DALLAS, November 27 /CNW/ - Pioneer Natural Resources Company (NYSE: PXD)
announced today that it has closed the sale of its Canadian subsidiary,
Pioneer Natural Resources Canada Inc., to Abu Dhabi National Energy Company
PJSC for cash proceeds of $540 million, subject to normal closing adjustments.
For the fourth quarter of 2007, Pioneer expects to record a gain on the
sale in excess of $85 million and to pay little to no income taxes related to
the sale. As previously disclosed, net results related to Pioneer's Canadian
operations prior to its sale will be reflected in Income from Discontinued
Operations. Fourth quarter financial guidance and estimated 2007 all-in
finding and development costs, provided by Pioneer in its press release and
conference call presentation on November 6, 2007, remain unchanged.
As of December 31, 2006, Pioneer reported net proved reserves from its
Canadian operations of 31.1 million barrels of oil equivalent. Net production
from Canadian operations averaged approximately 8,600 barrels of oil
equivalent per day during the third quarter of 2007.
Proceeds from the divestiture along with amounts that Pioneer expects to
receive in connection with the initial public offering of limited partnership
interests by its subsidiary, Pioneer Southwest Energy Partners L.P., will be
used (i) to fund three recently announced acquisitions of oil and gas
properties in its onshore U.S. growth areas - a $205 million acquisition of
Raton Basin coal bed methane properties, a $90 million acquisition of
Spraberry oil properties and a $150 million acquisition of gas properties in
the Barnett Shale play and (ii) to reduce outstanding indebtedness.
"This divestiture allows us to enhance our financial flexibility, high
grade our asset mix and redeploy capital into higher-return opportunities,"
stated Scott Sheffield, Chairman and CEO. "The Raton, Spraberry and Barnett
Shale acquisitions increase our inventory of proved drilling locations to fuel
future production growth and provide many additional low-risk step-out
drilling opportunities with the potential to significantly increase proved
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 www.pxd.com.
A registration statement relating to the common units of Pioneer
Southwest Energy Partners L.P. has been filed with the Securities and Exchange
Commission but has not yet become effective. These securities may not be sold,
nor may offers to buy be accepted, prior to the time the registration
statement becomes effective. This communication does not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws
of any such state or jurisdiction.
The offering of common units will be made only by means of a prospectus.
A copy of the prospectus, when available, may be obtained by submitting
requests to Citigroup Global Markets Inc., Attention: Prospectus Department,
Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220,
phone: 718-765-6732, fax: 718-765-6734; Deutsche Bank Securities Inc.,
Attention: Prospectus Department, 100 Plaza One, Jersey City, New Jersey
07311, phone: 800-503-4611, or email: email@example.com; or UBS
Securities LLC, Attention: Prospectus Department, 299 Park Avenue, New York,
New York 10171, phone: 212-821-3000.
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 form Pioneer Southwest Energy Partners L.P. and offer
securities representing interests therein) 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