News: Pioneer Natural Sold Eagle Ford Shale $PXD

Pioneer Natural Resources Company  and the Company and Reliance Holding USA, Inc. has closed the previously announced sale of their Eagle Ford Shale Midstream business to an affiliate of Enterprise Products Partners L.P. for $2.15 billion, subject to normal closing adjustments. Pioneer owned 50.1% of EFS Midstream and Reliance owned the remaining 49.9%.

The purchase price for the EFS Midstream business will be paid by Enterprise in two installments: $1.15 billion was paid at closing, before normal closing adjustments, and approximately $1 billion will be paid twelve months after closing. After retiring the debt of EFS Midstream of approximately $125 million, Pioneer’s share of the net sale proceeds is $530 million at closing and approximately $500 million one year later. The sale of EFS Midstream is expected to result in a pretax gain in excess of $725 million to Pioneer, which will be recognized in the third quarter of 2015.

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