DALLAS, April 23 /CNW/ - Pioneer Natural Resources Company (NYSE: PXD)
today announced that its board of directors has approved a plan to form two
new publicly-traded master limited partnerships (MLPs) which will own
interests in long-lived, low-decline oil and gas assets.
It is anticipated that the first MLP to be formed will initially acquire
an interest in a portion of Pioneer's long-lived proved developed oil, gas and
natural gas liquids reserves in the Spraberry field in West Texas. Pioneer
expects to file with the U.S. Securities and Exchange Commission (SEC) a
registration statement for the initial public offering of units of this MLP
during the third quarter of 2007 and that the offering will be made during the
fourth quarter of 2007. Approximately $250 million of these partnership units
are expected to be offered to the public, subject to market conditions.
It is anticipated that a second MLP will initially acquire an interest in
a portion of Pioneer's long-lived proved developed gas reserves in the Raton
Basin field in southern Colorado. Approximately $250 million of these
partnership units are expected to be offered to the public during 2008,
subject to market conditions.
At the close of the initial public offerings, Pioneer will be the general
partner of each of the MLPs and hold a majority ownership in the units of each
of the MLPs. Pioneer will continue to operate and own a partial working
interest in the assets that will form the MLPs.
The purpose of the MLP offerings is to create vehicles that would:
provide Pioneer the opportunity to substantially increase the valuation of
Pioneer's proved reserves due to the valuation differences between MLPs and
Pioneer; allow Pioneer to more effectively pursue the acquisition of reserves
through joint bidding with the MLPs; and afford Pioneer an opportunity to sell
its proved reserves to the MLPs and apply the proceeds (including the proceeds
from the initial offerings) to fund low-risk opportunities and share
repurchases, while maintaining financial flexibility.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities. Any offers, solicitations of
offers to buy, or any sales of securities will only be made in accordance with
the registration requirements of the Securities Act of 1933 or an exemption
Due to limitations imposed by U.S. securities laws, Pioneer will not be
holding a conference call to discuss the content of this release.
Pioneer is a large independent oil and gas exploration and production
company, headquartered in Dallas, Texas, with operations in the United States,
Canada, South Africa and Tunisia. For more information, visit Pioneer's
website at www.pxd.com.
The statements in this News Release are forward-looking statements that
are subject to a number of risks and uncertainties including, among other
things, the risks and uncertainties that one or both of the master limited
partnerships will not be formed, will not complete an offering of securities,
will not raise the planned amount of capital even if an offering of securities
is completed, and will not be able to complete its proposed actions on the
timetable indicated. Furthermore, the structure, nature, purpose, and proposed
assets and liabilities of the master limited partnerships may change
materially from those depicted herein. No assurance can be given as to the
value of the master limited partnerships, the price at which their securities
may trade, or whether a liquid market for those securities will develop or be
maintained. In addition, Pioneer and the master limited partnerships will be
subject to the risks normally attendant to businesses in the oil and gas
exploration and production industry, including the volatility of oil and gas
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, litigation, the costs and results
of drilling and operations, availability of drilling equipment, the ability to
replace reserves, the ability to implement their business plans or complete
their 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, and acts
of war or terrorism. Pioneer will also be subject to risks of international
operations and associated international political and economic instability.
These and other risks are described in Pioneer's 10-K and 10-Q Reports and
other filings with the Securities and Exchange Commission. Any duty to update
these statements is disclaimed except as required by law.
For further information:
For further information: Pioneer Natural Resources Company Investors:
Frank Hopkins or Scott Rice, 972-444-9001 or Media and Public Affairs: Susan