Dallas firm divests $201 million in West Panhandle assets

Oil assets in the Texas Panhandle were sold this week in a $201 million deal involving Pioneer Natural Resources Company of Dallas and an undisclosed buyer.

Pioneer Natural made the announcement saying it sold all of its assets in the West Panhandle field and the agreement is expected to close in the third quarter of the year. The assets represent all of Pioneer’s producing wells and the associated infrastructure.

The sale is expected to result in a pretax gain of $155 million to $170 million which is expected to be recorded in the third quarter.  Net production from the West Panhandle field averaged about 6,000 barrels of oil equivalent a day during the first quarter of 2018.

 

Timothy L. Dove, president and CEO, stated, “Throughout Pioneer’s history, the West Panhandle field has been a core asset that has added significant value for our shareholders and consistently generated excess cash flow for reinvestment.”