Pioneer Announces Fourth Quarter 2007 Net Gain of Approximately $50 Million from Unusual Items

    DALLAS, December 21 /CNW/ - Pioneer Natural Resources Company (NYSE:  PXD)
announced today that it expects fourth quarter net income to include an
after-tax gain of approximately $50 million related to the net effect of
several unusual items. These items principally include the previously
announced gain on the sale of the Company's Canadian operations, partially
offset by a charge related to the Company's withdrawal from the Clipper
project in the deepwater Gulf of Mexico.

    Pioneer recently announced that the Company expected to record an
after-tax gain on the sale of its Canadian subsidiary in excess of $85 million
during the fourth quarter of 2007. As a result of a favorable translation
adjustment associated with the weakening U.S. dollar, this fourth quarter gain
is now expected to be approximately $100 million, which will be reported in
discontinued operations.

    During 2005, the Company announced a discovery on its Clipper prospect in
the deepwater Gulf of Mexico (Green Canyon Blocks 299 and 300). During 2006,
the Company drilled two appraisal wells and began evaluating plans for
potential development of the discovery. Projected capital costs for the
project have doubled since the evaluation began. As a result, Pioneer no
longer plans to pursue the development of the project and will recognize a
noncash after-tax charge of approximately $48 million in the fourth quarter of
2007 to write off the project's carrying value. This completes the Company's
exit from the deepwater Gulf of Mexico, with the majority of assets having
been divested in 2006.

    For the fourth quarter of 2007, Pioneer also expects to record a noncash
after-tax charge of approximately $11 million to eliminate the remaining
carrying value of its Equatorial Guinea assets and to recognize a tax benefit
of approximately $9 million associated with the relinquishment of Pioneer's
other remaining interests in West Africa.

    With the divestiture of Canadian assets and the write-off of the
remaining carrying value of interests in deepwater Gulf of Mexico and West
Africa, Pioneer is focusing on growth in its core operating areas to achieve
its goal of delivering 12+% compounded average annual production per share
growth for 2007 through 2010, pro forma for the divestiture of Canada.

    Pioneer Natural Resources Company is a large independent oil and gas
exploration and production company, headquartered in Dallas, Texas, with
operations in the United States, South Africa and Tunisia. For more
information, visit Pioneer's website at

    Except for historical information contained herein, the statements in
this News Release about Pioneer Natural Resources Company 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 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, third party approvals, international operations and
associated international political and economic instability, litigation, the
costs and results of drilling and operations, availability of drilling
equipment, Pioneer's ability to replace reserves, implement its business plans
(including its plan to repurchase stock) or complete its 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, 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.

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
Spratlen, 972-444-9001

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