Pioneer Natural Resources Closes $3B+ Deal

Pioneer Natural Resources Closes $3B+ Deal
The deal was closed for cash proceeds of $3.1 billion after normal closing adjustments.

Pioneer Natural Resources Company (NYSE: PXD) has revealed that it has completed the previously announced divestiture of its Delaware basin assets to Continental Resources (NYSE: CLR).

The deal was closed for cash proceeds of $3.1 billion after normal closing adjustments, Pioneer Natural Resources outlined. The company highlighted that its fourth quarter and full year guidance had assumed that the assets would be included in its financial results for the entire quarter. However, with the divestiture completing on December 21, Pioneer Natural Resources said it will not include any operating or financial results attributable to the assets after December 20 in its fourth quarter results.

On November 3, Pioneer Natural Resources announced that it had entered into a definitive agreement with Continental Resources to sell all of its assets in the Delaware basin for cash proceeds of $3.25 billion, subject to normal closing adjustments. In a company statement at the time, Pioneer Natural Resources noted that the transaction was expected to close toward the end of the fourth quarter of 2021, subject to the satisfaction of customary closing conditions, including regulatory approval.

The divested assets include approximately 92,000 net acres, with net production of approximately 50,000 barrels of oil equivalent per day and approximately 35,000 barrels of oil per day, Pioneer Natural Resources noted in its early November statement.

In other dealmaking activity this year, Pioneer Natural Resources announced in May that it had completed its previously announced acquisition of the leasehold interests and related assets of DoublePoint Energy in the Midland Basin. The deal added approximately 97,000 “high-return, highly contiguous” net acres in the core of the Midland Basin, Pioneer Natural Resources said in a company statement at the time. Pioneer Natural Resources revealed in May that, at closing, it paid the seller a total consideration of $6.2 billion, including $1 billion in cash.

In January, Pioneer Natural Resources announced that it had completed its previously announced acquisition of Parsley Energy, Inc. (NYSE: PE) following the approval by Pioneer and Parsley stockholders of all proposals necessary for completing the all-stock transaction.

Pioneer Natural Resources describes itself as a large independent oil and gas exploration and production company headquartered in Dallas, Texas, with operations in the United States. The company started its journey as Parker & Parsley, before merging with MESA Inc. to form Pioneer, the company’s website highlights.

To contact the author, email andreas.exarheas@rigzone.com


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