PXD selling stock to pay for acquisition

[dan_s]

Pioneer Natural Resources Company (PXD) (“Pioneer” or the “Company”) today announced that it has priced an underwritten public offering of 5.25 million shares of its common stock for gross proceeds of approximately $827 million. The Company has granted the underwriters an option for 30 days to purchase up to an additional 787,500 shares of the Company’s common stock. Credit Suisse, J.P. Morgan, Deutsche Bank Securities and Morgan Stanley are acting as joint book-running managers for the offering. The underwriters may offer the shares from time to time in one or more transactions on the New York Stock Exchange, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices. The offering is expected to close on or about June 21, 2016, subject to customary closing conditions.

The Company expects to use a portion of the proceeds from the offering to fully fund its recently announced pending acquisition of oil and gas properties in the Midland Basin (the “Pending Acquisition”) and the remaining portion of the proceeds for general corporate purposes, including funding the drilling program on the acreage to be acquired in the Pending Acquisition and continuing to develop its acreage position in the Spraberry/Wolfcamp play in West Texas. The offering is not conditioned on the consummation of the Pending Acquisition, and if the Pending Acquisition is not consummated, the Company intends to use the proceeds from the offering for general corporate purposes, including continuing to develop its acreage position in the Spraberry/Wolfcamp play in West Texas.

PXD also announce 2017 production growth of 13% to 17%, compared to 12% YOY growth in 2016.