Pioneer Natural Resources Company

  • Overview

Oil and gas explorer Pioneer Natural Resources' frontier is not in the Western prairies, but below them, and below the Rocky Mountains, the Midcontinent, West Texas, South Texas, and elsewhere. The large independent exploration and production company reported proved reserves of about 1.1 billion barrels of oil equivalent in 2012. The vast majority of the company's reserves are found within the US (including in Alaska, where the company was the first independent explorer to produce from a North Slope oilfield). Its main assets are in Texas. It has stakes in more than 10,000 net producing wells.

Geographic Reach

The company maintains offices in Anchorage, Alaska; Denver, Colorado; and Midland, Texas. In Texas it has operations in the liquid-rich Eagle Ford Shale, Barnett Shale Combo, Hugoton, and West Panhandle fields; the Raton gas field; and the Spraberry oil field.

Operations

In 2012 Pioneer Natural Resources drilled 1,844 gross (1,655 net) development wells, 99% of which were successfully completed as productive wells (for a total drilling cost of $4 billion) and reported daily production of 156,000 barrels of oil equivalent.

Sales and Marketing

In 2012 Plains Marketing accounted for 26% of Pioneer Natural Resources' revenues; Enterprise Products Partners, 15%; and Occidental Energy Marketing, 14%.

Financial Performance

revenues increased by 16% in 2012 thanks to a 54% jump in oil sales volumes, 33% in NGL, and 10% in gas. This was partially offset declines of 6% in oil prices, 27% in NGL, and 32% in gas.

The company reported net income of $192.3 million in 2012 (77% down on 2011) due to higher operating expenses. Depletion, depreciation, and amortization expenses rose due to higher drilling expenditures on proved undeveloped locations (primarily in the Spraberry field) and declines in proved gas reserves due to lower gas prices.

Pioneer Natural Resources' also reported impairment of oil and gas properties due to assessments of its long-lived assets that the carrying value of those assets may not be recoverable.

Strategy

The company's revenues come from its US operations where the oil firm focuses on exploiting low-risk, long-lived basins.

Securing funding to expand its drilling program, in 2013 Pioneer Natural Resources sold a 40% stake in 207,000 net acres leased in Wolfcamp Shale play in the southern portion of the Spraberry Trend Area Field to Sinochem for $1.7 billion.

That year the company discontinued efforts to divest its properties (155,000) in the Barnett Shale after failing to receive satisfactory bids.

It has exited higher risk foreign ventures. To raise cash and to focus on its core North American assets, in 2011 the company sold its Tunisia-based exploration and production units to OMV for $866 million. It also sold its South African business in 2012 for $38 million.

Mergers and Acquisitions

In 2013 Pioneer Natural Resources Company acquired 52%-owned Pioneer Southwest Energy Partners L.P., which then became a wholly-owned subsidiary of Pioneer Natural Resources USA through a stock-for-unit exchange.

Securing an industrial sands business to support its hydraulic fracturing drilling activities in the Wolfcamp Shale and Barnett Shale plays in Texas, in 2012 Pioneer acquired Carmeuse Industrial Sands for $297 million.

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Pioneer Natural Resources Company


5205 N O'Connor Blvd Ste 200
Irving, TX 75039
Phone: 1 (972) 444-9001
Fax: 1 (972) 5715063
www.pioneernrc.com

STATS


  • Employer Type: Public
  • Stock Symbol: PXD,
  • Stock Exchange: , NYSE
  • Chairman and CEO: Scott Sheffield
  • President and COO: Timothy Dove
  • Chairman and CEO: Scott Sheffield

Major Office Locations

  • Irving, TX

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