E&P Financing Case Study: War Bonds

2020 wasn’t looking like the kind of year an E&P could access capital—and certainly not at less than 2%. For Pioneer Natural Resources Co., it has been

A rig drills for nonpotable source water near an existing Pioneer producing pad in the southern Midland Basin.

By
Nissa
Darbonne
Oil and Gas Investor

In late February, the Pioneer Natural Resources Co. team wrapped the year-end earnings call and was filing the 10-K while readying to refinance senior notes due 2021 and 2022.

In January, it had paid off its $450 million of 7.5% senior notes due this year, using cash on hand.

It had an undrawn $1.5 billion bank revolver. The 2021 maturing notes totaled $500 million. After that, it had $600 million maturing in 2022; $500 million in 2026; and $250 million in 2028.

Cash on hand was $631 million.

It was now Friday, Feb. 21. “We had our 10-K ready to be filed, along with a new bond offering ready to go—five- and 10-year bonds,” said Rich Dealy, president and COO.

The 10-K was filed on Monday. The bond offerings wouldn’t happen, though.

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Onshore

Nissa Darbonne

Nissa Darbonne is author of The American Shales and has been a journalist since 1984, beginning in the oil and gas fields of South Louisiana. She writes for Oil and Gas Investor and is actively involved in Hart's conference agendas.

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