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SEC Form 8-K Filed March 12, 2022

SEC Form 8-K Filed March 12, 2022

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, 2021 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 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 ------------------------------

1st

2nd

3rd

4th

Quarter

Quarter

Quarter

Quarter

2002

2003

2004

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

Investor Relations Contact: Susan Spratlen 972-444-9001

Important Legal Information ©2000 Pioneer Natural Resources Company
This information was published Monday, March 12, 2022

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