Pioneer Natural Resources Company announced that it has approximately $30 million of unpaid pre-bankruptcy claims for condensate sold to certain subsidiaries of SemGroup, L.P. Last week, SemGroup, L.P. announced that it and certain of its subsidiaries (collectively SemGroup) filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
Pioneer is seeking payment of its pre-bankruptcy claim as a critical supplier under a Supplier Protection Program created by SemGroup and approved by the Bankruptcy Court on July 23. The intent of this program is for SemGroup to pay certain critical suppliers their pre-bankruptcy claims in full and continue paying such suppliers in exchange for their willingness to continue performance. It is premature at this time to predict the timing of payments under this program.
The condensate supplied to SemGroup is produced from Pioneer's West Panhandle gas field and is processed at Pioneer's Fain plant in the Texas Panhandle. Pioneer continues to supply condensate to SemGroup. However, the Company is monitoring SemGroup's situation closely and will sell its condensate to alternate purchasers should it become necessary to do so.
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