Pioneer Natural Resources Announces Decommissioning of Brady Sand Mine
November 15 2018 - 7:30AM
Business Wire
Pioneer Natural Resources Company (NYSE:PXD) (“Pioneer”
or “the Company”) today announced that it will close its sand mine
located in Brady, Texas, and transition proppant supply to West
Texas sand sources. The Company expects to wind down operations
during the first quarter of 2019 and transition to 100% West Texas
sand by May 2019. Pioneer anticipates sand savings of approximately
$400,000 per well based upon full utilization of West Texas sand.
Associated with the closing of the Brady sand mine, the Company
expects to recognize a noncash after-tax charge of $350 million to
$400 million in the fourth quarter of 2018.
Timothy L. Dove, Pioneer President and CEO stated, “Our Brady
sand mine and other Brady sand sources have been an integral part
of Pioneer’s success and were critical in our transition to
horizontal shale development. However, new West Texas sand mines
with their low cost of mining and proximity to our Permian acreage
position have provided us a more cost-effective, long-term source
of sand supply. This shift will decrease our costs, increase
capital efficiencies and benefit corporate returns. We thank our
Pioneer Sands employees for their dedication and many efforts over
the years.”
Pioneer is a large independent oil and gas exploration and
production company, headquartered in Dallas, Texas, with operations
in the United States. For more information, visit www.pxd.com.
Except for historical information contained herein, the
statements in this news release are 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 are subject to a
number of risks and uncertainties that may cause Pioneer's actual
results in future periods to differ materially from the
forward-looking statements. These risks and uncertainties include,
among other things, volatility of commodity prices, government
regulation or action, the ability to obtain approvals from third
parties and negotiate agreements with third parties on mutually
acceptable terms, completion of planned divestitures and
litigation. These and other risks are described in the Company's
Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
other filings with the Securities and Exchange Commission. In
addition, the Company may be subject to currently unforeseen risks
that may have a materially adverse impact on it. Accordingly, no
assurances can be given that the actual events and results will not
be materially different than the anticipated results described in
the forward-looking statements. Pioneer undertakes no duty to
publicly update these statements except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20181115005228/en/
Pioneer Natural Resources Contacts:InvestorsNeal
Shah – 972-969-3900Tom Fitter – 972-969-1821Michael McNamara –
972-969-3592
Media and Public AffairsTadd Owens – 972-969-5760Robert
Bobo – 972-969-4020
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