-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EpWwXvYCYVFZrICzdUJtm4f20ial2ohNex2BRcGQykWjuKdqJu5En2dYaKwVU5MO w62Me75hfmY6IBKSgY4zvA== 0001038357-01-000010.txt : 20010313 0001038357-01-000010.hdr.sgml : 20010313 ACCESSION NUMBER: 0001038357-01-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010312 ITEM INFORMATION: FILED AS OF DATE: 20010312 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PIONEER NATURAL RESOURCES CO CENTRAL INDEX KEY: 0001038357 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 752702753 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13245 FILM NUMBER: 1566555 BUSINESS ADDRESS: STREET 1: 1400 WILLIAMS SQUARE WEST STREET 2: 5205 N OCONNOR BLVD CITY: IRVING STATE: TX ZIP: 75039 BUSINESS PHONE: 9724449001 MAIL ADDRESS: STREET 1: 1400 WILLIAMS SQUARE WEST STREET 2: 5205 N OCONNOR BLVD CITY: IRVING STATE: TX ZIP: 75039 8-K 1 0001.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): March 12, 2001 PIONEER NATURAL RESOURCES COMPANY ----------------------------------- (Exact name of Registrant as specified in its charter) DELAWARE 1-13245 75-2702753 - ------------------------------- ----------- ---------------------- (State or other jurisdiction of Commission (I.R.S. Employer incorporation or organization) File Number Identification Number) 1400 WILLIAMS SQUARE WEST, 5205 N. O'CONNOR BLVD., IRVING, TEXAS 75039 - ---------------------------------------------------------------- ---------- (Address of principal executive offices) (Zip code) Registrant's Telephone Number, including area code: (972) 444-9001 Not applicable (Former name, former address and former fiscal year, if changed since last report) PIONEER NATURAL RESOURCES COMPANY TABLE OF CONTENTS Page Item 9. Regulation FD Disclosure................................... 3 Signatures.......................................................... 5 2 PIONEER NATURAL RESOURCES COMPANY ITEM 9. REGULATION FD DISCLOSURE The information in this document includes forward-looking statements that are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, and the business prospects of Pioneer Natural Resources Company ("Pioneer" or the "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, 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 Annual Report on Form 10-K for the year ended December 31, 2000 that is available from the Company or the Securities and Exchange Commission. Definitions of Oil and Gas Terms Used Herein Within this Current Report on Form 8-K, the following oil and gas terms have specific meanings: "Bbl" means a standard barrel of 42 United States gallons; "BOE" means a barrel-of-oil equivalent and is a standard convention used to express oil, natural gas liquids and gas volumes on a comparable oil equivalent basis (with equivalent gas volumes determined using the ratio of six thousand cubic feet of natural gas to one BOE); "MBOEPD" means thousand BOE per day; "Btu" means British thermal unit; "MMBtu" means one million Btu; "Mcf" means one thousand cubic feet and is a measure of natural gas volume; "MMcf" means one thousand Mcf; "NGL" means natural gas liquid; and, "NYMEX" means the New York Mercantile Exchange. First Quarter 2001 Outlook Update Based on current expectations and partial actual results recorded for the first quarter ended March 31, 2001, the Company is furnishing the following update of its first quarter 2001 outlook: Prices and volumes. The Company's first quarter realized price for oil, including the effects of price hedges, is expected to average approximately $25.00 to $25.50 per Bbl. The Company's first quarter average realized price for natural gas liquids is expected to be between $23.25 and $23.75 per Bbl. Pioneer's first quarter realized price for gas, including the effects of price hedges, is expected to average approximately $4.00 to $4.20 per Mcf. Pioneer's first quarter production is now expected to average approximately 110 MBOEPD, as compared to the Company's initial estimate of 112 to 114 MBOEPD. The adjustment from Pioneer's initial production estimate is primarily attributable to reduced gas sales in Argentina. In the Neuquen basin area, unanticipated compressor maintenance and curtailments due to unscheduled downstream pipeline repairs are negatively impacting gas production for the first quarter. The Company will lose gas sales volumes of approximately 15,000 Mcf per day until the pipeline repairs are completed in April. Additionally, in the Tierra del Fuego area of Argentina, unscheduled plant downtime at a large gas purchaser led to curtailment of Pioneer's gas production of approximately 12,000 Mcf per day for 17 days during the first quarter. Costs and expenses. Pioneer's first quarter 2001 oil and gas production costs are expected to average approximately $5.80 to $6.00 per BOE, as compared to the Company's initial estimate of $5.70 to $6.15 per BOE. First quarter 2001 depreciation, depletion and amortization expense is expected to average approximately $5.10 per BOE, as compared to Pioneer's initial estimated range of $4.90 to $5.10 per BOE. Total exploration and abandonment expense is expected to be between $17 million and $39 million, as compared to the Company's initial estimate of $15 million to $30 million. The adjustment of the Company's estimated exploration and abandonment expense is attributable to an increase in and the timing of the Company's first quarter exploratory drilling, as is further elaborated upon in "Exploration and development expenditures", below. General and administrative expense is expected to be approximately $11 million 3 during the first quarter of 2001, as compared to Pioneer's initial estimated range of $9 million to $10 million. Interest expense is expected to be $36 million to $37 million, including approximately $3 million of non-cash interest, as compared to the Company's initial estimated range of $38 million to $39 million. Provision for income taxes. Pioneer estimates that its first quarter 2001 provision for income taxes will be approximately $3 million. Exploration and development expenditures. The Company expects to incur approximately $130 million to $140 million of costs on first quarter 2001 oil and gas property acquisitions, exploration and development drilling activities. Significant exploratory drilling projects still in progress or yet to be initiated during the first quarter include one exploratory well in each of South Africa and Gabon, two deepwater Gulf of Mexico exploratory wells and three Gulf Coast continental shelf wells. Hedging Program Update During the first quarter of 2001, Pioneer increased its 2001 hedged oil and gas sales volumes and has hedged a portion of its forecasted 2002, 2003 and 2004 gas sales. The following table summarizes the Company's open oil and gas hedge contracts ("1st Quarter" includes only March 2001 hedges) and the weighted average NYMEX equivalent prices for those contracts: 2001 ------------------------------------------------- 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter 2002 2003 2004 --------- --------- --------- --------- -------- -------- -------- Oil swaps Barrels per day 19,033 19,209 8,740 2,000 Price per Bbl $ 28.38 $ 28.92 $ 29.28 $ 30.14 Oil costless collars Barrels per day 7,000 7,000 2,000 2,000 Ceiling price per Bbl $ 23.33 $ 23.33 $ 31.43 $ 31.43 Floor price per Bbl $ 19.29 $ 19.29 $ 25.00 $ 25.00 Gas swaps MMBtu per day 142,723 114,223 84,223 61,016 80,000 24,932 25,068 Price per Mcf $ 6.75 $ 4.15 $ 3.65 $ 2.90 $ 4.75 $ 4.50 $ 4.55 Gas costless collars MMBtu per day 54,482 54,482 54,482 54,482 20,000 Ceiling price per Mcf $ 2.90 $ 2.90 $ 2.90 $ 2.90 $ 6.00 Floor price per Mcf $ 2.25 $ 2.25 $ 2.25 $ 2.25 $ 4.50
4 PIONEER NATURAL RESOURCES COMPANY S I G N A T U R E S Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PIONEER NATURAL RESOURCES COMPANY Date: March 12, 2001 By: /s/ RICH DEALY ------------------------------------------- Rich Dealy Vice President and Chief Accounting Officer 5 -----END PRIVACY-ENHANCED MESSAGE-----