Pioneer Reports Third Quarter 2002 Results.Business Editors DALLAS--(BUSINESS WIRE)--Oct. 24, 2002 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 ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :PXD) today announced financial and operating results for the quarter and nine months ended September September: see month. 30, 2002. Third Quarter Results Pioneer reported a net loss of $.9 million, or $0.01 per 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. share, for the third quarter of 2002. Income as adjusted for several unusual items was $15.0 million, or $0.13 per share. As previously disclosed, third quarter results included an extraordinary charge consisting of $15.6 million associated with the repayment of a 20% interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid capital obligation associated with the West Panhandle panhandle, in geography, a strip of land projecting from the main body of an area and shaped like the handle of a pan, such as the panhandles of West Virginia, Texas, and Alaska. acquisition and $3.9 million related to the 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 9.625% bonds. Third quarter results also included a $3.4 million gain on disposition of assets and a $.2 million noncash gain on the remeasurement of the Company's Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. peso-denominated net monetary assets Net monetary assets See: Monetary assets less monetary liabilities. . For the same period last year, Pioneer reported net income of $24.6 million, or $0.25 per share. Income for the 2001 third quarter as adjusted for a $1.4 million extraordinary gain related to the early extinguishment of debt was $23.2 million, or $0.24 per share. 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 2002 third quarter was $87.7 million compared to $122.9 million for the same period of 2001. Third quarter oil sales averaged 29,611 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 liquids sales averaged 22,693 BPD. Gas sales in the third quarter averaged 385 million cubic feet per day (MMcfpd). On a 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 ) basis, total sales averaged 116,441 BPD. Realized prices for oil and natural gas liquids for the third quarter were $21.77 and $14.10 per barrel, respectively. The realized price for gas was $2.25 per thousand cubic feet (Mcf), with North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. gas prices averaging $2.94 per Mcf. Third quarter production costs were reduced to $4.66 per BOE partially due to cost savings on properties associated with the West Panhandle acquisition. Exploration and abandonment costs of $18.3 million for the quarter included $8.5 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. expenses including seismic costs, $2.4 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 $7.4 million of exploration costs. For the same quarter last year, Pioneer reported oil sales of 32,920 BPD, natural gas liquids sales of 22,158 BPD and gas sales of 374 MMcfpd. Realized prices for the 2001 third quarter were $25.06 per barrel for oil, $15.01 per barrel for natural gas liquids and $2.66 per Mcf for gas. Nine Month Results For the nine months ended September 30, 2002, Pioneer reported net income of $8.3 million, or $0.07 per diluted share. Excluding a $22.3 million extraordinary charge related to the early extinguishment of debt, a $7.7 million noncash charge Noncash charge A cost, such as depreciation, depletion, and amortization, that does not involve any cash outflow. That is, this is treated as an accounting expense -- not a real expense that demands cash. for the remeasurement of the Argentine peso-denominated net monetary assets and a gain of $4.4 million on the disposition of assets, income as adjusted was $33.9 million or $0.30 per share. For the same period last year, Pioneer reported net income of $120.9 million, or $1.21 per share. Excluding a gain of $8.7 million on the disposition of assets and a $1.4 million extraordinary gain related to the early extinguishment of debt, income as adjusted was $110.8 million or $1.11 per share. Cash flow from operations for the nine-month period was $228.3 million compared to $390.0 million for the same period in 2001. Nine-month oil sales averaged 31,646 BPD and natural gas liquids sales were 22,007 BPD. Gas sales were 352 MMcfpd. On a BOE basis, total sales averaged 112,301 BPD. Realized liquids prices for the 2002 nine-month period were $22.86 per barrel for oil and $13.17 per barrel for natural gas liquids. The realized price for gas was $2.39 per Mcf, with North American gas prices averaging $2.98 per Mcf. For the first nine months of 2001, Pioneer reported oil sales of 34,172 BPD, natural gas liquids sales of 21,383 BPD and gas sales of 358 MMcfpd. Realized prices for the 2001 nine-month period were $24.95 per barrel for oil, $18.87 per barrel for natural gas liquids and $3.40 per Mcf for gas. Operational Update In southern Tunisia Tunisia (t  nē`zhə, ty–), Fr. Tunisie, officially Republic of Tunisia, republic (2005 est. pop. , Pioneer has successfully tested two additional
intervals in the Adam exploration well on the Borj El Khadra permit. As
previously announced, the Adam 1 well encountered four oil and gas
productive zones in the Silurian Acacus Acacus can refer to:
Pioneer, through a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , has a 40% interest in the well. AGIP Tunisia BV, a wholly owned subsidiary of Eni ENI Ente Nazionale Idrocarburi (Italy) ENI Ecole Nationale d'Ingénieurs (French: National Engineer School) ENI Employee Network Inc. , is operator with a 50% interest, and Paladin Paladin archetypal gunman who leaves a calling card. [TV: Have Gun, Will Travel in Terrace, I, 341] See : Wild West Expro Limited has the remaining 10% interest. The Tunisian state oil company, ETAP eTAP Electronic Teaching Assistance Program ETAP European Technology Acquisition Programme ETAP Entrepreneurial Technology Apprenticeship Program ETAP Entreprise Tunisienne des Activites Petrolieres ETAP Expanded Technical Assistance Program , is carried through the exploration phase of activity and has a right to back in for up to a 50% interest in any development by reimbursing its share of past expenditures from production revenues. The field development plan contemplates connecting production from the Adam 1 well to Eni's existing facilities 12 kilometers southwest of the location, pending partner and government approval. Pioneer is the third largest acreage holder 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. Tunisia with permits covering approximately five million acres. Pioneer today announced that it has signed an agreement with Armstrong Resources to acquire a 70% working interest and operatorship in ten state leases on Alaska's North Slope North Slope, Alaska: see Alaska North Slope. . The leases cover approximately 14,000 acres between the Kuparuk River The Kuparak River is a river in Alaska's North Slope.[1] References 1. ^ USGS Geographic Names Information System (GNIS). Kuparak River. Accessed Aug 20, 2007. See also
Pioneer announced first production through 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 , the ramp-up of production from the project has been delayed and full production is now expected in November November: see month. . The system is designed to handle up to 500 Mmcfpd. Wells from 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. and Camden Hills are now producing via the multiple-field gas gathering system. The project is expected to increase Pioneer's worldwide daily production by 15% to 20% compared to third quarter 2002 levels when it reaches full production rates. The Company now expects initial production from its Devils Tower field in the deepwater Gulf of Mexico to begin no earlier than late third quarter 2003 as a result of delays in the construction of the truss truss, in architecture and engineering, a supporting structure or framework composed of beams, girders, or rods commonly of steel or wood lying in a single plane. spar production facilities. First production from 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 is now expected in mid-to-late first quarter 2003 as a result of delays in the upgrade of the floating production, storage and offloading (FPSO FPSO Floating Production Storage and Off-loading (shipping & oil industry) FPSO Foster Parent Society of Ontario FPSO Fleet Publication Supply Office ) facilities. As a result of the delays, Pioneer now expects 2003 production from its core producing areas in the U.S., 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 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. , including the Big 4 projects, to be nearer to the lower end of its previously announced range of 165,000 to 180,000 BOE per day. The Company is currently evaluating several projects for inclusion in its 2003 capital budget that are expected to supplement its 2003 production forecast. Pioneer's recent Adam 1 discovery in Tunisia is expected to impact 2003 production, and the Company plans to drill up to six additional exploration wells on nearby blocks, of which three are scheduled for early 2003. Pioneer plans to expand its 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. exploration program in Canada during the coming winter drilling season and plans to begin a multi-well program on the Gulf of Mexico shelf later this year. Pioneer's production forecast does not include the potential for future core area property acquisitions that the Company considers complementary to its development and exploration growth strategy. Development of the Pioneer-operated deepwater Falcon field Falcon Field may refer to:
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" to the Falcon facilities currently under development. At least one additional prospect is expected to be spud in the area before year end. Onshore, Pioneer is currently running five rigs in the Spraberry field, one 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 in South Texas and three in the West Panhandle field. There are two rigs active in the Gulf of Mexico and four rigs running in Argentina. Pioneer will begin its winter-access development drilling program in Canada during the fourth quarter and hopes to spud its first exploration test within 30 days. 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, "With the start-up Start-up The earliest stage of a new business venture. of Canyon Express, we have entered a new phase in Pioneer's growth plan. With our other three high-impact projects expected to come on production next year, 2003 should be a great year for Pioneer. When the last of our Big 4 projects is fully producing, we expect our daily production to be up 50% to 60% from mid- mid- pref. Middle: midbrain. 2002 levels. Projects in 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 , Tunisia and now Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States give us the running room to meet our 10% to 15% annual production growth targets in 2004 through 2006." 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. Fourth quarter production is expected to average 118 to 124 MBPD MBPD Million Barrels Per Day MBPD Thousand Barrels Per Day on a BOE basis. Included in the mid-point of the estimate is 70 Mmcfpd net to Pioneer from Canyon Express as the project ramps up during the quarter to full production. Fourth 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 $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 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 $5.50 to $5.75 per BOE. Total exploration and abandonment expense is expected to be $15 million to $30 million. General and administrative expense is expected to be approximately $13 million. Interest expense is expected to be $23 million to $25 million and income taxes are expected to be $2 million 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. During the third quarter, Pioneer added to its oil hedge position. Additional volumes of oil were hedged for 2003 and 2004 at oil prices ranging from approximately $24 per barrel to $25 per barrel. The Company's oil and gas hedges are outlined in Item 9 of the Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed today with the Securities and Exchange Commission. Earnings Conference Call This morning at 10:00 a.m. Eastern, investors will have the opportunity to listen to the third 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 'INVESTOR' at the top of the page and then choose 'Webcasts/Earnings Calls'. To listen to the live call, please go to the website at least 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 (800) 262-1292 (confirmation code: 124788) 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: 124788. Pioneer is a large independent oil and gas exploration and production company with 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, 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. , Gabon and Tunisia. Pioneer's headquarters are in Dallas. For more information, visit Pioneer's website at www.pioneernrc.com. Financial statements and schedules attached. Except for historical information contained herein, the statements in this News 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 that may cause Pioneer'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, foreign currency valuation changes, foreign government tax and regulation changes, 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, Pioneer's ability to replace reserves, implement its business plans, or complete its development projects as scheduled, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, environmental and weather risks. These and other risks are described in Pioneer's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.
PIONEER NATURAL RESOURCES COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
September 30, December 31,
2002 2001
-------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 25,502 $ 14,334
Accounts receivable 77,473 82,211
Inventories 10,151 14,549
Deferred income taxes 12,700 6,400
Other current assets 10,076 138,149
------------- -------------
Total current assets 135,902 255,643
------------- -------------
Property, plant and
equipment, at cost:
Oil and gas properties,
using the successful efforts
method of accounting 4,355,100 3,879,568
Accumulated depletion,
depreciation and
amortization (1,245,139) (1,095,310)
------------- -------------
3,109,961 2,784,258
------------- -------------
Deferred income taxes 78,033 84,319
Other assets, net 65,582 146,833
------------- -------------
$3,389,478 $3,271,053
============= =============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 93,426 $ 99,165
Interest payable 37,592 37,410
Other current liabilities 73,076 91,634
------------- -------------
Total current
liabilities 204,094 228,209
------------- -------------
Long-term debt 1,650,756 1,577,304
Other noncurrent liabilities 133,134 166,383
Deferred income taxes 6,394 13,768
Stockholders' equity 1,395,100 1,285,389
------------- -------------
$3,389,478 $3,271,053
============= =============
PIONEER NATURAL RESOURCES COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------ -------------------
2002 2001 2002 2001
Revenues: ------ ------ ------ ------
Oil and gas $168,317 $198,088 $506,286 $674,685
Interest and other 7,083 6,471 9,089 22,593
Gain (loss) on
disposition of assets,
net 3,353 (88) 4,374 8,677
-------- -------- -------- --------
178,753 204,471 519,749 705,955
-------- -------- -------- --------
Costs and expenses:
Oil and gas production 49,970 51,713 150,705 159,489
Depletion, depreciation
and amortization -
oil and gas 52,547 56,857 149,615 158,927
Depletion, depreciation
and amortization -
other 2,201 3,208 6,466 10,695
Exploration and
abandonments 18,324 24,666 57,304 94,132
General and
administrative 12,466 8,153 35,142 26,606
Interest 20,347 32,261 71,405 102,137
Other 2,098 2,006 15,259 29,097
-------- -------- -------- --------
157,953 178,864 485,896 581,083
-------- -------- -------- --------
Income before income taxes
and
extraordinary items 20,800 25,607 33,853 124,872
Income tax provision (2,189) (2,379) (3,216) (5,387)
-------- -------- -------- --------
Income before
extraordinary items 18,611 23,228 30,637 119,485
Extraordinary items - gain
(loss) on early
extinguishment of debt,
net of tax (19,501) 1,374 (22,344) 1,374
-------- -------- -------- --------
Net income (loss) $ (890) $ 24,602 $ 8,293 $120,859
======== ======== ======== ========
Net income (loss) per
share:
Basic:
Income before
extraordinary items $ .16 $ .24 $ .27 $ 1.22
Extraordinary items (.17) .01 (.20) .01
-------- -------- -------- --------
Net income (loss) $ (.01) $ .25 $ .07 $ 1.23
======== ======== ======== ========
Diluted:
Income before
extraordinary items $ .16 $ .24 $ .27 $ 1.20
Extraordinary items (.17) .01 (.20) .01
-------- -------- -------- --------
Net income (loss) $ (.01) $ .25 $ .07 $ 1.21
======== ======== ======== ========
Weighted average shares
outstanding:
Basic 116,193 98,468 111,227 98,395
======== ======== ======== ========
Diluted 118,021 99,523 112,889 99,646
======== ======== ======== ========
PIONEER NATURAL RESOURCES COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------ ------------------
2002 2001 2002 2001
------ ------ ------ ------
Cash flows from
operations:
Net income (loss) $ (890) $ 24,602 $ 8,293 $ 120,859
Depletion,
depreciation and
amortization 54,748 60,065 156,081 169,622
Exploration and
abandonments 12,589 17,250 43,437 80,082
Deferred income
taxes 1,512 567 1,617 (4,095)
(Gain) loss on
disposition of
assets, net (3,353) 88 (4,374) (8,677)
Interest related
amortization (19) 2,559 (1,660) 8,446
Commodity hedge
related
amortization 6,184 3,076 20,307 5,484
Extraordinary
items - (gain)
loss on early
extinguishment
of debt 19,501 (1,374) 22,344 (1,374)
Other noncash
items (3,408) (551) 5,993 268
Changes in
operating assets
and liabilities:
Accounts
receivable 6,153 8,862 (4,715) 36,916
Inventories 69 (3,489) 4,052 (4,401)
Other current
assets (851) (763) (928) (5,795)
Accounts
payable (3,907) 11,431 (18,056) (7,426)
Interest
payable (384) (626) 183 288
Other current
liabilities (290) 1,203 (4,320) (233)
-------- -------- -------- --------
Net cash provided by
operating
activities 87,654 122,900 228,254 389,964
Net cash used in
investing
activities (169,220) (74,422) (379,437) (301,912)
Net cash provided by
(used in) financing
activities 90,403 (45,823) 163,844 (93,187)
-------- -------- -------- --------
Net increases
(decrease) in cash
and cash equivalent 8,837 2,655 12,661 (5,135)
Effect of exchange
rate changes on
cash
and cash
equivalents (63) (145) (1,493) (287)
Cash and cash
equivalents,
beginning
of period 16,728 18,227 14,334 26,159
-------- -------- -------- --------
Cash and cash
equivalents, end of
period $ 25,502 $ 20,737 $ 25,502 $ 20,737
======== ======== ======== ========
PIONEER NATURAL RESOURCES COMPANY
SUMMARY PRODUCTION AND PRICE DATA
Three months ended Nine months ended
September 30, September 30,
------------------ ------------------
2002 2001 2002 2001
------ ------ ------ -----
Average Daily Production:
Oil (Bbls) - U.S. 21,787 22,442 23,583 23,659
Argentina 7,655 9,689 7,926 9,688
Canada 169 789 137 825
-------- -------- -------- -------
Total 29,611 32,920 31,646 34,172
-------- -------- -------- -------
Natural gas
liquids (Bbls) - U.S. 21,070 20,493 20,377 19,800
Argentina 680 591 654 559
Canada 943 1,074 976 1,024
-------- -------- -------- -------
Total 22,693 22,158 22,007 21,383
-------- -------- -------- -------
Gas (Mcf) - U.S. 230,589 213,778 218,648 212,287
Argentina 105,406 107,087 83,662 95,451
Canada 48,827 53,611 49,578 50,174
-------- -------- -------- -------
Total 384,822 374,476 351,888 357,912
-------- -------- -------- -------
Total Production:
Oil (MBbls) 2,724 3,029 8,639 9,329
Natural gas
liquids (MBbls) 2,088 2,039 6,008 5,838
Gas (MMcf) 35,404 34,452 96,065 97,710
Equivalent barrels (MBOE) 10,713 10,809 30,658 31,452
Average Prices(a):
Oil (per Bbl) - U.S. $ 22.28 $ 25.15 $ 23.74 $ 24.93
Argentina $ 20.25 $ 24.99 $ 20.27 $ 25.09
Canada $ 24.67 $ 23.70 $ 21.32 $ 23.80
Average $ 21.77 $ 25.06 $ 22.86 $ 24.95
Natural gas
liquids
(per Bbl) - U.S. $ 14.12 $ 14.77 $ 13.05 $ 18.56
Argentina $ 12.73 $ 16.93 $ 13.12 $ 21.93
Canada $ 14.57 $ 18.66 $ 15.85 $ 23.31
Average $ 14.10 $ 15.01 $ 13.17 $ 18.87
Gas (per Mcf) - U.S. $ 3.08 $ 3.54 $ 3.12 $ 4.34
Argentina $ .42 $ 1.39 $ .49 $ 1.33
Canada $ 2.31 $ 1.69 $ 2.41 $ 3.35
Average $ 2.25 $ 2.66 $ 2.39 $ 3.40
(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 Nine months ended
September 30, September 30,
------------------ -----------------
2002 2001 2002 2001
---- ---- ---- ----
Discretionary cash
flows (a):
Net income (loss) $ (890) $ 24,602 $ 8,293 $120,859
Depletion, depreciation
and amortization 54,748 60,065 156,081 169,622
Exploration and
abandonments 18,324 24,666 57,304 94,132
Deferred income taxes 1,512 567 1,617 (4,095)
(Gain) loss on
disposition of assets,
net (3,353) 88 (4,374) (8,677)
Interest related
amortization (19) 2,559 (1,660) 8,446
Commodity hedge related
amortization 6,184 3,076 20,307 5,484
Extraordinary items,
(gain) loss on early
extinguishment of debt 19,501 (1,374) 22,344 (1,374)
Other noncash items (3,408) (551) 5,993 268
-------- -------- -------- --------
Discretionary cash
flow $92,599 $113,698 $265,905 $384,665
======== ======== ======== ========
(a) Discretionary cash flows equal cash flows from operations before
working capital changes and before exploration and abandonments.
EBITDAX (b):
Net income (loss) $ (890) $ 24,602 $ 8,293 $120,859
Depletion, depreciation
and amortization 54,748 60,065 156,081 169,622
Exploration and
abandonments 18,324 24,666 57,304 94,132
Interest expense 20,347 32,261 71,405 102,137
Income taxes 2,189 2,379 3,216 5,387
(Gain) loss on
disposition of assets,
net (3,353) 88 (4,374) (8,677)
Commodity hedge related
amortization 6,184 3,076 20,307 5,484
Extraordinary items,
(gain) loss on early
extinguishment of debt 19,501 (1,374) 22,344 (1,374)
Other noncash charges
and expenses 2,168 116 11,569 1,110
-------- -------- -------- --------
$119,218 $145,879 $346,145 $488,680
======== ======== ======== ========
(b) "EBITDAX" represents earnings before depletion, depreciation and
amortization expense; impairment of oil and gas properties;
exploration and abandonments; interest expense; income taxes; gain
or loss on the disposition of assets; commodity hedge related
amortization; extraordinary items; and, other noncash charges and
expenses.
PIONEER NATURAL RESOURCES COMPANY
SUPPLEMENTAL INFORMATION
Open Oil Hedge Positions
------------------------
2002 2003 2004
---------- ---------- ---------
Fourth
Quarter
Daily oil
production:
Swaps:
Volume (Bbl) 22,000 28,000 14,000
NYMEX price
per Bbl $ 23.91 $ 24.44 $ 23.11
Worldwide Oil -
% Hedged 71% 60% 23%
Open Gas Hedge Positions
------------------------
2006 &
2002 2003 2004 2005 2007
---------- ---------- -------- ------ ------
Fourth
Quarter
Daily gas
production:
Swaps:
Volume (Mcf) 140,000 230,000 210,000 90,000 20,000
NYMEX price(a)
per MMBtu $ 4.10 $ 3.85 $ 3.85 $ 3.75 $ 3.75
Collars:
Volume (Mcf) 120,000 - - - -
NYMEX price(a)
per MMBtu:
Ceiling $ 3.55
Floor $ 2.70
North American
Gas - % Hedged 76% 47% 36%
Deferred Gains (Losses) on Terminated Commodity Hedges (in
thousands)
----------------------------------------------------------------
2002 2003 2004 2005
---------- ---------- ------- -------
Fourth
Quarter
Deferred gains
(losses)(b) $ (8,645) $ 72,546 $ 45,102 $ 1,220
======== ======== ======== =======
(a) Approximate, based on historical differentials to index prices.
(b) Cash has been paid on deferred hedge losses and received on
deferred hedge gains except for the following: (i) a $2.5 million
payable for certain 2002 hedge losses and (ii) a $1.3 million
receivable for certain of the 2004 hedge gains.
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