Pioneer Reports First Quarter Results.Business Editors DALLAS--(BUSINESS WIRE)--April 26, 2001 Pioneer Natural Resources Company ("Pioneer")(NYSE NYSE See: New York Stock Exchange :PXD PXD Powder X-ray Diffraction PXD Post Exercise Discussion PXD Physical Device Driver PXD Pixel Data )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :PXD) today announced financial and operating results for the quarter ended March 31, 2001. First Quarter 2001 Results Pioneer reported net income of $67.9 million or $0.68 per share, on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, for the first quarter of 2001. First quarter net income included a $7.3 million or $0.07 per share gain on the disposition of assets and an $8.8 million or $0.09 per share mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. charge related to derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. not treated as hedges. For the same period last year, Pioneer reported net income of $14.8 million or $0.15 per share, which included a gain on sale of assets of $8.4 million or $0.08 per share and a $13.5 million or $0.13 per share mark-to-market charge related to derivatives not treated as hedges. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the 2001 first quarter was $131.7 million compared to $47.2 million for the first quarter of 2000. During the quarter Pioneer reduced long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. by $28.5 million and repurchased 0.4 million common shares at an average price of $16.75 per share. On March 31, 2001, the Company had 98.2 million common shares outstanding. First quarter oil sales averaged 35,140 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. (BPD Borderline personality disorder (BPD) A pattern of behavior characterized by impulsive acts, intense but chaotic relationships with others, identity problems, and emotional instability. ), natural gas liquid sales averaged 20,426 BPD and natural gas sales averaged 333 million cubic feet per day (MMcfpd). As expected, first quarter natural gas liquids and natural gas sales were down as compared to the fourth quarter of 2000 due to several factors. Pioneer elected not to recover ethane ethane (ĕth`ān), CH3CH3, gaseous hydrocarbon. It is a continuous-chain alkane. As a constituent of natural gas, it is used for fuel. It can be prepared by cracking and fractional distillation of petroleum. from United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Mid-continent gas during January January: see month. to raise the MMBtu content and price realization per thousand cubic feet (Mcf) of natural gas. As a consequence, U.S. liquids production was reduced by approximately 1,200 BPD for the days during which ethane was not recovered. Severe weather negatively impacted United States Mid-continent production during January. Natural gas production from the Tierra del Fuego Tierra del Fuego (tyĕ`rä dĕl fwā`gō), [Span.=land of fire], archipelago, 28,476 sq mi (73,753 sq km), off S South America, separated from the mainland by the Strait of Magellan. area in Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. continued to be lower than normal as a result of increased availability of hydroelectric power hydroelectric power: see power, electric; water power. hydroelectric power Electricity produced from generators driven by water turbines that convert the energy in falling or fast-flowing water to mechanical energy. and unscheduled unscheduled Adjective not planned or intended Adj. 1. unscheduled - not scheduled or not on a regular schedule; "an unscheduled meeting"; "the plane made an unscheduled stop at Gander for refueling" plant downtime The time during which a computer is not functioning due to hardware, operating system or application program failure. at a large gas purchaser. In the Neuquen Basin in Argentina, unanticipated compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve maintenance negatively impacted first quarter gas production. On an oil equivalent basis, sales averaged 111,014 BPD. Realized prices (including the effects of commodity price hedges) for oil and natural gas liquids for the first quarter were $25.03 and $22.71 per barrel, respectively. The realized price for natural gas was $4.58 per Mcf. First quarter production costs averaged $5.59 per barrel oil equivalent (BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip ), increasing 11% over the prior quarter, primarily due to higher production and ad valorem taxes Ad Valorem Tax A tax based on the assessed value of real estate or personal property. In other words ad valorem taxes can be property tax or even duty on imported items. Property ad valorem taxes are the major source of revenues for state and municipal governments. and field fuel costs resulting from higher gas prices. Exploration and abandonment costs of $23 million for the quarter included $9 million of geologic ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. and geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. costs including seismic costs, $8 million of noncash leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. abandonments including expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. leases and $6 million of exploration costs. For the same quarter last year, Pioneer reported oil sales of 34,759 BPD, natural gas liquid sales of 22,667 BPD and natural gas sales of 359 MMcfpd. Realized prices for the 2000 first quarter were $22.44 per barrel for oil, $19.00 per barrel for natural gas liquids and $1.97 per Mcf for natural gas. Operations Update The first quarter of 2001 was especially active for Pioneer. A series of new discoveries in the deepwater Deepwater or Deep Water may refer to:
Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , Gabon Gabon (gäbôN`), officially Gabonese Republic, republic (2005 est. pop. 1,389,000), 103,346 sq mi (267,667 sq km), W central Africa. It borders on the Atlantic Ocean in the west, on Equatorial Guinea and Cameroon in the north, and on Congo and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. was announced earlier this week and in February February: see month. , the Company announced a discovery in South Africa on its Boomslang boomslang Venomous snake (Dispholidus typus) of the savannas of sub-Saharan Africa, the only species of its family that is decidedly dangerous to humans. When hunting, it lies in wait in a bush or tree for chameleons and birds; the forepart of the body often extends prospect. Development activities have commenced on two prior discoveries in the deepwater Gulf of Mexico, and three Gulf Coast shelf exploration wells are currently drilling. Pioneer's development program was active in each of its core areas in the United States, Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and Argentina. Development of the Canyon Express natural gas project in the deepwater Gulf of Mexico is moving forward as planned with first production anticipated in mid- mid- pref. Middle: midbrain. 2002. The first development well at Aconcagua Aconcagua (äkōnkä`gwä), peak, 22,835 ft (6,960 m) high, Mendoza prov., W Argentina, in the Andes, near the Chilean border. It is the highest peak of the Western Hemisphere. The snowcapped Aconcagua was first scaled in 1897. , one of three fields being jointly developed in the Canyon Express project, was successful and exceeded expectations. Two development wells are under way in the Devils Tower field in the deepwater Gulf of Mexico. Pioneer is currently utilizing 16 rigs in its active drilling program in the United States, with eight rigs running in the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. , one rig running in the Mid-continent area and seven rigs running in the Gulf Coast area, including the East Texas Bossier Bossier may refer to:
In South Texas, Pioneer continues to aggressively develop the Edwards Reef in its Pawnee Pawnee (pônē`), Native North Americans whose language belongs to the Caddoan branch of the Hokan-Siouan linguistic stock (see Native American languages). field (100% working interest) and has initiated drilling on the first of five new vertical wells and two horizontal reentries. In the East Texas Bossier play, four rigs are drilling, seven wells are producing and four are waiting on completion or facilities. In the Permian Basin, Pioneer's two oil discoveries in the Myway MyWay may refer to one of the following:
According to the U.S. , Pioneer has drilled 6 wells of its 25 well program in the Canyon and Strawn formations with the average well producing 600 Mcfpd. By year end, net gas production from the field is expected to increase approximately 40% to 21 MMcfpd. On the Gulf of Mexico shelf at High Island Block A-582 (Cyrus prospect-5.5% working interest), the first appraisal well has been drilled and confirmed over 230 feet of pay found in a discovery well drilled late last year which encountered two new sands. In Canada, Pioneer has completed its winter access program in the Chinchaga and Martin Creek areas in northeast British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography . Pioneer drilled 32 wells in the Chinchaga area and connected 26 wells to the pipeline. In the North Chinchaga area, eight wells were drilled and eight were connected to the pipeline. In the Martin Creek and Conroy Black areas, four wells were drilled and 12 wells were connected including 11 wells that were drilled in last year's program. Production from Canada is up 34% to 65 MMcfpd on a gas equivalent basis from December 2000. In Argentina, the Company's drilling is focused on oil development with four rigs running. Pioneer has had significant success in the Bajo Barda Gonzalez drilling program in Argentina's Neuquen Basin. Seven wells have been drilled in 2001, and five additional locations will be drilled in the second quarter. In the Loma Negra Norte field, Pioneer has drilled five successful wells in the field and has identified ten to twenty additional drilling locations. Chairman's Comment Scott D. Sheffield, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "We continue to execute our plan to add value. With strong cash flow in the first quarter, we funded drillbit success, reduced debt and repurchased shares. Our 2001 exploration program is delivering exciting results, and we look forward to the results from our remaining high-impact wells." Financial Outlook The following statements are estimates based on current expectations. These forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are subject to a number of risks and uncertainties which may cause the Company's actual results to differ materially from the following statements. The last paragraph of this release addresses certain of the risks and uncertainties to which the Company is subject. Second quarter production is expected to average 116 to 118 MBPD MBPD Million Barrels Per Day MBPD Thousand Barrels Per Day on an oil equivalent basis. Gas production is expected to rise as a result of the successful winter drilling program in Canada and as Argentina enters its winter season with higher demand for natural gas. In Argentina, repairs on a major pipeline originally scheduled for the first quarter have been postponed and are anticipated in the second quarter. Oil production is also expected to increase in Argentina as a result of an active development drilling program. During the second quarter, lease operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. (including production and ad valorem taxes) are expected to average $4.75 to $5.00 per BOE, based on today's NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). strip prices for oil and natural gas. Depreciation, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and amortization is expected to average $5.10 to $5.30 per BOE. Total exploration and abandonment expense is expected to be $20 million to $35 million. General and administrative expense is expected to be approximately $9 million. Interest expense is expected to be $34 million to $35 million, including approximately $3 million of non-cash interest. The effective tax rate is expected to be approximately 2% of pre-tax income as the Company benefits from the carryforward carryforward 1. A business operating loss that, for tax purposes, may be claimed a certain number of years in the future, often up to 15 years. of prior years' net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. in the U.S. and Canada. For the second quarter of 2001, cost incurred is expected to range from $140 to $150 million. Earnings Conference Call On Thursday, April 26, 2001, at 9:00 a.m. Central, investors will have the opportunity to listen to the first quarter earnings call and view a presentation over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the via Pioneer's website located at http://www.pioneernrc.com. At the website, select the "Investors" button at the top of the page; then select "Earnings Calls" from the list across the bottom of the page. To listen to the live call, please go to the website approximately ten minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available on the website shortly after the call. Alternately, you may dial 888/850-2545 (confirmation code: 575261) to listen to the conference call and view the accompanying visual presentation at the Internet address There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. above. A telephone replay will be available by dialing 888/203-1112--confirmation code: 770881. Pioneer is a large independent oil and gas exploration and production company with operations in the United States, Canada, Argentina, South Africa and Gabon. Pioneer's headquarters are in Dallas. For more information, visit Pioneer's website at www.pioneernrc.com. Financial statements attached. Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements, and the business prospects of Pioneer Natural Resources Company, are subject to a number of risks and uncertainties which may cause the Company's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, product supply and demand, competition, government regulation or action, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , the costs and results of drilling and operations, the Company's ability to replace reserves or implement its business plans, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, and environmental risks. These and other risks are described in the Company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
PIONEER NATURAL RESOURCES COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(Unaudited)
March 31, December 31,
2001 2000
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 18,305 $ 26,159
Accounts receivable 103,916 125,654
Inventories 12,965 14,842
Deferred income taxes 4,800 4,800
Other current assets 18,242 19,936
------------ ------------
Total current assets 158,228 191,391
------------ ------------
Property, plant and equipment, at cost:
Oil and gas properties, using the
successful efforts method of
accounting 3,504,678 3,417,094
Accumulated depletion, depreciation
and amortization (947,580) (902,139)
------------ ------------
2,557,098 2,514,955
------------ ------------
Deferred income taxes 85,200 84,400
Other assets, net 121,682 163,689
------------ ------------
$ 2,922,208 $ 2,954,435
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 112,597 $ 102,275
Interest payable 38,863 38,142
Other current liabilities 159,831 76,097
------------ ------------
Total current liabilities 311,291 216,514
------------ ------------
Long-term debt, less current maturities 1,550,230 1,578,776
Other noncurrent liabilities 194,615 225,740
Deferred income taxes 25,100 28,500
Stockholders' equity 840,972 904,905
------------ ------------
$ 2,922,208 $ 2,954,435
============ ============
PIONEER NATURAL RESOURCES COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share data)
(Unaudited)
Three months ended
March 31,
------------------------
2001 2000
----------- -----------
Revenues:
Oil and gas $ 257,986 $ 174,375
Interest and other 5,167 3,755
Gain on disposition of assets, net 7,293 8,372
----------- -----------
270,446 186,502
----------- -----------
Costs and expenses:
Oil and gas production 55,802 43,122
Depletion, depreciation and
amortization -- oil and gas 48,045 47,898
Depletion, depreciation and
amortization -- other 4,116 4,010
Exploration and abandonments 22,883 13,075
General and administrative 10,448 9,759
Interest 35,616 39,755
Other 25,217 14,413
----------- -----------
202,127 172,032
----------- -----------
Income before income taxes 68,319 14,470
Income tax (provision) benefit (400) 300
----------- -----------
Net income $ 67,919 $ 14,770
=========== ===========
Net income per share:
Basic $ .69 $ .15
=========== ===========
Diluted $ .68 $ .15
=========== ===========
Weighted average basic shares outstanding 98,379 100,163
=========== ===========
PIONEER NATURAL RESOURCES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three months ended
March 31,
----------------------
2001 2000
--------- ---------
Cash flows from operations:
Net income $ 67,919 $ 14,770
Depletion, depreciation and amortization 52,161 51,908
Exploration expenses, including dry holes 21,847 9,732
Deferred income taxes (4,800) (1,500)
Gain on disposition of assets, net (7,293) (8,372)
Interest related amortization 2,998 3,149
Derivative mark-to-market 8,753 13,487
Other noncash items 1,806 1,028
Changes in operating assets and liabilities:
Accounts receivable 26,449 (18,950)
Inventories 1,124 (190)
Other current assets (5,954) (649)
Accounts payable (25,607) (13,763)
Interest payable 720 (8,512)
Other current liabilities (8,389) 5,063
--------- ---------
Net cash provided by operating activities 131,734 47,201
Net cash used in investing activities (88,801) (39,934)
Net cash used in financing activities (50,548) (8,912)
--------- ---------
Net decrease in cash and cash equivalents (7,615) (1,645)
Effect of exchange rate changes on cash
and cash equivalents (239) (7)
Cash and cash equivalents, beginning
of period 26,159 34,788
--------- ---------
Cash and cash equivalents, end of period $ 18,305 $ 33,136
========= =========
PIONEER NATURAL RESOURCES COMPANY
SUMMARY PRODUCTION AND PRICE DATA
Three months ended
March 31,
---------------------
2001 2000
---------- ----------
Average Daily Production:
Oil (Bbls) - U.S. 24,651 25,802
Argentina 9,646 8,124
Canada 843 833
---------- ----------
Total 35,140 34,759
Natural gas liquids (Bbls)- U.S. 18,922 21,438
Argentina 516 447
Canada 988 782
---------- ----------
Total 20,426 22,667
Gas (Mcf) - U.S. 208,678 234,078
Argentina 80,035 84,962
Canada 43,973 40,168
---------- ----------
Total 332,686 359,208
Total Production:
Oil (MBbls) 3,163 3,163
Natural gas liquids (MBbls) 1,838 2,063
Gas (MMcf) 29,942 32,688
Equivalent barrels (MBOE) 9,991 10,674
Average Price(a):
Oil (per Bbl) - U.S. $ 25.25 $ 20.02
Argentina $ 24.59 $ 29.44
Canada $ 23.83 $ 29.12
Average $ 25.03 $ 22.44
Natural gas liquids
(per Bbl) - U.S. $ 22.51 $ 18.86
Argentina $ 27.04 $ 19.41
Canada $ 24.33 $ 22.52
Average $ 22.71 $ 19.00
Gas (per Mcf) - U.S. $ 5.61 $ 2.29
Argentina $ 1.25 $ 1.11
Canada $ 5.81 $ 1.92
Average $ 4.58 $ 1.97
-------------
(a) Average prices include the effects of commodity hedges.
PIONEER NATURAL RESOURCES COMPANY
SUPPLEMENTAL INFORMATION
(in thousands)
(Unaudited)
Discretionary cash flow and EBITDAX (as defined below) are
presented herein because of their wide acceptance as financial
indicators of a company's ability to internally fund exploration and
development activities and to service or incur debt. Discretionary
cash flow and EBITDAX should not be considered as alternatives to net
cash provided by operating activities, net income (loss) or income
(loss) from continuing operations, as defined by generally accepted
accounting principles. Discretionary cash flow and EBITDAX should also
not be considered as indicators of the Company's financial
performance, as alternatives to cash flow, as measures of liquidity or
as being comparable to other similarly titled measures of other
companies.
Three months ended
March 31,
-----------------------
2001 2000
-------- --------
Discretionary cash flows(a):
Net income $ 67,919 $ 14,770
Depletion, depreciation and amortization 52,161 51,908
Exploration and abandonments 22,883 13,075
Deferred income taxes (4,800) (1,500)
Gain on disposition of assets, net (7,293) (8,372)
Interest related amortization 2,998 3,149
Derivative mark-to-market 8,753 13,487
Other noncash items 1,806 1,028
-------- --------
Discretionary cash flow $144,427 $ 87,545
========= ========
(a) Discretionary cash flows equal cash flows from operations before
working capital changes and exploration and abandonments.
EBITDAX(b):
Net income $ 67,919 $ 14,770
Depletion, depreciation and amortization 52,161 51,908
Exploration and abandonments 22,883 13,075
Consolidated interest expense 35,616 39,755
Consolidated income taxes 400 (300)
Gain on disposition of assets, net (7,293) (8,372)
Derivative mark-to-market 8,753 13,487
Other noncash expenses 867 1,038
-------- --------
$181,306 $125,361
======== ========
(b) "EBITDAX" represents earnings before depletion, depreciation and
amortization expense; impairment of oil and gas properties;
exploration and abandonments; consolidated interest expense;
consolidated income taxes; gain or loss on the disposition of
assets; extraordinary items; and, other noncash expenses.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion