were $19.09 and $15.76 per barrel, respectively. The realized price for natural gas was $2.04 per thousand cubic feet (MCF).
Fourth quarter production costs averaged $3.30 per BOE, increasing over the prior quarter primarily due to higher production taxes resulting from higher oil and gas prices. Production costs excluding production taxes were $2.73 per BOE, down $0.42, or 13%, from the prior year quarter. Exploration and abandonment costs of $24 million for the quarter included $9 million of geologic and geophysical costs including seismic costs, $12 million of non-cash leasehold abandonments including expired leases and $3 million of cash exploration costs.
For the same quarter last year, Pioneer reported oil sales of 54,839 BPD, natural gas liquid sales of 29,104 BPD, and natural gas sales of 492 MMCFPD. Because of asset divestitures during 1999, the quarter-to-quarter volumes are not comparable. Realized prices for the 1998 fourth quarter were $12.22 per barrel for oil, $7.35 per barrel for natural gas liquids, and $1.67 per MCF for natural gas.
1999 Annual Results
For the twelve months ended December 31, 1999, Pioneer reported a net loss of $22 million or $0.22 per share. For the same period last year, Pioneer reported a net loss of $746 million or $7.46 per share. Cash flow from operations for 1999 was $255 million compared to $314 million for the same period in 1998.
Oil sales for the year averaged 42,339 BPD and natural gas liquid sales averaged 25,308 BPD. Natural gas sales in 1999 were 434 MMCFPD. On an oil equivalent basis, sales averaged 140,002 BPD. Realized prices for oil and natural gas liquids were $15.36 and $11.64 per barrel, respectively. The realized price for natural gas was $1.90 per MCF.
In 1998, Pioneer reported oil sales of 59,052 BPD, natural gas liquid sales of 29,231 BPD, and natural gas sales of 504 MMCFPD. Because of asset divestitures during 1999, the year-to-year volumes are not comparable. Realized prices for 1998 were $13.08 per barrel for oil, $8.90 per barrel for natural gas liquids, and $1.82 per MCF for natural gas.
Capital Program for 2000
A capital investment program of approximately $250 million has been budgeted for 2000, representing a 25% increase in spending over 1999. Approximately $200 million has been allocated to further development of Pioneer's core assets in the U.S., Argentina and Canada. The remaining $50 million has been allocated to exploration activities concentrated in the Gulf of Mexico, the onshore Gulf Coast area and South Africa.
Pioneer is currently running 16 rigs, ten in the U.S., three in Argentina and three in Canada. First quarter exploration plans include an appraisal well on the Aconcagua discovery on Mississippi Canyon Block 305 and two Gulf Coast Basin wells, all expected to spud in February, and an appraisal well in the Sable field in South Africa expected to spud in March.
Scott D. Sheffield, Chairman and CEO stated, “This quarter ends a year in which we achieved significant improvement in financial performance. We will continue to make strides in debt reduction and in streamlining our operations. We are excited about the capital projects planned in 2000 and the opportunities they represent for increasing our net asset value.”
Earnings Conference Call
On Thursday, January 27, 2000, at 10:00am EST, investors will have the opportunity to listen to the earnings conference call over the Internet through Investor Broadcast Networks' Vcall website, located at http://www.vcall.com. To listen to the live call, please go to the web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available on the web site shortly after the call.
Pioneer is one of the largest independent exploration and production oil and gas companies in North America, with major operations in the United States, Canada, Argentina and South Africa. Pioneer's headquarters are in Dallas.
Except for historical information contained herein, the statements in this Press 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 Natural Resources Company, are subject to a number of risks and uncertainties which may cause the Company's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, product supply and demand, competition, government regulation or action, litigation, the costs and results of drilling and operations, the Company's ability to replace reserves or implement its business plans, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, and environmental risks. These and other risks are described in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
Investor Relations Contact: Susan Spratlen (972) 444-9001
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