Pioneer Natural Resources Company has signed an agreement with Evergreen Natural Resources to divest all of its assets in the Raton Basin in southeastern Colorado for $79m.
Image: Pioneer Natural Resources sells its assets in the Raton Basin in southeastern Colorado. Photo: Photo by rawpixel on Unsplash.
The deal is subject to normal closing adjustments. It is expected to close by the end of July 2018, subject to the satisfaction of customary closing conditions.
Timothy L. Dove, President and CEO, stated, “I want to personally thank all of our Raton employees for their strong efforts, dedication and the value they have created for our shareholders. I am pleased that Evergreen plans to build on this success.”
The assets being sold represent all of Pioneer’s interests in the field, including all of its producing gas wells and the associated infrastructure. The sale of Pioneer’s Raton assets is expected to result in a pretax noncash loss of $65 million to $75 million, which is expected to be recorded during the second quarter of 2018. Net production from Raton assets averaged approximately 84 million cubic feet per day (14 thousand barrels of oil equivalent per day) during the first quarter of 2018, consisting entirely of natural gas.