Pioneer Reports Fourth Quarter and Annual 1999 Results.Business Editors DALLAS--(BUSINESS WIRE)--Jan. 27, 2000 Pioneer Natural Resources Company (&uot;Pioneer&uot;) (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 fourth quarter and twelve months ended December December: see month. 31, 1999. Fourth Quarter 1999, Pioneer's Second Profitable Quarter Pioneer reported fourth quarter 1999 net income of $8 million or $0.08 per share. Fourth quarter net income included a loss on sale of assets of $3 million or $0.03 per share. For the same period last year, Pioneer reported a net loss of $643 million or $6.41 per share. The prior year loss included non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. for property impairments and a deferred tax asset valuation allowance. 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 fourth quarter was $69 million compared to $48 million for the fourth quarter of 1998. Fourth quarter oil sales averaged 34,849 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. ) and natural gas liquid sales averaged 23,537 BPD. Natural gas sales in the fourth quarter averaged 363 million cubic feet per day (MMCFPD). On an oil equivalent basis, sales averaged 118,870 BPD. Realized prices for oil and natural gas liquids for the fourth quarter were $19.09 and $15.76 per barrel, respectively. The realized price for natural gas was $2.04 per thousand cubic feet (MCF MCF malignant catarrhal fever. ). Fourth quarter production costs averaged $3.30 per 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 over the prior quarter primarily due to higher production taxes resulting from higher oil and gas prices. Production costs excluding production taxes were $2.73 per BOE, down $0.42, or 13%, from the prior year quarter. Exploration and abandonment costs of $24 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, $12 million of non-cash 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 $3 million of cash exploration costs. For the same quarter last year, Pioneer reported oil sales of 54,839 BPD, natural gas liquid sales of 29,104 BPD, and natural gas sales of 492 MMCFPD. Because of asset divestitures during 1999, the quarter-to-quarter volumes are not comparable. Realized prices for the 1998 fourth quarter were $12.22 per barrel for oil, $7.35 per barrel for natural gas liquids, and $1.67 per MCF for natural gas. 1999 Annual Results For the twelve months ended December 31, 1999, Pioneer reported a net loss of $22 million or $0.22 per share. For the same period last year, Pioneer reported a net loss of $746 million or $7.46 per share. Cash flow from operations for 1999 was $255 million compared to $314 million for the same period in 1998. Oil sales for the year averaged 42,339 BPD and natural gas liquid sales averaged 25,308 BPD. Natural gas sales in 1999 were 434 MMCFPD. On an oil equivalent basis, sales averaged 140,002 BPD. Realized prices for oil and natural gas liquids were $15.36 and $11.64 per barrel, respectively. The realized price for natural gas was $1.90 per MCF. In 1998, Pioneer reported oil sales of 59,052 BPD, natural gas liquid sales of 29,231 BPD, and natural gas sales of 504 MMCFPD. Because of asset divestitures during 1999, the year-to-year volumes are not comparable. Realized prices for 1998 were $13.08 per barrel for oil, $8.90 per barrel for natural gas liquids, and $1.82 per MCF for natural gas. Capital Program for 2000 A capital investment program of approximately $250 million has been budgeted for 2000, representing a 25% increase in spending over 1999. Approximately $200 million has been allocated to further development of Pioneer's core assets in the U.S., Argentina and Canada. The remaining $50 million has been allocated to exploration activities concentrated in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico 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 , the onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. Gulf Coast area 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. . Pioneer is currently running 16 rigs, ten in the U.S., three in Argentina and three in Canada. First quarter exploration plans include an appraisal well on the Aconcagua discovery on Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by Canyon Block 305 and two Gulf Coast Basin wells, all expected to spud in February, and an appraisal well in the Sable sable, species of marten, Martes zibellina, found in Siberia, N European Russia, and N Finland. This carnivorous mammal is highly valued for its thick, soft fur, which is dark brown or black, sometimes with white underparts and sometimes flecked with silver. field in South Africa expected to spud in March. 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, &uot;This quarter ends a year in which we achieved significant improvement in financial performance. We will continue to make strides in debt reduction and in streamlining our operations. We are excited about the capital projects planned in 2000 and the opportunities they represent for increasing our net asset value.&uot; Earnings Conference Call On Thursday, January 27, 2000, at 10:00am EST EST electroshock therapy. EST abbr. electroshock therapy , investors will have the opportunity to listen to the earnings conference call 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 through Investor Broadcast Networks' Vcall website, located at http://www.vcall.com. To listen to the live call, please go to the web site at least fifteen 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 web site shortly after the call. Pioneer is one of the largest independent exploration and production oil and gas companies in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , with major operations in the 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. , Canada, Argentina and South Africa. Pioneer's headquarters are in Dallas. Financial statements attached. Except for historical information contained herein, the statements in this Press Release are 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. 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)
December 31,
1999 1998
ASSETS
Oil and gas properties $ 3,254,918 $ 3,964,219
Accumulated depletion, depreciation and
amortization (751,956) (930,111)
Deferred income taxes 89,200 103,900
Other assets 337,311 343,306
----------- -----------
$ 2,929,473 $ 3,481,314
LIABILITIES AND STOCKHOLDERS' EQUITY
Debt $ 1,745,935 $ 2,175,265
Other liabilities 365,424 452,772
Deferred income taxes 43,500 64,200
Stockholders' equity 774,614 789,077
----------- -----------
$ 2,929,473 $ 3,481,314
PIONEER NATURAL RESOURCES COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share data)
Three months ended Year ended
December 31, December 31,
1999 1998 1999 1998
Revenues:
Oil and gas $ 163,409 $ 157,014 $ 644,646 $ 711,492
Interest and
other 8,518 2,261 89,657 10,452
Loss on
disposition of
assets, net (2,892) (309) (24,168) (445)
----------- ----------- ----------- -----------
169,035 158,966 710,135 721,499
----------- ----------- ----------- -----------
Costs and expenses:
Oil and gas
production 36,069 54,043 159,530 223,551
Depletion,
depreciation and
amortization -
oil and gas 47,196 85,231 218,250 322,294
Depletion,
depreciation and
amortization -
other 4,263 4,869 17,797 15,014
Impairment of
oil and gas
properties -- 459,519 17,894 459,519
Exploration and
abandonments 24,382 35,709 65,974 121,858
General and
administrative 11,009 16,352 40,241 73,000
Reorganization 729 12,041 8,534 33,199
Interest 39,918 41,968 170,344 164,285
Other (1,660) 21,105 34,631 39,605
----------- ----------- ----------- -----------
161,906 730,837 733,195 1,452,325
----------- ----------- ----------- -----------
Income (loss)
before income
taxes 7,129 (571,871) (23,060) (730,826)
Income tax
(provision)
benefit 1,100 (71,000) 600 (15,600)
----------- ----------- ----------- -----------
Net income (loss) $ 8,229 $ (642,871) $ (22,460) $ (746,426)
=========== =========== =========== ===========
Net income (loss)
per share:
Basic $ .08 $ (6.41) $ (.22) $ (7.46)
=========== =========== =========== ===========
Diluted $ .08 $ (6.41) $ (.22) $ (7.46)
=========== =========== =========== ===========
Dividends declared
per share $ -- $ -- $ -- $ .10
=========== =========== =========== ===========
Weighted average
shares outstanding 100,319 100,291 100,307 100,055
=========== =========== =========== ===========
PIONEER NATURAL RESOURCES COMPANY
SUMMARY PRODUCTION AND PRICE DATA
Three months ended Year ended
December 31, December 31,
1999 1998 1999 1998
Average Daily Production:
Oil (Bbls) -
U.S 26,068 39,121 31,366 41,555
Argentina 7,948 7,540 6,443 8,415
Canada 833 8,178 4,530 9,082
------- ------- ------- -------
Total 34,849 54,839 42,339 59,052
Natural gas liquids (Bbls) -
U.S 22,281 27,646 23,875 27,835
Argentina 542 648 594 626
Canada 714 810 839 770
------- ------- ------- -------
Total 23,537 29,104 25,308 29,231
Gas (Mcf) -
U.S 239,695 350,648 290,670 377,373
Argentina 86,652 80,103 94,457 73,427
Canada 36,560 61,216 49,003 53,072
------- ------- ------- -------
Total 362,907 491,967 434,130 503,872
Total Production:
Oil (Mbbls) 3,206 5,045 15,454 21,554
Natural gas liquids (Mbbls) 2,165 2,678 9,237 10,669
Gas (Mmcf) 33,387 45,261 158,457 183,913
Equivalent barrels (MBOE) 10,936 15,266 51,101 62,875
Average Price:
Oil -
U.S $ 17.88 $ 13.20 $ 15.03 $ 13.96
Argentina $ 22.84 $ 9.73 $ 18.41 $ 11.00
Canada $ 21.13 $ 9.81 $ 13.28 $ 10.96
Average $ 19.09 $ 12.22 $ 15.36 $ 13.08
Natural gas liquids -
U.S $ 15.47 $ 7.33 $ 11.61 $ 8.86
Argentina $ 19.98 $ 6.91 $ 11.30 $ 9.83
Canada $ 21.56 $ 8.69 $ 12.62 $ 9.54
Average $ 15.76 $ 7.35 $ 11.64 $ 8.90
Gas -
U.S $ 2.37 $ 1.82 $ 2.17 $ 2.01
Argentina $ 1.08 $ 1.05 $ 1.10 $ 1.09
Canada $ 2.15 $ 1.64 $ 1.82 $ 1.45
Average $ 2.04 $ 1.67 $ 1.90 $ 1.82
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion