DALLAS--(BUSINESS WIRE)--Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer”) today announced the closing of its previously announced acquisition of Carmeuse Industrial Sands (“CIS”) for approximately $297 million before normal closing adjustments. Pioneer also announced that the name of this U.S. industrial sands business is being changed to Premier Silica LLC (“Premier Silica”).
Premier Silica is the number one producer of Hickory frac sand (Brady Brown®) used as proppant for fracture stimulating oil and gas wells in the U.S. Hickory sand is considered to be the highest quality brown sand for fracture stimulation. Premier Silica’s sand mine in Brady, Texas, has more than 30 years of proven brown sand reserve life and is the industry’s largest resource base for brown sand in the U.S. Pioneer’s primary source for its growing brown sand requirements to fracture stimulate wells in the liquids-rich Spraberry vertical, horizontal Wolfcamp Shale and Barnett Shale Combo plays in Texas will continue to be Premier Silica’s Brady mine.
Premier Silica is led by a highly experienced and technically proficient management team with more than 150 years of combined experience in the industrial sands business.
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.
This news release contains forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements include any statement that does not relate strictly to historical facts. In particular, statements, express or implied, regarding the benefits of, and synergies from, the CIS acquisition and Pioneer’s sand requirements, future growth opportunities and financial condition and results of operation are forward-looking statements. These forward-looking statements are based on management’s current plans, expectations, estimates, assumptions and beliefs concerning future events. While our management considers these plans, expectations, estimates, assumptions and beliefs to be reasonable, they are inherently difficult to predict and subject to a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, risks related to mineral estimates, fluctuation of prices for sand and the risks discussed in the “Risk Factors” sections of, as well as any other cautionary language in, Pioneer’s public filings with the Securities and Exchange Commission (SEC). Actual results may differ materially from those expressed or implied in the forward-looking statements contained in this news release. Each forward-looking statement in this news release speaks only as of the date of this news release, and Pioneer undertakes no obligation to update or revise any such statement except as required by law.
Inaccuracies in estimates of mineral reserves and resource deposits could result in lower than expected supplies and sales and higher than expected costs. The proved reserve estimates contained in this news release have been calculated in compliance with the SEC’s Industry Guide 7 and are based on an independent review by mining and geological consultants engaged by CIS in 2011. However, commercial sand reserve estimates are necessarily imprecise and depend to some extent on statistical inferences drawn from available drilling data, which may prove unreliable. There are numerous uncertainties inherent in estimating quantities and qualities of commercial sand reserves and resources and costs to mine recoverable reserves, including many factors beyond Pioneer’s control. Estimates of economically recoverable commercial sand reserves necessarily depend on a number of factors and assumptions, all of which may vary considerably from actual results, such as:
- geological and mining conditions and/or effects from prior mining that may not be fully identified by available data or that may differ from experience;
- assumptions concerning future prices of commercial sand products, operating costs, mining technology improvements, development costs and reclamation costs; and
- assumptions concerning future effects of regulation, including the issuance of required permits and taxes by governmental agencies.