-----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, Oh14LzQU5hv6YdSPHSShORRe41XclAhhA9xUU9EtXAmGoU+B7CDzvxeAI5xNDIGO HI4UzQHvm2YY+GJWOWuH0Q== 0001038357-03-000015.txt : 20030429 0001038357-03-000015.hdr.sgml : 20030429 20030429143934 ACCESSION NUMBER: 0001038357-03-000015 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030429 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030429 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: 1934 Act SEC FILE NUMBER: 001-13245 FILM NUMBER: 03669087 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 er2qtr.txt PIONEER 1ST QTR EARNINGS 8-K 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): April 29, 2003 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) 5205 N. O'CONNOR BLVD., SUITE 1400, 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 7. Financial Statements, Pro Forma Financial Information and Exhibits: (c) Exhibits.............................................. 3 Item 9. Regulation FD Disclosure................................... 3 Signatures.......................................................... 4 Exhibit Index....................................................... 5 2 PIONEER NATURAL RESOURCES COMPANY ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits 99.1 News Release dated April 29, 2003 ITEM 9. REGULATION FD DISCLOSURE The following information is being provided pursuant to Item 12 of Form 8-K: 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 (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, international operations and associated international political and economic instability, 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, environmental and weather risks, acts of war or terrorism. These and other risks are described in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q that are available from the Company or the Securities and Exchange Commission. On April 29, 2003, the Company issued a news release that is attached hereto as exhibit 99.1. The news release announced the Company's financial and operating results for the quarter ended March 31, 2003; provided the Company's second quarter 2003 financial outlook, based on current expectations; and provided information regarding the Company's oil and gas price hedges. 3 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: April 29, 2003 By: /s/ Richard P. Dealy ------------------------------------------ Richard P. Dealy Vice President and Chief Accounting Officer 4 PIONEER NATURAL RESOURCES COMPANY EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1* News Release dated April 29, 2003 - ------------- * filed herewith 5 EX-99 3 er2qtr99.txt PIONEER 1ST QTR EARNINGS EXH 99.1 TO 8-K EXHIBIT 99.1 NEWS RELEASE Investor Relations Contact: Susan Spratlen (972) 444-9001 Pioneer Reports First Quarter 2003 Results Increases Production 16% over Prior Year Quarter Dallas, Texas, April 29, 2003 -- Pioneer Natural Resources Company ("Pioneer") (NYSE:PXD) today announced financial and operating results for the quarter ended March 31, 2003. First Quarter Results Pioneer reported net income of $84.2 million, or $0.71 per diluted share, for the first quarter of 2003. Results included a $15.4 million, or $0.13 per share, benefit from the cumulative effect of change in accounting principle related to the adoption of Statement of Financial Accounting Standards No. 143, which prescribes the accounting for future asset retirement obligations. For the same period last year, Pioneer reported a net loss of $2.0 million, or $0.02 per share, which included a noncash charge of $5.4 million, or $0.05 per share, for the remeasurement of Argentine peso-denominated net monetary assets. Cash flow from operations for the 2003 first quarter was $136.8 million compared to $50.0 million for the same period in 2002. Total first quarter 2003 oil and gas sales increased 16% from the prior year quarter to average 128,444 barrels per day (BPD) on a barrel oil equivalent (BOE) basis. First quarter oil sales averaged 31,894 BPD and natural gas liquids sales averaged 22,033 BPD. Gas sales in the first quarter averaged 447 million cubic feet per day (MMcfpd). Realized prices for oil and natural gas liquids for the first quarter were $25.82 and $22.00 per barrel, respectively. The realized price for gas was $4.06 per thousand cubic feet (Mcf), and North American gas prices averaged $4.68 per Mcf. First quarter production costs of $5.54 per BOE were higher than anticipated primarily due to start-up costs associated with the Canyon Express project. Exploration and abandonment costs of $35.9 million for the quarter included $10.4 million of geologic and geophysical expenses including seismic costs, $2.0 million of noncash leasehold abandonments including expired leases and $23.5 million of exploration costs. For the same quarter last year, Pioneer reported oil sales of 34,541 BPD, natural gas liquids sales of 21,539 BPD and gas sales of 328 MMcfpd. Realized prices for the 2002 first quarter were $23.17 per barrel for oil, $10.73 per barrel for natural gas liquids and $2.47 per Mcf for gas. Scott D. Sheffield, Chairman and CEO stated, "We've had a strong start for 2003. Our Canyon Express gas project has reached full production rates, we initiated production from our operated Falcon field ahead of schedule and under budget and announced a successful exploration well and development plan at Harrier, our first Falcon satellite discovery. We also announced a discovery in Alaska and are encouraged by the early evaluation work we've done to establish commerciality." "Our current daily production is up approximately 45% from 12 months ago with just two of our five large projects on stream, and we look forward to first production from the other three projects over the next 12 months. We are evaluating several discoveries and have an active exploration program underway to keep the pipeline of projects flowing at capacity." Financial Outlook The following statements are estimates based on current expectations. These forward-looking statements are subject to a number of risks and uncertainties which may cause the Company's actual results to differ materially from the following statements. The last paragraph of this release addresses certain of the risks and uncertainties to which the Company is subject. Second quarter 2003 production is expected to average 150,000 to 165,000 BOEs per day. Second quarter lease operating expenses (including production and ad valorem taxes) are expected to average $4.85 to $5.15 per BOE based on today's NYMEX strip prices for oil and gas. Depreciation, depletion and amortization is expected to increase to $6.50 to $6.90 per BOE as a larger proportion of the Company's production is derived from higher cost Gulf of Mexico fields. Total exploration and abandonment expense is expected to be $25 million to $50 million, and general and administrative expense is expected to be approximately $14 million. Interest expense is expected to be $24 million to $26 million and income taxes are expected to be approximately $5 million, principally due to income taxes in Argentina and minimal alternative minimum tax in the U.S. as the Company benefits from the carryforward of net operating losses in the U.S. and Canada. The Company's oil and gas hedges are outlined on the attached schedule. The range of expected daily production for the second quarter is expanded as a result of the production variability inherent in bringing high volume, high impact wells into an otherwise relatively stable production mix. Included in the second quarter guidance is a reduction in net Falcon production volumes reflecting the one-eighth royalty that becomes effective when the average NYMEX gas price exceeds $4.10 per Mcf in any calendar year. The Company is also widening the range of expected 2003 production to 55 to 60 million BOE to reflect the Falcon royalty and the heightened variability related to high volume wells. The Falcon field is performing better than expected, and the Harrier discovery has the potential for early start-up, while first sales from the Sable field are now expected in the third quarter. With a full year of production from new fields brought on in 2003 and the addition of at least two large fields in late 2003 or early 2004, the Company expects 2004 production to range from 63 to 75 million BOE. Earnings Conference Call This morning at 10:00 a.m. Eastern, investors will have the opportunity to listen to the first quarter earnings call and view a presentation over the internet 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 early to register, download 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) 946-0712 (confirmation code: 245690) to listen to the conference call and view the accompanying visual presentation at the Internet address above. A telephone replay will be available by dialing (888) 203-1112: confirmation code: 245690. Pioneer is a large independent oil and gas exploration and production company with operations in the United States, Canada, Argentina, South 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 Provisions of the Private Securities Litigation Reform Act 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, 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, acts of war or terrorism. 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 SHEET (in thousands) (Unaudited)
March 31, December 31, 2003 2002 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 6,858 $ 8,490 Accounts receivable 125,836 98,222 Inventories 10,951 10,648 Deferred income taxes 14,400 13,900 Other current assets 26,500 15,833 ---------- ---------- Total current assets 184,545 147,093 ---------- ---------- Property, plant and equipment, at cost: Oil and gas properties, using the successful efforts method of accounting 4,740,783 4,471,970 Accumulated depletion, depreciation and amortization (1,346,096) (1,303,541) ---------- ---------- 3,394,687 3,168,429 ---------- ---------- Deferred income taxes 76,449 76,840 Other assets, net 66,726 62,754 ---------- ---------- $ 3,722,407 $ 3,455,116 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 161,098 $ 124,774 Interest payable 37,980 37,458 Income taxes payable 1,452 - Other current liabilities 155,938 112,360 ---------- ---------- Total current liabilities 356,468 274,592 ---------- ---------- Long-term debt 1,767,650 1,668,536 Other noncurrent liabilities 174,445 128,331 Deferred income taxes 11,889 8,760 Stockholders' equity 1,411,955 1,374,897 ---------- ---------- $ 3,722,407 $ 3,455,116 ========== ==========
PIONEER NATURAL RESOURCES COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except for per share data) (Unaudited)
Three months ended March 31 ------------------------- 2003 2002 ---------- ---------- Revenues and other income: Oil and gas $ 281,156 $ 165,539 Interest and other 2,713 1,193 Gain (loss) on disposition of assets, net 1,426 (74) --------- --------- 285,295 166,658 --------- --------- Costs and expenses: Oil and gas production 64,024 51,018 Depletion, depreciation and amortization - oil and gas 67,735 48,237 Depletion, depreciation and amortization - other 2,314 2,151 Exploration and abandonments 35,867 21,120 General and administrative 15,481 11,918 Accretion of discount on asset retirement obligations 1,094 - Interest 22,491 26,317 Other 5,178 8,266 --------- --------- 214,184 169,027 --------- --------- Income (loss) before income taxes and cumulative effect of change in accounting principle 71,111 (2,369) Income tax (provision) benefit (2,304) 410 --------- --------- Income (loss) before cumulative effect of change in accounting principle 68,807 (1,959) Cumulative effect of change in accounting principle, net of tax 15,413 - --------- --------- Net income (loss) $ 84,220 $ (1,959) ========= ========= Net income (loss) per share: Basic: Income (loss) before cumulative effect of change in accounting principle $ .59 $ (.02) Cumulative effect of change in accounting principle, net of tax .13 - --------- --------- Net income (loss) $ .72 $ (.02) ========= ========= Diluted: Income (loss) before cumulative effect of change in accounting principle $ .58 $ (.02) Cumulative effect of change in accounting principle, net of tax .13 - --------- --------- Net income (loss) $ .71 $ (.02) ========= ========= Weighted average shares outstanding: Basic 116,743 104,055 ========= ========= Diluted 118,675 104,055 ========= =========
PIONEER NATURAL RESOURCES COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)
Three months ended March 31, ------------------------- 2003 2002 ---------- ---------- Cash flows from operations: Net income (loss) $ 84,220 $ (1,959) Depletion, depreciation and amortization 70,049 50,388 Exploration expenses, including dry holes 30,263 18,666 Deferred income taxes 254 (684) (Gain) loss on disposition of assets, net (1,426) 74 Accretion of discount on asset retirement obligations 1,094 - Interest related amortization (4,565) (992) Commodity hedge related amortization (17,782) 6,680 Cumulative effect of change in accounting principle, net of tax (15,413) - Other noncash items 4,733 6,304 Changes in operating assets and liabilities: Accounts receivable (25,967) (13,721) Inventories (360) 2,239 Other current assets (7,824) (7) Accounts payable 8,381 (14,456) Interest payable 522 (295) Income taxes payable 1,452 - Other current liabilities 9,158 (2,201) --------- --------- Net cash provided by operating activities 136,789 50,036 Net cash used in investing activities (239,481) (38,772) Net cash provided by (used in) financing activities 100,594 (8,065) --------- --------- Net increase (decrease) in cash and cash equivalents (2,098) 3,199 Effect of exchange rate changes on cash and cash equivalents 466 (776) Cash and cash equivalents, beginning of period 8,490 14,334 --------- --------- Cash and cash equivalents, end of period $ 6,858 $ 16,757 ========= =========
PIONEER NATURAL RESOURCES COMPANY SUMMARY PRODUCTION AND PRICE DATA
Three months ended March 31, ------------------------ 2003 2002 --------- ---------- Average Daily Production: Oil (Bbls) - U.S. 24,086 24,305 Argentina 7,673 10,126 Canada 135 110 --------- --------- Total 31,894 34,541 Natural gas liquids (Bbls) - U.S. 20,024 19,919 Argentina 1,130 642 Canada 879 978 --------- --------- Total 22,033 21,539 Gas (Mcf) - U.S. 339,598 215,837 Argentina 66,633 65,119 Canada 40,876 46,780 --------- --------- Total 447,107 327,736 Total Production: Oil (MBbls) 2,870 3,109 Natural gas liquids (MBbls) 1,983 1,939 Gas (MMcf) 40,240 29,496 Equivalent barrels (MBOE) 11,560 9,963 Average Price*: Oil (per Bbl) - U.S. $ 25.85 $ 24.27 Argentina $ 25.61 $ 20.61 Canada $ 31.81 $ 17.55 Average $ 25.82 $ 23.17 Natural gas liquids (per Bbl) - U.S. $ 21.63 $ 10.70 Argentina $ 24.27 $ 8.97 Canada $ 27.51 $ 12.41 Average $ 22.00 $ 10.73 Gas (per Mcf) - U.S. $ 4.72 $ 3.05 Argentina $ .54 $ .68 Canada $ 4.34 $ 2.27 Average $ 4.06 $ 2.47 - --------------- * Average prices include the effects of commodity hedges.
PIONEER NATURAL RESOURCES COMPANY SUPPLEMENTAL INFORMATION (in thousands) (Unaudited) EBITDA and discretionary cash flow (as defined below) are presented herein, and reconciled to the generally accepted accounting principle ("GAAP") measure of net cash provided by operating activities, 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. EBITDA and discretionary cash flow 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 GAAP. EBITDA and discretionary cash flow should also not be considered as indicators of the Company's financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.
Three months ended March 31, ------------------------- 2003 2002 ---------- ---------- Net income (loss) $ 84,220 $ (1,959) Depletion, depreciation and amortization 70,049 50,388 Exploration and abandonments 35,867 21,120 Accretion of discount on asset retirement obligations 1,094 - Interest expense 22,491 26,317 Income taxes 2,304 (410) (Gain) loss on disposition of assets, net (1,426) 74 Commodity hedge related amortization (17,782) 6,680 Cumulative effect of change in accounting principle, net of tax (15,413) - Other noncash items 4,733 6,304 --------- --------- EBITDA * 186,137 108,514 Less: Cash interest expense (27,056) (27,309) Current income taxes (2,050) (274) --------- --------- Discretionary cash flow ** 157,031 80,931 Less: Cash operating exploration expense (5,604) (2,454) Changes in operating assets and liabilities (14,638) (28,441) --------- --------- Net cash provided by operating activities $ 136,789 $ 50,036 ========= ========= - ------------- * "EBITDA" represents earnings before depletion, depreciation and amortization expense; impairment of oil and gas properties; exploration and abandonments; interest expense and accretion of discounts; income taxes; gain or loss on the disposition of assets; commodity hedge related amortization; cumulative effect of change in accounting principle; and, other noncash items. ** Discretionary cash flows equal cash flows from operations before working capital changes and before exploration and abandonments.
PIONEER NATURAL RESOURCES COMPANY SUPPLEMENTAL HEDGE INFORMATION As of April 23, 2003 Open Oil Hedge Positions ------------------------
2003 --------------------------- Second Third Fourth Quarter Quarter Quarter 2004 2005 ------- ------- ------- ------- ------- Daily oil production: Swap Contracts: Volume (Bbl) 21,659 18,043 14,000 9,000 5,000 NYMEX price $ 24.84 $ 24.43 $ 24.35 $ 22.96 $ 24.00
Open Gas Hedge Positions ------------------------
2003 ----------------------------- Second Third Fourth 2006 & Quarter Quarter Quarter 2004 2005 2007 -------- -------- -------- -------- -------- -------- Daily gas production: Swap Contracts: Volume (Mcf) 230,000 230,000 230,000 230,000 60,000 20,000 NYMEX price* (MMBtu) $ 3.85 $ 3.85 $ 3.85 $ 4.05 $ 4.20 $ 3.75 Collar Contracts: Volume (Mcf) - - - 45,000 - - NYMEX price* (MMBtu): Ceiling - - - $ 6.80 - - Floor - - - $ 4.00 - -
Deferred Gains (Losses) on Terminated Hedges (in thousands) -----------------------------------------------------------
2003 ------------------------------ Second Third Fourth Quarter Quarter Quarter 2004 2005 Thereafter -------- -------- -------- -------- -------- ---------- Commodity hedge gains** $ 18,167 $ 17,807 $ 17,136 $ 43,865 $ 1,249 $ - Debt hedge gains (losses)*** 5,540 4,700 4,131 11,113 4,196 (145) ------- ------- ------- ------- ------- ------ Total deferred gains (losses) $ 23,707 $ 22,507 $ 21,267 $ 54,978 $ 5,445 $ (145) ======= ======= ======= ======= ======= ======= - --------------- * Approximate, based on historical differentials to index prices. ** Deferred commodity hedge gains will be amortized as increases to oil and gas revenues during the indicated future periods. *** Deferred debt hedge gains will be amortized as decreases to interest expense during the indicated future periods and deferred debt hedge losses will be amortized as increases to interest expense during the indicated future periods.
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