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|Water Project to Save Millions of Gallons of Freshwater Throughout Permian Basin|
Odessa, Texas, January 20, 2016 – Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today announced the start-up of a 20-mile, $25 million infrastructure project to both save water and cut costs for the mutual benefit of the Company and the city of Odessa. The project is the key component of an 11-year, $117 million agreement between Pioneer Natural Resources and Odessa to provide Pioneer with millions of gallons of treated municipal wastewater for use in its operations. In return, the region will see a reduction in truck traffic and a regular revenue stream.
“This is the right thing to do for the environment, and it really is a win-win for the residents of Odessa and Pioneer,” said Timothy L. Dove, Pioneer’s president and COO. “Pioneer is able to reduce the need for potable water in a drought-prone area while compensating Odessa for effluent water that would otherwise go to waste.”
The idea for the agreement came from Pioneer’s dedicated subsidiary, Pioneer Water Management, LLC (PWM). Water is mixed with sand and other components to create a slurry used during hydraulic fracturing. Utilizing effluent water for this purpose reduces the need for freshwater and makes productive use of a non-potable resource.
“Water is critical to Pioneer’s drilling operations, and having a diversity of supply is very important,” said Stephen McNair, president of PWM. “The investment in infrastructure makes sense on many fronts. There’s the freshwater conservation benefit as well as the ability to lessen traffic congestion, given that Pioneer will no longer have to solely rely on trucked deliveries of water to drilling sites.”
PWM constructed 20.3 miles of 24-inch polyethylene pipe with a two-inch wall thickness from Odessa’s Bob Derrington Water Reclamation Plant in Midland County to one of its water supply facilities. It is designed to flow 150,000 barrels of water per day (BWPD) at 120 PSI, though the system will have a maximum flow of 200,000 BWPD at 150 PSI at peak capacity.
“We are grateful to Odessa Mayor David Turner, the City Council and City Manager Richard Morton for their dedication to this project,” said Dove. “It serves as a model for our industry and the Permian Basin.”
A ceremony to officially turn the valve on the project occurred at the Derrington plant on January 20.
Pioneer is a large independent oil and gas exploration and production company, headquartered in Dallas, Texas, with operations in the United States. 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 environmental and other permits and the timing thereof, other government regulation or action, Pioneer’s ability to complete its development activities as scheduled, environmental and weather risks, including the possible impacts of climate change, and the risks associated with the ownership and operation of the Company’s oilfield services businesses. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the U.S. 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.
U.S. investors are urged to consider closely the disclosures in the Company’s periodic filings with the SEC. Such filings are available from the Company at 5205 N. O'Connor Blvd., Suite 200, Irving, Texas 75039, Attention: Investor Relations, and the Company’s website at www.pxd.com. These filings also can be obtained from the SEC by calling 1-800-SEC-0330.
Pioneer Natural Resources Contacts:
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