Pioneer Natural Resources Co. said July 31 it knocked out another target in its Permian pure-play strategy with the sale of its legacy West Panhandle position in Texas for $201 million.
The sale with an undisclosed buyer represents a full-field exit for Pioneer and includes all of the Irving, Texas-based company’s interests in the field, producing wells and associated infrastructure.
Pioneer is one of the largest operators in the West Panhandle gas field in Texas with a large contiguous land position of 239,500 net acres, 100% HBP, and 705 operated wells across the field.
In addition, Pioneer’s West Panhandle asset includes upside potential from more than 300 gross new drill locations in the Brown Dolomite and Red Cave formations, according to BMO Capital Markets, which was retained by the company to market the assets as its financial adviser.
Pioneer embarked on its strategy earlier this year to sell all of its assets outside of the Permian Basin, where the E&P plans to focus its entire $2.9 billion capex in 2018. Assets earmarked for sale, which in some cases have been part of the company’s portfolio for decades, include positions in the Eagle Ford, South Texas, West Panhandle and Rockies regions.
Pioneer has already made some headway on its strategy including an agreement in June to sell its Raton Basin assets in southeastern Colorado to Evergreen Natural Resources LLC for $79 million.
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