By Debbie Cai
Pioneer Natural Resources Co. (PXD) is proposing to buy all the
outstanding shares of Pioneer Southwest Energy Partners LP (PSE) it
doesn't already own through a stock-for-unit exchange that values
the company at about $1.1 billion.
Shares of Pioneer Southwest, a Delaware-limited partnership
headquartered in Dallas, Texas, jumped 19% to $31.10 after hours.
The stock is up 15% so far this year.
Pioneer Natural currently owns about 52.4% of the 35,713,700
outstanding common units of the limited partnership. The proposed
takeover would be structured as a merger of Pioneer Southwest with
a wholly owned subsidiary of Pioneer Natural, which is currently
the general partner of Pioneer Southwest.
Pioneer Natural, an oil-and-gas exploration-and-production
company with drilling activities in the Permian Basin, is offering
to exchange 0.2234 of a share of its stock for each outstanding
publicly held Pioneer Southwest unit. Pioneer Natural had about
123.4 million shares outstanding as of Feb. 8.
Last week, Pioneer Natural reported that its first-quarter
earnings fell 53% as its results were hurt by a loss on
derivatives, though revenue and production increased.
Shares of Pioneer Natural slid 29 cents to $137.50 after hours.
The stock is up 31% over the past 12 months.
Write to Debbie Cai at debbie.cai@dowjones.com
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