EXHIBIT 99.1
NEWS RELEASE
Investor Relations Contact: Susan Spratlen (972) 444-9001
Pioneer Replaces 167% of Production in 2000 at $4.66 per BOE
Dallas, Texas, January 24, 2001 -- Pioneer Natural Resources Company ("Pioneer")
(NYSE:PXD) (TSE:PXD) announced that as of December 31, 2000, its total proved
oil and gas reserves were 628 million barrels oil equivalent (MMBOE), or 3.8
trillion cubic feet (Tcf) natural gas equivalent, including 312 million barrels
(MMBbls) of crude oil and natural gas liquids and 1.9 Tcf of natural gas.
Discounted future net cash flow (present value at 10%) was $7.02 billion at year
end. In 2000, the Company added 73 MMBOE of proved reserves. Proved developed
reserves account for 77% of total proved reserves.
"These outstanding results reflect our success at refocusing on the drill bit
for growth. Our five-year average drill bit finding and development (F&D) cost
(excluding acquisitions) is $5.52 per BOE. During 2001, we plan a capital
program of $430 million and plan to drill approximately 465 wells including 25
exploration wells, exposing Pioneer to significant new reserves. We are also
moving recent discoveries in the deepwater Gulf of Mexico and South Africa
toward first production in 2002 and 2003," stated Scott D. Sheffield, Chairman
and CEO.
Pioneer replaced 167% of its production during 2000 at a finding cost of $4.66
per BOE. Costs incurred during 2000 totaled $340 million, including $67 million
for acquisitions and $273 million for development and exploration activities.
Excluding acquisitions, 2000 finding cost was $4.16 per BOE. Year-end proved
reserves and costs incurred are detailed in the attached supplemental schedule.
Reserves as stated above are based on year-end NYMEX prices for oil and natural
gas of $26.69 per barrel and $9.95 per Mcf, respectively. Under a supplemental
case using $5.00 per Mcf for natural gas, total proved reserves were 623 MMBOE,
F&D costs averaged $5.03 per BOE, reserve replacement was 155% and discounted
future net cash flow was $4.3 billion.
During 2000, Pioneer drilled 296 wells with 90% success worldwide, including 83
exploration and extension wells with 73% success. The Company drilled 176 wells
in the U.S., 35 wells in Canada, 84 wells in Argentina and one well in South
Africa. Domestic drilling included 92 Spraberry oil wells, 54 wells in the
Hugoton/West Panhandle gas field and 30 wells in other domestic fields.
Internationally, 95 of 120 wells were successful. International drilling was
primarily focused on core areas in the Neuquen Basin in Argentina and Northeast
British Columbia in Canada. Pioneer acquired 7.4 million BOE of proved reserves
for $4.89 per BOE primarily through the purchase of its interest in the Camden
Hills discovery in the deepwater GOM and through a purchase of additional
interests in the Chinchaga field in Canada.
Pioneer is a large independent oil and gas exploration and production company
with operations in the United States, Canada, Argentina and South Africa.
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 Press
Release are forward-looking statements that are made pursuant to the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, and the business prospects of Pioneer Natural
Resources Company, are subject to a number of risks and uncertainties which may
cause the Company's actual results in future periods to differ materially from
the forward-looking statements. These risks and uncertainties include, among
other things, volatility of oil and gas prices, product supply and demand,
competition, government regulation or action, litigation, the costs and results
of drilling and operations, the Company's ability to replace reserves or
implement its business plans, access to and cost of capital, uncertainties about
estimates of reserves, quality of technical data, and environmental risks. These
and other risks are described in the Company's 10-K and 10-Q Reports and other
filings with the Securities and Exchange Commission.
PIONEER NATURAL RESOURCES COMPANY
SUPPLEMENTAL INFORMATION
Year ended December 31, 2000
South Africa
United & Other
States Argentina Canada Foreign Total
--------- --------- -------- ------- ----------
Proved reserves:
Oil (MBbls):
Balance, January 1, 2000............ 127,878 25,644 1,266 - 154,788
Revisions of previous estimates:
Related to price changes......... 6,513 - (79) - 6,434
Other............................ 7,689 (2,508) 497 - 5,678
Purchases of mineral-in-place....... 841 - - - 841
New discoveries and extensions...... 4,819 7,908 53 5,552 18,332
Production.......................... (8,989) (3,238) (308) - (12,535)
Sales of mineral-in-place........... (401) - - - (401)
--------- ------- ------- ------- ---------
Balance, December 31, 2000.......... 138,350 27,806 1,429 5,552 173,137
Natural Gas Liquids (MBbls):
Balance, January 1, 2000............ 131,188 4,153 2,704 - 138,045
Revisions of previous estimates:
Related to price changes......... 4,459 - (40) - 4,419
Other............................ 634 3,919 51 - 4,604
Purchases of mineral-in-place....... 396 - 140 - 536
New discoveries and extensions...... - 158 85 - 243
Production.......................... (7,883) (193) (303) - (8,379)
Sales of mineral-in-place........... (342) - - - (342)
--------- ------- ------- ------- ---------
Balance, December 31, 2000.......... 128,452 8,037 2,637 - 139,126
Natural Gas (MMcf):
Balance, January 1, 2000............ 1,314,842 415,620 145,251 - 1,875,713
Revisions of previous estimates:
Related to price changes......... 29,055 - (10,116) - 18,939
Other............................ 34,857 (15,558) 103 - 19,402
Purchases of mineral-in-place....... 28,071 - 7,768 - 35,839
New discoveries and extensions...... 66,486 43,914 6,132 - 116,532
Production.......................... (83,930) (35,694) (16,219) - (135,843)
Sales of mineral-in-place........... (35,054) - - - (35,054)
--------- ------- ------- ------- ---------
Balance, December 31, 2000.......... 1,354,327 408,282 132,919 - 1,895,528
Equivalent Barrels (MBOE):
Balance, January 1, 2000............ 478,206 99,067 28,179 - 605,452
Revisions of previous estimates:
Related to price changes......... 15,814 - (1,805) - 14,009
Other............................ 14,133 (1,182) 565 - 13,516
Purchases of mineral-in-place....... 5,916 - 1,435 - 7,351
New discoveries and extensions...... 15,900 15,385 1,160 5,552 37,997
Production.......................... (30,860) (9,380) (3,315) - (43,555)
Sales of mineral-in-place........... (6,586) - - - (6,586)
--------- ------- ------- ------- ---------
Balance, December 31, 2000.......... 492,523 103,890 26,219 5,552 628,184
========= ======= ======= ======= =========
Costs incurred for oil and gas producing activities ($000):
Property acquisition costs:
Proved.............................. $ 26,102 $ 1,169 $ 8,709 $ - $ 35,980
Unproved............................ 28,199 520 2,506 - 31,225
--------- ------ ------ ------ -------
54,301 1,689 11,215 - 67,205
Exploration costs...................... 65,023 35,406 6,744 23,597 130,770
Development costs...................... 84,798 31,335 25,632 - 141,765
--------- ------ ------ ------ -------
$ 204,122 $68,430 $43,591 $23,597 $339,740
========= ====== ====== ====== =======
Reserve replacement percentage........... 168% 151% 41% n/a 167%
========= ====== ====== =======
Finding costs per BOE of proved
reserves added......................... $ 3.94 $ 4.82 $ 32.17 $ 4.25 $ 4.66
========= ====== ====== ====== =======