DALLAS--(BUSINESS WIRE)--Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer” or “the Company”) today announced that it plans to divest its properties in South Texas, Raton and the West Panhandle field.
Pioneer’s predominant asset in South Texas is its Eagle Ford Shale acreage where the Company holds approximately 70,000 net acres. All of this acreage is held by production. The Eagle Ford assets being sold represent all of Pioneer’s 46% working interest in the play, including its producing wells and associated infrastructure. Net production from this asset averaged approximately 27 thousand barrels oil equivalent per day (MBOEPD) during the fourth quarter of 2017, consisting of approximately one-third oil, one-third natural gas liquids (NGLs) and one-third gas. In addition, Pioneer will separately divest its acreage in the Sinor Nest Wilcox field.
The Raton assets being sold represent all of Pioneer’s interests in the field, including all of its producing gas wells and all other associated infrastructure. Net production from Raton averaged approximately 86 million cubic feet of gas per day during the fourth quarter of 2017.
The West Panhandle properties are located in the panhandle region of Texas. The assets being sold represent all of Pioneer’s 100% working interest in the field, including its producing wells and associated infrastructure. Net production from this asset averaged approximately 7 MBOEPD during the fourth quarter of 2017, consisting of oil (20%), NGLs (55%) and gas (25%).
Pioneer expects to open data rooms for the planned divestitures later in the first quarter of 2018.
Timothy L. Dove, President and CEO, stated “I want to personally thank all of our South Texas, Raton and West Panhandle employees for their commitment and dedication to the continuing strong performance of these assets. They have created significant value for our shareholders over the many years we have owned these assets. After these divestitures are completed, Pioneer’s operations will be solely in the Permian Basin.”
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 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, volatility of commodity prices, government regulation or action, the ability to obtain approvals from governmental agencies or other third parties and negotiate agreements with third parties on mutually acceptable terms, completion of planned divestitures and litigation. These and other risks are described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it. Accordingly, no assurances can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Pioneer undertakes no duty to publicly update these statements except as required by law.