Pioneer Natural Resources Co. completed on Dec. 21 the multibillion-dollar divestiture of its Delaware Basin assets in the Permian to Continental Resources Inc.
“Pioneer’s fourth quarter and full-year guidance assumed that the Delaware Basin assets would be included in the company’s financial results for the entire quarter. However, with the completion of the divestiture today, Pioneer will not include any operating or financial results attributable to the Delaware Basin assets after December 20, 2021 in its fourth-quarter results,” the company said in a release on Dec. 21.
Pioneer had previously announced the sale to Continental Resources on Nov. 3, marking the Oklahoma City-based company’s entry into the Permian Basin. At the time, Pioneer valued the all-cash transaction at approximately $3.25 billion. Although, after normal adjustments, the company said Dec. 21 the divestiture had resulted in cash proceeds closer to $3.1 billion.
Continental Resources Permian Basin Asset Map (Source: Continental Resources Inc. investor presentation)
Closing of the transaction completes Pioneer’s exit from the Delaware side of the Permian Basin, where it held a position covering approximately 92,000 net acres and net production of approximately 50,000 boe/d, mostly acquired through its purchase of Parsley Energy.
“This transaction returns Pioneer to being 100% focused on its high-margin, high-return Midland Basin assets, where we have the largest acreage position and drilling inventory,” CEO Scott D. Sheffield said in a Nov. 3 release by the company.
At the time, Sheffield said proceeds from the sale would be used to strengthen the Pioneer balance sheet including supplementing the company’s “industry leading base and variable dividend program.”
Citi Global Market Inc. was Continental’s financial adviser and White & Case LLP was the company’s legal adviser with respect to the transaction. Pioneer retained BofA Securities Inc. as a financial adviser and Vinson & Elkins LLP as legal adviser for the transaction.
Recommended Reading
US Policy to Hobble Midstream Cos.' Feedstock Shipments to China
2025-06-10 - Energy Transfer and Enterprise Products Partners, two major suppliers of ethane, will bear the brunt of a policy that will cut shipments to China by a quarter in 2025 and by 50% in 2026, according to the U.S. Energy Information Administration.
EIA: Tariff Chaos, OPEC Output Increases Spell $57/bbl WTI in 2026
2025-04-10 - Energy Information Administration price estimates for 2025 and 2026 are bad news for producers—if they come to pass—as breakeven prices for operators, even in the Permian Basin, require between $61/bbl and $62/bbl to remain profitable.
Liberty Energy on the Lookout for ‘Transformative Opportunities,’ CEO Says
2025-05-07 - Ron Gusek, the CEO who succeeded the current U.S. secretary of energy Chris Wright, has thrived in uncertain times before and is confident about Liberty Energy’s position.
Grappling with the Majors: Boardwalk Bets on Southeast’s Infrastructure Growth
2025-04-08 - Boardwalk Pipelines CEO Scott Hallam discusses his company’s niche in the Haynesville and on the west side of Appalachians.
Some Privates Capitalizing on Low Completion Costs Amidst Volatility
2025-06-17 - Liberty Energy CEO Ron Gusek says he sees private companies in strong financial positions adding rigs to drill while completion costs are low and then waiting for a strong price signal to move ahead on production.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.