Pioneer Sells Canadian Operations for $540 Million
Pioneer Natural Resources has entered into a share purchase agreement for the sale of all of Pioneer's common stock in 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. The transaction is expected to close during the fourth quarter of 2007 and is subject to regulatory approval and other customary closing conditions.
Pioneer expects to utilize the proceeds from the divestiture for general corporate purposes, including share repurchases, debt reduction and possibly additional bolt-on acquisitions in existing operating areas. The transaction is not expected to have a significant impact on fourth quarter after-tax earnings.
"We thank all of our Canadian employees for the value they have created for our shareholders since we acquired these assets ten years ago. The sale of these assets now will allow us to effectively redeploy capital and enhance our financial flexibility," said Scott D. Sheffield, Chairman and CEO.
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.
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Company: Abu Dhabi National Energy Co.(TAQA) more info
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