Oil and gas company
Pioneer Natural Resources Company
) announced the divestment of its Alaska subsidiary to Caelus
Energy Alaska LLC for cash proceeds of $300 million. The company
expects to recognize a non-cash loss of about $30 million
associated with the sale when it reports earnings for the first
quarter of 2014.
Pioneer Natural Resources is a large independent oil and gas
exploration and production company, headquartered in Dallas, TX
with operations in the U.S. The company's oil-weighted reserves
base and large drilling inventory (over 20,000 liquids rich
drilling locations in low-risk resource plays) with significant
resource potential are catalysts to unlock value for
shareholders. The company offers a deep inventory of high-return,
liquids-leveraged drilling opportunities.
For 2014, Pioneer plans to spend $3.3 billion in total. Of this,
the company has planned drilling capex of $3 billion and capital
for vertical integration of $0.3 billion. An amount of $2.2
million has been allocated for the northern Spraberry/Wolfcamp
area; $205 million has been set aside for the southern Wolfcamp
joint venture area, $545 million for Eagle Ford shale and $100
million for other assets.
However, the company's long-term production and reserve growth
depends to a certain extent on its acquire-and-exploit mode.
Pioneer might therefore find it difficult to complete accretive
transactions in the future, which could negatively impact its
Pioneer Natural Resources currently retains a Zacks Rank #3
(Hold), implying that it is expected to perform in line with the
broader U.S. equity market over the next one to three months.
Meanwhile, one can consider better-ranked players in the energy
Flotek Industries Inc.
Helmerich & Payne Inc.
Exterran Holdings, Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
EXTERRAN HLDGS (EXH): Free Stock Analysis
FLOTEK INDU INC (FTK): Free Stock Analysis
HELMERICH&PAYNE (HP): Free Stock Analysis
PIONEER NAT RES (PXD): Free Stock Analysis
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