Because the exchange ratio is fixed and because the market price of Pioneer common stock may fluctuate, our stockholders cannot be certain of the precise value of any merger consideration they may receive in the Pioneer Merger.
The Pioneer Merger may not be completed and the Pioneer Merger Agreement may be terminated in accordance with its terms.
Current stockholders of the Company will have a reduced ownership and voting interest in Pioneer after the Pioneer Merger compared to their current ownership in the Company on a standalone basis and will exercise less influence over management.
The Pioneer Merger Agreement limits our ability to pursue alternatives to the Pioneer Merger.
Failure to complete the Pioneer Merger could negatively impact the price of shares of our common stock, as well as our future businesses and financial results.
We will be subject to business uncertainties while the Pioneer Merger is pending, which could adversely affect our businesses.
The shares of Pioneer common stock to be received by our stockholders upon completion of the Pioneer Merger will have different rights from shares of our common stock.
Completion of the Pioneer Merger may trigger change in control or other provisions in certain agreements to which we are a party.
We will incur significant transaction and merger-related costs in connection with the Pioneer Merger, which may be in excess of those anticipated by us.
We may be a target of securities class action and derivative lawsuits which could result in substantial costs and may delay or prevent the Pioneer Merger from being completed.
The table below shows, for the periods indicated, our average realized oil price as a percentage of the average NYMEX oil price, our average realized natural gas price as a percentage of the average NYMEX gas price, and our average realized NGLs price as a percentage of the average NYMEX oil price. Management uses the realized price to NYMEX margin analysis to analyze trends in our oil, natural gas and NGLs revenues. Our realized oil, natural gas and NGLs prices are generally the actual prices that we realize at or near the wellhead, adjusted for quality, transportation fees and costs, differentials, marketing premiums or deductions and other factors that affect the price received at the wellhead. During the three and nine months ended September 30, 2020, the majority of our oil production was sold at NYMEX WTI and the majority of our natural gas production was sold at Waha Hub prices; however, during the nine months ended September 30, 2020, we entered into certain short-term, fixed price agreements accounting for approximately 64% of our oil production in May 2020 and approximately 76% of our oil production in June 2020.
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