By Melodie Warner
Pioneer Natural Resources Co. (PXD) has agreed to acquire
Pioneer SouthWest Energy Partners L.P. (PSE) in a boosted all-stock
deal that values Pioneer SouthWest at roughly $1.46 billion.
Pioneer Natural first offered in May to buy the Pioneer
Southwest interest it didn't already own in a stock-for-unit
exchange that valued the company at about $1.1 billion. Pioneer USA
owns 100% of the membership interests in the general partner of
Pioneer Southwest and about 52% of Pioneer Southwest's units
outstanding.
Both Pioneer Natural and Pioneer Southwest have horizontal
drilling operations in the Midland Basin in West Texas.
Pioneer Natural on Monday said it will issue 0.2325 of a share
for every Pioneer SouthWest unit, which values each unit at $40.83,
a 1% premium to Pioneer SouthWest's closing stock price on Friday.
Pioneer SouthWest units were inactive in premarket dealings and are
up 78% so far this year.
Pioneer Natural expects the deal to result the issuance of an
additional 3.95 million shares.
Pioneer Natural is a Dallas-based oil and gas exploration and
production company with operations in the U.S.
Pioneer Southwest, also based in Dallas, has production and
drilling operations in the Spraberry field in West Texas.
Pioneer Natural shares were recently down 22 cents to $175.40
premarket. The stock is up 65% through Friday's close.
Write to Melodie Warner at melodie.warner@wsj.com
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