-----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, AbHPB4ShU4JbF4gtj2ch8ES6aS5NhmgIe8z5eEbqHfCyN28bO1CuhnGz9+2uJq55 i/Dtb2kUOvebC5m5w8/FzA== 0001038357-05-000027.txt : 20050131 0001038357-05-000027.hdr.sgml : 20050131 20050131171241 ACCESSION NUMBER: 0001038357-05-000027 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050127 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050131 DATE AS OF CHANGE: 20050131 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: 05562733 BUSINESS ADDRESS: STREET 1: 900 WILLIAMS SQUARE WEST STREET 2: 5205 N OCONNOR BLVD CITY: IRVING STATE: TX ZIP: 75039 BUSINESS PHONE: 9724449001 MAIL ADDRESS: STREET 1: 900 WILLIAMS SQUARE WEST STREET 2: 5205 N OCONNOR BLVD CITY: IRVING STATE: TX ZIP: 75039 8-K 1 jan27res8k.txt PIONEER 1/27/05 FORM 8-K (RESERVES) 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): January 27, 2005 Pioneer Natural Resources Company ------------------------------------------------------ (Exact name of Registrant as specified in its charter) Delaware 1-13245 75-2702753 - ---------------------------- ----------- ------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 5205 N. O'Connor Blvd., Suite 900, Irving, Texas 75039 - ------------------------------------------------ ---------- (Address of principal executive offices) (Zip Code) (972) 444-9001 ---------------------------------------------------- (Registrant's telephone number, including area code) Not applicable ------------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) PIONEER NATURAL RESOURCES COMPANY TABLE OF CONTENTS Page Item 7.01. Regulation FD Disclosure.............................. 3 Item 9.01. Financial Statements and Exhibits (c) Exhibits........................................ 3 Signature......................................................... 4 Exhibit Index..................................................... 5 2 PIONEER NATURAL RESOURCES COMPANY Item 7.01. Regulation FD Disclosure On January 27, 2005, Pioneer Natural Resources Company (the "Company") issued a news release that is attached hereto as exhibit 99.1. In the news release, the Company (i) announced its proved reserves as of December 31, 2004, and related costs incurred for oil and gas producing activities ("Costs Incurred"), reserve additions, reserve replacement percentages and finding and development costs ("F&D Costs") statistics for the one-, three- and five-year periods then ended and (ii) provided a schedule of unaudited supplemental information for the year ended December 31, 2004, that is included herein as exhibit 99.2. Exhibit 99.2 provides unaudited supplemental information regarding the Company's proved reserves as of and for the year ended December 31, 2004, and the Company's Costs Incurred, reserve replacement percentage and F&D Costs for the year ended December 31, 2004. Exhibit 99.2 also provides definitions of reserve replacement percentage and F&D Costs as used by the Company in Exhibit 99.2. Item 9.01. Financial Statements and Exhibits (c) Exhibits 99.1 News Release dated January 27, 2005 99.2 Supplemental schedule attached to news release dated January 27, 2005 3 PIONEER NATURAL RESOURCES COMPANY S I G N A T U R E 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: January 29, 2005 By: /s/ Darin G. Holderness -------------------------------------------- Darin G. Holderness Vice President and Chief Accounting Officer 4 PIONEER NATURAL RESOURCES COMPANY EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1(a) News Release dated January 27, 2005 99.2(a) Supplemental schedule attached to news release dated January 27, 2005 - ------------- (a) filed herewith 5 EX-99 2 jan27res_8kx991.txt PIONEER 1/27/05 FORM 8-K (RESERVES) EXH. 99.1 EXHIBIT 99.1 NEWS RELEASE Investor Relations Contacts: Susan Spratlen or Chris Paulsen (972) 444-9001 Pioneer's Oil and Gas Reserves Rise 30% Dallas, Texas, January 27, 2005 -- Pioneer Natural Resources Company (NYSE:PXD) today announced that as of December 31, 2004, its total proved oil and gas reserves were 1.02 billion barrels oil equivalent, or 6.1 trillion cubic feet (Tcf) natural gas equivalent, including 409 million barrels of crude oil and natural gas liquids and 3.7 Tcf of natural gas. Proved developed reserves account for approximately 65% of total proved reserves. The estimated present value of Pioneer's proved reserves, utilizing a 10% discount rate, was $9.0 billion. The year-end NYMEX equivalent prices utilized to determine proved reserves were $43.33 per barrel of oil and $6.19 per thousand cubic feet of gas. Netherland, Sewell and Associates, Inc. (NSA), a top oil and gas reserve engineering firm, audited the proved reserves of significant fields that represent approximately 85% of the present value and approximately 88% of the quantity of Pioneer's proved reserves at year-end 2004. NSA also audited the proved reserves of Pioneer's significant fields at year- end 2003. Pioneer added 303 million barrels oil equivalent (MMBOE) of proved reserves during 2004, replacing 441% of production at a finding and development cost of $10.48 per barrel oil equivalent (BOE). Pioneer acquired 278 MMBOE of proved reserves, primarily in the Rockies through its merger with Evergreen Resources, Inc., and added 39 MMBOE of proved reserves from discoveries and field extensions in the U.S., Argentina, Tunisia and Canada. During 2004, Pioneer also produced 69 MMBOE, sold 1 MMBOE and had downward revisions to prior reserve estimates of 14 MMBOE. Costs incurred during 2004 totaled $3.2 billion, including $557 million for development and exploration activities, $2.6 billion for acquisitions and $15 million for asset retirement obligations. Of Pioneer's 2004 development and exploration cost incurred, 56% was invested in developing proved undeveloped reserves booked in prior years, and 15% was invested in non-drilling related categories including seismic and other geologic and geophysical activities. Year-end proved reserves and costs incurred are detailed in the attached supplemental schedule. For the three years ending in 2004, Pioneer's finding and development cost averaged $8.90 per BOE. Over the three-year period, Pioneer added 519 MMBOE for total costs incurred of $4.6 billion. Three-year average reserve replacement was 311%. For the five years ending in 2004, Pioneer's finding and development cost averaged $8.27 per BOE. Over the five-year period, Pioneer added 678 MMBOE for total costs incurred of $5.6 billion. Five-year average reserve replacement was 269%. Scott D. Sheffield, Chairman and CEO, stated, "I'm excited about the quality of the reserves we added to our portfolio in 2004 and the potential represented by the opportunities we've generated over the past year. We enter 2005 with an enhanced long-lived asset base in North America, additional opportunities for development drilling, several new fields with significant unrecorded reserve potential awaiting final commercialization decisions and an even stronger foundation for our exploration program. In past years, we've invested heavily in building a broad portfolio of exploration opportunities in each of our focus areas, including the Gulf of Mexico, Alaska, North Africa and West Africa. In 2005, we should begin to realize the benefit of these investments as we step up the level of drilling and test the potential of our more mature prospect inventory." Pioneer is a large independent oil and gas exploration and production company with operations in the United States, Argentina, Canada, Equatorial Guinea, South Africa and Tunisia. Pioneer's headquarters are in Dallas. For more information, visit Pioneer's website at www.pioneernrc.com. 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 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, international operations and associated international political and economic instability, 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. EX-99 3 jan27res_8kx992.txt PIONEER 1/27/05 FORM 8-K (RESERVES) EXH. 99.2 EXHIBIT 99.2 PIONEER NATURAL RESOURCES COMPANY UNAUDITED SUPPLEMENTAL INFORMATION Year Ended December 31, 2004
United States Argentina Canada Africa Total --------- --------- -------- -------- ---------- Proved reserves: Oil (MBbls): Balance, January 1, 2004 215,303 24,467 53 24,154 263,977 Revisions of previous estimates (1,504) (1,150) 1,728 (12,111) (13,037) Purchases of minerals-in-place 10,019 - 823 - 10,842 Discoveries and extensions 1,004 4,680 462 502 6,648 Production (9,749) (3,123) (50) (4,274) (17,196) Sales of minerals-in-place (11) - - - (11) --------- --------- -------- -------- ---------- Balance, December 31, 2004 215,062 24,874 3,016 8,271 251,223 Natural Gas Liquids (MBbls): Balance, January 1, 2004 147,448 9,002 2,354 - 158,804 Revisions of previous estimates 6,175 (1,890) (1,017) - 3,268 Purchases of minerals-in-place 1,784 - - - 1,784 Discoveries and extensions 13 1,748 79 - 1,840 Production (7,225) (566) (336) - (8,127) Sales of minerals-in-place - - - - - --------- --------- -------- -------- ---------- Balance, December 31, 2004 148,195 8,294 1,080 - 157,569 Natural Gas (MMcf): Balance, January 1, 2004 1,553,976 549,856 93,829 - 2,197,661 Revisions of previous estimates 25,764 (61,483) 8,570 - (27,149) Purchases of minerals-in-place 1,571,053 - 22,127 - 1,593,180 Discoveries and extensions 56,690 116,526 10,656 - 183,872 Production (200,598) (44,525) (15,323) - (260,446) Sales of minerals-in-place (6,550) - - - (6,550) --------- --------- -------- -------- ---------- Balance, December 31, 2004 3,000,335 560,374 119,859 - 3,680,568 Equivalent Barrels (MBOE): Balance, January 1, 2004 621,747 125,112 18,045 24,154 789,058 Revisions of previous estimates 8,965 (13,287) 2,140 (12,111) (14,293) Purchases of minerals-in-place 273,646 - 4,511 - 278,157 Discoveries and extensions 10,465 25,849 2,317 502 39,133 Production (50,407) (11,110) (2,940) (4,274) (68,731) Sales of minerals-in-place (1,103) - - - (1,103) --------- --------- -------- -------- ---------- Balance, December 31, 2004 863,313 126,564 24,073 8,271 1,022,221 ========= ========= ======== ======== ========== Costs incurred for oil and gas producing activities ($000): Property acquisition costs: Proved $2,213,879 $ - $ 46,988 $ - $ 2,260,867 Unproved 301,856 - 20,921 18,238 341,015 --------- --------- -------- -------- ---------- 2,515,735 - 67,909 18,238 2,601,882 Exploration costs 127,338 49,745 33,406 32,932 243,421 Development costs 229,636 49,937 13,036 21,178 313,787 --------- --------- -------- -------- ---------- 2,872,709 99,682 114,351 72,348 3,159,090 Asset retirement obligations 3,476 2,770 6,275 2,558 15,079 --------- --------- -------- -------- ---------- Total costs incurred $2,876,185 $ 102,452 $ 120,626 $ 74,906 $ 3,174,169 ========= ========= ======== ======== ========== Reserve replacement percentage (a) 581% 113% 305% - 441% ========= ========= ======== ======== ========== Finding and development costs per BOE of proved reserves added (b) $ 9.81 $ 8.16 $ 13.45 $ - $ 10.48 ========= ========= ======== ======== ========== - -------------- (a) The summation of annual proved reserves, on a BOE basis, attributable to revisions of previous estimates, purchases of minerals-in-place and discoveries and extensions divided by annual production of oil, NGLs and gas, on a BOE basis. (b) Total costs incurred divided by the summation of annual proved reserves, on a BOE basis, attributable to revisions of previous estimates, purchases of minerals-in-place and discoveries and extensions. Consistent with industry practice, future capital costs to develop proved undeveloped reserves are not included in costs incurred.
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