Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | |||||||||||||||||||
In Thousands | Dec. 31, 2009
| Dec. 31, 2008
| |||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $27,368 | $48,337 | [1] | ||||||||||||||||
Accounts receivable: | |||||||||||||||||||
Trade, net of allowance for doubtful accounts of $1,310 and $22,464 as of December 31, 2009 and 2008, respectively | 330,711 | 206,794 | [1] | ||||||||||||||||
Due from affiliates | 1,037 | 759 | [1] | ||||||||||||||||
Income taxes receivable | 25,022 | 60,573 | [1] | ||||||||||||||||
Inventories | 139,177 | 76,901 | [1] | ||||||||||||||||
Prepaid expenses | 9,011 | 12,464 | [1] | ||||||||||||||||
Deferred income taxes | 26,857 | 6,510 | [1] | ||||||||||||||||
Other current assets: | |||||||||||||||||||
Derivatives | 48,713 | 59,622 | [1] | ||||||||||||||||
Other, net of allowance for doubtful accounts of $5,689 and $5,491 as of December 31, 2009 and 2008, respectively | 8,222 | 14,951 | [1] | ||||||||||||||||
Total current assets | 616,118 | 486,911 | [1] | ||||||||||||||||
Oil and gas properties, using the successful efforts method of accounting: | |||||||||||||||||||
Proved properties | 10,276,244 | 10,167,220 | [1] | ||||||||||||||||
Unproved properties | 236,660 | 204,183 | [1] | ||||||||||||||||
Accumulated depletion, depreciation and amortization | (2,946,048) | (2,511,401) | [1] | ||||||||||||||||
Total property, plant and equipment | 7,566,856 | 7,860,002 | [1] | ||||||||||||||||
Deferred income taxes | 387 | 553 | [1] | ||||||||||||||||
Goodwill | 309,259 | 310,563 | [1] | ||||||||||||||||
Other property and equipment, net | 154,830 | 161,266 | [1] | ||||||||||||||||
Other assets: | |||||||||||||||||||
Derivatives | 43,631 | 72,594 | [1] | ||||||||||||||||
Other, net of allowance for doubtful accounts of $7,300 and $4,410 as of December 31, 2009 and 2008, respectively | 176,184 | 269,896 | [1] | ||||||||||||||||
Assets, Total | 8,867,265 | 9,161,785 | [1] | ||||||||||||||||
Accounts payable: | |||||||||||||||||||
Trade | 221,359 | 322,688 | [1] | ||||||||||||||||
Due to affiliates | 32,224 | 34,284 | [1] | ||||||||||||||||
Interest payable | 47,009 | 43,247 | [1] | ||||||||||||||||
Income taxes payable | 17,411 | 3,618 | [1] | ||||||||||||||||
Deferred income taxes | 128 | 0 | [1] | ||||||||||||||||
Other current liabilities: | |||||||||||||||||||
Derivatives | 116,015 | 49,561 | [1] | ||||||||||||||||
Deferred revenue | 90,215 | 147,905 | [1] | ||||||||||||||||
Other | 46,830 | 93,694 | [1] | ||||||||||||||||
Total current liabilities | 571,191 | 694,997 | [1] | ||||||||||||||||
Long-term debt | 2,761,011 | 2,899,241 | [1] | ||||||||||||||||
Derivatives | 133,645 | 20,584 | [1] | ||||||||||||||||
Deferred income taxes | 1,470,899 | 1,502,705 | [1] | ||||||||||||||||
Deferred revenue | 87,021 | 177,236 | [1] | ||||||||||||||||
Other liabilities | 200,467 | 187,409 | [1] | ||||||||||||||||
Stockholders' equity: | |||||||||||||||||||
Common stock, $.01 par value; 500,000,000 shares authorized; 125,203,502 and 124,566,963 shares issued at December 31, 2009 and 2008, respectively | 1,252 | 1,246 | [1] | ||||||||||||||||
Additional paid-in capital | 2,981,450 | 2,909,735 | [1] | ||||||||||||||||
Treasury stock, at cost: 10,828,171 and 10,020,502 shares at December 31, 2009 and 2008, respectively | (415,211) | (411,659) | [1] | ||||||||||||||||
Retained earnings | 917,688 | 988,786 | [1] | ||||||||||||||||
Accumulated other comprehensive income - deferred hedge gains, net of tax | 51,009 | 88,788 | [1] | ||||||||||||||||
Total stockholders' equity attributable to common stockholders | 3,536,188 | 3,576,896 | [1] | ||||||||||||||||
Noncontrolling interest in consolidating subsidiaries | 106,843 | 102,717 | [1] | ||||||||||||||||
Total stockholders' equity | 3,643,031 | 3,679,613 | [1] | ||||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Liabilities and Stockholders' Equity, Total | $8,867,265 | $9,161,785 | [1] | ||||||||||||||||
[1]Retrospectively adjusted as described in Note B. |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | |||||||||||||||||||
In Thousands, except Share data | Dec. 31, 2009
| Dec. 31, 2008
| |||||||||||||||||
Trade, allowance for doubtful accounts | $1,310 | $22,464 | [1] | ||||||||||||||||
Other, allowance for doubtful accounts | 5,689 | 5,491 | [1] | ||||||||||||||||
Other, allowance for doubtful accounts | $7,300 | $4,410 | [1] | ||||||||||||||||
Common stock, par value | 0.01 | 0.01 | [1] | ||||||||||||||||
Common stock, shares authorized | 500,000,000 | 500,000,000 | [1] | ||||||||||||||||
Common stock, shares issued | 125,203,502 | 124,566,963 | [1] | ||||||||||||||||
Treasury stock, shares | 10,828,171 | 10,020,502 | [1] | ||||||||||||||||
[1]Retrospectively adjusted as described in Note B. |
Statement Of Income Alternative
Statement Of Income Alternative (USD $) | |||||||||||||||||||
In Thousands, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 | ||||||||||||||||
Revenues and other income: | |||||||||||||||||||
Oil and gas | $1,609,984 | $2,227,581 | [1] | $1,695,298 | [1] | ||||||||||||||
Interest and other | 102,306 | 57,641 | [1] | 91,883 | [1] | ||||||||||||||
Loss on disposition of assets, net | (774) | (381) | [1] | (2,163) | [1] | ||||||||||||||
Total revenues and other income, Total | 1,711,516 | 2,284,841 | [1] | 1,785,018 | [1] | ||||||||||||||
Costs and expenses: | |||||||||||||||||||
Oil and gas production | 380,326 | 422,571 | [1] | 296,988 | [1] | ||||||||||||||
Production and ad valorem taxes | 98,371 | 164,417 | [1] | 112,893 | [1] | ||||||||||||||
Depletion, depreciation and amortization | 651,560 | 489,716 | [1] | 373,344 | [1] | ||||||||||||||
Impairment of oil and gas properties | 21,091 | 89,753 | [1] | 26,215 | [1] | ||||||||||||||
Exploration and abandonments | 98,046 | 227,500 | [1] | 278,657 | [1] | ||||||||||||||
General and administrative | 140,323 | 141,922 | [1] | 129,735 | [1] | ||||||||||||||
Accretion of discount on asset retirement obligations | 11,012 | 7,903 | [1] | 6,115 | [1] | ||||||||||||||
Interest | 173,361 | 166,785 | [1] | 135,270 | [1] | ||||||||||||||
Hurricane activity, net | 17,313 | 12,150 | [1] | 61,309 | [1] | ||||||||||||||
Derivative losses, net | 195,557 | 10,148 | [1] | 2,135 | [1] | ||||||||||||||
Other | 105,011 | 115,973 | [1] | 27,291 | [1] | ||||||||||||||
Costs and Expenses, Total | 1,891,971 | 1,848,838 | [1] | 1,449,952 | [1] | ||||||||||||||
Income (loss) from continuing operations before income taxes | (180,455) | 436,003 | [1] | 335,066 | [1] | ||||||||||||||
Income tax benefit (provision) | 48,108 | (201,091) | [1] | (105,923) | [1] | ||||||||||||||
Income (loss) from continuing operations | (132,347) | 234,912 | [1] | 229,143 | [1] | ||||||||||||||
Income (loss) from discontinued operations, net of tax | 90,080 | (3,257) | [1] | 143,233 | [1] | ||||||||||||||
Net income (loss) | (42,267) | 231,655 | [1] | 372,376 | [1] | ||||||||||||||
Net (income) loss attributable to noncontrolling interests | (9,839) | (21,635) | [1] | 352 | [1] | ||||||||||||||
Net income (loss) | (52,106) | 210,020 | [1] | 372,728 | [1] | ||||||||||||||
Basic earnings per share: | |||||||||||||||||||
Income (loss) from continuing operations attributable to common stockholders | -1.25 | 1.79 | [1] | 1.86 | [1] | ||||||||||||||
Income (loss) from discontinued operations attributable to common stockholders | 0.79 | -0.03 | [1] | 1.19 | [1] | ||||||||||||||
Net income (loss) attributable to common stockholders | -0.46 | 1.76 | [1] | 3.05 | [1] | ||||||||||||||
Diluted earnings per share: | |||||||||||||||||||
Income (loss) from continuing operations attributable to common stockholders | -1.25 | 1.79 | [1] | 1.85 | [1] | ||||||||||||||
Income (loss) from discontinued operations attributable to common stockholders | 0.79 | -0.03 | [1] | 1.19 | [1] | ||||||||||||||
Net income (loss) attributable to common stockholders | -0.46 | 1.76 | [1] | 3.04 | [1] | ||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 114,176 | 117,462 | [1] | 120,158 | [1] | ||||||||||||||
Diluted | 114,176 | 117,947 | [1] | 120,614 | [1] | ||||||||||||||
Amounts attributable to common stockholders: | |||||||||||||||||||
Income (loss) from continuing operations | (142,186) | 213,277 | [1] | 229,495 | [1] | ||||||||||||||
Discontinued operations, net of tax | 90,080 | (3,257) | [1] | 143,233 | [1] | ||||||||||||||
Net income (loss) | ($52,106) | $210,020 | [1] | $372,728 | [1] | ||||||||||||||
[1]Retrospectively adjusted as described in Note B. |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | |||||||||||||||||||
In Thousands | Common Stock
| Additional Paid-in Capital
| Treasury Stock
| Retained Earnings
| Accumulated Other Comprehensive Income (Loss) Net Deferred Hedge Gains (Losses), Net of Tax
| Accumulated Other Comprehensive Income (Loss) Cumulative Translation Adjustment
| Noncontrolling Interest
| Accumulated Other Comprehensive Income
| Total
| ||||||||||
Beginning Balance at Dec. 31, 2006 | $1,227 | [1] | $2,654,047 | [1] | ($53,274) | [1] | $497,488 | [1] | ($167,220) | [1] | $52,403 | [1] | $14,376 | [1] | $2,999,047 | [1] | |||
Beginning Balance (in shares) at Dec. 31, 2006 | 121,503 | [1] | |||||||||||||||||
Dividends declared ($0.08 in 2009, $0.30 in 2008 and $0.27 in 2007 per share) | (32,921) | (32,921) | |||||||||||||||||
Exercise of long-term incentive plan stock options and employee stock purchases (in shares) | 671 | ||||||||||||||||||
Exercise of long-term incentive plan stock options and employee stock purchases | 29,097 | (15,206) | 13,891 | ||||||||||||||||
Purchase of treasury stock (in shares) | (5,150) | ||||||||||||||||||
Purchase of treasury stock | (221,424) | (221,424) | |||||||||||||||||
Tax benefits related to stock-based compensation | 3,908 | 3,908 | |||||||||||||||||
Compensation costs: | |||||||||||||||||||
Vested compensation awards, net (in shares) | 703 | ||||||||||||||||||
Vested compensation awards, net | 7 | (7) | 0 | ||||||||||||||||
Compensation costs included in net income | 35,309 | 35,309 | |||||||||||||||||
Cash contributions of noncontrolling interest partners | 2,932 | 2,932 | |||||||||||||||||
Cash distributions to noncontrolling interest partners | (907) | (907) | |||||||||||||||||
Impairment of Nigerian subsidiary | (4,107) | (4,107) | |||||||||||||||||
Net income (loss) | 372,728 | (352) | 372,376 | [1] | |||||||||||||||
Deferred hedging activity, net of tax: | |||||||||||||||||||
Hedge fair value (losses) gains, net | (94,330) | (94,330) | |||||||||||||||||
Net hedge gains (losses) included in continuing operations | 52,686 | 52,686 | |||||||||||||||||
Net hedge gains included in discontinued operations | (19,393) | (19,393) | |||||||||||||||||
Translation adjustment: | |||||||||||||||||||
Deferred translation adjustment gain | 77,744 | 77,744 | [1] | ||||||||||||||||
Net gain included in discontinued operations | (130,147) | (130,147) | [1] | ||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2007 | 117,727 | ||||||||||||||||||
Ending Balance at Dec. 31, 2007 | 1,234 | 2,693,257 | (245,601) | 822,089 | (228,257) | 0 | 11,942 | 3,054,664 | |||||||||||
Dividends declared ($0.08 in 2009, $0.30 in 2008 and $0.27 in 2007 per share) | (35,952) | (35,952) | |||||||||||||||||
Exercise of long-term incentive plan stock options and employee stock purchases (in shares) | 355 | ||||||||||||||||||
Exercise of long-term incentive plan stock options and employee stock purchases | 15,439 | (7,371) | 8,068 | ||||||||||||||||
Purchase of treasury stock (in shares) | (4,714) | ||||||||||||||||||
Purchase of treasury stock | (181,497) | (240) | (181,737) | ||||||||||||||||
Tax benefits related to stock-based compensation | 367 | 367 | |||||||||||||||||
Compensation costs: | |||||||||||||||||||
Vested compensation awards, net (in shares) | 1,178 | ||||||||||||||||||
Vested compensation awards, net | 12 | (12) | 0 | ||||||||||||||||
Compensation costs included in net income | 33,970 | 107 | 34,077 | ||||||||||||||||
Issuance of 2.875% senior convertible notes | 49,527 | 49,527 | |||||||||||||||||
Issuance of Pioneer Southwest common units | 132,626 | 33,171 | 165,797 | ||||||||||||||||
Cash distributions to noncontrolling interest partners | (8,635) | (8,635) | |||||||||||||||||
Net income (loss) | 210,020 | 21,635 | 231,655 | [1] | |||||||||||||||
Deferred hedging activity, net of tax: | |||||||||||||||||||
Hedge fair value (losses) gains, net | 89,152 | 49,361 | 138,513 | ||||||||||||||||
Net hedge gains (losses) included in continuing operations | 227,893 | (4,624) | 223,269 | ||||||||||||||||
Translation adjustment: | |||||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2008 | 114,546 | ||||||||||||||||||
Ending Balance at Dec. 31, 2008 | 1,246 | 2,909,735 | (411,659) | 988,786 | 88,788 | 0 | 102,717 | 88,788 | 3,679,613 | [1] | |||||||||
Dividends declared ($0.08 in 2009, $0.30 in 2008 and $0.27 in 2007 per share) | (9,388) | (9,388) | |||||||||||||||||
Exercise of long-term incentive plan stock options and employee stock purchases (in shares) | 468 | ||||||||||||||||||
Exercise of long-term incentive plan stock options and employee stock purchases | 18,110 | (9,604) | 8,506 | ||||||||||||||||
Purchase of treasury stock (in shares) | (1,276) | ||||||||||||||||||
Purchase of treasury stock | (21,662) | (259) | (21,921) | ||||||||||||||||
Tax benefits related to stock-based compensation | 1 | 1 | |||||||||||||||||
Compensation costs: | |||||||||||||||||||
Vested compensation awards, net (in shares) | 637 | ||||||||||||||||||
Vested compensation awards, net | 6 | (6) | 0 | ||||||||||||||||
Compensation costs included in net income | 38,332 | 232 | 38,564 | ||||||||||||||||
Issuance of Pioneer Southwest common units | 33,388 | 33,439 | (5,844) | 60,983 | |||||||||||||||
Cash contributions of noncontrolling interest partners | 150 | 150 | |||||||||||||||||
Cash distributions to noncontrolling interest partners | (20,012) | (20,012) | |||||||||||||||||
Net income (loss) | (52,106) | 9,839 | (42,267) | ||||||||||||||||
Deferred hedging activity, net of tax: | |||||||||||||||||||
Hedge fair value (losses) gains, net | 3,692 | 10,477 | 14,169 | ||||||||||||||||
Net hedge gains (losses) included in continuing operations | (22,955) | (42,412) | (65,367) | ||||||||||||||||
Translation adjustment: | |||||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2009 | 114,375 | ||||||||||||||||||
Ending Balance at Dec. 31, 2009 | $1,252 | $2,981,450 | ($415,211) | $917,688 | $106,843 | $51,009 | $3,643,031 | ||||||||||||
[1]Retrospectively adjusted as described in Note B. |
2_Statement Of Shareholders Equ
Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $) | |||
12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 | |
Dividends declared, per share | 0.08 | 0.3 | 0.27 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | |||||||||||||||||||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income (loss) | ($42,267) | $231,655 | [1] | $372,376 | [1] | ||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||
Depletion, depreciation and amortization | 651,560 | 489,716 | [1] | 373,344 | [1] | ||||||||||||||
Impairment of oil and gas properties | 21,091 | 89,753 | [1] | 26,215 | [1] | ||||||||||||||
Exploration expenses, including dry holes | 47,241 | 130,140 | [1] | 172,028 | [1] | ||||||||||||||
Hurricane activity, net | 19,850 | 9,000 | [1] | 66,000 | [1] | ||||||||||||||
Deferred income taxes | (55,712) | 152,400 | [1] | 117,097 | [1] | ||||||||||||||
Loss on disposition of assets, net | 774 | 381 | [1] | 2,163 | [1] | ||||||||||||||
Gain on extinguishment of debt | 0 | (20,515) | [1] | 0 | [1] | ||||||||||||||
Accretion of discount on asset retirement obligations | 11,012 | 7,903 | [1] | 6,115 | [1] | ||||||||||||||
Discontinued operations | (82,999) | 37,454 | [1] | (55,012) | [1] | ||||||||||||||
Interest expense | 27,996 | 28,492 | [1] | 17,049 | [1] | ||||||||||||||
Derivative related activity | 75,633 | 45,166 | [1] | 12,084 | [1] | ||||||||||||||
Amortization of stock-based compensation | 37,638 | 34,077 | [1] | 35,309 | [1] | ||||||||||||||
Amortization of deferred revenue | (147,905) | (158,139) | [1] | (181,231) | [1] | ||||||||||||||
Other noncash items | 35,439 | 60,768 | [1] | 3,182 | [1] | ||||||||||||||
Change in operating assets and liabilities | |||||||||||||||||||
Accounts receivable, net | 16,293 | 45,446 | [1] | (96,691) | [1] | ||||||||||||||
Income taxes receivable | 36,030 | (20,528) | [1] | (15,378) | [1] | ||||||||||||||
Inventories | (46,708) | (82,403) | [1] | (10,901) | [1] | ||||||||||||||
Prepaid expenses | (3,387) | (3,405) | [1] | 656 | [1] | ||||||||||||||
Other current assets | 87,642 | (11,745) | [1] | (2,946) | [1] | ||||||||||||||
Accounts payable | (65,862) | 65,644 | [1] | 30,122 | [1] | ||||||||||||||
Interest payable | 3,762 | 1,227 | [1] | 11,012 | [1] | ||||||||||||||
Income taxes payable | 13,793 | (9,225) | [1] | (23) | [1] | ||||||||||||||
Other current liabilities | (97,855) | (89,399) | [1] | (109,280) | [1] | ||||||||||||||
Net cash provided by operating activities | 543,059 | 1,033,863 | [1] | 773,290 | [1] | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Proceeds from disposition of assets, net of cash sold | 51,600 | 292,920 | [1] | 420,874 | [1] | ||||||||||||||
Additions to oil and gas properties | (437,240) | (1,403,272) | [1] | (2,067,648) | [1] | ||||||||||||||
Additions to other assets and other property and equipment, net | (25,345) | (41,058) | [1] | (136,218) | [1] | ||||||||||||||
Net cash used in investing activities | (410,985) | (1,151,410) | [1] | (1,782,992) | [1] | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Borrowings under long-term debt | 1,015,842 | 1,032,998 | [1] | 2,030,000 | [1] | ||||||||||||||
Principal payments on long-term debt | (1,175,703) | (807,239) | [1] | (778,630) | [1] | ||||||||||||||
Contributions from (distributions to) noncontrolling interest partners | (19,862) | (8,635) | [1] | 2,025 | [1] | ||||||||||||||
Proceeds from issuance of partnership common units, net of issuance costs | 60,983 | 165,978 | [1] | 0 | [1] | ||||||||||||||
Borrowings (payments) of other liabilities | 486 | (7,793) | [1] | 768 | [1] | ||||||||||||||
Exercise of long-term incentive plan stock options | 8,506 | 8,068 | [1] | 13,891 | [1] | ||||||||||||||
Purchase of treasury stock | (21,921) | (181,737) | [1] | (221,424) | [1] | ||||||||||||||
Excess tax benefits from share-based payment arrangements | 1 | 367 | [1] | 3,828 | [1] | ||||||||||||||
Payment of financing fees | (12,005) | (12,377) | [1] | (4,310) | [1] | ||||||||||||||
Dividends paid | (9,370) | (35,917) | [1] | (32,804) | [1] | ||||||||||||||
Net cash provided by (used in) financing activities | (153,043) | 153,713 | [1] | 1,013,344 | [1] | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (20,969) | 36,166 | [1] | 3,642 | [1] | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | [1] | 1,496 | [1] | ||||||||||||||
Cash and cash equivalents, beginning of period | 48,337 | [1] | 12,171 | [1] | 7,033 | [1] | |||||||||||||
Cash and cash equivalents, end of period | $27,368 | $48,337 | [1] | $12,171 | [1] | ||||||||||||||
[1]Retrospectively adjusted as described in Note B. |
Statement Of Other Comprehensiv
Statement Of Other Comprehensive Income (USD $) | |||||||||||||||||||
In Thousands | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 | ||||||||||||||||
Net income (loss) | ($42,267) | $231,655 | [1] | $372,376 | [1] | ||||||||||||||
Hedge activity: | |||||||||||||||||||
Hedge fair value changes, net | 12,974 | 218,202 | [1] | (151,625) | [1] | ||||||||||||||
Net hedge (gains) losses included in continuing operations | (114,231) | 356,731 | [1] | 83,447 | [1] | ||||||||||||||
Net hedge (gains) losses included in discontinued operations | 0 | 0 | [1] | (28,125) | [1] | ||||||||||||||
Income tax provision (benefit) | 50,059 | (213,151) | [1] | 35,266 | [1] | ||||||||||||||
Translation adjustment: | |||||||||||||||||||
Deferred translation adjustment gain (loss) | 0 | 0 | [1] | 77,744 | [1] | ||||||||||||||
Net gain included in discontinued operations | 0 | 0 | [1] | (130,147) | [1] | ||||||||||||||
Other comprehensive income (loss) | (51,198) | 361,782 | [1] | (113,440) | [1] | ||||||||||||||
Comprehensive income (loss) | (93,465) | 593,437 | [1] | 258,936 | [1] | ||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interest | 9,424 | (66,372) | [1] | 352 | [1] | ||||||||||||||
Comprehensive income (loss) attributable to common stockholders | ($84,041) | $527,065 | [1] | $259,288 | [1] | ||||||||||||||
[1]Retrospectively adjusted as described in Note B. |
Organization and Nature of Oper
Organization and Nature of Operations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Organization and Nature of Operations | NOTE A.Organization and Nature of Operations Pioneer is a Delaware corporation whose common stock is listed and traded on the New York Stock Exchange. The Company is a large independent oil and gas exploration and production company with continuing operations in the United States, South Africa and Tunisia. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Summary of Significant Accounting Policies | NOTE B.Summary of Significant Accounting Policies Principles of consolidation. The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries since their acquisition or formation. The Companys consolidated financial statements also include the accounts of PNR Holdings LLC as of and for the year ended December31, 2007, which represented a variable interest entity (VIE) in which Pioneer held a variable interest that would absorb a majority of the entitys expected losses, receive a majority of the entitys expected residual returns, or both (see Oil and gas properties below for additional information regarding PNR Holdings LLC). In accordance with generally accepted accounting principles in the United States (GAAP), the Company proportionately consolidates less than 100 percent-owned affiliate partnerships that are involved in oil and gas producing activities, for which certain of its wholly-owned subsidiaries serve as general partners. The Company owns less than a 31 percent interest in the oil and gas partnerships that it proportionately consolidates. All material intercompany balances and transactions have been eliminated. Discontinued operations. During 2009 and 2007, the Company sold its interests in the following oil and gas asset groups: Country Description of Asset Groups Date Divested Canada Canadian assets November2007 United States Mississippi assets June 2009 United States Gulf of Mexico shelf assets August 2009 In accordance with GAAP, the Company has reflected the results of operations of the above divestitures as discontinued operations, rather than as a component of continuing operations. See Note V for additional information regarding discontinued operations. Use of estimates in the preparation of financial statements. Preparation of the accompanying consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Depletion of oil and gas properties and impairment of goodwill and proved and unproved oil and gas properties, in part, is determined using estimates of proved and probable oil and gas reserves. There are numerous uncertainties inherent in the estimation of quantities of proved and probable reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves; commodity price outlooks; foreign laws, restrictions and currency exchange rates; and export and excise taxes. Actual results could differ from the estimates and assumptions utilized. Cash equivalents. Cash and cash equivalents include cash on hand and depository accounts held by banks. Accounts and notes receivable. As of December3 |
Proved Property Acquisitions
Proved Property Acquisitions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Proved Property Acquisitions | NOTE C.Proved Property Acquisitions During the years ended December31, 2009, 2008 and 2007, the Company expended $8.8 million, $87.5 million and $331.6 million, respectively, to acquire working interests in proved oil and gas properties. During 2009, 2008 and 2007, the Companys proved oil and gas property acquisitions were principally in the United States. During 2009, the Companys proved acquisitions were in the West Texas Permian Basin area. During 2008, the Companys proved acquisitions primarily comprised property interests in the South Texas Edwards Trend, the West Texas Permian Basin and the Barnett Shale play in North Texas. During 2007, the Companys proved acquisitions primarily comprised property interests in the West Texas Permian Basin, the Colorado Raton Basin, the Barnett Shale play in North Texas and onshore Gulf Coast. |
Exploratory Well Costs
Exploratory Well Costs | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Exploratory Well Costs | NOTE D.Exploratory Well Costs The Company capitalizes exploratory well costs until a determination is made that the well has either found proved reserves or that it is impaired. The capitalized exploratory well costs are presented in proved properties in the consolidated balance sheets. If the exploratory well is determined to be impaired, the well costs are charged to exploration and abandonments expense. The following table reflects the Companys capitalized exploratory well activity during each of the years ended December31, 2009, 2008 and 2007: YearEndedDecember31, 2009 2008 2007 (in thousands) Beginning capitalized exploratory well costs $ 124,014 $ 130,630 $ 265,053 Additions to exploratory well costs pending the determination of proved reserves 80,222 403,692 434,321 Reclassification due to determination of proved reserves (58,792 ) (321,436 ) (388,630 ) Disposition of wells sold (20,369 ) Exploratory well costs charged to exploration expense (a) (17,870 ) (88,872 ) (159,745 ) Ending capitalized exploratory well costs $ 127,574 $ 124,014 $ 130,630 (a) Includes exploratory well costs of discontinued operations of $4.4 million in 2007. The following table provides an aging, as of December31, 2009, 2008 and 2007 of capitalized exploratory well costs and the number of projects for which exploratory well costs have been capitalized for a period greater than one year, based on the date drilling was completed: Year Ended December31, 2009 2008 2007 (in thousands, except well counts) Capitalized exploratory well costs that have been suspended: One year or less $ 21,634 $ 54,423 $ 76,237 More than one year 105,940 69,591 54,393 $ 127,574 $ 124,014 $ 130,630 Number of projects with exploratory well costs that have been suspended for a period greater than one year 8 4 8 The following table provides an aging of capitalized costs of exploration projects that have been suspended for more than one year as of December31, 2009: Total 2009 2008 2007 2006 (in thousands) United States: Cosmopolitan Unit $ 66,914 $ 8,253 $ 6,344 $ 51,488 $ 829 Other 5,624 797 4,827 Tunisia 33,402 466 29,006 (15 ) 3,945 Total $ 105,940 $ 9,516 $ 40,177 $ 51,473 $ 4,774 Cosmopolitan Unit. The Company owns a 100 percent working interest in, and is the operator of, the Cosmopolitan Unit in the Cook Inlet of Alaska. During 2007, the Company drilled the Hansen #1A L1 well, a lateral sidetrack from an existing wellbore, to appraise the resource potential of the unit. The initial unstimulated production test results were encouraging. As a result, the Company be |
Disclosures About Fair Value Me
Disclosures About Fair Value Measurements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Disclosures About Fair Value Measurements | NOTE E.Disclosures About Fair Value Measurements In accordance with GAAP, fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are classified into two categories: observable inputs and unobservable inputs. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect a companys own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. These two types of inputs are further prioritized into the following fair value input hierarchy: Level 1 quoted prices for identical assets or liabilities in active markets. Level 2 quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g. interest rates); and inputs derived principally from or corroborated by observable market data by correlation or other means. Level 3 unobservable inputs for the asset or liability. The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement in its entirety. The following tables present the Companys assets and liabilities that are measured at fair value on a recurring basis as of December31, 2009 and 2008 for each of the fair value hierarchy levels: FairValueMeasurementsatReportingDateUsing QuotedPricesin ActiveMarketsfor Identical Assets (Level 1) SignificantOther Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at December31, 2009 (in thousands) Assets: Trading securities $ 251 $ 84 $ $ 335 Commodity derivatives 82,678 1,402 84,080 Interest rate derivatives 8,264 8,264 Deferred compensation plan assets 27,890 27,890 Notes receivable 4,727 4,727 Total assets $ 28,141 $ 91,026 $ 6,129 $ 125,296 Liabilities: Commodity derivatives $ $ 209,249 $ 14,306 $ 223,555 Interest rate derivatives 26,105 26,105 Pioneer credit facility 259,461 259,461 Pioneer Southwest credit facility 68,495 68,495 5.875% senior notes due 2012 6,154 6,154 5.875% senior notes due 2016 437,170 437,170 6.65% senior notes due 2017 472,546 472,546 6.875% senior notes due 2018 438,402 438,402 7.50% senior notes due 2020 449,566 449,566 7.20% senior notes due 2028 230,868 230,868 2.875% senior convertible notes due 2038 (a) 508,320 508,320 Total liabilities $ 2,543,026 $ 563,310 $ 14,306 $ 3,120,642 ( |
Long-term Debt
Long-term Debt | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Long-term Debt | NOTE F.Long-term Debt Long-term debt, including the effects of net deferred fair value hedge losses and issuance discounts and premiums, consisted of the following components at December31, 2009 and 2008: December31, 2009 2008 (in thousands) Outstanding debt principal balances: Pioneer credit facility $ 240,000 $ 913,000 Pioneer Southwest credit facility 67,000 5.875% senior notes due 2012 6,110 6,110 5.875% senior notes due 2016 455,385 455,385 6.65% senior notes due 2017 485,100 485,100 6.875% senior notes due 2018 449,500 449,500 7.500% senior notes due 2020 450,000 7.20% senior notes due 2028 250,000 250,000 2.875% senior notes due 2038 480,000 480,000 2,883,095 3,039,095 Issuance discounts and premiums, net (119,819 ) (137,346 ) Net deferred fair value hedge losses (2,265 ) (2,508 ) Total long-term debt $ 2,761,011 $ 2,899,241 Credit Facility. During April 2007, the Company entered into an Amended and Restated 5-Year Revolving Credit Agreement (the Credit Facility) with a syndicate of financial institutions that matures in April 2012, unless extended in accordance with the terms of the Credit Facility. The Credit Facility provides for aggregate loan commitments of $1.5 billion. As of December31, 2009, the Company had $240 million of outstanding borrowings under the Credit Facility and $46.2 million of undrawn letters of credit, all of which were commitments under the Credit Facility, leaving the Company with $1.2 billion of unused borrowing capacity under the Credit Facility. Effective April29, 2009, the Company and the lenders amended the Credit Facility to provide the Company additional financial flexibility. The Credit Facility contains certain financial covenants, one of which required the Company to maintain a ratio of the net present value of the Companys oil and gas properties to total debt of at least 1.75 to 1.0 until the Company achieves an investment grade rating by Moodys Investors Service, Inc. or Standard Poors Ratings Group, Inc. The amendment changed the ratio maintenance requirement to 1.5 to 1.0 through the period ending March31, 2011, after which time the ratio reverts to 1.75 to 1.0, and further provides that the Company may include in the calculation of the present value of its oil and gas properties 75 percent of the market value of its ownership of limited partner units of Pioneer Southwest. The covenant requiring the Company to maintain a ratio of total debt to total capitalization of no more than 0.60 to 1.0 was not changed. The variables on which the calculation of net present value is based (including assumed commodity prices and discount rates) are subject to adjustment by the lenders and, therefore, the amount that the Company may borrow under the Credit Facility in the future could be reduced as a result of lower oil, NGL or gas prices, among other items. The lenders may declare any outstanding obligations under the Cr |
Related Party Transactions
Related Party Transactions | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Related Party Transactions | NOTE G.Related Party Transactions The Company, through a wholly-owned subsidiary, serves as operator of properties in which it and its affiliated partnerships have an interest. Accordingly, the Company receives producing well overhead and other fees related to the operation of the properties. The affiliated partnerships also reimburse the Company for their allocated share of general and administrative charges. Reimbursements of fees are recorded as reductions to general and administrative expenses in the Companys consolidated statements of operations. The activities with affiliated partnerships are summarized for the following related party transactions for the years ended December31, 2009, 2008 and 2007: Year Ended December31, 2009 2008 2007 (in thousands) Receipt of lease operating and supervision charges in accordance with standard industry operating agreements $ 2,224 $ 2,064 $ 1,835 Reimbursement of general and administrative expenses $ 265 $ 415 $ 364 |
Incentive Plans
Incentive Plans | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Incentive Plans | NOTE H.Incentive Plans Retirement Plans Deferred compensation retirement plan. In August 1997, the Compensation Committee of the Board of Directors (the Board) approved a deferred compensation retirement plan for the officers and certain key employees of the Company. Each officer and key employee is allowed to contribute up to 25 percent of their base salary and 100 percent of their annual bonus. The Company will provide a matching contribution of 100 percent of the officers and key employees contribution limited to the first ten percent of the officers base salary and eight percent of the key employees base salary. The Companys matching contribution vests immediately. A trust fund has been established by the Company to accumulate the contributions made under this retirement plan. The Companys matching contributions were $1.7 million, $1.6 million and $1.4 million for the years ended December31, 2009, 2008 and 2007, respectively. 401(k) plan. The Pioneer USA 401(k) and Matching Plan (the 401(k) Plan) is a defined contribution plan established under the Internal Revenue Code Section401. All regular full-time and part-time employees of Pioneer USA are eligible to participate in the 401(k) Plan on the first day of the month following their date of hire. Participants may contribute an amount up to 80 percent of their annual salary into the 401(k) Plan. Matching contributions are made to the 401(k) Plan in cash by Pioneer USA in amounts equal to 200 percent of a participants contributions to the 401(k) Plan that are not in excess of five percent of the participants base compensation (the Matching Contribution). Each participants account is credited with the participants contributions, Matching Contributions and allocations of the 401(k) Plans earnings. Participants are fully vested in their account balances except for Matching Contributions and their proportionate share of 401(k) Plan earnings attributable to Matching Contributions, which proportionately vest over a four-year period that begins with the participants date of hire. During the years ended December31, 2009, 2008 and 2007, the Company recognized compensation expense of $11.8 million, $11.4 million and $10.9 million, respectively, as a result of Matching Contributions. Pioneer Long-Term Incentive Plan In May 2006, the Companys stockholders approved a new Long-Term Incentive Plan, which provides for the granting of incentive awards in the form of stock options, stock appreciation rights, performance units, restricted stock and restricted stock units to directors, officers and employees of the Company. The Long-Term Incentive Plan initially provided for the issuance of 4.6 million shares pursuant to awards under the plan. In May 2009, the shareholders of the Company approved an amendment to the plan authorizing the issuance of an additional 4.5 million shares pursuant to awards under the plan. The following table shows the number of shares available for issuance pursuant to awards under the Companys Long-Term Incentive Plan at December31, 2009: Approved and authorized awards 9,100,000 Awards issued after May3, 2006 (4,886,567 ) Awards available |
Commitments and Contingencies
Commitments and Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Commitments and Contingencies | NOTE I.Commitments and Contingencies Severance agreements. The Company has entered into severance and change in control agreements with its officers, subsidiary company officers and certain key employees. The current annual salaries for the parent company officers, the subsidiary company officers and key employees covered under such agreements total $43.8 million. Indemnifications. The Company has indemnified its directors and certain of its officers, employees and agents with respect to claims and damages arising from acts or omissions taken in such capacity, as well as with respect to certain litigation. Legal actions. The Company is party to the legal actions that are described below. The Company is also a party to other proceedings and claims incidental to its business. While many of these matters involve inherent uncertainty, the Company believes that the amount of the liability, if any, ultimately incurred with respect to such other proceedings and claims will not have a material adverse effect on the Companys consolidated financial position as a whole or on its liquidity, capital resources or future annual results of operations. The Company will continue to evaluate its litigation on a quarter-by-quarter basis and will establish and adjust any litigation reserves as appropriate to reflect its assessment of the then current status of litigation. MOSH Holding. On April11, 2005, the Company and its principal United States subsidiary, Pioneer Natural Resources USA, Inc., were named as defendants in MOSH Holding, L.P. v Pioneer Natural Resources Company; Pioneer Natural Resources USA, Inc.; Woodside Energy (USA) Inc.; and JPMorgan Chase Bank, N.A., as Trustee of the Mesa Offshore Trust (the Trust), which was formerly pending before the Judicial District Court of Harris County, Texas (334th Judicial District) (the Court). In April, 2009, the Company and all parties in the lawsuit reached an agreement to settle the lawsuit. Under the terms of the settlement agreement, the Company paid to the Trust the sum of $13.0 million in exchange for a full and final release of all claims made or that could have been made in the lawsuit (the Claims). In September, 2009, the Court entered a final judgment approving the settlement and dismissing all Claims. Certain unit holders in the Trust filed an appeal in Texas state court seeking to reverse the Courts final judgment, but subsequently withdrew the appeal. The settlement became final and non-appealable on February1, 2010. Colorado Notice of Violation. On May13, 2008, the Company was served with a Notice of Violation/Cease and Desist Order by the State of Colorado Department of Public Health and Environmental Water Quality Control Division. The Notice alleges violations of stormwater discharge permits in the Companys Raton Basin and Lay Creek operations, specifically deficiencies in the Companys stormwater management plans, failure to implement and maintain best management practices to protect stormwater runoff and failure to conduct inspections of the stormwater management system. The Company has filed an answer to the Notice asserting defenses to the allegations. The Company does not believ |
Derivative Financial Instrument
Derivative Financial Instruments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Derivative Financial Instruments | NOTE J.Derivative Financial Instruments The Company uses financial derivative contracts to manage exposures to commodity price, interest rate and foreign currency exchange rate fluctuations. The Company generally does not enter into derivative financial instruments for speculative or trading purposes. The Company also may enter physical delivery contracts to effectively provide commodity price protection. Because these contracts are not expected to be net cash settled, they are considered to be normal sales contracts and not derivatives. Therefore, physical delivery contracts are not accounted for as derivative financial instruments in the financial statements. All derivative contracts are recorded on the balance sheet at estimated fair value. Fair value is generally determined based on the credit-adjusted present value difference between the fixed contract price and the underlying market price at the determination date. Effective February1, 2009, the Company discontinued hedge accounting on all existing derivative instruments and since that date has accounted for derivative instruments using the mark-to-market (MTM) accounting method. Therefore, the Company recognizes all changes in the fair values of its derivative contracts as gains or losses in the earnings of the periods in which they occur. Changes in the fair value of effective cash flow hedges prior to the Companys discontinuance of hedge accounting on February1, 2009 were recorded as a component of AOCI Hedging, which is transferred to earnings when the hedged transaction is recognized in earnings. Any ineffective portions of changes in the fair value of hedge derivatives prior to February1, 2009 were recorded in the earnings of the periods of change. The ineffective portions were calculated as the difference between the change in fair value of the hedge derivative and the estimated change in cash flows from the item hedged. Fair value derivatives. The Company monitors the debt capital markets and interest rate trends to identify opportunities to enter into and terminate interest rate derivative contracts, with the objective of reducing the Companys costs of capital. As of December31, 2009 and December31, 2008, the Company was not a party to any fair value hedges. Cash flow derivatives. The Company utilizes commodity swap contracts, collar contracts and collar contracts with short puts to (i)reduce the effect of price volatility on the commodities the Company produces and sells, (ii)support the Companys annual capital budgeting and expenditure plans and (iii)reduce commodity price risk associated with certain capital projects. The Company also, from time to time, utilizes interest rate contracts to reduce the effect of interest rate volatility on the Companys indebtedness and forward currency exchange rate agreements to reduce the effect of exchange rate volatility. Oil prices. All material physical sales contracts governing the Companys oil production have been tied directly or indirectly to NYMEX oil prices. The following table sets forth the volumes in Bbls underlying the Companys outstanding oil derivative contracts and the weighted average NYMEX prices per Bbl f |
Major Customers and Derivative
Major Customers and Derivative Counterparties | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Major Customers and Derivative Counterparties | NOTE K.Major Customers and Derivative Counterparties Sales to major customers. The Companys share of oil and gas production is sold to various purchasers who must be prequalified under the Companys credit risk policies and procedures. The Company records allowances for doubtful accounts based on the age of accounts receivables and the financial condition of its purchasers and, depending on facts and circumstances, may require purchasers to provide collateral or otherwise secure their accounts. The Company is of the opinion that the loss of any one purchaser would not have an adverse effect on the ability of the Company to sell its oil and gas production. The following United States purchasers individually accounted for ten percent or more of the Companys consolidated oil, NGL and gas revenues, including the revenues from discontinued operations and the results of commodity hedges, in at least one of the years in the three years ended December31, 2009. The table provides the percentages of the Companys consolidated oil, NGL and gas revenues represented by the companies purchases during the periods presented: YearEndedDecember31, 2009 2008 2007 Plains Marketing LP 10 % 13 % 14 % Oneok Resources 5 % 6 % 11 % Occidental Energy Marketing, Inc. 7 % 9 % 11 % Enterprise Products Partners L.P. 6 % 10 % 7 % Derivative counterparties. The Company uses credit and other financial criteria to evaluate the credit standing of, and to select, counterparties to its derivative instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative instruments, associated credit risk is mitigated by the Companys credit risk policies and procedures. The following table provides the Companys derivative assets and liabilities by counterparty as of December31, 2009: Assets Liabilities (in thousands) JP Morgan Chase $ 27,115 $ 17,835 Societe Generale 14,386 39,144 Toronto Dominion 8,210 8,933 Calyon Corporate and Investment Bank 7,526 1,447 Barclays Capital 7,298 61,535 BNP Paribas 6,840 1,286 Credit Suisse 6,064 16,391 Deutsche Bank 5,486 27,495 Morgan Stanley 4,289 Citibank, N.A. 2,895 4,711 BMO Financial Group 1,077 17,993 Royal Bank of Scotland 524 J. Aron Company 377 4,815 Wells Fargo Bank, N.A. 187 9,461 UBS 3,016 Wachovia 70 35,598 Total $ 92,344 $ 249,660 |
Asset Retirement Obligations
Asset Retirement Obligations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Asset Retirement Obligations | NOTE L.Asset Retirement Obligations The Companys asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Companys credit-adjusted risk-free rate that is employed in the calculations of asset retirement obligations. The Company has no assets that are legally restricted for purposes of settling asset retirement obligations. The following table summarizes the Companys asset retirement obligation transactions during the years ended December31, 2009, 2008 and 2007: Year Ended December31, 2009 2008 2007 (in thousands) Beginning asset retirement obligations $ 172,433 $ 208,184 $ 225,913 Liabilities assumed in acquisitions 2,237 4,751 New wells placed on production and changes in estimates (a) 40,778 23,637 91,067 Disposition of wells (13,334 ) (30,599 ) Liabilities settled (45,010 ) (70,325 ) (95,980 ) Accretion of discount on continuing operations 11,012 7,903 6,115 Accretion of discount on discontinued operations 555 797 2,680 Currency translation 4,237 Ending asset retirement obligations $ 166,434 $ 172,433 $ 208,184 (a) The change in the 2009 estimate is primarily due to (i)lower gas prices used to calculate proved reserves at December31, 2009, which had the effect of shortening the economic life of wells and increasing the present value of future retirement obligations primarily in the Raton Basin, Hugoton and Uinta/Piceance gas fields and (ii)a $19.9 million increase in East Cameron facilities reclamation and abandonment estimates. The change in the 2008 estimate is primarily due to lower year-end prices for oil, NGL and gas being used to calculate proved reserves at December31, 2008, which had the effect of shortening the economic life of many wells and increasing the present value of future retirement obligations. For the year ended December31, 2007, the increase includes $66.0 million in reclamation and abandonment estimate revisions for the East Cameron facilities. The East Cameron facilities were destroyed by Hurricane Rita and increases in associated reclamation and abandonments estimates are reflected in net hurricane activity in the accompanying consolidated statements of operations. The Company records the current and noncurrent portions of asset retirement obligations in other current liabilities and other liabilities, respectively, in the accompanying consolidated balance sheets. As of December31, 2009 and December31, 2008, the current portions of the Companys asset retirement obligations were $13.9 million and $29.9 million, respectively. |
Interest and Other Income
Interest and Other Income | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Interest and Other Income | NOTE M.Interest and Other Income The following table provides the components of the Companys interest and other income during the years ended December31, 2009, 2008 and 2007: Year Ended December31, 2009 2008 2007 (in thousands) Alaskan Petroleum Production Tax credits (a) $ 94,989 $ 18,636 $ 74,861 Gain on early extinguishment of debt 20,515 Interest income 2,025 3,312 3,038 Other income 2,020 1,440 3,210 Deferred compensation plan income 1,034 2,007 1,247 Foreign currency remeasurement and exchange gains (b) 894 8,058 6 Credit card rebates 864 1,178 975 Legal settlements 2,495 Sales and other tax refunds 480 3,730 Royalty obligation accrual adjustment 4,816 Total interest and other income $ 102,306 $ 57,641 $ 91,883 (a) The Company earns Alaskan Petroleum Production Tax (PPT) credits on qualifying capital expenditures. The Company recognizes income from PPT credits when they are realized through cash refunds or sales. (b) The Companys operations in Africa periodically recognize monetary assets and liabilities in currencies other than their functional currencies. Associated therewith, the Company realizes foreign currency remeasurement and transaction gains and losses. |
Asset Divestitures
Asset Divestitures | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Asset Divestitures | NOTE N.Asset Divestitures During the years ended December31, 2009, 2008 and 2007, the Company completed asset divestitures for net proceeds of $51.6 million, $292.9 million and $420.9 million, respectively. Associated therewith, the Company recorded losses on disposition of assets in continuing operations of $774 thousand, $381 thousand and $2.2 million during the years ended December31, 2009, 2008 and 2007, respectively, and gains (losses) from the disposition of discontinued operations of $17.5 million, $(392) thousand and $100.2 million during the years ended December31, 2009, 2008 and 2007, respectively. The following describes the significant divestitures: Mississippi and Gulf of Mexico Shelf. In June 2009, the Company sold its Mississippi assets and in August 2009 completed the sale of substantially all of its shelf properties in the Gulf of Mexico for aggregate net proceeds of $23.6 million, resulting in a gain of $17.5 million. As a result of these divestitures, the Company reclassified the historical results of operations, comprehensive income and cash flows of its Mississippi and Gulf of Mexico shelf assets to discontinued operations. Tunisian Cherouq Concession. During 2007, Enterprise Tunisiene dActivities Petrolieres (ETAP) exercised its right to participate with the Company as a 50 percent owner in the Company-operated Cherouq Concession. Associated therewith, ETAP became obligated to compensate the Company for $74.5 million of past Cherouq Concession costs, subject to ETAPs audit. During 2009, ETAP paid the Company $27.2 million of the Cherouq Concession past costs, which were classified in other noncurrent assets in the accompanying consolidated balance sheet at December31, 2008. This cash receipt is classified as proceeds from disposition of assets in the accompanying consolidated statement of cash flows for the year ended December31, 2009. ETAP has informed the Company that it intends to commence the past costs audit during the first quarter of 2010. Derivative asset divestitures. During 2008, the Company terminated derivative assets prior to their contractual maturity dates. The accompanying consolidated statement of cash flows for the year ended December31, 2008 includes $155.0 million of proceeds from disposition of assets attributable to these derivative terminations. Net gains attributable to these derivatives are included in AOCI Hedging as of December31, 2008. See Note J for additional information regarding the Companys derivative activities. Canadian divestiture. In November 2007, the Company completed the sale of its Canadian subsidiaries for net proceeds of $525.7 million, resulting in a gain of $101.3 million. The net proceeds from the sale of the Canadian subsidiaries includes $132.8 million of proceeds that were deposited by the purchaser into the Companys Canadian escrow account pending receipt from the Canada Revenue Agency of appropriate tax certifications, which were received in January 2008. Accordingly, the accompanying consolidated statements of cash flows for the years ended December31, 2008 and 2007, include approximately $132.0 million and $392.9 million of proceeds from disposition of a |
Other Expense
Other Expense | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Other Expense | NOTE O.Other Expense The following table provides the components of the Companys other expense during the years ended December31, 2009, 2008 and 2007: Year Ended December31, 2009 2008 2007 (in thousands) Idle and terminated rig related costs (a) $ 57,991 $ 54,539 $ 8,682 Well servicing operations (b) 12,437 3,289 3,245 Contingency and environmental accrual adjustments 7,796 12,449 14,750 Other 7,169 6,530 5,872 Transportation commitment loss (c) 6,839 Foreign currency remeasurement and exchange losses (d) 6,140 112 184 Bad debt expense (e) 4,356 30,119 5,119 Inventory impairment (f) 2,275 Colorado severance tax audit adjustment 5,730 Rig impairment 3,382 Postretirement benefit obligation revaluation 8 (177 ) (10,561 ) Total other expense $ 105,011 $ 115,973 $ 27,291 (a) Represents idle drilling rig costs and costs incurred to terminate contractual drilling rig commitments prior to their contractual maturities. (b) Represents idle well servicing costs. (c) Primarily represents transportation contract deficiency payment obligations. (d) The Companys current operations in Africa give rise to periodic recognition of monetary assets and liabilities in currencies other than their functional currencies (see Note B for information regarding the functional currencies of subsidiary entities). Associated therewith, the Company realizes foreign currency remeasurement and transaction gains and losses. (e) Includes a $19.6 million SemGroup bad debt allowance in 2008. See Note I for more information. (f) Represents impairment charges to reduce the carrying value of excess lease and well equipment and supplies inventories to their estimated net realizable values. |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes | NOTE P.Income Taxes The Company accounts for income taxes in accordance with the provisions of ASC Topic 740. The Company and its eligible subsidiaries file a consolidated United States federal income tax return. Certain subsidiaries are not eligible to be included in the consolidated United States federal income tax return and separate provisions for income taxes have been determined for these entities or groups of entities. The tax returns and the amount of taxable income or loss are subject to examination by United States federal, state, local and foreign taxing authorities. The Company received tax refunds (net of tax payments) during 2009 of $42.6 million and made current and estimated tax payments (net of tax refunds) of $70.3 million and $29.5 million during 2008 and 2007, respectively. During 2009, the Company received $61.6 million of refunds as a result of carrying back 2007 and 2008 net operating losses. In November 2009, President Obama signed into law the Worker, Homeownership, and Business Assistance Act of 2009, which expanded the net operating loss carryback period from two years to five years and suspended certain loss utilization limitations. Pursuant to this new legislation, the Company filed an amended carryback claim requesting an additional $19.9 million refund. Payment is expected in March 2010. Also during 2009, pursuant to Tunisian law, the Company established an investment reserve equal to 20 percent of 2008 taxable profits on the Adam and Cherouq concessions and thereby reduced current taxes payable by $13.1 million with a corresponding offset to deferred income taxes in the Companys accompanying consolidated balance sheets. The investment reserve will be used to fund future drilling activity or pipeline infrastructure projects in Tunisia. ASC Topic 740 requires that the Company continually assess both positive and negative evidence to determine whether it is more likely than not that deferred tax assets can be realized prior to their expiration. Pioneer monitors Company-specific, oil and gas industry and worldwide economic factors and assesses the likelihood that the Companys net operating loss carryforwards (NOLs) and other deferred tax attributes in the United States, state, local and foreign tax jurisdictions will be utilized prior to their expiration. As of December31, 2009 and 2008, the Companys valuation allowances (relating primarily to foreign tax jurisdictions) were $44.2 million and $37.5 million, respectively. ASC Topic 740 also clarifies the accounting for uncertainty in income taxes recognized and prescribes a recognition threshold and measurement methodology for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. As of December31, 2009, the Company had no unrecognized tax benefits. The Companys policy is to account for interest charges with respect to income taxes as interest expense and any penalties, with respect to income taxes, as other expense in the consolidated statements of operations. The Company files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. With few exceptions, t |
Net Income
Net Income (Loss) Per Share Attributable To Common Stockholders | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Net Income (Loss) Per Share Attributable To Common Stockholders | NOTE Q.Net Income (Loss) Per Share Attributable To Common Stockholders Effective January1, 2009, the Company adopted the provisions of ASC 260 which outlines that share-based payments represent participating securities prior to vesting. In the calculation of basic net income (loss) per share attributable to common stockholders, participating securities are allocated earnings based on actual dividend distributions received plus a proportionate share of undistributed net income attributable to common stockholders, if any, after recognizing distributed earnings. The Companys participating securities do not participate in undistributed net losses because they are not contractually obligated to do so. The computation of diluted net income (loss) per share attributable to common stockholders reflects the potential dilution that could occur if securities or other contracts to issue common stock that are dilutive were exercised or converted into common stock or resulted in the issuance of common stock that would then share in the earnings of the Company. During periods in which the Company realizes a loss from continuing operations attributable to common stockholders, securities or other contracts to issue common stock would not be dilutive to net loss per share and conversion into common stock is assumed not to occur. In accordance with ASC 260, diluted net income (loss) per share is calculated under both the two-class method and the treasury stock method and the more dilutive of the two calculations is presented. For each of the three years in the period ended December31, 2009, the two-class method of calculating the Companys diluted net income (loss) per share was more dilutive than the treasury stock method. The Companys basic net income (loss) per share attributable to common stockholders is computed as (i)net income (loss) attributable to common stockholders, (ii)less participating share-based basic earnings (iii)divided by weighted average basic shares outstanding. The Companys diluted net income (loss) per share attributable to common stockholders is computed as (i)basic net income (loss) attributable to common stockholders, (ii)less participating share-based diluted earnings (iii)divided by weighted average diluted shares outstanding. The following table is a reconciliation of the Companys net income (loss) attributable to common stockholders to basic net income (loss) attributable to common stockholders and to diluted net income (loss) attributable to common stockholders for the years ended December31, 2009, 2008 and 2007: Year Ended December31, 2009 2008 2007 (in thousands) Net income (loss) attributable to common stockholders $ (52,106 ) $ 210,020 $ 372,728 Participating share-based basic earnings (196 ) (2,745 ) (6,142 ) Basic net income (loss) attributable to common stockholders (52,302 ) 207,275 366,586 Diluted adjustment to share-based earnings 9 21 Diluted net income (loss) attributable to common stockholders $ (52,302 ) $ 207,284 $ 366,607 |
Geographic Operating Segment In
Geographic Operating Segment Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Geographic Operating Segment Information | NOTE R.Geographic Operating Segment Information The Company has operations in only one industry segment, that being the oil and gas exploration and production industry; however, the Company is organizationally structured along geographic operating segments or regions. The Company has reportable continuing operations in the United States, South Africa, Tunisia and Other. Other is primarily comprised of 2007 operations in Equatorial Guinea and Nigeria. During 2007, the Company sold its Canadian assets, which had a carrying value of $424.4 million. The results of operations of those properties have been reclassified as discontinued operations and, aside from costs incurred for oil and gas activities, are excluded from the geographic operating segment information provided below. See Note V for information regarding the Companys discontinued operations. The following tables provide the Companys geographic operating segment data as of and for the years ended December31, 2009, 2008 and 2007. Geographic operating segment income tax benefits (provisions) have been determined based on statutory rates existing in the various tax jurisdictions where the Company has oil and gas producing activities. The Headquarters table column includes income and expenses that are not routinely included in the earnings measures internally reported to management on a geographic operating segment basis. United States SouthAfrica Tunisia Headquarters Consolidated Total (inthousands) Year Ended December31, 2009: Revenues and other income: Oil and gas $ 1,402,435 $ 57,217 $ 150,332 $ $ 1,609,984 Interest and other 102,306 102,306 Gain (loss) on disposition of assets, net 82 (856 ) (774 ) 1,402,517 57,217 150,332 101,450 1,711,516 Costs and expenses: Oil and gas production 345,885 5,507 28,934 380,326 Production and ad valorem taxes 98,371 98,371 Depletion, depreciation and amortization 536,075 64,802 21,802 28,881 651,560 Impairment of oil and gas properties 21,091 21,091 Exploration and abandonments 79,096 623 17,606 721 98,046 General and administrative 140,323 140,323 Accretion of discount on asset retirement obligations 11,012 11,012 Interest 173,361 173,361 Hurricane activity, net 17,313 17,313 Derivative losses, net 195,557 195,557 Other 54,223 3,768 47,020 105,011 1,152,054 70,932 72,110 596,875 1,891,971 Income (loss) from continuing operations before income taxes 250,463 |
Impairment of Oil and Gas Prope
Impairment of Oil and Gas Properties | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Impairment of Oil and Gas Properties | NOTES.Impairment of Oil and Gas Properties The Company reviews its assets for impairment, including intangible assets, oil and gas properties and other long-lived assets, whenever events or circumstances indicate that their carrying values may not be recoverable. During the years ended December31, 2009, 2008 and 2007, the Company recognized charges for the impairment of oil and gas properties in continuing operations of $21.1 million, $89.8 million and $26.2 million, respectively, and $14.5 million of impairment in discontinued operations during the year ended December31, 2008. United States impairment. During the first quarter of 2009 and the second half of 2008, declines in commodity prices provided indications that the carrying values of the Companys oil and gas properties in the Uinta/Piceance area and Mississippi may have been impaired. The Companys estimates of the undiscounted future cash flows attributed to the assets indicated that their carrying amounts were not expected to be recovered. Consequently, the Company recorded noncash charges during the first quarter of 2009 and the third quarter of 2008 of $21.1 million and $89.8 million, respectively, to reduce the carrying value of the Uinta/Piceance area oil and gas properties, and $14.5 million during the fourth quarter of 2008 to reduce the carrying value of its Mississippi assets. During 2009, the Company sold its Mississippi assets. The results of operations and impairment charge attributable to the Mississippi assets are included in discontinued operations, referred to in more detail in Note V. The impairment charges reduced the oil and gas properties carrying values to their estimated fair values on those dates, represented by the estimated discounted future cash flows attributable to the assets, which were derived from Level 3 fair value inputs. During the second quarter of 2007, the Company recorded a $5.7 million noncash impairment charge to reduce the carrying values of certain proved oil and gas properties located in Louisiana. The impairment charge reduced the carrying values of the assets to their estimated fair value. The Companys primary assumptions in preparing the estimated discounted future net cash flows to be recovered from oil and gas properties are based on (i)proved reserves and risk-adjusted probable reserves, (ii)managements commodity price outlook, including assumptions as to inflation of costs and expenses, (iii)the estimated discount rate that would be used by purchasers to assess the fair value of the assets and (iv)future income tax expense attributable to the net cash flows. Goodwill assessments. The Companys goodwill is attributable to a business combination that was completed in 2004 and is entirely attributable to United States reporting unit. The Company assesses its goodwill for impairment annually, during the third quarter using a July1 assessment date, and also whenever facts or circumstances indicate that the carrying value of its goodwill may be impaired. The Companys assessments of goodwill during the third quarters of 2009 and 2008 indicated that it was not impaired. As a result of declines in commodity prices and a significant d |
Volumetric Production Payments
Volumetric Production Payments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Volumetric Production Payments | NOTE T.Volumetric Production Payments During 2005, the Company sold 27.8million barrels-of-oil-equivalent (MMBOE) of proved reserves by means of three VPP agreements for net proceeds of $892.6 million, including the assignment of the Companys obligations under certain derivative hedge agreements. Proceeds from the VPPs were used to reduce outstanding indebtedness. The first VPP sold 58 billion cubic feet (Bcf) of gas volumes over a 59 month term from February 2005 through December 2009. The second VPP sold 10.8 MMBbls of oil volumes over an expected seven-year term that began in January 2006. The third VPP sold 6.0 Bcf of gas volumes over a 32-month term from May 2005 through December 2007, and 6.2 MMBbls of oil volumes over an expected five-year term that began in January 2006. The Companys VPPs represent limited-term overriding royalty interests in oil and gas reserves that: (i)entitle the purchaser to receive production volumes over a period of time from specific lease interests, (ii)are free and clear of all associated future production costs and capital expenditures associated with the reserves, (iii)are nonrecourse to the Company (i.e., the purchasers only recourse is to the reserves acquired), (iv)transfer title of the reserves to the purchaser and (v)allow the Company to retain the remaining reserves after the VPPs volumetric quantities have been delivered. The Company (i)removed the proved reserves associated with the VPPs, (ii)recognized VPP proceeds as deferred revenue which are being amortized on a unit-of-production basis to oil and gas revenues over the term of each VPP, (iii)retained responsibility for 100 percent of the production costs and capital costs related to VPP interests and (iv)no longer recognizes production associated with the VPP volumes. The following table provides information about the deferred revenue carrying values of the Companys VPPs. Gas Oil Total (in thousands) Deferred revenue at December31, 2008 $ 49,435 $ 275,706 $ 325,141 Less: 2009 amortization (49,435 ) (98,470 ) (147,905 ) Deferred revenue at December31, 2009 $ $ 177,236 $ 177,236 The remaining deferred revenue amounts will be recognized in oil revenues in the consolidated statements of operations as noted below, assuming the related VPP production volumes are delivered as scheduled (in thousands): 2010 $ 90,215 2011 44,951 2012 42,070 $ 177,236 |
Insurance Claims
Insurance Claims | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Insurance Claims | NOTEU.Insurance Claims As a result of Hurricane Rita in September 2005, the Companys East Cameron facility, located in the Gulf of Mexico shelf, was destroyed. As of December31, 2009, the Company estimates that it will cost approximately $6 million to complete the reclamation and abandonment of the East Cameron facility. The operations to reclaim and abandon the East Cameron facilities began in January 2007. The estimate of the remaining costs to reclaim and abandon the East Cameron facility is based upon an estimate by the Company. The Company has spent $199.0 million on the reclamation and abandonment of the East Cameron facility through December31, 2009. During 2009, 2008 and 2007, the Company recorded noncash obligation charges to net hurricane activity in the consolidated statements of operations for changes in estimates to reclaim and abandon the East Cameron facility of $19.9 million, $9.0 million and $66.0 million, respectively. The Company filed a claim with its insurance providers regarding the loss at East Cameron. Under the Companys insurance policies, the East Cameron facility had the following coverage limits: (a)$14 million of scheduled property value for the platform, which was received in 2005, (b)$4 million of scheduled business interruption insurance after a deductible waiting period, which was received in 2006, (c)$100 million of well restoration and safety, in total, for all assets per occurrence and (d)$400 million for debris removal coverage for all assets per occurrence. For the year ended December31, 2009, the Company has received $40.7 million from its insurance providers related to debris removal, which reduced the Companys recorded $35.0 million receivable (which was classified in other noncurrent assets in the accompanying consolidated balance sheet at December31, 2008) and credited net hurricane activity by $5.7 million. At the present, no recoveries have been reflected related to certain costs associated with plugging and abandonment and the well restoration and safety coverages. In 2007, the Company commenced legal actions against its insurance carriers regarding policy coverage issues, primarily related to debris removal, certain costs associated with plugging and abandonment, and the well restoration and safety coverages. The Company continues to expect that a substantial portion of the loss will be recoverable from insurance. |
Discontinued Operations
Discontinued Operations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Discontinued Operations | NOTEV.Discontinued Operations During 2009, 2008 and 2007, the Company sold its interests in the following significant oil and gas assets: Country Description of Assets Date Divested NetProceeds Gain (in millions) Canada Canadian assets November2007 $ 525.7 (a) $ 101.3 UnitedStates Mississippi assets June 2009 $ 0.1 $ 0.3 UnitedStates Gulf of Mexico shelf properties August 2009 $ 23.5 $ 17.2 (a) In November 2007, $132.8 million of the proceeds were deposited in a Canadian escrow account pending receipt from the Canada Revenue Agency of appropriate tax certifications which were received in January 2008. See Note E for additional information regarding the Canadian escrow account. The Company has reflected the results of operations of the above divestitures as discontinued operations, rather than as a component of continuing operations. The following table represents the components of the Companys discontinued operations for the years ended December31, 2009, 2008 and 2007: Year Ended December31, 2009 2008 2007 (in thousands) Revenues and other income: Oil and gas $ 13,730 $ 49,751 $ 181,395 Interest and other (a) 119,346 2,176 1,885 Gain (loss) on disposition of assets, net (b) 17,491 (392 ) 100,178 150,567 51,535 283,458 Costs and expenses: Oil and gas production 5,180 8,047 65,848 Production and ad valorem taxes (27 ) 204 409 Depletion, depreciation and amortization (b) 3,863 22,130 48,555 Impairment of oil and gas properties (c) 14,516 Exploration and abandonments (b) 288 8,030 15,095 General and administrative 188 727 12,153 Accretion of discount on asset retirement obligations (b) 555 797 2,680 Interest 31 389 Other 2,499 6,345 10,047 56,981 151,474 Income from discontinued operations before income taxes 140,520 (5,446 ) 131,984 Income tax benefit (provision): Current (1,300 ) (300 ) (4,915 ) Deferred (a) (49,140 ) 2,489 16,164 Income from discontinued operations $ 90,080 $ (3,257 ) $ 143,233 (a) By letter dated November6, 2009, the United States Department of Interior Minerals Management Service (MMS) notified the Company that royalty relief was available for certain payments made on qualifying deepwater leases in the Gulf of Mexico. The royalty relief relates to a federal court ruling that the MMS did not have the authority to insert price thresholds into deepwater Outer Continental Shelf (OCS) leases that were issued pursuant to the OCS Deep Water Royalty Relief Act of 1995. Associated therewith, the Com |
Subsequent Events
Subsequent Events | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Subsequent Events | NOTE W.Subsequent Events In accordance with SFAS 165, the Company has evaluated subsequent events through February 25, 2010, the date of issuance of the consolidated financial statements. On January21, 2010, the Company announced that it would call for redemption in cash its $6.1 million principal amount of outstanding 5.875% Senior Notes due 2012. The redemption date for the notes will be March15, 2010. The Company is not aware of any other reportable subsequent events through February25, 2010, except as disclosed in Note J. |
Document Information
Document Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Document Type | 10-K |
Amendment Flag | false |
Document Period End Date | 2009-12-31 |
Entity Information
Entity Information (USD $) | |||
12 Months Ended
Dec. 31, 2009 | Feb. 23, 2010
| Jun. 30, 2009
| |
Trading Symbol | PXD | ||
Entity Registrant Name | PIONEER NATURAL RESOURCES CO | ||
Entity Central Index Key | 0001038357 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 115,550,322 | ||
Entity Public Float | $2,891,492,634 |