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): March 12, 2001
PIONEER NATURAL RESOURCES COMPANY
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(Exact name of Registrant as specified in its charter)
DELAWARE 1-13245 75-2702753
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(State or other jurisdiction of Commission (I.R.S. Employer
incorporation or organization) File Number Identification Number)
1400 WILLIAMS SQUARE WEST, 5205 N. O'CONNOR BLVD., IRVING, TEXAS 75039
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(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code: (972) 444-9001
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
PIONEER NATURAL RESOURCES COMPANY
TABLE OF CONTENTS
Page
Item 9. Regulation FD Disclosure................................... 3
Signatures.......................................................... 5
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PIONEER NATURAL RESOURCES COMPANY
ITEM 9. REGULATION FD DISCLOSURE
The information in this document includes forward-looking statements that
are made pursuant to the Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements, and the business
prospects of Pioneer Natural Resources Company ("Pioneer" or the "Company"), are
subject to a number of risks and uncertainties which may cause the Company's
actual results in future periods to differ materially from the forward-looking
statements. These risks and uncertainties include, among other things,
volatility of oil and gas prices, product supply and demand, competition,
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 Annual Report on Form 10-K for the year
ended December 31, 2000 that is available from the Company or the Securities and
Exchange Commission.
Definitions of Oil and Gas Terms Used Herein
Within this Current Report on Form 8-K, the following oil and gas terms
have specific meanings: "Bbl" means a standard barrel of 42 United States
gallons; "BOE" means a barrel-of-oil equivalent and is a standard convention
used to express oil, natural gas liquids and gas volumes on a comparable oil
equivalent basis (with equivalent gas volumes determined using the ratio of six
thousand cubic feet of natural gas to one BOE); "MBOEPD" means thousand BOE per
day; "Btu" means British thermal unit; "MMBtu" means one million Btu; "Mcf"
means one thousand cubic feet and is a measure of natural gas volume; "MMcf"
means one thousand Mcf; "NGL" means natural gas liquid; and, "NYMEX" means the
New York Mercantile Exchange.
First Quarter 2001 Outlook Update
Based on current expectations and partial actual results recorded for the
first quarter ended March 31, 2001, the Company is furnishing the following
update of its first quarter 2001 outlook:
Prices and volumes. The Company's first quarter realized price for oil,
including the effects of price hedges, is expected to average approximately
$25.00 to $25.50 per Bbl. The Company's first quarter average realized price for
natural gas liquids is expected to be between $23.25 and $23.75 per Bbl.
Pioneer's first quarter realized price for gas, including the effects of price
hedges, is expected to average approximately $4.00 to $4.20 per Mcf.
Pioneer's first quarter production is now expected to average
approximately 110 MBOEPD, as compared to the Company's initial estimate of 112
to 114 MBOEPD. The adjustment from Pioneer's initial production estimate is
primarily attributable to reduced gas sales in Argentina. In the Neuquen basin
area, unanticipated compressor maintenance and curtailments due to unscheduled
downstream pipeline repairs are negatively impacting gas production for the
first quarter. The Company will lose gas sales volumes of approximately 15,000
Mcf per day until the pipeline repairs are completed in April. Additionally, in
the Tierra del Fuego area of Argentina, unscheduled plant downtime at a large
gas purchaser led to curtailment of Pioneer's gas production of approximately
12,000 Mcf per day for 17 days during the first quarter.
Costs and expenses. Pioneer's first quarter 2001 oil and gas production
costs are expected to average approximately $5.80 to $6.00 per BOE, as compared
to the Company's initial estimate of $5.70 to $6.15 per BOE. First quarter 2001
depreciation, depletion and amortization expense is expected to average
approximately $5.10 per BOE, as compared to Pioneer's initial estimated range of
$4.90 to $5.10 per BOE. Total exploration and abandonment expense is expected to
be between $17 million and $39 million, as compared to the Company's initial
estimate of $15 million to $30 million. The adjustment of the Company's
estimated exploration and abandonment expense is attributable to an increase in
and the timing of the Company's first quarter exploratory drilling, as is
further elaborated upon in "Exploration and development expenditures", below.
General and administrative expense is expected to be approximately $11 million
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during the first quarter of 2001, as compared to Pioneer's initial estimated
range of $9 million to $10 million. Interest expense is expected to be $36
million to $37 million, including approximately $3 million of non-cash interest,
as compared to the Company's initial estimated range of $38 million to $39
million.
Provision for income taxes. Pioneer estimates that its first quarter 2001
provision for income taxes will be approximately $3 million.
Exploration and development expenditures. The Company expects to incur
approximately $130 million to $140 million of costs on first quarter 2001 oil
and gas property acquisitions, exploration and development drilling activities.
Significant exploratory drilling projects still in progress or yet to be
initiated during the first quarter include one exploratory well in each of South
Africa and Gabon, two deepwater Gulf of Mexico exploratory wells and three Gulf
Coast continental shelf wells.
Hedging Program Update
During the first quarter of 2001, Pioneer increased its 2001 hedged oil
and gas sales volumes and has hedged a portion of its forecasted 2002, 2003 and
2004 gas sales. The following table summarizes the Company's open oil and gas
hedge contracts ("1st Quarter" includes only March 2001 hedges) and the weighted
average NYMEX equivalent prices for those contracts:
2001
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1st 2nd 3rd 4th
Quarter Quarter Quarter Quarter 2002 2003 2004
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Oil swaps
Barrels per day 19,033 19,209 8,740 2,000
Price per Bbl $ 28.38 $ 28.92 $ 29.28 $ 30.14
Oil costless collars
Barrels per day 7,000 7,000 2,000 2,000
Ceiling price per Bbl $ 23.33 $ 23.33 $ 31.43 $ 31.43
Floor price per Bbl $ 19.29 $ 19.29 $ 25.00 $ 25.00
Gas swaps
MMBtu per day 142,723 114,223 84,223 61,016 80,000 24,932 25,068
Price per Mcf $ 6.75 $ 4.15 $ 3.65 $ 2.90 $ 4.75 $ 4.50 $ 4.55
Gas costless collars
MMBtu per day 54,482 54,482 54,482 54,482 20,000
Ceiling price per Mcf $ 2.90 $ 2.90 $ 2.90 $ 2.90 $ 6.00
Floor price per Mcf $ 2.25 $ 2.25 $ 2.25 $ 2.25 $ 4.50
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PIONEER NATURAL RESOURCES COMPANY
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PIONEER NATURAL RESOURCES COMPANY
Date: March 12, 2001 By: /s/ RICH DEALY
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Rich Dealy
Vice President and Chief Accounting Officer
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