DALLAS, December 21, 2021--(BUSINESS WIRE)--Pioneer Natural Resources Company (NYSE:PXD) ("Pioneer" or the "Company") today announced that it has completed the previously announced divestiture of its Delaware Basin assets to Continental Resources (NYSE:CLR) for cash proceeds of $3.1 billion after normal closing adjustments.
Pioneer’s fourth quarter and full year guidance assumed that the Delaware Basin assets would be included in the Company’s financial results for the entire quarter. However, with the completion of the divestiture today, Pioneer will not include any operating or financial results attributable to the Delaware Basin assets after December 20, 2021 in its fourth quarter results.
CLR and PXD closed Delaware Basin deal - Dec 21
CLR and PXD closed Delaware Basin deal - Dec 21
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CLR and PXD closed Delaware Basin deal - Dec 21
Since the original purchase price was 3250, closing at 3100 means the asset generated 150 m in q4
The had guided 500 m year of fcf 16 per cent roi
The had guided 500 m year of fcf 16 per cent roi
Re: CLR and PXD closed Delaware Basin deal - Dec 21
It takes several months before the final "Purchase Price Adjustment" will be made. PXD has to pay CLR for the operating cash flow between the Effective Date and the Closing Date. The payment will just lower the book basis of the properties for CLR. It has no impact on the Income Statement.
The assets acquired from PXD should added ~55,000 Boe per day (70% oil).
The assets acquired from PXD should added ~55,000 Boe per day (70% oil).
Last edited by dan_s on Wed Dec 22, 2021 11:51 am, edited 1 time in total.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CLR and PXD closed Delaware Basin deal - Dec 21
December 16, 2021
RBC Capital analyst Scott Hanold maintained a Hold rating on Continental Resources (NYSE:CLR) on Wednesday, setting a price target of $60. Hanold expects Continental Resources to post earnings per share (EPS) of $1.02 for the fourth quarter of 2021.
The current consensus among 19 TipRanks analysts is for a Hold rating of shares in Continental Resources, with an average price target of $55.26. The analysts price targets range from a high of $70 to a low of $43.
--------------------
My current valuation of CLR is $68/share.
RBC Capital analyst Scott Hanold maintained a Hold rating on Continental Resources (NYSE:CLR) on Wednesday, setting a price target of $60. Hanold expects Continental Resources to post earnings per share (EPS) of $1.02 for the fourth quarter of 2021.
The current consensus among 19 TipRanks analysts is for a Hold rating of shares in Continental Resources, with an average price target of $55.26. The analysts price targets range from a high of $70 to a low of $43.
--------------------
My current valuation of CLR is $68/share.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CLR and PXD closed Delaware Basin deal - Dec 21
Thank you for update.
Must be nice being able to write out a check for 3.1 b out of petty cash!
They borrow half of it for less than 2 %. The asset will earn 16 % on investment
My point with the cash yes no P & L effect but validates anticipate cash flows
Must be nice being able to write out a check for 3.1 b out of petty cash!
They borrow half of it for less than 2 %. The asset will earn 16 % on investment
My point with the cash yes no P & L effect but validates anticipate cash flows