Pioneer Reports Record Fourth Quarter and Annual 2000 Results; Quarterly Net Income Increases Tenfold over Prior Year.Business Editors DALLAS--(BUSINESS WIRE)--Jan. 30, 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 and year ended December December: see month. 31, 2000. Fourth Quarter 2000 Results Pioneer reported record net income of $84 million or $0.85 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 fourth quarter of 2000. Fourth quarter net income included a $6 million or $0.06 per share gain on the disposition of assets and a $3 million or $0.03 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 $8 million or $0.08 per share. The same period last year net income included a loss on sale of assets of $3 million or $0.03 per share and $4 million or $0.04 per share of mark-to-market income related to derivatives not treated as hedges. Scott D. Sheffield Sheffield, city, England Sheffield, city (1991 pop. 470,685), N England, at the confluence of the Don River and four tributaries. Sheffield was one of the leading industrial cities of England. It has been a center of cutlery manufacture since the 14th cent. , 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, "Closing another quarter with record earnings is very exciting, but I am even more excited about our future. Pioneer's core properties stand out as some of the best in the industry. Since 1997, we have been busy building an exceptional exploration program while continuing a track record of development success. Recent discoveries are expected to add significant new production in 2002 and 2003, and our exploration program for 2001 is focused on the drill bit with 26 exploration wells planned." 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 2000 fourth quarter was $145 million compared to $69 million for the fourth quarter of 1999. Discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. increased 86% to $157 million and EBITDAX Earnings Before Interest, Taxes, Depreciation, Depletion, Amortization, and Exploration Expenses - EBITDAX An indicator of a company's financial performance calculated as: rose 56% to $194 million compared to the 1999 fourth quarter. Discretionary cash flow and EBITDAX calculations are defined and detailed on an attached schedule. 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 $25 million and repurchased 1.1 million common shares at an average price of $13.44 per share. On December 31, 2000, the Company had 98.4 million common shares outstanding. Fourth quarter oil sales averaged 34,522 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 21,827 BPD. Natural gas sales in the fourth quarter averaged 352 million cubic feet per day (MMcfpd). On an oil equivalent basis, sales averaged 115,032 BPD. In order to take advantage of high natural gas prices relative to oil prices, Pioneer elected during a portion of the quarter 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 natural gas produced in the Mid-continent area. The ethane remaining in the natural gas stream raises the Btu content of the natural gas and the price realization per thousand cubic feet (Mcf). As a consequence, U.S. liquids production was reduced by approximately 1,200 BPD for the days during which ethane was not recovered. In addition, Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. natural gas production fell 21% from the prior quarter, primarily 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. , displacing demand for gas power generation. Realized prices (including the effects of commodity price hedges) for oil and natural gas liquids for the fourth quarter were $25.48 and $23.13 per barrel, respectively. The realized price for natural gas was $3.85 per Mcf. Fourth quarter production costs averaged $5.03 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 15% over the prior quarter primarily due to higher production taxes and field fuel costs resulting from higher oil and gas prices. Exploration and abandonment costs of $23 million for the quarter included $11 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, $2 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 $10 million of exploration costs. For the same quarter last year, Pioneer reported oil sales of 34,849 BPD, natural gas liquid sales of 23,537 BPD, and natural gas sales of 363 MMcfpd. Because of asset divestitures, the quarter-to-quarter volumes are not comparable. Realized prices for the 1999 fourth quarter were $19.09 per barrel for oil, $15.76 per barrel for natural gas liquids and $2.04 per Mcf for natural gas. 2000 Annual Results For the twelve months ended December 31, 2000, Pioneer reported net income of $152 million or $1.53 per share on a diluted basis. Annual net income included a $34 million or $0.34 per share gain on the disposition of assets, a $59 million or $0.59 per share mark-to-market charge related to derivatives not treated as hedges and a $12 million or $0.12 per share extraordinary loss on early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Earnings as adjusted for the above items were $189 million or $1.90 per share. For the same period last year, Pioneer reported a net loss of $22 million or $0.22 per share. The prior year net loss included a loss on sale of assets of $24 million or $0.24 per share and a $27 million or $0.27 per share mark-to-market charge related to derivatives not treated as hedges. Cash flow from operations for 2000 was $430 million compared to $255 million for 1999. Oil sales for the year averaged 34,249 BPD and natural gas liquid sales averaged 22,894 BPD. Natural gas sales in 2000 were 371 MMcfpd. On an oil equivalent basis, sales averaged 119,002 BPD. Realized prices for oil and natural gas liquids were $24.01 and $20.27 per barrel, respectively. The realized price for natural gas was $2.81 per Mcf. In 1999, Pioneer reported oil sales of 42,339 BPD, natural gas liquid sales of 25,308 BPD and natural gas sales of 434 MMcfpd. Because of asset divestitures during 1999, the year-to-year volumes are not comparable. Realized prices for 1999 were $15.36 per barrel for oil, $11.64 per barrel for natural gas liquids and $1.90 per MCF for natural gas. For the year Pioneer reduced long-term debt by $167 million from $1.75 billion or $2.88 per BOE of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. , to $1.58 billion or $2.51 per BOE. The Company repurchased 2.3 million common shares at an average price of $11.79 per share. Operations Update Pioneer is currently utilizing 16 rigs in its active drilling program 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. , with six 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. , two rigs running in the Mid-continent area and eight rigs running in the Gulf Cost area, including the East Texas Bossier Bossier may refer to:
Development of the Canyon Express natural gas project 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 is moving forward as planned with first production anticipated in mid- mid- pref. Middle: midbrain. 2002. The Company expects to sanction sanction, in law and ethics, any inducement to individuals or groups to follow or refrain from following a particular course of conduct. All societies impose sanctions on their members in order to encourage approved behavior. the Devils Tower project and has budgeted capital to begin development during 2001 with first oil production expected in late 2002 or 2003. In South Texas, Pioneer's exploitation efforts in the Pawnee Pawnee (pônē`), Native North Americans whose language belongs to the Caddoan branch of the Hokan-Siouan linguistic stock (see Native American languages). field have increased net natural gas production from the field by over 135% to approximately 26 MMcfpd in December 2000. Utilizing advanced 3-D seismic modeling in this Edwards Reef play, the Company has completed eight horizontal reentries and four new horizontal wells. Five new wells and two horizontal reentries are scheduled for 2001. Pioneer is also expanding its development program to include surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. fields which could add a significant number of locations to the Company's inventory. In the Gulf of Mexico, Pioneer has accelerated its efforts with two deep wells drilled off existing platforms. At Pioneer-operated Eugene Island Eugene Island is a submerged mountain 70-85 miles off the Louisiana coast in the Gulf of Mexico. The nearby oil field Eugene Island 330 is best known for its unusual depletion profile. According to the article "Sustainable Oil?" by Chris Bennett WorldNetDaily. 208 (75% WI), a successful well with multiple oil and gas pays has been completed and tested at a combined gross rate of 1,250 BPD and 950 Mcf per day at a depth of 11,900 feet. The exploitation well penetrated 4 pay intervals currently producing in the block and 2 new undeveloped exploratory pays. This well sets up additional development and exploration opportunities in the area. At High Island Block A-582 (5.5% WI), a Texaco-operated well encountered more than 230 feet of pay. The well is in 440 feet of water and was drilled to a total depth of 15,147 feet. A second well is drilling to further delineate the field. In 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 , Pioneer has initiated its winter access program 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 with five rigs running and plans to drill approximately 35 development wells and tie-in tie-in n. One thing that is related to or connected with another. Noun 1. tie-in - a fastener that serves to join or connect; "the walls are held together with metal links placed in the wet mortar during construction" 19 previously drilled wells before spring. Four exploration wells are also planned. Through its development program, the Company expects Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. natural gas production to grow by approximately 10% over 2000 rates. 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. , the Company's drilling is focused on oil development with three rigs running. Eight to ten exploration wells are planned in the 2001 program. As previously announced, Pioneer has had significant success in the Bajo Barda Gonzalez Gonzalez may refer to: People
In 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 has completed the drilling of 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 and has encountered over 100 feet of net pay. The Company has set pipe, and expects to test production from the well over the next two to three weeks. The Company anticipates that a second well will be drilled on the prospect later this year. Pioneer has budgeted capital to begin development of 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. oil field during 2001 with first production expected in late 2002 or early 2003. Financial Outlook The following statements are estimates based on current expectations. The statements are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. , as addressed in the paragraph at the bottom of this release. Actual results may differ materially from these estimates which do not reflect the potential impact of acquisitions or divestitures that may be completed or other unforeseen events that may occur after the date of this release. First quarter production is expected to average 112 to 114 MBPD MBPD Million Barrels Per Day MBPD Thousand Barrels Per Day on an oil equivalent basis. United States liquids production continues to be reduced by approximately 1,200 barrels per day for the days during which ethane is not recovered. Severe weather also negatively impacted United States Mid-continent production during January January: see month. . In addition, 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 continues to be lower than normal as a result of increased availability of hydroelectric power. The Company has oil and natural gas hedges that will impact first quarter realizations. There are swap contracts in place for 16,000 BPD of oil at $28.49 per barrel. Collars cover 5,000 BPD of oil with floors at $17.00 and ceilings at $20.09 per barrel and 2,000 BPD of oil with floors at $25.00 and ceilings at $31.43. There are swap contracts in place for 148.4 MMcfpd of natural gas at $6.75 per Mcf. Collars cover 54.5 MMcfpd of natural gas with floors at $2.25 and ceilings at $2.90 per Mcf. All prices are stated on an approximate NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). equivalent basis. During the first 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 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. ) are expected to average $5.70 to $6.15 per BOE, primarily due to higher production taxes and field fuel costs resulting from higher oil and gas prices. 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 $4.90 to $5.10 per BOE. Total exploration and abandonment expense is expected to be $15 million to $30 million. General and administrative expense is expected to be $9 million to $10 million. Interest expense is expected to be $38 million to $39 million, including approximately $3 million of non-cash interest. The effective tax rate is expected to be approximately 0% to 2% of pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta 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. for federal income tax purposes. Pioneer has targeted production growth from 2000 levels of 1% to 4% in 2001 and 15% to 24% by 2002. The capital budget for 2001 is expected to be approximately $430 million. A similar capital budget is anticipated in 2002. For the first quarter of 2001, cost incurred is expected to range from $135 to $145 million. Earnings Conference Call On Tuesday Tuesday: see week. , January 30, 2001, at 9:00 a.m. Central, investors will have the opportunity to listen to the fourth 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 al·ter·nate v. al·ter·nat·ed, al·ter·nat·ing, al·ter·nates v.intr. 1. a. To occur in a successive manner: day alternating with night. b. , you may dial 800/946-0782 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 through February February: see month. 13 by dialing 888/203-1112 -- confirmation code: 465751. Pioneer is a large independent oil and gas exploration and production company with operations in the United States, Canada, Argentina and South Africa. Pioneer's headquarters are in Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. . 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 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share data)
(Unaudited)
Three months ended Year ended
December 31, December 31,
-------------------- --------------------
2000 1999 2000 1999
--------- --------- --------- ---------
Revenues:
Oil and gas $ 251,829 $ 163,409 $ 852,738 $644,646
Interest and other 11,634 8,518 25,775 89,657
Gain (loss) on disposition
of assets, net 6,433 (2,892) 34,184 (24,168)
--------- --------- --------- ---------
269,896 169,035 912,697 710,135
--------- --------- --------- ---------
Costs and expenses:
Oil and gas production 53,275 36,069 189,265 159,530
Depletion, depreciation
and amortization -
oil and gas 48,919 47,196 199,205 218,250
Depletion, depreciation and
amortization - other 3,990 4,263 15,733 17,797
Impairment of oil and gas
properties -- -- -- 17,894
Exploration and abandonments 23,348 24,382 87,550 65,974
General and administrative 10,003 11,009 33,262 40,241
Reorganization -- 729 -- 8,534
Interest 39,540 39,918 161,952 170,344
Other 6,837 (1,660) 67,231 34,631
--------- --------- --------- ---------
185,912 161,906 754,198 733,195
--------- --------- --------- ---------
Income (loss) before income
taxes and extraordinary item 83,984 7,129 158,499 (23,060)
Income tax benefit 200 1,100 6,000 600
--------- --------- --------- ---------
Income (loss) before
extraordinary item 84,184 8,229 164,499 (22,460)
Extraordinary item - loss on
early extinguishment of
debt, net of tax -- -- (12,318) --
--------- --------- --------- ---------
Net income (loss) $ 84,184 $ 8,229 $ 152,181 $(22,460)
========= ========= ========= =========
Net income (loss) per share:
Basic:
Income (loss) before
extraordinary item $ .86 $ .08 $ 1.65 $ (.22)
Extraordinary item -- -- (.12) --
--------- --------- --------- ---------
Net income (loss) $ .86 $ .08 $ 1.53 $ (.22)
========= ========= ========= =========
Diluted:
Income (loss) before
extraordinary item $ .85 $ .08 $ 1.65 $ (.22)
Extraordinary item -- -- (.12) --
--------- --------- --------- ---------
Net income (loss) $ .85 $ .08 $ 1.53 $ (.22)
========= ========= ========= =========
Weighted average basic
shares outstanding 98,367 100,319 99,378 100,307
========= ========= ========= =========
PIONEER NATURAL RESOURCES COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
December 31, December 31,
2000 1999
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 26,159 $ 34,788
Accounts receivable 125,654 118,575
Inventories 14,842 13,721
Deferred income taxes 4,800 5,800
Other current assets 19,936 10,252
----------- -----------
Total current assets 191,391 183,136
----------- -----------
Property, plant and equipment, at cost:
Oil and gas properties, using the
successful efforts method of
accounting 3,417,094 3,254,918
Accumulated depletion,
depreciation and amortization (902,139) (751,956)
----------- -----------
2,514,955 2,502,962
----------- -----------
Deferred income taxes 84,400 83,400
Other assets, net 163,689 159,975
----------- -----------
$ 2,954,435 $ 2,929,473
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term
debt $ -- $ 828
Accounts payable 115,446 86,868
Interest payable 38,142 36,045
Other current liabilities 62,926 73,072
----------- -----------
Total current liabilities 216,514 196,813
----------- -----------
Long-term debt, less current
maturities 1,578,776 1,745,108
Other noncurrent liabilities 225,740 169,438
Deferred income taxes 28,500 43,500
Stockholders' equity 904,905 774,614
----------- -----------
$ 2,954,435 $ 2,929,473
=========== ===========
PIONEER NATURAL RESOURCES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three months ended Year ended
------------------ ------------------
December 31, December 31,
2000 1999 2000 1999
------ ------ ------ ------
Cash flows from operations:
Net income (loss) $ 84,184 $ 8,229 $ 152,181 $ (22,460)
Depletion, depreciation and
amortization 52,909 51,459 214,938 236,047
Impairment of oil and gas
properties - - - 17,894
Exploration expenses,
including dry holes 20,686 21,369 66,959 50,030
Deferred income taxes (1,000) - (10,600) -
(Gain) loss on disposition
of assets, net (6,433) 2,892 (34,184) 24,168
Interest related
amortization 3,520 3,448 12,699 12,520
Derivative mark-to-market 3,021 (4,350) 58,518 26,964
Extraordinary item, net of
tax - - 12,318 -
Other noncash items (2,255) (1,654) 1,258 (40,350)
Changes in operating assets
and liabilities:
Accounts receivable 4,227 (14,268) (7,486) (7,393)
Inventories (2,614) (3,265) (2,789) (952)
Other current assets (11,889) (3,097) (9,896) (2,335)
Accounts payable 23,756 9,430 26,260 (18,683)
Interest payable 315 12,210 2,097 2,851
Other current liabilities (23,425) (13,876) (52,177) (23,067)
------ ------ ------ ------
Net cash provided by
operating activities 145,002 68,527 430,096 255,234
Net cash provided by
(used in) investing
activities (108,575) (91,131) (194,501) 198,995
Net cash provided by
(used in) financing
activities (48,155) 23,975 (244,068) (479,069)
------ ------ ------- -------
Net increase (decrease) in
cash and cash equivalents (11,728) 1,371 (8,473) (24,840)
Effect of exchange rate
changes on cash and cash
equivalents (11) 171 (156) 407
Cash and cash equivalents,
beginning of period 37,898 33,246 34,788 59,221
------ ------ ------ ------
Cash and cash equivalents,
end of period $ 26,159 $ 34,788 $ 26,159 $ 34,788
====== ====== ====== ======
PIONEER NATURAL RESOURCES COMPANY
SUMMARY PRODUCTION AND PRICE DATA
Three months ended Year ended
December 31, December 31,
------------------ ----------------
2000 1999 2000 1999
---- ---- ---- ----
Average Daily Production:
Oil (Bbls) -
U.S. 23,873 26,068 24,561 31,366
Argentina 9,721 7,948 8,847 6,443
Canada 928 833 841 4,530
------ ------ ------ ------
Total 34,522 34,849 34,249 42,339
Natural gas liquids (Bbls) -
U.S. 20,492 22,281 21,538 23,875
Argentina 571 542 527 594
Canada 764 714 829 839
------ ------ ------ ------
Total 21,827 23,537 22,894 25,308
Gas (Mcf) -
U.S. 218,810 239,695 229,316 290,670
Argentina 88,710 86,652 97,526 94,457
Canada 44,575 36,560 44,315 49,003
------- ------- ------- -------
Total 352,095 362,907 371,157 434,130
Total Production:
Oil (MBbls) 3,176 3,206 12,535 15,454
Natural gas liquids (MBbls) 2,008 2,165 8,379 9,237
Gas (MMcf) 32,393 33,387 135,843 158,457
Equivalent barrels (MBOE) 10,583 10,936 43,555 51,101
Average Price(a):
Oil (per Bbl) -
U.S. $ 24.21 $ 17.88 $ 22.07 $ 15.03
Argentina $ 28.47 $ 22.84 $ 29.09 $ 18.41
Canada $ 26.92 $ 21.13 $ 27.50 $ 13.28
Average $ 25.48 $ 19.09 $ 24.01 $ 15.36
Natural gas liquids (per Bbl) -
U.S. $ 22.84 $ 15.47 $ 20.05 $ 11.61
Argentina $ 25.40 $ 19.98 $ 22.91 $ 11.30
Canada $ 29.21 $ 21.56 $ 24.32 $ 12.62
Average $ 23.13 $ 15.76 $ 20.27 $ 11.64
Gas (per Mcf) -
U.S. $ 4.87 $ 2.37 $ 3.50 $ 2.17
Argentina $ 1.13 $ 1.08 $ 1.19 $ 1.10
Canada $ 4.24 $ 2.15 $ 2.88 $ 1.82
Average $ 3.85 $ 2.04 $ 2.81 $ 1.90
(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 Year ended
December 31, December 31,
----------------- -----------------
2000 1999 2000 1999
------- ------- ------- -------
Discretionary cash flows(a):
Net income (loss) $ 84,184 $ 8,229 $152,181 $(22,460)
Depletion, depreciation
and amortization 52,909 51,459 214,938 236,047
Impairment of oil and gas
properties -- -- -- 17,894
Exploration and abandonments 23,348 24,382 87,550 65,974
Deferred income taxes (1,000) -- (10,600) --
(Gain) loss on disposition
of assets, net (6,433) 2,892 (34,184) 24,168
Interest related
amortization 3,520 3,448 12,699 12,520
Derivative mark-to-market 3,021 (4,350) 58,518 26,964
Extraordinary item,
net of tax -- -- 12,318 --
Other noncash items (2,255) (1,654) 1,258 (40,350)
------- ------- ------- -------
Discretionary cash flow $157,294 $ 84,406 $494,678 $320,757
======= ======= ======= =======
(a) Discretionary cash flows equal cash flows from operations
before working capital changes and exploration and
abandonments.
EBITDAX(b):
Net income (loss) $ 84,184 $ 8,229 $152,181 $(22,460)
Depletion, depreciation
and amortization 52,909 51,459 214,938 236,047
Impairment of oil and gas
properties -- -- -- 17,894
Exploration and abandonments 23,348 24,382 87,550 65,974
Consolidated interest
expense 39,540 39,918 161,952 170,344
Consolidated income taxes (200) (1,100) (6,000) (600)
(Gain) loss on disposition
of assets, net (6,433) 2,892 (34,184) 24,168
Derivative mark-to-market 3,021 (4,350) 58,518 26,964
Extraordinary item,
net of tax -- -- 12,318 --
Other noncash expenses (2,255) 2,876 1,455 11,494
------- ------- ------- -------
$194,114 $124,306 $648,728 $529,825
======= ======= ======= =======
(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.
PIONEER NATURAL RESOURCES COMPANY
RESERVE SUMMARY
December 31, 2000
Oil NGL Gas
(MMBbl) (MMBbl) (Bcf) MMBOE
United States 138 128 1,355 492
Argentina 28 8 408 104
Canada 1 3 133 26
South Africa 6 -- -- 6
------- ------- ------- -------
Total Proved Reserves 173 139 1,896 628
======= ======= ======= =======
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